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 6 out of 10 in our fundamental rating. HLF was compared to 17 industry peers in the Food Products industry. HLF scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLF. These ratings would make HLF suitable for value investing!
1. Profitability
1.1 Basic Checks
HLF had positive earnings in the past year.
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
With an excellent Return On Assets value of 6.81%, HLF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.32%, 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 8.77%. This is in the better half of the industry: HLF outperforms 76.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLF is significantly below the industry average of 91.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.81% | ||
| ROE | 14.32% | ||
| ROIC | 8.77% |
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
HLF has a better Profit Margin (6.19%) than 100.00% of its industry peers.
HLF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.34%, HLF is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
HLF's Operating Margin has improved in the last couple of years.
HLF has a Gross Margin of 22.65%. This is in the better half of the industry: HLF outperforms 76.47% of its industry peers.
HLF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.34% | ||
| PM (TTM) | 6.19% | ||
| GM | 22.65% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HLF is destroying value.
The number of shares outstanding for HLF has been reduced compared to 1 year ago.
Compared to 5 years ago, HLF has less shares outstanding
Compared to 1 year ago, HLF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.78 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 (2.78) than 76.47% of its industry peers.
HLF has a debt to FCF ratio of 6.73. This is a slightly negative value and a sign of low solvency as HLF would need 6.73 years to pay back of all of its debts.
HLF has a better Debt to FCF ratio (6.73) than 76.47% of its industry peers.
HLF has a Debt/Equity ratio of 0.59. This is a neutral value indicating HLF is somewhat dependend on debt financing.
The Debt to Equity ratio of HLF (0.59) is better than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.88
WACC9.94%
2.3 Liquidity
HLF has a Current Ratio of 2.54. This indicates that HLF is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.54, HLF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HLF has a Quick Ratio of 2.54. 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 0.81, HLF belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.79% 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.
The Revenue has decreased by -7.53% in the past 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)24.79%
EPS 3Y5.66%
EPS 5Y12.18%
EPS Q2Q%0%
Revenue 1Y (TTM)-7.53%
Revenue growth 3Y3.09%
Revenue growth 5Y0.36%
Sales Q2Q%-3.08%
3.2 Future
The Earnings Per Share is expected to grow by 9.42% on average over the next years. This is quite good.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 7.31% on average per year.
EPS Next Y3.34%
EPS Next 2Y9.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.03%
Revenue Next 2Y7.31%
Revenue Next 3YN/A
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 reasonably with a Price/Earnings ratio of 8.79.
100.00% of the companies in the same industry are more expensive than HLF, based on the Price/Earnings ratio.
HLF is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.33, the valuation of HLF can be described as very cheap.
Based on the Price/Forward Earnings ratio, HLF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HLF to the average of the S&P500 Index (21.70), we can say HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 7.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 82.35% of the companies listed in the same industry.
88.24% of the companies in the same industry are more expensive than HLF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.18 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HLF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.63
PEG (5Y)0.72
EPS Next 2Y9.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HLF has a Yearly Dividend Yield of 3.82%. Purely for dividend investing, there may be better candidates out there.
HLF's Dividend Yield is a higher than the industry average which is at 4.17.
Compared to an average S&P500 Dividend Yield of 2.42, HLF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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 23.21% of its income as dividend. This is a sustainable payout ratio.
DP23.21%
EPS Next 2Y9.42%
EPS Next 3YN/A
TSX:HLF (6/30/2025, 7:00:00 PM)
18.11
+0.13 (+0.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners16.41%
Inst Owner ChangeN/A
Ins Owners5.43%
Ins Owner ChangeN/A
Market Cap528.27M
Analysts75
Price Target22.44 (23.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend0.59
Dividend Growth(5Y)-0.71%
DP23.21%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.12%
Min EPS beat(2)5.74%
Max EPS beat(2)76.5%
EPS beat(4)3
Avg EPS beat(4)25.88%
Min EPS beat(4)-11.99%
Max EPS beat(4)76.5%
EPS beat(8)5
Avg EPS beat(8)15.94%
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)2.45%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)8.36%
Revenue beat(4)2
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)8.36%
Revenue beat(8)2
Avg Revenue beat(8)-2.05%
Revenue beat(12)4
Avg Revenue beat(12)-0.63%
Revenue beat(16)7
Avg Revenue beat(16)-0.27%
PT rev (1m)15.79%
PT rev (3m)15.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 7.33 | ||
| P/S | 0.41 | ||
| P/FCF | 10.18 | ||
| P/OCF | 6.19 | ||
| P/B | 0.94 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 6.89 |
EPS(TTM)2.06
EY11.37%
EPS(NY)2.47
Fwd EY13.65%
FCF(TTM)1.78
FCFY9.83%
OCF(TTM)2.93
OCFY16.17%
SpS44.57
BVpS19.28
TBVpS6.7
PEG (NY)2.63
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.81% | ||
| ROE | 14.32% | ||
| ROCE | 9.94% | ||
| ROIC | 8.77% | ||
| ROICexc | 8.77% | ||
| ROICexgc | 14.21% | ||
| OM | 7.34% | ||
| PM (TTM) | 6.19% | ||
| GM | 22.65% | ||
| FCFM | 3.99% |
ROA(3y)5.44%
ROA(5y)5.03%
ROE(3y)12.56%
ROE(5y)12.06%
ROIC(3y)9.05%
ROIC(5y)8.8%
ROICexc(3y)9.16%
ROICexc(5y)8.97%
ROICexgc(3y)15.19%
ROICexgc(5y)15.84%
ROCE(3y)10.9%
ROCE(5y)10.38%
ROICexcg growth 3Y2.62%
ROICexcg growth 5Y4.6%
ROICexc growth 3Y5.57%
ROICexc growth 5Y7.17%
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%
F-Score7
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.73 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 104.54% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 4.29 | ||
| Cash Conversion | 67.03% | ||
| Profit Quality | 64.5% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.78 |
F-Score7
WACC9.94%
ROIC/WACC0.88
Cap/Depr(3y)87.81%
Cap/Depr(5y)78.02%
Cap/Sales(3y)2.06%
Cap/Sales(5y)1.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.79%
EPS 3Y5.66%
EPS 5Y12.18%
EPS Q2Q%0%
EPS Next Y3.34%
EPS Next 2Y9.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.53%
Revenue growth 3Y3.09%
Revenue growth 5Y0.36%
Sales Q2Q%-3.08%
Revenue Next Year7.03%
Revenue Next 2Y7.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.76%
EBIT growth 3Y6.64%
EBIT growth 5Y7.76%
EBIT Next Year32.35%
EBIT Next 3Y12.33%
EBIT Next 5Y8.9%
FCF growth 1Y157.96%
FCF growth 3Y99.58%
FCF growth 5Y8.22%
OCF growth 1Y243.25%
OCF growth 3Y46.69%
OCF growth 5Y11.91%