Hudbay Minerals Inc (HBM) is undervalued and Southern Copper Corp (SCCO) is overvalued.
Against our estimates of intrinsic value, HBM trades at the wider discount: a margin of safety of +40%, against -20% for SCCO.
Values as of the 30 Oct 2026 close.
Discounting its cash flows at 11.4% (average of 3 methods) values the shares at $35.90; the price of $21.70 is 40% below that value, and 69% of that value comes from beyond year five.
Leak Score 65/100 on 12 of 12 signals
Discounting its cash flows at 10.2% (average of 3 methods) values the shares at $147.48; the price of $177.53 is 20% above that value, and 73% of that value comes from beyond year five.
Leak Score 48/100 on 12 of 12 signals
| Metric | HBM | SCCO |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $21.70 | $177.53 |
| Intrinsic value | $35.90 | $147.48 |
| Margin of safety | +40% | -20% |
| Leak Score | 65/100 (12/12) | 48/100 (12/12) |
| Market cap | $9.6B | $149.9B |
| Revenue growth, 5 years | 14.8% | 10.9% |
| Operating margin | 31.6% | 58.6% |
| Net margin | 27.3% | 37.2% |
| Return on equity | 17.7% | 53.0% |
| Debt to equity | 0.19 | 0.63 |
| P/E | 12.8x | 23.6x |
| Forward P/E | 11.0x | 23.5x |
| P/B | 2.0x | 11.1x |
| Dividend yield | 0.1% | 2.5% |