On September 19, 2023, it was reported that Hecla Mining Company‘s Lucky Friday Mine had encountered a significant fire incident, causing more damage than initially anticipated. The fire has since been extinguished, and normal ventilation has been restored. However, the mine will not be able to resume production for the remainder of this year. Instead, the company’s focus is on developing a secondary egress in the damaged section of the shaft. This development involves the installation of a 1,600-foot-long ramp and a 290-foot-long manway raise.
Due to the extensive damages caused by the fire, all production from August until the end of 2023 has been removed from the analyst’s model. Hecla Mining Company has reported that it holds $50 million in property insurance, which is expected to cover both the damage and the business interruption, after deductibles. However, it is yet to be determined if the insurance will cover the expenses for the new egress development.
As a result of these developments, the analyst has revised the revenue estimates for FY23 to $711.5 million, down from the previous estimate of $770.2 million. Furthermore, the projected EPS for FY23 is now a loss of $(0.06), wider than the previous estimate of $(0.04) loss. Looking ahead to FY24, the analyst predicts revenue of $712 million, with an EPS of $0.01.
As of September 19, 2023, Hecla Mining’s shares have experienced a decline of 4.18%, trading at $4.0150.
Hecla Mining Company
HL
Buy
Updated on: 19/09/2023
Financial Health
Healthy
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Hecla Mining Company Stock Performance and Analysis: September 19, 2023
On September 19, 2023, Hecla Mining Company (HL) experienced a mixed day in the stock market. Let’s delve into the details of HL’s stock performance and analyze the factors that may have influenced its movement.
At the previous close on September 18, 2023, HL’s stock was valued at $4.19. The following day, the stock opened slightly lower at $4.18. Throughout the trading day, HL’s stock fluctuated within a range of $4.01 to $4.18. This indicates that there was some volatility in the market, but overall, the stock remained relatively stable.
The trading volume for HL on September 19, 2023, was 5,165,385 shares. This is slightly below the average volume of the past three months, which stands at 6,373,411 shares. The lower trading volume could suggest a decrease in investor interest or activity for the day.
Hecla Mining Company has a market capitalization of $2.6 billion. This metric represents the total value of the company’s outstanding shares. A higher market cap generally indicates a larger, more established company. However, it’s important to consider other factors alongside market cap to gain a comprehensive understanding of a company’s financial health and growth potential.
Examining the company’s earnings growth, we find that Hecla Mining Company experienced a negative growth rate of -205.59% in the previous year. This means that the company’s earnings decreased significantly during that period. However, the company managed to turn things around this year, with a positive earnings growth rate of +92.50%. This suggests that Hecla Mining Company has made improvements in its financial performance.
Looking ahead, the company’s earnings growth forecast for the next five years is -33.35%. This indicates that Hecla Mining Company is expected to face challenges in maintaining its current growth trajectory. Investors should consider this projection when making long-term investment decisions.
In terms of revenue growth, Hecla Mining Company experienced a decline of -11.74% in the last year. This suggests that the company’s total revenue decreased during that period. It’s important for investors to monitor revenue growth as it directly impacts a company’s profitability and overall financial health.
Hecla Mining Company’s P/E ratio is labeled as NM, which stands for “not meaningful.” This is likely due to negative earnings, which makes it impossible to calculate the P/E ratio. The P/E ratio is a commonly used valuation metric that compares a company’s stock price to its earnings per share. A higher P/E ratio typically indicates a higher valuation for the company.
The price/sales ratio for Hecla Mining Company is 4.35. This metric is calculated by dividing the stock price by the company’s revenue per share. A lower price/sales ratio suggests that the stock may be undervalued, while a higher ratio indicates a potentially overvalued stock.
The price/book ratio for HL is 1.28. This ratio compares the stock price to the company’s book value per share. A price/book ratio below 1 suggests that the stock may be undervalued, while a ratio above 1 indicates a potentially overvalued stock.
In terms of the industry and sector, Hecla Mining Company operates in the Non-Energy Minerals sector, specifically in the Precious Metals industry. This information provides investors with a broader understanding of the company’s market focus and competitive landscape.
Hecla Mining Company is headquartered in Coeur d’Alene, Idaho. This information is useful for investors who want to understand the company’s geographical presence and potential impact on local economies.
Looking ahead, Hecla Mining Company’s next reporting date is set for November 2, 2023. Investors should mark this date on their calendars as it will provide valuable insights into the company’s financial performance for the current quarter.
The EPS forecast for this quarter is $0.02. Earnings per share (EPS) is a key financial metric that represents the portion of a company’s profit allocated to each outstanding share of common stock. A higher EPS indicates better profitability for shareholders.
In conclusion, Hecla Mining Company’s stock performance on September 19, 2023, showed some volatility but remained relatively stable. The company has experienced both negative and positive earnings growth in recent years, indicating a mixed financial performance. Investors should consider the forecasted earnings growth and revenue growth, as well as other valuation metrics, before making investment decisions. Monitoring the next reporting date and EPS forecast will provide further insights into the company’s financial health and future prospects.
HL Stock Shows Positive Performance with Potential Upside of Nearly 50%: Analysts Forecasts and Consensus Rating
HL stock had a positive performance on September 19, 2023, according to CNN Money. The 11 analysts who offered 12-month price forecasts for the stock had a median target of $6.00, with a high estimate of $9.00 and a low estimate of $4.00. This represents a significant increase of 49.63% from the last recorded price of $4.01.
The current consensus among the 11 polled investment analysts is to buy stock in Hecla Mining Co. This rating has remained unchanged since September.
Hecla Mining Co reported earnings per share of $0.02 for the current quarter, with sales amounting to $221.1 million. The company is expected to release its official financial report for this quarter on November 2.
Based on the analysts’ forecasts and the consensus rating, investors are optimistic about Hecla Mining Co’s future performance. The median price target of $6.00 suggests a potential upside of nearly 50% from the current price, indicating that the stock may be undervalued and presents an opportunity for investors to gain significant returns.
However, it is important to note that stock market performance is subject to various factors, including market conditions, industry trends, and company-specific developments. Investors should conduct thorough research and consider their own risk tolerance before making any investment decisions.
Overall, the current data and analyst opinions suggest a positive outlook for HL stock on September 19, 2023. Investors may want to closely monitor the company’s financial reports and market trends to make informed investment choices.
Discussion about this post