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HIGH LINER FOODS INC (HLF.CA) Stock Fundamental Analysis

TSX:HLF - Toronto Stock Exchange - CA4296951094 - Common Stock - Currency: CAD

15.88  -0.12 (-0.75%)

Fundamental Rating

7

Overall HLF gets a fundamental rating of 7 out of 10. We evaluated HLF against 18 industry peers in the Food Products industry. HLF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLF. HLF also has an excellent dividend rating. With these ratings, HLF could be worth investigating further for value and dividend investing!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year HLF was profitable.
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.
HLF.CA Yearly Net Income VS EBIT VS OCF VS FCFHLF.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M 150M

1.2 Ratios

The Return On Assets of HLF (7.30%) is better than 94.44% of its industry peers.
Looking at the Return On Equity, with a value of 14.80%, HLF belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
HLF has a Return On Invested Capital of 9.39%. This is amongst the best in the industry. HLF outperforms 83.33% of its industry peers.
HLF had an Average Return On Invested Capital over the past 3 years of 8.61%. This is in line with the industry average of 8.00%.
The 3 year average ROIC (8.61%) for HLF is below the current ROIC(9.39%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.3%
ROE 14.8%
ROIC 9.39%
ROA(3y)4.78%
ROA(5y)3.86%
ROE(3y)11.85%
ROE(5y)9.86%
ROIC(3y)8.61%
ROIC(5y)8.25%
HLF.CA Yearly ROA, ROE, ROICHLF.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10

1.3 Margins

The Profit Margin of HLF (6.31%) is better 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 7.57%. 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.
With a decent Gross Margin value of 22.36%, HLF is doing good in the industry, outperforming 77.78% of the companies in the same industry.
HLF's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.57%
PM (TTM) 6.31%
GM 22.36%
OM growth 3Y-4.89%
OM growth 5Y8.74%
PM growth 3Y-5.55%
PM growth 5Y12.85%
GM growth 3Y-2%
GM growth 5Y2.42%
HLF.CA Yearly Profit, Operating, Gross MarginsHLF.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HLF is creating some value.
Compared to 1 year ago, HLF has less shares outstanding
HLF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HLF has an improved debt to assets ratio.
HLF.CA Yearly Shares OutstandingHLF.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
HLF.CA Yearly Total Debt VS Total AssetsHLF.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

HLF has an Altman-Z score of 2.84. 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.
The Altman-Z score of HLF (2.84) is better than 77.78% of its industry peers.
HLF has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as HLF would need 2.01 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.01, HLF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HLF has a Debt/Equity ratio of 0.53. This is a neutral value indicating HLF is somewhat dependend on debt financing.
The Debt to Equity ratio of HLF (0.53) is better than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.01
Altman-Z 2.84
ROIC/WACC1.24
WACC7.55%
HLF.CA Yearly LT Debt VS Equity VS FCFHLF.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

2.3 Liquidity

HLF has a Current Ratio of 2.66. This indicates that HLF is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.66, HLF belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HLF has a Quick Ratio of 2.66. This is a bad value and indicates that HLF is not financially healthy enough and could expect problems in meeting its short term obligations.
HLF has a Quick ratio of 0.84. This is amongst the best in the industry. HLF outperforms 94.44% of its industry peers.
Industry RankSector Rank
Current Ratio 2.66
Quick Ratio 0.84
HLF.CA Yearly Current Assets VS Current LiabilitesHLF.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.56% over the past year.
HLF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.45% yearly.
Looking at the last year, HLF shows a very negative growth in Revenue. The Revenue has decreased by -12.09% in the last year.
Measured over the past years, HLF shows a small growth in Revenue. The Revenue has been growing by 0.60% on average per year.
EPS 1Y (TTM)5.56%
EPS 3Y3.44%
EPS 5Y17.45%
EPS Q2Q%42.86%
Revenue 1Y (TTM)-12.09%
Revenue growth 3Y9.29%
Revenue growth 5Y0.6%
Sales Q2Q%-11.87%

3.2 Future

HLF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.83% yearly.
Based on estimates for the next years, HLF will show a small growth in Revenue. The Revenue will grow by 0.12% on average per year.
EPS Next Y17.39%
EPS Next 2Y16.24%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue Next Year-13.24%
Revenue Next 2Y-4.25%
Revenue Next 3Y0.12%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
HLF.CA Yearly Revenue VS EstimatesHLF.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
HLF.CA Yearly EPS VS EstimatesHLF.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

9

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.31, the valuation of HLF can be described as very reasonable.
Based on the Price/Earnings ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. HLF is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.19, the valuation of HLF can be described as very cheap.
Based on the Price/Forward Earnings ratio, HLF is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HLF to the average of the S&P500 Index (94.77), we can say HLF is valued rather cheaply.
Industry RankSector Rank
PE 8.31
Fwd PE 7.19
HLF.CA Price Earnings VS Forward Price EarningsHLF.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

HLF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLF is cheaper than 94.44% of the companies in the same industry.
94.44% of the companies in the same industry are more expensive than HLF, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 2.89
EV/EBITDA 5.62
HLF.CA Per share dataHLF.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

