Will Hudbay Minerals (NYSE:HBM) be in financial trouble before September?


USD 3.81  0.11  2.81%   

Hudbay Minerals is scheduled to announce its earnings today. Hudbay Minerals Invested Capital is relatively stable at the moment as compared to the past year. The company's current value of Invested Capital is estimated at 5.31 Billion. Invested Capital Average is expected to hike to about 5.3 B this year, although Enterprise Value will most likely fall to nearly 2.8 B. Although many aggressive traders are getting into basic materials space, Hudbay Minerals may or may not be your first choice.
Published over a month ago
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Hudbay Minerals has 1.26 B in debt with debt to equity (D/E) ratio of 0.81, which is OK given its current industry classification.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hudbay Minerals has an asset utilization ratio of 35.05 percent. This denotes that the company is making $0.35 for each dollar of assets. An increasing asset utilization means that Hudbay Minerals is more efficient with each dollar of assets it utilizes for everyday operations.
Hudbay Minerals financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Hudbay Minerals, including all of Hudbay Minerals's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Hudbay Minerals assets, the company is considered highly leveraged. Understanding the composition and structure of overall Hudbay Minerals debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

How important is Hudbay Minerals's Liquidity

Hudbay Minerals financial leverage refers to using borrowed capital as a funding source to finance Hudbay Minerals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hudbay Minerals financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Hudbay Minerals's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Hudbay Minerals, but it might be worth checking our own buy vs. sell analysis

Breaking down Hudbay Minerals Further

The entity reported the last year's revenue of 1.57 B. Reported Net Loss for the year was (120.44 M) with profit before taxes, overhead, and interest of 682.42 M.

Asset Breakdown

4.1 B
Assets Non Current
Current Assets
Total Assets4.88 Billion
Current Assets662.65 Million
Assets Non Current4.1 Billion
Goodwill30.07 Million
Tax Assets106.4 Million

Another 3 percent hike for Hudbay Minerals

Hudbay Minerals new standard deviation upsurges over 4.54.
As of the 8th of August, Hudbay Minerals retains the risk adjusted performance of (0.21), and Market Risk Adjusted Performance of (0.36). Hudbay Minerals technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We have analyzed nineteen technical drivers for Hudbay Minerals, which can be compared to its competitors. Please check out Hudbay Minerals treynor ratio, and the relationship between the standard deviation and downside variance to decide if Hudbay Minerals is priced fairly, providing market reflects its last-minute price of 4.01 per share. Given that Hudbay Minerals has jensen alpha of (0.70), we strongly advise you to confirm Hudbay Minerals's regular market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Hudbay Minerals

While some other companies in the copper industry are either recovering or due for a correction, Hudbay Minerals may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 8th of August 2022, our analysis shows that Hudbay Minerals hyperactively responds to market trends. The company is undervalued and projects close to average odds of financial distress for the next 2 years. Our latest 90 days recommendation on the company is Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Hudbay Minerals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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