HEROUX-DEVTEK INC (HRX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HRX - CA42774L1094 - Common Stock
32.48 CAD
0 (0%)
HRX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Aerospace & Defense industry. HRX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HRX is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, HRX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
HRX had positive earnings in the past year.
HRX had a positive operating cash flow in the past year.
HRX had positive earnings in 4 of the past 5 years.
In the past 5 years HRX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HRX (5.44%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 11.12%, HRX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With a Return On Invested Capital value of 9.02%, HRX perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRX is below the industry average of 8.00%.
The last Return On Invested Capital (9.02%) for HRX is above the 3 year average (5.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 11.12% | ||
| ROIC | 9.02% |
ROA(3y)3.29%
ROA(5y)1.33%
ROE(3y)7.02%
ROE(5y)2.36%
ROIC(3y)5.23%
ROIC(5y)5.49%
1.3 Margins
Looking at the Profit Margin, with a value of 7.51%, HRX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HRX's Profit Margin has improved in the last couple of years.
HRX has a Operating Margin of 11.55%. This is amongst the best in the industry. HRX outperforms 100.00% of its industry peers.
HRX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 20.10%, HRX is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of HRX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.55% | ||
| PM (TTM) | 7.51% | ||
| GM | 20.1% |
OM growth 3Y2.73%
OM growth 5Y0.29%
PM growth 3Y19.94%
PM growth 5Y2.18%
GM growth 3Y1.98%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HRX is still creating some value.
The number of shares outstanding for HRX has been reduced compared to 1 year ago.
HRX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HRX has a worse debt to assets ratio.
2.2 Solvency
HRX has an Altman-Z score of 3.21. This indicates that HRX is financially healthy and has little risk of bankruptcy at the moment.
HRX has a better Altman-Z score (3.21) than 100.00% of its industry peers.
The Debt to FCF ratio of HRX is 6.40, which is on the high side as it means it would take HRX, 6.40 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 6.40, HRX belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that HRX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, HRX is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.14
WACC7.94%
2.3 Liquidity
HRX has a Current Ratio of 2.13. This indicates that HRX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HRX (2.13) is better than 90.91% of its industry peers.
HRX has a Quick Ratio of 2.13. This is a bad value and indicates that HRX is not financially healthy enough and could expect problems in meeting its short term obligations.
HRX has a better Quick ratio (0.68) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
HRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 212.24%, which is quite impressive.
Measured over the past 5 years, HRX shows a small growth in Earnings Per Share. The EPS has been growing by 4.72% on average per year.
Looking at the last year, HRX shows a quite strong growth in Revenue. The Revenue has grown by 19.98% in the last year.
The Revenue has been growing slightly by 5.41% on average over the past years.
EPS 1Y (TTM)212.24%
EPS 3Y8.44%
EPS 5Y4.72%
EPS Q2Q%171.43%
Revenue 1Y (TTM)19.98%
Revenue growth 3Y3.34%
Revenue growth 5Y5.41%
Sales Q2Q%22.37%
3.2 Future
Based on estimates for the next years, HRX will show a very strong growth in Earnings Per Share. The EPS will grow by 29.83% on average per year.
Based on estimates for the next years, HRX will show a quite strong growth in Revenue. The Revenue will grow by 9.02% on average per year.
EPS Next Y53.48%
EPS Next 2Y37.88%
EPS Next 3Y29.83%
EPS Next 5YN/A
Revenue Next Year16.19%
Revenue Next 2Y11.66%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
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 accelerating.
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
HRX is valuated rather expensively with a Price/Earnings ratio of 21.23.
Compared to the rest of the industry, the Price/Earnings ratio of HRX is on the same level as its industry peers.
HRX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 16.75 indicates a correct valuation of HRX.
HRX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HRX to the average of the S&P500 Index (23.98), we can say HRX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
HRX's Enterprise Value to EBITDA is on the same level as the industry average.
HRX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HRX is more expensive than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.16 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
HRX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HRX may justify a higher PE ratio.
A more expensive valuation may be justified as HRX's earnings are expected to grow with 29.83% in the coming years.
