HIGH LINER FOODS INC (HLF.CA) Stock Fundamental Analysis
TSX:HLF - Toronto Stock Exchange - CA4296951094 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to HLF. HLF was compared to 19 industry peers in the Food Products industry. HLF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HLF has a bad growth rate and is valued cheaply. Finally HLF also has an excellent dividend rating. This makes HLF very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HLF was profitable.
HLF had a positive operating cash flow in the past year.
Of the past 5 years HLF 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: HLF reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.30%, HLF belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
HLF has a Return On Equity of 14.80%. This is amongst the best in the industry. HLF outperforms 94.74% of its industry peers.
With an excellent Return On Invested Capital value of 9.39%, HLF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HLF is above the industry average of 6.53%.
The 3 year average ROIC (8.61%) for HLF is below the current ROIC(9.39%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
With an excellent Profit Margin value of 6.31%, HLF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of HLF has grown nicely.
HLF's Operating Margin of 7.57% is amongst the best of the industry. HLF outperforms 89.47% of its industry peers.
In the last couple of years the Operating Margin of HLF has grown nicely.
HLF has a better Gross Margin (22.36%) than 84.21% of its industry peers.
HLF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
HLF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.87 indicates that HLF is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLF has a better Altman-Z score (2.87) than 84.21% 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.
HLF's Debt to FCF ratio of 2.01 is amongst the best of the industry. HLF outperforms 100.00% of its industry peers.
HLF has a Debt/Equity ratio of 0.53. This is a neutral value indicating HLF is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.53, HLF is doing good in the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.29
WACC7.3%
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.
HLF has a better Current ratio (2.66) than 100.00% of its industry peers.
A Quick Ratio of 0.84 indicates that HLF may have some problems paying its short term obligations.
HLF has a better Quick ratio (0.84) than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
HLF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.46%, which is quite impressive.
HLF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.18% yearly.
EPS 1Y (TTM)32.46%
EPS 3Y5.66%
EPS 5Y12.18%
EPS Q2Q%78.26%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.88%
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 9.42% yearly.
HLF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.31% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.07, the valuation of HLF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HLF indicates a rather cheap valuation: HLF is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, HLF is valued rather cheaply.
A Price/Forward Earnings ratio of 7.79 indicates a rather cheap valuation of HLF.
Based on the Price/Forward Earnings ratio, HLF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, HLF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLF is valued cheaper than 94.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLF is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.13 | ||
| EV/EBITDA | 5.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLF does not grow enough to justify the current Price/Earnings ratio.
HLF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)0.66
EPS Next 2Y9.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, HLF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.39, HLF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, HLF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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
5.3 Sustainability
22.19% of the earnings are spent on dividend by HLF. This is a low number and sustainable payout ratio.
The dividend of HLF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.19%
EPS Next 2Y9.42%
EPS Next 3YN/A
TSX:HLF (5/6/2025, 7:00:00 PM)
16.78
-0.07 (-0.42%)
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 Cap490.65M
Analysts76.67
Price Target19.38 (15.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend0.55
Dividend Growth(5Y)2.02%
DP22.19%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)16.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.79 | ||
| P/S | 0.37 | ||
| P/FCF | 3.13 | ||
| P/OCF | 2.6 | ||
| P/B | 0.87 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 5.87 |
EPS(TTM)2.08
EY12.4%
EPS(NY)2.15
Fwd EY12.83%
FCF(TTM)5.37
FCFY32%
OCF(TTM)6.46
OCFY38.5%
SpS45.37
BVpS19.34
TBVpS6.46
PEG (NY)2.41
PEG (5Y)0.66
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.87 |
F-Score8
WACC7.3%
ROIC/WACC1.29
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)32.46%
EPS 3Y5.66%
EPS 5Y12.18%
EPS Q2Q%78.26%
EPS Next Y3.34%
EPS Next 2Y9.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.88%
Revenue Next Year7.03%
Revenue Next 2Y7.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-0.44%
EBIT growth 3Y3.95%
EBIT growth 5Y9.39%
EBIT Next Year43.31%
EBIT Next 3Y17.82%
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%