Hecla Mining Co's Meteoric Rise: Unpacking the 38% Surge in Just 3 Months

Hecla Mining Co (HL, Financial) has recently demonstrated a remarkable performance in the stock market, with a significant 38.13% increase in its stock price over the past three months. As of the latest data, the company's market capitalization stands at $3.23 billion. This surge is not only a reflection of recent market dynamics but also aligns with the company's current GF Value of $4.87, suggesting that the stock is Fairly Valued. This valuation marks a shift from being Modestly Undervalued three months ago when the GF Value was $4.77.

Overview of Hecla Mining Co

Hecla Mining Co, operating in the Metals & Mining industry, is primarily engaged in the production and exploration of precious and base metals such as silver, gold, and zinc. The company's major operational segments include Greens Creek, Lucky Friday, Keno Hill, Casa Berardi, and Nevada Operations, with Greens Creek being the most significant revenue generator. Geographically, Hecla's operations are spread across the United States, Canada, and Mexico, with a majority of its revenue derived from the United States. 1788572428486733824.png

Assessing Hecla's Profitability

Hecla Mining Co's Profitability Rank stands at 4/10, indicating moderate profitability within its industry. The company's Operating Margin is 5.44%, which is higher than 60.19% of its peers. Despite a negative Return on Equity (ROE) of -4.25%, it performs better than 71.4% of competitors. Similarly, its Return on Assets (ROA) at -2.85% surpasses 75.12% of industry counterparts. The Return on Invested Capital (ROIC) is 1.46%, ranking higher than 84.5% of peers. Over the past decade, Hecla has been profitable for three years, which is better than 58.3% of similar companies. 1788572457704255488.png

Growth Prospects of Hecla Mining

The Growth Rank for Hecla Mining is 5/10, reflecting average growth potential. The company's 3-Year Revenue Growth Rate per Share stands at -3.20%, which is better than 21.61% of industry peers. Over a 5-year period, the Revenue Growth Rate per Share is -1.50%, surpassing 23.55% of competitors. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is projected at 4.35%, which is higher than 36.84% of similar companies. 1788572484270977024.png

Notable Investors in Hecla Mining

Hecla Mining Co holds the confidence of several notable investors. The top holder, First Eagle Investment (Trades, Portfolio), owns 1,100,177 shares, representing 0.18% of total shares. Following closely, Paul Tudor Jones (Trades, Portfolio) holds 193,032 shares, accounting for 0.03% of the shares, while Joel Greenblatt (Trades, Portfolio) owns 64,091 shares, making up 0.01% of the total shares.

Competitive Landscape

Within the Metals & Mining sector, Hecla Mining Co faces competition from companies like Gatos Silver Inc (GATO, Financial) with a market cap of $746.463 million, Endeavour Silver Corp (EXK, Financial) with a market cap of $734.231 million, and McEwen Mining Inc (MUX, Financial) with a market cap of $494.083 million. These figures highlight Hecla Mining's strong position within its industry.

Conclusion

Hecla Mining Co has shown significant recent stock price gains and is currently fairly valued according to its GF Value. The company's profitability and growth metrics provide a mixed picture with some strengths in operational efficiency and future revenue projections. Notable investors hold positions in the company, indicating some level of confidence in its future prospects. Competitors in the industry show varying levels of market capitalization, highlighting Hecla Mining's position within its sector.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.