PEG (NY)0.4
PEG (5Y)4.5
EPS Next 2Y37.88%
EPS Next 3Y29.83%
5. Dividend
5.1 Amount
HRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:HRX (2/13/2025, 7:00:00 PM)
32.48
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners16.57%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap1.09B
Revenue(TTM)694.73M
Net Income(TTM)52.18M
Analysts47.5
Price Target30.86 (-4.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.29%
Min EPS beat(2)23.36%
Max EPS beat(2)59.23%
EPS beat(4)4
Avg EPS beat(4)50.28%
Min EPS beat(4)23.36%
Max EPS beat(4)62.02%
EPS beat(8)6
Avg EPS beat(8)23.09%
EPS beat(12)8
Avg EPS beat(12)12.44%
EPS beat(16)12
Avg EPS beat(16)17.01%
Revenue beat(2)2
Avg Revenue beat(2)6.82%
Min Revenue beat(2)4.67%
Max Revenue beat(2)8.97%
Revenue beat(4)4
Avg Revenue beat(4)7.24%
Min Revenue beat(4)4.67%
Max Revenue beat(4)8.97%
Revenue beat(8)6
Avg Revenue beat(8)3.62%
Revenue beat(12)8
Avg Revenue beat(12)1.21%
Revenue beat(16)9
Avg Revenue beat(16)0.68%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-3.75%
EPS NQ rev (3m)10%
EPS NY rev (1m)-4.62%
EPS NY rev (3m)-4.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 16.75 | ||
| P/S | 1.58 | ||
| P/FCF | 50.16 | ||
| P/OCF | 24.41 | ||
| P/B | 2.33 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 10.59 |
EPS(TTM)1.53
EY4.71%
EPS(NY)1.94
Fwd EY5.97%
FCF(TTM)0.65
FCFY1.99%
OCF(TTM)1.33
OCFY4.1%
SpS20.62
BVpS13.93
TBVpS8.45
PEG (NY)0.4
PEG (5Y)4.5
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 11.12% | ||
| ROCE | 11.39% | ||
| ROIC | 9.02% | ||
| ROICexc | 9.03% | ||
| ROICexgc | 12.25% | ||
| OM | 11.55% | ||
| PM (TTM) | 7.51% | ||
| GM | 20.1% | ||
| FCFM | 3.14% |
ROA(3y)3.29%
ROA(5y)1.33%
ROE(3y)7.02%
ROE(5y)2.36%
ROIC(3y)5.23%
ROIC(5y)5.49%
ROICexc(3y)5.6%
ROICexc(5y)5.99%
ROICexgc(3y)7.74%
ROICexgc(5y)8.37%
ROCE(3y)6.61%
ROCE(5y)6.94%
ROICexgc growth 3Y-0.85%
ROICexgc growth 5Y1.32%
ROICexc growth 3Y0.72%
ROICexc growth 5Y5.43%
OM growth 3Y2.73%
OM growth 5Y0.29%
PM growth 3Y19.94%
PM growth 5Y2.18%
GM growth 3Y1.98%
GM growth 5Y0.51%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 6.4 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 63.68% | ||
| Cap/Sales | 3.31% | ||
| Interest Coverage | 7.47 | ||
| Cash Conversion | 38.53% | ||
| Profit Quality | 41.81% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 3.21 |
F-Score7
WACC7.94%
ROIC/WACC1.14
Cap/Depr(3y)51.91%
Cap/Depr(5y)50.48%
Cap/Sales(3y)3.31%
Cap/Sales(5y)3.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)212.24%
EPS 3Y8.44%
EPS 5Y4.72%
EPS Q2Q%171.43%
EPS Next Y53.48%
EPS Next 2Y37.88%
EPS Next 3Y29.83%
EPS Next 5YN/A
Revenue 1Y (TTM)19.98%
Revenue growth 3Y3.34%
Revenue growth 5Y5.41%
Sales Q2Q%22.37%
Revenue Next Year16.19%
Revenue Next 2Y11.66%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
EBIT growth 1Y146.56%
EBIT growth 3Y6.15%
EBIT growth 5Y5.72%
EBIT Next Year148.95%
EBIT Next 3Y44.43%
EBIT Next 5YN/A
FCF growth 1Y-24.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.24%
OCF growth 3Y-67.96%
OCF growth 5Y-46.98%
HEROUX-DEVTEK INC / HRX.CA FAQ
Can you provide the ChartMill fundamental rating for HEROUX-DEVTEK INC?
ChartMill assigns a fundamental rating of 6 / 10 to HRX.CA.
What is the valuation status of HEROUX-DEVTEK INC (HRX.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to HEROUX-DEVTEK INC (HRX.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for HEROUX-DEVTEK INC?
HEROUX-DEVTEK INC (HRX.CA) has a profitability rating of 7 / 10.
How financially healthy is HEROUX-DEVTEK INC?
The financial health rating of HEROUX-DEVTEK INC (HRX.CA) is 7 / 10.
What is the expected EPS growth for HEROUX-DEVTEK INC (HRX.CA) stock?
The Earnings per Share (EPS) of HEROUX-DEVTEK INC (HRX.CA) is expected to grow by 53.48% in the next year.