HARDWOODS DISTRIBUTION INC (HDI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HDI - CA4124221074 - Common Stock
29.57 CAD
-0.11 (-0.37%)
We assign a fundamental rating of 5 out of 10 to HDI. HDI was compared to 12 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of HDI while its profitability can be described as average. HDI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
HDI had positive earnings in the past year.
HDI had a positive operating cash flow in the past year.
1.2 Ratios
With a decent Return On Assets value of 9.75%, HDI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
With an excellent Return On Equity value of 29.24%, HDI belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
The Return On Invested Capital of HDI (12.42%) is better than 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HDI is above the industry average of 8.03%.
The last Return On Invested Capital (12.42%) for HDI is above the 3 year average (12.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.75% | ||
| ROE | 29.24% | ||
| ROIC | 12.42% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.25%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 5.85%, HDI perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
HDI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.69%, HDI is doing good in the industry, outperforming 68.75% of the companies in the same industry.
HDI's Operating Margin has improved in the last couple of years.
HDI has a Gross Margin of 22.36%. This is comparable to the rest of the industry: HDI outperforms 56.25% of its industry peers.
HDI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.69% | ||
| PM (TTM) | 5.85% | ||
| GM | 22.36% |
OM growth 3Y28.54%
OM growth 5Y13.84%
PM growth 3Y31.66%
PM growth 5Y16.12%
GM growth 3Y9.15%
GM growth 5Y4.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HDI is creating some value.
The number of shares outstanding for HDI has been increased compared to 1 year ago.
HDI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.95 indicates that HDI is not a great score, but indicates only limited risk for bankruptcy at the moment.
HDI has a Altman-Z score (2.95) which is in line with its industry peers.
HDI has a debt to FCF ratio of 12.40. This is a negative value and a sign of low solvency as HDI would need 12.40 years to pay back of all of its debts.
HDI's Debt to FCF ratio of 12.40 is in line compared to the rest of the industry. HDI outperforms 50.00% of its industry peers.
HDI has a Debt/Equity ratio of 0.97. This is a neutral value indicating HDI is somewhat dependend on debt financing.
HDI has a Debt to Equity ratio of 0.97. This is in the lower half of the industry: HDI underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 12.4 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.59
WACC7.83%
2.3 Liquidity
HDI has a Current Ratio of 1.66. This is a normal value and indicates that HDI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HDI (1.66) is worse than 68.75% of its industry peers.
A Quick Ratio of 0.55 indicates that HDI may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, HDI is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.48% over the past year.
HDI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.94% yearly.
Looking at the last year, HDI shows a very strong growth in Revenue. The Revenue has grown by 88.41%.
HDI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.75% yearly.
EPS 1Y (TTM)64.48%
EPS 3Y61.99%
EPS 5Y38.94%
EPS Q2Q%-22.02%
Revenue 1Y (TTM)88.41%
Revenue growth 3Y24.7%
Revenue growth 5Y22.75%
Sales Q2Q%39.86%
3.2 Future
Based on estimates for the next years, HDI will show a very negative growth in Earnings Per Share. The EPS will decrease by -15.81% on average per year.
The Revenue is expected to grow by 5.72% on average over the next years.
EPS Next Y18.65%
EPS Next 2Y-13.72%
EPS Next 3Y-11.3%
EPS Next 5Y-15.81%
Revenue Next Year63.8%
Revenue Next 2Y20.7%
Revenue Next 3Y13.84%
Revenue Next 5Y5.72%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 3.39, which indicates a rather cheap valuation of HDI.
Based on the Price/Earnings ratio, HDI is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.61, HDI is valued rather cheaply.
HDI is valuated cheaply with a Price/Forward Earnings ratio of 5.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HDI indicates a rather cheap valuation: HDI is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HDI to the average of the S&P500 Index (24.01), we can say HDI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.39 | ||
| Fwd PE | 5.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HDI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDI indicates a rather cheap valuation: HDI is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 3.61 |
4.3 Compensation for Growth
HDI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HDI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HDI's earnings are expected to decrease with -11.30% in the coming years.
PEG (NY)0.18
PEG (5Y)0.09
EPS Next 2Y-13.72%
EPS Next 3Y-11.3%
5. Dividend
5.1 Amount
HDI has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.33, HDI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, HDI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of HDI is nicely growing with an annual growth rate of 11.31%!
HDI has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)11.31%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
5.61% of the earnings are spent on dividend by HDI. This is a low number and sustainable payout ratio.
