Should Hochschild Mining plc (LON:HOC) Be Your Next Stock Pick?

Hochschild Mining plc (LON:HOC) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of HOC, it is a company with robust financial health as well as a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Hochschild Mining here.

Reasonable growth potential with adequate balance sheet

HOC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. HOC appears to have made good use of debt, producing operating cash levels of 1.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:HOC Future Profit September 26th 18

Next Steps:

For Hochschild Mining, I’ve put together three key aspects you should look at:

1. Historical Performance: What has HOC’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Valuation: What is HOC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HOC is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HOC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.