HLF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HLF has an outstanding profitability rating, which may justify a higher PE ratio.
HLF's earnings are expected to grow with 16.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.48
EPS Next 2Y16.24%
EPS Next 3Y16.83%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.28%, HLF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.36, HLF pays a better dividend. On top of this HLF pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, HLF pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.28%

5.2 History

The dividend of HLF has a limited annual growth rate of 2.02%.
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)2.02%
Div Incr Years4
Div Non Decr Years4
HLF.CA Yearly Dividends per shareHLF.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

HLF pays out 22.19% of its income as dividend. This is a sustainable payout ratio.
The dividend of HLF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.19%
EPS Next 2Y16.24%
EPS Next 3Y16.83%
HLF.CA Yearly Income VS Free CF VS DividendHLF.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M 150M
HLF.CA Dividend Payout.HLF.CA Dividend Payout, showing the Payout Ratio.HLF.CA Dividend Payout.PayoutRetained Earnings

HIGH LINER FOODS INC

TSX:HLF (2/7/2025, 7:00:00 PM)

15.88

-0.12 (-0.75%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)11-08 2024-11-08/bmo
Earnings (Next)02-26 2025-02-26/amc
Inst Owners18.28%
Inst Owner ChangeN/A
Ins Owners5.79%
Ins Owner ChangeN/A
Market Cap471.95M
Analysts76.67
Price Target16.7 (5.16%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.28%
Yearly Dividend0.39
Dividend Growth(5Y)2.02%
DP22.19%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.65%
Min EPS beat(2)-11.99%
Max EPS beat(2)33.28%
EPS beat(4)3
Avg EPS beat(4)23.09%
Min EPS beat(4)-11.99%
Max EPS beat(4)67.56%
EPS beat(8)5
Avg EPS beat(8)11.18%
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)-0.26%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)0.52%
Revenue beat(4)1
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-8.62%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-2.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.41%
Revenue beat(16)7
Avg Revenue beat(16)-1.06%
PT rev (1m)0%
PT rev (3m)6.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.47%
Valuation
Industry RankSector Rank
PE 8.31
Fwd PE 7.19
P/S 0.34
P/FCF 2.89
P/OCF 2.4
P/B 0.8
P/tB 2.4
EV/EBITDA 5.62
EPS(TTM)1.91
EY12.03%
EPS(NY)2.21
Fwd EY13.92%
FCF(TTM)5.49
FCFY34.59%
OCF(TTM)6.61
OCFY41.61%
SpS46.41
BVpS19.78
TBVpS6.61
PEG (NY)0.48
PEG (5Y)0.48
Profitability
Industry RankSector Rank
ROA 7.3%
ROE 14.8%
ROCE 10.68%
ROIC 9.39%
ROICexc 9.53%
ROICexgc 16.04%
OM 7.57%
PM (TTM) 6.31%
GM 22.36%
FCFM 11.83%
ROA(3y)4.78%
ROA(5y)3.86%
ROE(3y)11.85%
ROE(5y)9.86%
ROIC(3y)8.61%
ROIC(5y)8.25%
ROICexc(3y)8.65%
ROICexc(5y)8.38%
ROICexgc(3y)14.75%
ROICexgc(5y)15.14%
ROCE(3y)10.45%
ROCE(5y)9.87%
ROICexcg growth 3Y-5.46%
ROICexcg growth 5Y6.38%
ROICexc growth 3Y-0.12%
ROICexc growth 5Y8.82%
OM growth 3Y-4.89%
OM growth 5Y8.74%
PM growth 3Y-5.55%
PM growth 5Y12.85%
GM growth 3Y-2%
GM growth 5Y2.42%
F-Score8
Asset Turnover1.16
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.01
Debt/EBITDA 2.23
Cap/Depr 91.85%
Cap/Sales 2.4%
Interest Coverage 3.31
Cash Conversion 139.75%
Profit Quality 187.57%
Current Ratio 2.66
Quick Ratio 0.84
Altman-Z 2.84
F-Score8
WACC7.55%
ROIC/WACC1.24
Cap/Depr(3y)82.61%
Cap/Depr(5y)63.19%
Cap/Sales(3y)2.01%
Cap/Sales(5y)1.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.56%
EPS 3Y3.44%
EPS 5Y17.45%
EPS Q2Q%42.86%
EPS Next Y17.39%
EPS Next 2Y16.24%
EPS Next 3Y16.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.09%
Revenue growth 3Y9.29%
Revenue growth 5Y0.6%
Sales Q2Q%-11.87%
Revenue Next Year-13.24%
Revenue Next 2Y-4.25%
Revenue Next 3Y0.12%
Revenue Next 5YN/A
EBIT growth 1Y-0.44%
EBIT growth 3Y3.95%
EBIT growth 5Y9.39%
EBIT Next Year43.31%
EBIT Next 3Y19.1%
EBIT Next 5YN/A
FCF growth 1Y342.05%
FCF growth 3Y19.46%
FCF growth 5Y30.16%
OCF growth 1Y583.66%
OCF growth 3Y20.3%
OCF growth 5Y25.81%