Hecla Mining Stock Analysis, Valuation (NYSE:HL)

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$3.98 $0.07 (1.79%) HL stock closing price Feb 16, 2018 (Closing)
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Hecla Mining
Updated on : Feb 16, 2018
previous close
HL 4 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Mining-Silver
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
10.7%
Sector Average:
8.7%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
515.2M
Debt/Equity Ratio:
 0.34
Compared to the industry
Cash Flow
Operating cash flow:
$28.3M
Net Income:
$1.4M
PROS      CONS
Net Margins
Low Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
HL PS :
2.7
Industry PS :
1.5
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
2.1%
Return on Equity:
1.6%
Free Cash Flow Margin:
2.8%
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Hecla Mining Stock Analysis

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Investors can watch the Amigobulls Hecla Mining stock analysis video here. Our analyst opinion covering the buy and sell arguments for HL stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Hecla Mining Company Stock Rating 3/5

Amigobulls HL stock analysis takes into account various financial ratios like relative valuation, Hecla Mining revenue, growth and return on equity based on latest quarter 2017 Q3 financial statements. We also check Hecla Mining dividend performance. We compare Hecla Mining valuation with its sector peers to gauge relative attractiveness of HL stock. Hecla Mining stock rating is our opinion about the business fundamentals of the company.

Should you buy HL stock?

  • Revenue growth has been tremendous with a compounded annual growth of 12.5% over the last 5 years.
  • The TTM operating margin was good at 11.2% for Hecla Mining.
  • Hecla Mining has a lower debt burden than its peers in the Basic Materials sector, with a debt/equity ratio of  0.35.

Should you sell HL stock?

  • Over the last 12 months, Hecla Mining had an average Net loss of -4.1%.
  • Trading at a PE ratio of 49.8, HL stock is overvalued in comparison to industry average multiple of 21.3.
  • The company is trading at a price to sales multiple of 2.7, which is overvalued in comparison to the Mining-Silver industry average multiple of 1.5.
  • A negative ROE of -1.6% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Hecla Mining stock

Investors can make use of the Amigobulls Hecla Mining stock analysis to ascertain how HL stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Hecla Mining revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.