HARDWOODS DISTRIBUTION INC (HDI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HDI - CA4124221074 - Common Stock
29.57 CAD
-0.11 (-0.37%)
We assign a fundamental rating of 5 out of 10 to HDI. 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. HDI may be a bit undervalued, certainly considering the very reasonable score on growth
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
- Looking at the Return On Assets, with a value of 9.75%, HDI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- HDI has a Return On Equity of 29.24%. This is amongst the best in the industry. HDI outperforms 81.25% of its industry peers.
- HDI has a better Return On Invested Capital (12.42%) than 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 3 year average ROIC (12.25%) for HDI is below the current ROIC(12.42%), indicating increased profibility in the last year.
| 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 has a Operating Margin of 8.69%. This is in the better half 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 comparable to the rest of the industry.
- In the last couple of years the Gross Margin of HDI has grown nicely.
| 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.
- The debt/assets ratio for HDI is higher compared to a year ago.
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.
- With a Altman-Z score value of 2.95, HDI perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- 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.
- HDI has a Debt to FCF ratio (12.40) which is in line with its industry peers.
- A Debt/Equity ratio of 0.97 indicates that HDI is somewhat dependend on debt financing.
- HDI has a worse Debt to Equity ratio (0.97) 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.
- 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's Quick ratio of 0.55 is on the low side compared to the rest of the industry. HDI is outperformed by 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.
- 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.
- HDI shows a strong growth in Revenue. In the last year, the Revenue has grown by 88.41%.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 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 27.54, 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.
- When comparing the Price/Forward Earnings ratio of HDI to the average of the S&P500 Index (24.31), we can say HDI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.39 | ||
| Fwd PE | 5.78 |
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.
- HDI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HDI is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 3.61 |
4.3 Compensation for Growth
- HDI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- HDI has a very decent profitability rating, which 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.
- Compared to an average industry Dividend Yield of 6.09, HDI has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, 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)N/A N/A
Earnings (Next)N/A 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 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%.