One-glance verdict
Overvalued
$7.18 our estimate vs market $24.88
Wall Street consensus: $34.94 (386.5% higher than our fair-value estimate)
246% above our estimate, beyond the bull case
Fundamentals snapshot
Hudbay Minerals Inc.
HBM · NYQ · Basic Materials · Copper
Current price
$24.88
52-week range
$13.00 - $32.15
Market cap
$11.05B
Balance sheet
Watch
6.27x Adequate
Net debt $153.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 9.4% last year.
- Reward Returns 16.7% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 4/10 years.
What this company does
Hudbay Minerals Inc.
Hudbay Minerals is a mining company that digs up and sells valuable metals like copper, gold, and zinc from its properties in North and South America. Most of its revenue comes from selling copper, a critical material needed for everything from electrical wiring and electronics to construction projects. Because the company's income is directly tied to selling these raw materials, its profits often rise and fall with the fluctuating global prices for metals.
How the company got here
Hudbay's story begins in 1927 in the remote town of Flin Flon, Manitoba, Canada, where it was founded as the Hudson Bay Mining and Smelting Co. For decades, it was a Canadian-focused company, discovering and operating numerous mines in the region. A major turning point came in 2011 when Hudbay expanded into South America by acquiring the Constancia copper project in Peru, which began production in 2015. More recently, the company has focused on becoming a larger copper producer, acquiring the Copper Mountain mine in British Columbia in 2023 and expanding its development projects in the United States.
What it actually does
Hudbay is a mining company that finds, digs up, and processes rocks to get valuable metals out of them. Its main product is copper, which is essential for everything from electrical wiring in our homes and cars to wind turbines and solar panels. The company also produces a significant amount of gold and smaller amounts of other metals like zinc, silver, and molybdenum, which are often found in the same rock deposits. Hudbay sells these metals, usually in a concentrated form, to other companies that refine them for use in manufacturing and construction.
Constancia Mine (Peru)
This is one of Hudbay's major operations, located in the Andes mountains of Peru. It's a large open-pit mine, which means they dig a massive bowl-shaped hole in the ground to extract copper ore. In addition to its primary product, copper, this mine also produces molybdenum, silver, and gold as by-products (secondary metals recovered during the main mining process). The metals from this mine are a very large contributor to Hudbay's overall business, making the Peru segment a cornerstone of the company's revenue (the total money it brings in from sales).
Snow Lake Operations (Canada)
Located in Manitoba where the company first started, this business unit is centered around underground mining. Unlike an open pit, this involves digging shafts and tunnels deep into the earth to follow veins of rock rich in metals. The key product from this operation is gold, along with by-products like copper and zinc. After closing its original Flin Flon operations, the company has focused its efforts in Manitoba on the Snow Lake area, which has a long history of production and is expected to operate for many more years.
Copper Mountain Mine (Canada)
This is Hudbay's newest operating mine, acquired in 2023 and located in British Columbia. It is another large open-pit operation focused primarily on producing copper, with gold and silver as important by-products. Hudbay recently took full 100% ownership of this mine, showing its importance to their strategy. This operation makes Hudbay one of the largest copper producers within Canada and is a key part of its North American business.
What management is betting on now
Management's strategy is heavily focused on becoming a bigger player in the copper market, especially within North and South America. They are doing this by investing in their existing mines to make them more efficient and expand their output, like with the New Ingerbelle project at Copper Mountain. The company is also spending significantly on its growth pipeline (a set of new mines it plans to build and operate in the future), particularly the Copper World and Cactus projects in Arizona. This big bet on copper is driven by the belief that demand will rise due to the global shift towards electric vehicles and renewable energy, which all require large amounts of the metal.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $7.18 vs current price $24.88
Wall Street consensus is the average analyst price target: $34.94 (386.5% higher than our fair-value estimate).
Our most-likely fair value is $7.18 a share — about 71.1% below today's price of $24.88, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $153.6M. Interest coverage 6.3x.
Net debt
$153.60M
Interest coverage
6.27x
Hudbay Minerals Inc.'s profit covers its interest bill about 6.3 times over.
Watch
Worse cushion
Baseline
Better cushion
HBM
BASELINE
Hudbay Minerals Inc.
Total debt $1.04B Interest coverage 6.27x This is the baseline the peer rows are being compared against.
Total debt $7.00B Interest coverage 2.12x -66% vs HBM Carries about 3.0x less debt cushion than HBM.
Total debt $10.36B Interest coverage 17.62x +181% vs HBM Carries about 2.8x more debt cushion than HBM.
Total debt $573.36M Interest coverage 17.38x +177% vs HBM Carries about 2.8x more debt cushion than HBM.
Total debt $8.62B Interest coverage 18.96x +202% vs HBM Carries about 3.0x more debt cushion than HBM.
What you should know
The case for and against HBM
3 Rewards
0 Risks
Rewards
-
Revenue grew 9.4% last year.
-
Returns 16.7% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.26x
Forward P/E
12.89x
P/B
2.30x
P/S
4.48x
EV/EBITDA
10.31x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
56.6%
Operating margin
32.6%
Net margin
27.5%
ROE
16.7%
ROA
6.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.20x
Current ratio
2.24x
Quick ratio
1.82x
Total debt
$1.04B
Total cash
$890.90M
Growth
How the business has been compounding
Revenue TTM
$2.47B
Revenue 5Y CAGR
14.8%
EPS TTM
1.63
EPS 5Y CAGR
74.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$707.30M
Free CF TTM
$237.80M
FCF margin
9.6%
Dividend
Shareholder payout
Yield
0.1%
Payout ratio
1.3%
Last ex-div date
2026-09-08