HARDWOODS DISTRIBUTION INC (HDI.CA) Stock Fundamental Analysis

TSX:HDI • CA4124221074

29.57 CAD
-0.11 (-0.37%)
Last: Jan 19, 2023, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall HDI gets a fundamental rating of 5 out of 10. We evaluated HDI against 12 industry peers in the Trading Companies & Distributors industry. While HDI is still in line with the averages on profitability rating, there are concerns on its financial health. HDI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

6

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.
HDI.CA Yearly Net Income VS EBIT VS OCF VS FCFHDI.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 50M -50M 100M 150M

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.
  • HDI had an Average Return On Invested Capital over the past 3 years of 12.25%. This is above the industry average of 8.04%.
  • 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 RankSector 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
HDI.CA Yearly ROA, ROE, ROICHDI.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.85%, HDI is in line with its industry, outperforming 56.25% of the companies in the same industry.
  • In the last couple of years the Profit Margin of HDI has grown nicely.
  • HDI's Operating Margin of 8.69% is fine compared to the rest of the industry. HDI outperforms 68.75% of its industry peers.
  • HDI's Operating Margin has improved in the last couple of years.
  • HDI's Gross Margin of 22.36% is in line compared 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 RankSector 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%
HDI.CA Yearly Profit, Operating, Gross MarginsHDI.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • HDI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • HDI has more shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, HDI has a worse debt to assets ratio.
HDI.CA Yearly Shares OutstandingHDI.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 5M 10M 15M 20M
HDI.CA Yearly Total Debt VS Total AssetsHDI.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

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's Altman-Z score of 2.95 is in line compared to the rest of the industry. HDI outperforms 56.25% of 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.
  • The Debt to Equity ratio of HDI (0.97) is worse than 68.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 12.4
Altman-Z 2.95
ROIC/WACC1.59
WACC7.83%
HDI.CA Yearly LT Debt VS Equity VS FCFHDI.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 100M 200M 300M 400M

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.
  • The Quick ratio of HDI (0.55) is worse than 87.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 0.55
HDI.CA Yearly Current Assets VS Current LiabilitesHDI.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • HDI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.48%, which is quite impressive.
  • 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

  • HDI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.81% yearly.
  • Based on estimates for the next years, HDI will show a small growth in Revenue. The Revenue will grow by 5.72% on average per year.
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.
  • 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.
HDI.CA Yearly Revenue VS EstimatesHDI.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B
HDI.CA Yearly EPS VS EstimatesHDI.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • HDI is valuated cheaply with a Price/Earnings ratio of 3.39.
  • 81.25% of the companies in the same industry are more expensive than HDI, based on the Price/Earnings ratio.
  • HDI is valuated cheaply when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 5.78, the valuation of HDI can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, HDI is valued cheaper than 100.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.98. HDI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 3.39
Fwd PE 5.78
HDI.CA Price Earnings VS Forward Price EarningsHDI.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HDI is valued a bit cheaper than 75.00% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, HDI is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.58
EV/EBITDA 3.61
HDI.CA Per share dataHDI.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

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.
  • The decent profitability rating of HDI 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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.92%, HDI has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 6.03, HDI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.85, HDI has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.92%

5.2 History

  • On average, the dividend of HDI grows each year by 11.31%, which is quite nice.
  • 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
HDI.CA Yearly Dividends per shareHDI.CA Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3 0.4

5.3 Sustainability

  • HDI pays out 5.61% of its income as dividend. This is a sustainable payout ratio.
DP5.61%
EPS Next 2Y-13.72%
EPS Next 3Y-11.3%
HDI.CA Yearly Income VS Free CF VS DividendHDI.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 50M -50M 100M
HDI.CA Dividend Payout.HDI.CA Dividend Payout, showing the Payout Ratio.HDI.CA Dividend Payout.PayoutRetained Earnings

More info and screens

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HARDWOODS DISTRIBUTION INC

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)N/A
Earnings (Next)N/A
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.


Can you provide the valuation status for HARDWOODS DISTRIBUTION INC?

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.


What is the expected EPS growth for HARDWOODS DISTRIBUTION INC (HDI.CA) stock?

The Earnings per Share (EPS) of HARDWOODS DISTRIBUTION INC (HDI.CA) is expected to grow by 18.65% in the next year.


How sustainable is the dividend of HARDWOODS DISTRIBUTION INC (HDI.CA) stock?

The dividend rating of HARDWOODS DISTRIBUTION INC (HDI.CA) is 5 / 10 and the dividend payout ratio is 5.61%.