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HEROUX-DEVTEK INC (HRX.CA) Stock Fundamental Analysis

TSX:HRX - Toronto Stock Exchange - CA42774L1094 - Common Stock - Currency: CAD

32.45  -0.02 (-0.06%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to HRX. HRX was compared to 12 industry peers in the Aerospace & Defense industry. HRX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HRX is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, HRX could be worth investigating further for growth and quality investing!.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year HRX was profitable.
In the past year HRX had a positive cash flow from operations.
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.
HRX.CA Yearly Net Income VS EBIT VS OCF VS FCFHRX.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 2024 0 20M -20M 40M -40M 60M 80M

1.2 Ratios

HRX has a Return On Assets of 5.44%. This is amongst the best in the industry. HRX outperforms 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.
The Return On Invested Capital of HRX (9.02%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HRX is in line with the industry average of 7.19%.
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 RankSector 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%
HRX.CA Yearly ROA, ROE, ROICHRX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10

1.3 Margins

With an excellent Profit Margin value of 7.51%, HRX 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 HRX has grown nicely.
The Operating Margin of HRX (11.55%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of HRX has remained more or less at the same level.
HRX has a better Gross Margin (20.10%) than 63.64% of its industry peers.
In the last couple of years the Gross Margin of HRX has remained more or less at the same level.
Industry RankSector 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%
HRX.CA Yearly Profit, Operating, Gross MarginsHRX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

7

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.
The number of shares outstanding for HRX has been reduced compared to 5 years ago.
The debt/assets ratio for HRX is higher compared to a year ago.
HRX.CA Yearly Shares OutstandingHRX.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
HRX.CA Yearly Total Debt VS Total AssetsHRX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

HRX has an Altman-Z score of 3.20. This indicates that HRX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HRX (3.20) is better than 100.00% of its industry peers.
HRX has a debt to FCF ratio of 6.40. This is a slightly negative value and a sign of low solvency as HRX would need 6.40 years to pay back of all of its debts.
The Debt to FCF ratio of HRX (6.40) is better than 81.82% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that HRX is not too dependend on debt financing.
HRX has a Debt to Equity ratio of 0.26. This is in the better half of the industry: HRX outperforms 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 6.4
Altman-Z 3.2
ROIC/WACC1.02
WACC8.81%
HRX.CA Yearly LT Debt VS Equity VS FCFHRX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

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.
HRX has a Current ratio of 2.13. This is amongst the best in the industry. HRX outperforms 90.91% of its industry peers.
A Quick Ratio of 0.68 indicates that HRX may have some problems paying its short term obligations.
HRX has a better Quick ratio (0.68) than 72.73% of its industry peers.
Industry RankSector Rank
Current Ratio 2.13
Quick Ratio 0.68
HRX.CA Yearly Current Assets VS Current LiabilitesHRX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

7

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.
The Revenue has grown by 19.98% in the past year. This is quite good.
HRX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.41% yearly.
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HRX.CA Yearly Revenue VS EstimatesHRX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
HRX.CA Yearly EPS VS EstimatesHRX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

5

4. Valuation

4.1 Price/Earnings Ratio

HRX is valuated rather expensively with a Price/Earnings ratio of 21.21.
The rest of the industry has a similar Price/Earnings ratio as HRX.
HRX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.12, which is the current average of the S&P500 Index.
HRX is valuated correctly with a Price/Forward Earnings ratio of 16.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 94.77. HRX is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 21.21
Fwd PE 16.73
HRX.CA Price Earnings VS Forward Price EarningsHRX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

HRX's Enterprise Value to EBITDA ratio is in line with the industry average.
HRX's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 50.08
EV/EBITDA 10.58
HRX.CA Per share dataHRX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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 excellent profitability rating of HRX may justify a higher PE ratio.
HRX's earnings are expected to grow with 29.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)4.49
EPS Next 2Y37.88%
EPS Next 3Y29.83%

0

5. Dividend

5.1 Amount

No dividends for HRX!.
Industry RankSector Rank
Dividend Yield N/A

HEROUX-DEVTEK INC

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

32.45

-0.02 (-0.06%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)02-05 2025-02-05/amc
Inst Owners45.98%
Inst Owner ChangeN/A
Ins Owners10.93%
Ins Owner ChangeN/A
Market Cap1.09B
Analysts75
Price Target30.86 (-4.9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector Rank
PE 21.21
Fwd PE 16.73
P/S 1.57
P/FCF 50.08
P/OCF 24.37
P/B 2.33
P/tB 3.84
EV/EBITDA 10.58
EPS(TTM)1.53
EY4.71%
EPS(NY)1.94
Fwd EY5.98%
FCF(TTM)0.65
FCFY2%
OCF(TTM)1.33
OCFY4.1%
SpS20.63
BVpS13.94
TBVpS8.45
PEG (NY)0.4
PEG (5Y)4.49
Profitability
Industry RankSector 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%
ROICexcg growth 3Y-0.85%
ROICexcg 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 RankSector 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 3.2
F-Score7
WACC8.81%
ROIC/WACC1.02
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%