HYCROFT MINING HOLDING CORP (HYMC) Stock Analysis

HYCROFT MINING HOLDING CORP (HYMC) Stock Analysis

Overall Grade: F (Concerning)

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HYCROFT MINING HOLDING CORP faces challenges in financial performance that warrant careful analysis.

Key Metrics:

Metric Value Context
ROIC -30.6% Below expectations
FCF Margin 0.0% Cash flow pressure
Debt/Equity 2.8x Elevated debt

Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.


What is HYCROFT MINING HOLDING CORP's Profitability and ROIC?

HYCROFT MINING HOLDING CORP's return on invested capital of -30.6% is below the typical cost of capital.

Key Metrics

Metric Value Rating Interpretation
Return on Invested Capital (ROIC) -30.6% Red flag Below cost of capital
Return on Equity (ROE) 225.2% Excellent Efficient use of shareholder equity

How Strong is HYCROFT MINING HOLDING CORP's Cash Flow Quality?

HYCROFT MINING HOLDING CORP generated $-31.0M in free cash flow over the trailing twelve months, representing a 0.0% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.

Key Metrics

Metric Value Rating Interpretation
Free Cash Flow Margin 0.0% Red flag Thin cash margins
Free Cash Flow (TTM) $-31.0M Red flag Cash burn
OCF/Net Income 0.7x Adequate Potential accrual concerns
FCF Consistency (8Q) N/A Warning Variable cash flow

What is HYCROFT MINING HOLDING CORP's Financial Health?

HYCROFT MINING HOLDING CORP maintains a net cash position of $33.2M, providing significant financial flexibility.

Key Metrics

Metric Value Rating Interpretation
Debt to Equity 2.8x Warning Elevated leverage
Net Cash Position $33.2M Excellent Net cash positive

Is HYCROFT MINING HOLDING CORP Stock Overvalued or Undervalued?

HYCROFT MINING HOLDING CORP trades at a P/E of -3.8x, representing a premium to the sector median of N/A. Free cash flow yield of -16.7% reflects market expectations for growth.

Key Metrics

Metric Value Rating Interpretation
P/E Ratio -3.8x Red flag Reasonable valuation
EV/Sales 0.0x Excellent Attractive revenue multiple
FCF Yield -16.7% Warning Lower cash yield

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) -30.6% Top 5% -4.5x below
Free Cash Flow Margin 0.0% Bottom 10% 0.0x below
Return on Equity (ROE) 225.2% Top 5% 27.1x above

Rating Thresholds

Return on Invested Capital (ROIC)

Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.

Rating Range Interpretation
Excellent > 20% Exceptional capital efficiency, strong competitive moat
Good 12% - 20% Above-average returns, sustainable competitive position
Adequate 8% - 12% Around cost of capital, moderate competitive position
Warning 4% - 8% Below cost of capital, value may be eroding
Red flag < 4% Significant capital destruction, fundamental issues

Current: -30.6% (Red flag - Top 5% of sector (median: 6.8%))

Free Cash Flow Margin

The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.

Rating Range Interpretation
Excellent > 20% Strong cash generation, high-quality business
Good 10% - 20% Healthy cash conversion
Adequate 5% - 10% Moderate cash generation
Warning 0% - 5% Thin cash margins, capital intensive
Red flag < 0% Cash burn, potential liquidity concerns

Current: 0.0% (Red flag)

Debt to Equity Ratio

Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.

Rating Range Interpretation
Excellent < 0.3x Conservative leverage, strong balance sheet
Good 0.3x - 0.7x Moderate leverage, healthy financial position
Adequate 0.7x - 1.5x Elevated leverage, monitor closely
Warning 1.5x - 3.0x High leverage, increased financial risk
Red flag > 3.0x Excessive leverage, potential distress risk

Current: 282.6% (Warning)

Free Cash Flow Yield

Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.

Rating Range Interpretation
Excellent > 8% High cash return, potential value opportunity
Good 5% - 8% Solid cash yield
Adequate 3% - 5% Moderate cash return
Warning 1% - 3% Low cash yield, growth expectations
Red flag < 1% Minimal cash return to shareholders

Current: -16.7% (Red flag)


Frequently Asked Questions

Q: What is HYCROFT MINING HOLDING CORP's Return on Invested Capital (ROIC)?

HYCROFT MINING HOLDING CORP (HYMC) has a trailing twelve-month Return on Invested Capital (ROIC) of -30.6%. This compares below the sector median of 6.8%. An ROIC below 8% suggests the company may be destroying shareholder value.

Q: What is HYCROFT MINING HOLDING CORP's Free Cash Flow Margin?

HYCROFT MINING HOLDING CORP (HYMC) has a free cash flow margin of 0.0%, generating $-31.0 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.

Q: Is HYCROFT MINING HOLDING CORP stock overvalued or undervalued?

HYCROFT MINING HOLDING CORP (HYMC) trades at a P/E ratio of -3.8x, which is above the sector median of N/A. The EV/Sales multiple is 0.0x.

Q: How much debt does HYCROFT MINING HOLDING CORP have?

HYCROFT MINING HOLDING CORP (HYMC) has a debt-to-equity ratio of 2.8x with total debt of $134.2 million. Despite carrying debt, the company maintains a net cash position of $33.2 million.

Q: What is HYCROFT MINING HOLDING CORP's revenue and earnings growth?

HYCROFT MINING HOLDING CORP (HYMC) Earnings per share increased by 37.9% compared to the prior year.

Q: How does HYCROFT MINING HOLDING CORP compare to competitors in Materials?

Compared to other companies in Materials, HYCROFT MINING HOLDING CORP (HYMC) shows: ROIC of -30.6% is below the sector median of 6.8% (Top -120%). FCF margin of 0.0% trails the sector median of 0.8%. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.

Q: What warning signs should I watch for with HYCROFT MINING HOLDING CORP?

Investors in HYCROFT MINING HOLDING CORP (HYMC) should monitor these potential warning signs: 1) FCF margin is thin at 0.0%, leaving limited buffer for economic downturns. 2) Debt-to-equity of 2.8x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.


Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q3 2025.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

This analysis is for informational purposes only and does not constitute investment advice.