Hudbay Beneish M Score

HBM
 Stock
  

USD 4.17  0.23  5.23%   

This module uses fundamental data of Hudbay Minerals to approximate the value of its Beneish M Score. Hudbay Minerals M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Hudbay Minerals Piotroski F Score and Hudbay Minerals Altman Z Score analysis.
  
Debt Non Current is expected to hike to about 1.3 B this year, although the value of Total Debt will most likely fall to nearly 1.3 B. Hudbay Minerals EBITDA Margin is relatively stable at the moment as compared to the past year. The company's current value of EBITDA Margin is estimated at 0.20. Enterprise Value over EBITDA is expected to hike to 14.23 this year, although the value of Debt to Equity Ratio will most likely fall to 1.90.
At this time, it appears that Hudbay Minerals is an unlikely manipulator. The earnings manipulation may begin if Hudbay Minerals' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Hudbay Minerals executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Hudbay Minerals' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.42
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.05Focus
Asset Quality1.51Focus
Expense Coverage0.97Focus
Gross Margin Strengs1.38Focus
Accruals Factor0.97Focus
Depreciation Resistance1.14Focus
Net Sales Growth0.92Focus
Financial Leverage Condition0.92Focus

Hudbay Minerals Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Hudbay Minerals' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues1.4 B1.5 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense38.7 M43 M
Moderately Down
Decreasing
Very volatile
Net Cash Flow from Operations403.2 M383.8 M
Sufficiently Up
Increasing
Stable
Depreciation Amortization and Accretion324.1 M359.8 M
Moderately Down
Increasing
Slightly volatile
Total Assets4.9 B4.6 B
Notably Up
Increasing
Slightly volatile
Investments19.5 M19 M
Fairly Up
Decreasing
Slightly volatile
Investments CurrentM7.9 M
Fairly Down
Increasing
Stable
Investments Non Current11.5 M11.2 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net3.9 B3.7 B
Sufficiently Up
Increasing
Slightly volatile
Trade and Non Trade Receivables213.1 M220.2 M
Sufficiently Down
Increasing
Slightly volatile
Total Liabilities3.1 B3.1 B
Fairly Down
Increasing
Slightly volatile
Current Assets662.6 M656.7 M
Slightly Up
Decreasing
Slightly volatile
Assets Non Current4.1 BB
Sufficiently Up
Increasing
Slightly volatile
Current Liabilities482.1 M509.2 M
Notably Down
Increasing
Slightly volatile
Liabilities Non Current2.6 B2.6 B
Fairly Down
Increasing
Slightly volatile
Total Debt1.3 B1.3 B
Sufficiently Down
Increasing
Slightly volatile
Debt Current55.6 M62.8 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current1.3 B1.3 B
Slightly Up
Increasing
Slightly volatile
Operating Income18.7 M18.3 M
Fairly Up
Decreasing
Stable
Gross Margin0.120.087
Significantly Up
Decreasing
Slightly volatile

Hudbay Minerals Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Hudbay Minerals' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Hudbay Minerals in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Hudbay Minerals' degree of accounting gimmicks and manipulations.

About Hudbay Minerals Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

110.37 Million

Hudbay Minerals Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 110.37 Million

Hudbay Minerals Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Hudbay Minerals. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues1.4 B1.47 B1.24 B1.09 B1.5 B1.39 B
Total Assets4.73 B4.69 B4.46 B4.67 B4.62 B4.88 B
Current Assets665.54 M772.39 M663.03 M755.67 M656.73 M662.65 M
Assets Non Current4.06 B3.91 B3.8 B3.91 B3.96 B4.1 B
Total Liabilities2.62 B2.51 B2.61 B2.97 B3.14 B3.05 B
Current Liabilities414.15 M327.16 M391.75 M448.79 M509.22 M482.14 M
Total Debt1.11 B1.09 B1.14 B1.42 B1.34 B1.29 B
Debt Current45.09 M32.9 M60.86 M58.19 M62.84 M55.64 M
Debt Non Current1.07 B1.05 B1.07 B1.36 B1.28 B1.29 B
Operating Income352.5 M298.86 M33.48 M(37.19 M)18.27 M18.75 M
Investments25.3 M25.52 M13.34 M18.74 M19.02 M19.53 M
Investments Current2.84 M10.37 M2.05 M3.07 M7.87 M6.96 M
Gross Margin0.20.290.250.120.0360.087

About Hudbay Minerals Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Hudbay Minerals's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Hudbay Minerals using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Hudbay Minerals based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Hudbay Minerals Inc., a diversified mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. HudBay Minerals Inc. was founded in 1927 and is headquartered in Toronto, Canada. Hudbay Minerals operates under Copper classification in the United States and is traded on New York Stock Exchange.

Hudbay Minerals Investors Sentiment

The influence of Hudbay Minerals' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Hudbay. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Hudbay Minerals' public news can be used to forecast risks associated with investment in Hudbay. The trend in average sentiment can be used to explain how an investor holding Hudbay can time the market purely based on public headlines and social activities around Hudbay Minerals. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Hudbay Minerals' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Hudbay Minerals' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Hudbay Minerals' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Hudbay Minerals.

Hudbay Minerals Implied Volatility

    
  87.39  
Hudbay Minerals' implied volatility exposes the market's sentiment of Hudbay Minerals stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hudbay Minerals' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Hudbay Minerals stock will not fluctuate a lot when Hudbay Minerals' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Hudbay Minerals in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Hudbay Minerals' short interest history, or implied volatility extrapolated from Hudbay Minerals options trading.

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Please check Hudbay Minerals Piotroski F Score and Hudbay Minerals Altman Z Score analysis. Note that the Hudbay Minerals information on this page should be used as a complementary analysis to other Hudbay Minerals' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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When running Hudbay Minerals price analysis, check to measure Hudbay Minerals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hudbay Minerals is operating at the current time. Most of Hudbay Minerals' value examination focuses on studying past and present price action to predict the probability of Hudbay Minerals' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Hudbay Minerals' price. Additionally, you may evaluate how the addition of Hudbay Minerals to your portfolios can decrease your overall portfolio volatility.
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Is Hudbay Minerals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hudbay Minerals. If investors know Hudbay will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hudbay Minerals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
0.028
Return On Assets
0.0266
Return On Equity
-0.0521
The market value of Hudbay Minerals is measured differently than its book value, which is the value of Hudbay that is recorded on the company's balance sheet. Investors also form their own opinion of Hudbay Minerals' value that differs from its market value or its book value, called intrinsic value, which is Hudbay Minerals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hudbay Minerals' market value can be influenced by many factors that don't directly affect Hudbay Minerals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hudbay Minerals' value and its price as these two are different measures arrived at by different means. Investors typically determine Hudbay Minerals value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hudbay Minerals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.