Hecla Mining Company Common Stock (HL)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $157 million in annual free cash flow (1.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 13.9% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.11, providing financial flexibility
• Altman Z-Score of 8.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($7) with negative 182% margin of safety—limited downside protection

AI Analysis

Hecla Mining Company Common Stock is a mid-cap basic materials company valued at $12.4 billion. The business generates $1.4 billion in annual revenue with a 9.4% net margin and $157 million in free cash flow. From a quality standpoint, Hecla shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 8.1 confirms fortress-level solvency. On valuation, the stock is trading at a premium 37.6x earnings, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 79.5% and profit growth of 1027.2%. Our composite FairStock Score of 54/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Hecla's 79% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. With $157 million in annual free cash flow (1.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 38x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer