Equity Sheet: Reviewing the Levels for Hudbay Minerals Inc. (TSX:HBM)

Hudbay Minerals Inc. (TSX:HBM) presently has an EV or Enterprise Value of 3168520. The EV helps show how the market assigns value to a company as a whole. EV is a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Watching a firm’s EV may be useful when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.

Stock market investors often rely on fundamental analysis for stock research. The EPS or earnings per share ratio shows the amount of company earnings that can be attributed to every share that is held. EPS lets investors directly compare one company to another when examining potential investments. Investors are typically searching for stocks that have a growing EPS. The EPS measure tends to be more telling when viewed over a longer period of time. When companies report quarterly earnings, the EPS measure is highly scrutinized by investors and analysts alike.

Currently, Hudbay Minerals Inc. (TSX:HBM)’s ROIC is 0.062991. The ROIC 5 year average is 0.018255 and the ROIC Quality ratio is 5.045470. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a company is at turning capital into profits. ROIC may be a good measure to view when examining whether or not a company is able to invest wisely. ROIC may also be an important metric for the value investor who is trying to determine the company’s moat. Hudbay Minerals Inc. (TSX:HBM) has a current Value Composite Score of 33. Using a scale from 0 to 100, a lower score would represent an undervalued company and a higher score would indicate an expensive or overvalued company. This ranking was developed by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield.

Investors seeking value in the stock market may be eyeing the Magic Formula Rank or MF Rank for Hudbay Minerals Inc. (TSX:HBM). Presently, the company has a MF Rank of 5905. The Magic Formula was devised and made popular by Joel Greenblatt in his book “The Little Book That Beats the Market”. Greenblatt’s formula helps find stocks that are priced attractively with a high earnings yield, or strong reported profits in comparison to the market value of the company. To spot opportunities in the market, investors may be searching for stocks that have the lowest combined MF Rank. 

Market watchers may also be following some quality ratios for Hudbay Minerals Inc. (TSX:HBM). Currently, the company has a Gross Margin (Marx) ratio of 0.133302. This calculation is based on the research by University of Rochester professor Robert Novy-Marx. Marx believed that a high gross income ratio was a sign of a quality company. Looking further, Hudbay Minerals Inc. (TSX:HBM) has a Gross Margin score of 42.00000. This score is based on the Gross Margin (Marx) metric using a scale from 1 to 100 where a 1 would be seen as positive, and a 100 would be viewed as negative.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Hudbay Minerals Inc. (TSX:HBM) for last month was 1.02714. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Hudbay Minerals Inc. (TSX:HBM) is 1.28160.

Price Range 52 Weeks

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Hudbay Minerals Inc. (TSX:HBM) over the past 52 weeks is 0.867000. The 52-week range can be found in the stock’s quote summary.

Stock market players may have differing opinions on which type of research approach is best. Individual investors who prefer buy and hold strategies may be more likely to be studying the fundamentals. Traders that are constantly buying and selling shares may be more concerned with technical analysis. High frequency traders may be willing to take on more risk entering the market. For these types of traders, entry and exit points become far more important. Traders may be relying solely on charts in order to capture profits based on day to day, hour to hour, or minute by minute price fluctuations. Long term investors may not be as concerned with the daily ups and downs of the market. 

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements. The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of Hudbay Minerals Inc. (TSX:HBM) is 1.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

Volatility

Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Hudbay Minerals Inc. (TSX:HBM) is 64.149200.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Hudbay Minerals Inc. (TSX:HBM) is 49.113300.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 53.187900.

For technical traders, support and resistance lines play an important role. The support line generally displays the lowest price that investors will let a stock trade. This means that the stock price is unlikely to drop under this level. When support lines are breached, chartists may be watching for shares to move lower until they reach the next support level. The resistance line is the exact opposite of the support line. The resistance level is typically the highest price that investors will allow the stock to trade at. Traders will carefully watch the stock price when a resistance level is broken. The thought is that the price will continue to move towards the next level of resistance. Traders and investors may use support and resistance lines for various purposes. One popular use of these lines is to identify possible entry and exit points for trades.

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