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 7 out of 10 in our fundamental rating. HLF was compared to 18 industry peers in the Food Products industry. HLF gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLF. These ratings could make HLF a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
HLF had positive earnings in the past year.
In the past year HLF had a positive cash flow from operations.
HLF had positive earnings in each of the past 5 years.
Of the past 5 years HLF 4 years had a positive operating cash flow.
1.2 Ratios
HLF has a Return On Assets of 6.81%. This is amongst the best in the industry. HLF outperforms 94.44% of its industry peers.
Looking at the Return On Equity, with a value of 14.32%, HLF belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
HLF has a better Return On Invested Capital (8.77%) than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLF is above the industry average of 6.93%.
| 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.
In the last couple of years the Profit Margin of HLF has grown nicely.
HLF has a Operating Margin of 7.34%. This is amongst the best in the industry. HLF outperforms 88.89% of its industry peers.
HLF's Operating Margin has improved in the last couple of years.
HLF's Gross Margin of 22.65% is amongst the best of the industry. HLF outperforms 83.33% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HLF is still creating some value.
The number of shares outstanding for HLF has been reduced compared to 1 year ago.
HLF has less shares outstanding than it did 5 years ago.
HLF has a better debt/assets ratio than last year.
2.2 Solvency
HLF has an Altman-Z score of 2.77. This is not the best score and indicates that HLF is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.77, HLF belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of HLF is 6.73, which is on the high side as it means it would take HLF, 6.73 years of fcf income to pay off all of its debts.
HLF has a Debt to FCF ratio of 6.73. This is amongst the best in the industry. HLF outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that HLF is somewhat dependend on debt financing.
HLF has a better Debt to Equity ratio (0.59) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.19
WACC7.36%
2.3 Liquidity
A Current Ratio of 2.54 indicates that HLF has no problem at all paying its short term obligations.
The Current ratio of HLF (2.54) is better than 100.00% of its industry peers.
A Quick Ratio of 0.81 indicates that HLF may have some problems paying its short term obligations.
The Quick ratio of HLF (0.81) is better than 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
HLF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.79%, which is quite impressive.
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.
HLF shows a decrease in Revenue. In the last year, the revenue decreased by -7.53%.
HLF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.36% yearly.
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.
The Revenue is expected to grow by 7.31% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.61, the valuation of HLF can be described as very reasonable.
100.00% of the companies in the same industry are more expensive than HLF, based on the Price/Earnings ratio.
HLF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
HLF is valuated cheaply with a Price/Forward Earnings ratio of 7.20.
HLF's Price/Forward Earnings ratio is rather cheap when compared to the industry. HLF is cheaper than 100.00% of the companies in the same industry.
HLF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 7.2 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than HLF, based on the Enterprise Value to EBITDA ratio.
HLF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLF is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10 | ||
| EV/EBITDA | 6.82 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.58
PEG (5Y)0.71
EPS Next 2Y9.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HLF has a Yearly Dividend Yield of 3.78%. 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 4.21.
HLF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
The dividend of HLF decreases each year by -0.71%.
HLF has been paying a dividend for at least 10 years, so it has 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 (5/29/2025, 7:00:00 PM)
17.99
-0.21 (-1.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners14.93%
Inst Owner ChangeN/A
Ins Owners4.88%
Ins Owner ChangeN/A
Market Cap524.77M
Analysts76.67
Price Target19.38 (7.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend0.6
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)0%
PT rev (3m)16.03%
EPS NQ rev (1m)7.79%
EPS NQ rev (3m)20.29%
EPS NY rev (1m)0%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 7.2 | ||
| P/S | 0.4 | ||
| P/FCF | 10 | ||
| P/OCF | 6.08 | ||
| P/B | 0.92 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 6.82 |
EPS(TTM)2.09
EY11.62%
EPS(NY)2.5
Fwd EY13.89%
FCF(TTM)1.8
FCFY10%
OCF(TTM)2.96
OCFY16.45%
SpS45.05
BVpS19.48
TBVpS6.77
PEG (NY)2.58
PEG (5Y)0.71
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 | 2.77 |
F-Score7
WACC7.36%
ROIC/WACC1.19
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 5YN/A
FCF growth 1Y157.96%
FCF growth 3Y99.58%
FCF growth 5Y8.22%
OCF growth 1Y243.25%
OCF growth 3Y46.69%
OCF growth 5Y11.91%