HARDWOODS DISTRIBUTION INC (HDI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HDI - CA4124221074 - Common Stock
29.57 CAD
-0.11 (-0.37%)
Taking everything into account, HDI scores 5 out of 10 in our fundamental rating. HDI was compared to 12 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of HDI while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on HDI.
1. Profitability
1.1 Basic Checks
HDI had positive earnings in the past year.
In the past year HDI had a positive cash flow from operations.
1.2 Ratios
HDI's Return On Assets of 9.75% is fine compared to the rest of the industry. HDI outperforms 62.50% of its industry peers.
Looking at the Return On Equity, with a value of 29.24%, HDI belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
HDI has a Return On Invested Capital of 12.42%. This is in the better half of the industry: HDI outperforms 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HDI is above the industry average of 8.03%.
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
HDI has a Profit Margin (5.85%) which 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 of 22.36%. This is comparable 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 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HDI is still creating some value.
Compared to 1 year ago, HDI has more shares outstanding
Compared to 1 year ago, HDI has a worse debt to assets ratio.
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 has a Altman-Z score of 2.95. This is comparable to the rest of the industry: HDI outperforms 56.25% of its industry peers.
The Debt to FCF ratio of HDI is 12.40, which is on the high side as it means it would take HDI, 12.40 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.40, HDI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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 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.
The Current ratio of HDI (1.66) is worse than 68.75% of its industry peers.
HDI has a Quick Ratio of 1.66. This is a bad value and indicates that HDI is not financially healthy enough and could expect problems in meeting 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
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.
Measured over the past years, HDI shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.94% on average per year.
The Revenue has grown by 88.41% in the past year. This is a very strong growth!
The Revenue has been growing by 22.75% on average over the past years. This is a very strong growth!
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.
The Revenue is expected to grow by 5.72% on average over the next years.
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
Based on the Price/Earnings ratio of 3.39, the valuation of HDI can be described as very cheap.
Based on the Price/Earnings ratio, HDI is valued cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of HDI to the average of the S&P500 Index (27.19), we can say HDI is valued rather cheaply.
HDI is valuated cheaply with a Price/Forward Earnings ratio of 5.78.
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 23.88, 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
HDI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HDI is cheaper than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDI indicates a rather cheap valuation: HDI is cheaper than 81.25% of the companies listed in the same industry.
| 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
With a Yearly Dividend Yield of 1.92%, HDI has a reasonable but not impressive dividend return.
HDI's Dividend Yield is comparable with the industry average which is at 6.18.
Compared to an average S&P500 Dividend Yield of 1.94, HDI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector 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
5.3 Sustainability
5.61% of the earnings are spent on dividend by HDI. This is a low number and 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
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 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
Graham NumberN/A
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
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 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
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%.