HIGH LINER FOODS INC (HLF.CA) Stock Fundamental Analysis
TSX:HLF - Toronto Stock Exchange - CA4296951094 - Common Stock - Currency: CAD
Taking everything into account, HLF scores 8 out of 10 in our fundamental rating. HLF was compared to 16 industry peers in the Food Products industry. Both the health and profitability get an excellent rating, making HLF a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLF. HLF also has an excellent dividend rating. This makes HLF very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HLF was profitable.
HLF had a positive operating cash flow in the past year.
Each year in the past 5 years HLF has been profitable.
Of the past 5 years HLF 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.30%, HLF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.80%, HLF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HLF has a Return On Invested Capital of 9.39%. This is amongst the best in the industry. HLF outperforms 100.00% of its industry peers.
HLF had an Average Return On Invested Capital over the past 3 years of 8.61%. This is above the industry average of 6.57%.
The last Return On Invested Capital (9.39%) for HLF is above the 3 year average (8.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 14.8% | ||
| ROIC | 9.39% |
ROA(3y)4.78%
ROA(5y)3.86%
ROE(3y)11.85%
ROE(5y)9.86%
ROIC(3y)8.61%
ROIC(5y)8.25%
1.3 Margins
HLF's Profit Margin of 6.31% is amongst the best of the industry. HLF outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of HLF has grown nicely.
HLF's Operating Margin of 7.57% is amongst the best of the industry. HLF outperforms 87.50% of its industry peers.
HLF's Operating Margin has improved in the last couple of years.
HLF's Gross Margin of 22.36% is amongst the best of the industry. HLF outperforms 81.25% of its industry peers.
In the last couple of years the Gross Margin of HLF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.57% | ||
| PM (TTM) | 6.31% | ||
| GM | 22.36% |
OM growth 3Y-4.89%
OM growth 5Y8.74%
PM growth 3Y-5.55%
PM growth 5Y12.85%
GM growth 3Y-2%
GM growth 5Y2.42%
2. Health
2.1 Basic Checks
HLF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HLF has been reduced compared to 1 year ago.
The number of shares outstanding for HLF has been reduced compared to 5 years ago.
Compared to 1 year ago, HLF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.84 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.84, HLF belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
The Debt to FCF ratio of HLF is 2.01, which is a good value as it means it would take HLF, 2.01 years of fcf income to pay off all of its debts.
HLF has a Debt to FCF ratio of 2.01. This is amongst the best in the industry. HLF outperforms 100.00% of its industry peers.
HLF has a Debt/Equity ratio of 0.53. This is a neutral value indicating HLF is somewhat dependend on debt financing.
The Debt to Equity ratio of HLF (0.53) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.2
WACC7.8%
2.3 Liquidity
HLF has a Current Ratio of 2.66. This indicates that HLF is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.66, HLF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HLF has a Quick Ratio of 2.66. This is a bad value and indicates that HLF is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 0.84, HLF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
HLF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.56%.
The Earnings Per Share has been growing by 17.45% on average over the past years. This is quite good.
HLF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.09%.
The Revenue has been growing slightly by 0.60% on average over the past years.
EPS 1Y (TTM)5.56%
EPS 3Y3.44%
EPS 5Y17.45%
EPS Q2Q%42.86%
Revenue 1Y (TTM)-12.09%
Revenue growth 3Y9.29%
Revenue growth 5Y0.6%
Sales Q2Q%-11.87%
3.2 Future
Based on estimates for the next years, HLF will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.83% on average per year.
HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.12% yearly.
EPS Next Y17.39%
EPS Next 2Y16.24%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue Next Year-13.24%
Revenue Next 2Y-4.25%
Revenue Next 3Y0.12%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 8.46, the valuation of HLF can be described as very reasonable.
Based on the Price/Earnings ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of HLF to the average of the S&P500 Index (29.62), we can say HLF is valued rather cheaply.
A Price/Forward Earnings ratio of 7.31 indicates a rather cheap valuation of HLF.
Based on the Price/Forward Earnings ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. HLF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
HLF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLF is cheaper than 100.00% of the companies in the same industry.
HLF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLF is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.93 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HLF has an outstanding profitability rating, which may justify a higher PE ratio.
