HIGH LINER FOODS INC (HLF.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HLF - CA4296951094 - Common Stock
15.44 CAD
-0.15 (-0.96%)
Taking everything into account, HLF scores 6 out of 10 in our fundamental rating. HLF was compared to 20 industry peers in the Food Products industry. HLF has an excellent profitability rating, but there are some minor concerns on its financial health. HLF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year HLF was profitable.
- HLF had a positive operating cash flow in the past year.
- HLF had positive earnings in each of the past 5 years.
- HLF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of HLF (3.66%) is better than 70.00% of its industry peers.
- HLF's Return On Equity of 8.34% is fine compared to the rest of the industry. HLF outperforms 70.00% of its industry peers.
- HLF has a Return On Invested Capital of 7.39%. This is in the better half of the industry: HLF outperforms 80.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HLF is significantly below the industry average of 96.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 8.34% | ||
| ROIC | 7.39% |
ROA(3y)5.44%
ROA(5y)5.03%
ROE(3y)12.56%
ROE(5y)12.06%
ROIC(3y)9.05%
ROIC(5y)8.8%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.48%, HLF belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- HLF's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 6.49%, HLF is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- HLF's Operating Margin has improved in the last couple of years.
- HLF has a better Gross Margin (21.59%) than 75.00% of its industry peers.
- HLF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.49% | ||
| PM (TTM) | 3.48% | ||
| GM | 21.59% |
OM growth 3Y3.44%
OM growth 5Y7.37%
PM growth 3Y9.17%
PM growth 5Y41.82%
GM growth 3Y-0.02%
GM growth 5Y2.82%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HLF is still creating some value.
- HLF has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for HLF has been reduced compared to 5 years ago.
- The debt/assets ratio for HLF has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.53 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
- HLF has a better Altman-Z score (2.53) than 70.00% of its industry peers.
- A Debt/Equity ratio of 0.74 indicates that HLF is somewhat dependend on debt financing.
- HLF has a Debt to Equity ratio (0.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.53 |
ROIC/WACC0.98
WACC7.58%
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.
- HLF has a better Current ratio (2.66) than 80.00% of its industry peers.
- 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.
- HLF has a Quick ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.28% over the past year.
- Measured over the past years, HLF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.18% on average per year.
- Looking at the last year, HLF shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
- Measured over the past years, HLF shows a small growth in Revenue. The Revenue has been growing by 0.36% on average per year.
EPS 1Y (TTM)11.28%
EPS 3Y5.66%
EPS 5Y12.18%
EPS Q2Q%-30%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y3.09%
Revenue growth 5Y0.36%
Sales Q2Q%8.62%
3.2 Future
- The Earnings Per Share is expected to grow by 1.43% on average over the next years.
- HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.51% yearly.
EPS Next Y-15.05%
EPS Next 2Y-1.86%
EPS Next 3Y1.43%
EPS Next 5YN/A
Revenue Next Year8.19%
Revenue Next 2Y7.16%
Revenue Next 3Y5.51%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HLF is valuated cheaply with a Price/Earnings ratio of 7.64.
- 90.00% of the companies in the same industry are more expensive than HLF, based on the Price/Earnings ratio.
- HLF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- HLF is valuated cheaply with a Price/Forward Earnings ratio of 7.76.
- HLF's Price/Forward Earnings ratio is rather cheap when compared to the industry. HLF is cheaper than 95.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of HLF to the average of the S&P500 Index (25.83), we can say HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 7.76 |
4.2 Price Multiples
- HLF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HLF is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.29 |
4.3 Compensation for Growth
- The decent profitability rating of HLF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-1.86%
EPS Next 3Y1.43%
5. Dividend
5.1 Amount
- HLF has a Yearly Dividend Yield of 4.55%, which is a nice return.
- HLF's Dividend Yield is rather good when compared to the industry average which is at 1.68. HLF pays more dividend than 90.00% of the companies in the same industry.
- HLF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
- The dividend of HLF decreases each year by -0.71%.
- 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)-0.71%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- HLF pays out 42.71% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.71%
EPS Next 2Y-1.86%
EPS Next 3Y1.43%
HIGH LINER FOODS INC / HLF.CA FAQ
Can you provide the ChartMill fundamental rating for HIGH LINER FOODS INC?
ChartMill assigns a fundamental rating of 6 / 10 to HLF.CA.
What is the valuation status for HLF stock?
ChartMill assigns a valuation rating of 6 / 10 to HIGH LINER FOODS INC (HLF.CA). This can be considered as Fairly Valued.
What is the profitability of HLF stock?
HIGH LINER FOODS INC (HLF.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of HIGH LINER FOODS INC (HLF.CA) stock?
The Price/Earnings (PE) ratio for HIGH LINER FOODS INC (HLF.CA) is 7.64 and the Price/Book (PB) ratio is 0.79.
What is the earnings growth outlook for HIGH LINER FOODS INC?
The Earnings per Share (EPS) of HIGH LINER FOODS INC (HLF.CA) is expected to decline by -15.05% in the next year.