HARDWOODS DISTRIBUTION INC (HDI.CA) Stock Fundamental Analysis
TSX:HDI - Toronto Stock Exchange - CA4124221074 - Common Stock - Currency: CAD
HDI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Trading Companies & Distributors industry. HDI has a medium profitability rating, but doesn't score so well on its financial health evaluation. HDI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year HDI was profitable.
HDI had a positive operating cash flow in the past year.
1.2 Ratios
The Return On Assets of HDI (9.75%) is better than 62.50% of its industry peers.
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.
HDI has a better Return On Invested Capital (12.42%) than 68.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HDI is above the industry average of 7.36%.
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
The Profit Margin of HDI (5.85%) is comparable to the rest of the industry.
HDI's Profit Margin has improved in the last couple of years.
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 has a Gross Margin (22.36%) which is in line with 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.
HDI has more shares outstanding than it did 1 year ago.
HDI has a worse debt/assets ratio than last year.
2.2 Solvency
HDI has an Altman-Z score of 2.95. This is not the best score and indicates that HDI is in the grey zone with still only limited risk for bankruptcy at the moment.
HDI has a Altman-Z score (2.95) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 12.40, HDI is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that HDI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, HDI is doing worse than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 12.4 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.59
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.66 indicates that HDI should not have too much problems paying its short term obligations.
HDI's Current ratio of 1.66 is on the low side compared to the rest of the industry. HDI is outperformed by 68.75% of its industry peers.
A Quick Ratio of 0.55 indicates that HDI may have some problems paying its short term obligations.
HDI has a Quick ratio of 0.55. This is amonst the worse of the industry: HDI underperforms 87.50% of its industry peers.
| 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.
The Revenue has grown by 88.41% in the past year. This is a very strong growth!
Measured over the past years, HDI shows a very strong growth in Revenue. The Revenue has been growing by 22.75% on average per year.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
HDI is valuated cheaply with a Price/Earnings ratio of 3.39.
Based on the Price/Earnings ratio, HDI is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
HDI is valuated cheaply when we compare the Price/Earnings ratio to 26.92, 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.
100.00% of the companies in the same industry are more expensive than HDI, based on the Price/Forward Earnings ratio.
HDI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.39 | ||
| Fwd PE | 5.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HDI indicates a somewhat cheap valuation: HDI is cheaper than 75.00% of the companies listed 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 3.61 |
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.
HDI's earnings are expected to decrease with -11.30% in the coming years. This may justify a cheaper valuation.
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.
HDI's Dividend Yield is comparable with the industry average which is at 8.68.
HDI's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
| 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
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%
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
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
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
ROICexcg growth 3Y21.18%
ROICexcg 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