HLF's earnings are expected to grow with 16.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)0.48
EPS Next 2Y16.24%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
HLF has a Yearly Dividend Yield of 4.18%, which is a nice return.
Compared to an average industry Dividend Yield of 4.45, HLF has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, HLF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of HLF has a limited annual growth rate of 2.02%.
HLF has paid a dividend for at least 10 years, which is a reliable track record.
HLF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.02%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
22.19% of the earnings are spent on dividend by HLF. This is a low number and sustainable payout ratio.
HLF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.19%
EPS Next 2Y16.24%
EPS Next 3Y16.83%
TSX:HLF (2/21/2025, 7:00:00 PM)
15.99
-0.27 (-1.66%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners14.93%
Inst Owner ChangeN/A
Ins Owners4.88%
Ins Owner ChangeN/A
Market Cap473.46M
Analysts76.67
Price Target16.7 (4.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend0.39
Dividend Growth(5Y)2.02%
DP22.19%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.65%
Min EPS beat(2)-11.99%
Max EPS beat(2)33.28%
EPS beat(4)3
Avg EPS beat(4)23.09%
Min EPS beat(4)-11.99%
Max EPS beat(4)67.56%
EPS beat(8)5
Avg EPS beat(8)11.18%
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)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)0.52%
Revenue beat(4)1
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-8.62%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-2.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.41%
Revenue beat(16)7
Avg Revenue beat(16)-1.06%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 7.31 | ||
| P/S | 0.35 | ||
| P/FCF | 2.93 | ||
| P/OCF | 2.44 | ||
| P/B | 0.81 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)1.89
EY11.82%
EPS(NY)2.19
Fwd EY13.67%
FCF(TTM)5.45
FCFY34.11%
OCF(TTM)6.56
OCFY41.04%
SpS46.09
BVpS19.65
TBVpS6.57
PEG (NY)0.49
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 14.8% | ||
| ROCE | 10.68% | ||
| ROIC | 9.39% | ||
| ROICexc | 9.53% | ||
| ROICexgc | 16.04% | ||
| OM | 7.57% | ||
| PM (TTM) | 6.31% | ||
| GM | 22.36% | ||
| FCFM | 11.83% |
ROA(3y)4.78%
ROA(5y)3.86%
ROE(3y)11.85%
ROE(5y)9.86%
ROIC(3y)8.61%
ROIC(5y)8.25%
ROICexc(3y)8.65%
ROICexc(5y)8.38%
ROICexgc(3y)14.75%
ROICexgc(5y)15.14%
ROCE(3y)10.45%
ROCE(5y)9.87%
ROICexcg growth 3Y-5.46%
ROICexcg growth 5Y6.38%
ROICexc growth 3Y-0.12%
ROICexc growth 5Y8.82%
OM growth 3Y-4.89%
OM growth 5Y8.74%
PM growth 3Y-5.55%
PM growth 5Y12.85%
GM growth 3Y-2%
GM growth 5Y2.42%
F-Score8
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.01 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 91.85% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 139.75% | ||
| Profit Quality | 187.57% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.84 |
F-Score8
WACC7.8%
ROIC/WACC1.2
Cap/Depr(3y)82.61%
Cap/Depr(5y)63.19%
Cap/Sales(3y)2.01%
Cap/Sales(5y)1.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.56%
EPS 3Y3.44%
EPS 5Y17.45%
EPS Q2Q%42.86%
EPS Next Y17.39%
EPS Next 2Y16.24%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.09%
Revenue growth 3Y9.29%
Revenue growth 5Y0.6%
Sales Q2Q%-11.87%
Revenue Next Year-13.24%
Revenue Next 2Y-4.25%
Revenue Next 3Y0.12%
Revenue Next 5YN/A
EBIT growth 1Y-0.44%
EBIT growth 3Y3.95%
EBIT growth 5Y9.39%
EBIT Next Year43.31%
EBIT Next 3Y19.1%
EBIT Next 5YN/A
FCF growth 1Y342.05%
FCF growth 3Y19.46%
FCF growth 5Y30.16%
OCF growth 1Y583.66%
OCF growth 3Y20.3%
OCF growth 5Y25.81%