DP5.61%
EPS Next 2Y-13.72%
EPS Next 3Y-11.3%
TSX:HDI (1/19/2023, 7:00:00 PM)
29.57
-0.11 (-0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners22.73%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap682.04M
Revenue(TTM)2.52B
Net Income(TTM)147.42M
Analysts81.82
Price Target49.18 (66.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend0.43
Dividend Growth(5Y)11.31%
DP5.61%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.24%
Min EPS beat(2)1.2%
Max EPS beat(2)15.28%
EPS beat(4)4
Avg EPS beat(4)22.97%
Min EPS beat(4)1.2%
Max EPS beat(4)50.53%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)6.75%
Min Revenue beat(2)3.96%
Max Revenue beat(2)9.54%
Revenue beat(4)4
Avg Revenue beat(4)9.21%
Min Revenue beat(4)3.96%
Max Revenue beat(4)16.09%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.39 | ||
| Fwd PE | 5.78 | ||
| P/S | 0.2 | ||
| P/FCF | 7.58 | ||
| P/OCF | 6.37 | ||
| P/B | 1.02 | ||
| P/tB | 13.4 | ||
| EV/EBITDA | 3.61 |
EPS(TTM)8.72
EY29.49%
EPS(NY)5.12
Fwd EY17.31%
FCF(TTM)3.9
FCFY13.19%
OCF(TTM)4.64
OCFY15.69%
SpS145.61
BVpS29.13
TBVpS2.21
PEG (NY)0.18
PEG (5Y)0.09
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.75% | ||
| ROE | 29.24% | ||
| ROCE | N/A | ||
| ROIC | 12.42% | ||
| ROICexc | 12.59% | ||
| ROICexgc | 19.69% | ||
| OM | 8.69% | ||
| PM (TTM) | 5.85% | ||
| GM | 22.36% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.25%
ROIC(5y)N/A
ROICexc(3y)9.29%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y21.18%
ROICexgc growth 5Y7.48%
ROICexc growth 3Y14.82%
ROICexc growth 5Y6.05%
OM growth 3Y28.54%
OM growth 5Y13.84%
PM growth 3Y31.66%
PM growth 5Y16.12%
GM growth 3Y9.15%
GM growth 5Y4.84%
F-Score6
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 12.4 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 20.91% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 45.8% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.95 |
F-Score6
WACC7.83%
ROIC/WACC1.59
Cap/Depr(3y)14.45%
Cap/Depr(5y)20.03%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)64.48%
EPS 3Y61.99%
EPS 5Y38.94%
EPS Q2Q%-22.02%
EPS Next Y18.65%
EPS Next 2Y-13.72%
EPS Next 3Y-11.3%
EPS Next 5Y-15.81%
Revenue 1Y (TTM)88.41%
Revenue growth 3Y24.7%
Revenue growth 5Y22.75%
Sales Q2Q%39.86%
Revenue Next Year63.8%
Revenue Next 2Y20.7%
Revenue Next 3Y13.84%
Revenue Next 5Y5.72%
EBIT growth 1Y89.29%
EBIT growth 3Y60.3%
EBIT growth 5Y39.74%
EBIT Next Year84.02%
EBIT Next 3Y11.46%
EBIT Next 5Y0.8%
FCF growth 1Y-9.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.01%
OCF growth 3YN/A
OCF growth 5YN/A
HARDWOODS DISTRIBUTION INC / HDI.CA FAQ
Can you provide the ChartMill fundamental rating for HARDWOODS DISTRIBUTION INC?
ChartMill assigns a fundamental rating of 5 / 10 to HDI.CA.
What is the valuation status of HARDWOODS DISTRIBUTION INC (HDI.CA) stock?
ChartMill assigns a valuation rating of 10 / 10 to HARDWOODS DISTRIBUTION INC (HDI.CA). This can be considered as Undervalued.
What is the profitability of HDI stock?
HARDWOODS DISTRIBUTION INC (HDI.CA) has a profitability rating of 4 / 10.
How financially healthy is HARDWOODS DISTRIBUTION INC?
The financial health rating of HARDWOODS DISTRIBUTION INC (HDI.CA) is 3 / 10.
Can you provide the expected EPS growth for HDI stock?
The Earnings per Share (EPS) of HARDWOODS DISTRIBUTION INC (HDI.CA) is expected to grow by 18.65% in the next year.