HAIVISION SYSTEMS INC (HAI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HAI - CA40531F1009 - Common Stock
8.4 CAD
+0.69 (+8.95%)
We assign a fundamental rating of 6 out of 10 to HAI. HAI was compared to 11 industry peers in the Communications Equipment industry. HAI has an excellent financial health rating, but there are some minor concerns on its profitability. HAI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year HAI was profitable.
- HAI had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: HAI reported negative net income in multiple years.
- HAI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- HAI has a Return On Assets of 0.08%. This is amongst the best in the industry. HAI outperforms 81.82% of its industry peers.
- With an excellent Return On Equity value of 0.12%, HAI belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- The Return On Invested Capital of HAI (0.24%) is better than 81.82% of its industry peers.
- HAI had an Average Return On Invested Capital over the past 3 years of 1.94%. This is significantly below the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.08% | ||
| ROE | 0.12% | ||
| ROIC | 0.24% |
ROA(3y)0.84%
ROA(5y)-1.76%
ROE(3y)1.21%
ROE(5y)-2.62%
ROIC(3y)1.94%
ROIC(5y)N/A
1.3 Margins
- HAI has a Profit Margin of 0.08%. This is amongst the best in the industry. HAI outperforms 81.82% of its industry peers.
- HAI's Profit Margin has declined in the last couple of years.
- HAI has a better Operating Margin (0.26%) than 81.82% of its industry peers.
- HAI's Operating Margin has declined in the last couple of years.
- HAI's Gross Margin of 72.51% is amongst the best of the industry. HAI outperforms 100.00% of its industry peers.
- HAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.26% | ||
| PM (TTM) | 0.08% | ||
| GM | 72.51% |
OM growth 3YN/A
OM growth 5Y-47.67%
PM growth 3YN/A
PM growth 5Y-58.76%
GM growth 3Y1.83%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
- HAI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for HAI has been reduced compared to 1 year ago.
- The number of shares outstanding for HAI has been increased compared to 5 years ago.
- Compared to 1 year ago, HAI has an improved debt to assets ratio.
2.2 Solvency
- HAI has an Altman-Z score of 4.06. This indicates that HAI is financially healthy and has little risk of bankruptcy at the moment.
- HAI has a Altman-Z score of 4.06. This is in the better half of the industry: HAI outperforms 63.64% of its industry peers.
- The Debt to FCF ratio of HAI is 1.43, which is an excellent value as it means it would take HAI, only 1.43 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HAI (1.43) is better than 81.82% of its industry peers.
- A Debt/Equity ratio of 0.08 indicates that HAI is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.08, HAI perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 4.06 |
ROIC/WACC0.03
WACC9%
2.3 Liquidity
- A Current Ratio of 1.64 indicates that HAI should not have too much problems paying its short term obligations.
- HAI has a better Current ratio (1.64) than 63.64% of its industry peers.
- HAI has a Quick Ratio of 1.30. This is a normal value and indicates that HAI is financially healthy and should not expect problems in meeting its short term obligations.
- HAI has a better Quick ratio (1.30) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- HAI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 850.00%, which is quite impressive.
- Measured over the past 5 years, HAI shows a small growth in Earnings Per Share. The EPS has been growing by 2.25% on average per year.
- HAI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.25%.
- The Revenue has been growing by 11.82% on average over the past years. This is quite good.
EPS 1Y (TTM)850%
EPS 3Y-16.75%
EPS 5Y2.25%
EPS Q2Q%35.84%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y11.84%
Revenue growth 5Y11.82%
Sales Q2Q%33.25%
3.2 Future
- Based on estimates for the next years, HAI will show a very strong growth in Earnings Per Share. The EPS will grow by 28.71% on average per year.
- HAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.27% yearly.
EPS Next Y-148.82%
EPS Next 2Y21.02%
EPS Next 3Y28.71%
EPS Next 5YN/A
Revenue Next Year-1.32%
Revenue Next 2Y5.26%
Revenue Next 3Y6.27%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 56.00, the valuation of HAI can be described as expensive.
- Based on the Price/Earnings ratio, HAI is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of HAI to the average of the S&P500 Index (28.39), we can say HAI is valued expensively.
- Based on the Price/Forward Earnings ratio of 38.24, the valuation of HAI can be described as expensive.
- Based on the Price/Forward Earnings ratio, HAI is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, HAI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56 | ||
| Fwd PE | 38.24 |
4.2 Price Multiples
- 63.64% of the companies in the same industry are more expensive than HAI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HAI is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.81 | ||
| EV/EBITDA | 23.79 |
4.3 Compensation for Growth
- HAI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as HAI's earnings are expected to grow with 28.71% in the coming years.
PEG (NY)N/A
PEG (5Y)24.85
EPS Next 2Y21.02%
EPS Next 3Y28.71%
5. Dividend
5.1 Amount
- No dividends for HAI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
HAIVISION SYSTEMS INC / HAI.CA FAQ
What is the fundamental rating for HAI stock?
ChartMill assigns a fundamental rating of 6 / 10 to HAI.CA.
What is the valuation status of HAIVISION SYSTEMS INC (HAI.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to HAIVISION SYSTEMS INC (HAI.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for HAIVISION SYSTEMS INC?
HAIVISION SYSTEMS INC (HAI.CA) has a profitability rating of 6 / 10.
What is the valuation of HAIVISION SYSTEMS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HAIVISION SYSTEMS INC (HAI.CA) is 56 and the Price/Book (PB) ratio is 2.34.
How sustainable is the dividend of HAIVISION SYSTEMS INC (HAI.CA) stock?
The dividend rating of HAIVISION SYSTEMS INC (HAI.CA) is 0 / 10 and the dividend payout ratio is 0%.