HEROUX-DEVTEK INC (HRX.CA) Stock Fundamental Analysis
TSX:HRX • CA42774L1094
32.48 CAD
0 (0%)
Last: Feb 13, 2025, 07:00 PM
Taking everything into account, HRX scores 6 out of 10 in our fundamental rating. HRX was compared to 13 industry peers in the Aerospace & Defense industry. HRX gets an excellent profitability rating and is at the same time showing great financial health properties. HRX is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes HRX very considerable for growth and quality investing!
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.
- Of the past 5 years HRX 4 years were profitable.
- Each year in the past 5 years HRX had a positive operating cash flow.
1.2 Ratios
- HRX has a better Return On Assets (5.44%) than 100.00% of its industry peers.
- The Return On Equity of HRX (11.12%) is better than 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.02%, HRX is in line with its industry, 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 9.34%.
- 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
- HRX's Profit Margin of 7.51% is amongst the best of the industry. HRX outperforms 100.00% of its industry peers.
- HRX's Profit Margin has improved in the last couple of years.
- HRX's Operating Margin of 11.55% is amongst the best of the industry. HRX outperforms 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.
- Looking at the Gross Margin, with a value of 20.10%, HRX is doing worse than 81.82% of the companies in the same industry.
- 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.
- HRX has less shares outstanding than it did 1 year ago.
- HRX has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for HRX is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.21 indicates that HRX is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.21, HRX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 6.40, HRX belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- HRX has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- HRX's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. HRX outperforms 72.73% of its industry peers.
| 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.
- Looking at the Current ratio, with a value of 2.13, HRX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- A Quick Ratio of 0.68 indicates that HRX may have some problems paying its short term obligations.
- HRX's Quick ratio of 0.68 is fine compared to the rest of the industry. HRX outperforms 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.
- The Revenue has grown by 19.98% in the past year. This is quite good.
- 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
- HRX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.83% yearly.
- The Revenue is expected to grow by 9.02% on average over the next years. This is quite good.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.23, the valuation of HRX can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of HRX is on the same level as its industry peers.
- HRX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- HRX is valuated correctly with a Price/Forward Earnings ratio of 16.75.
- The rest of the industry has a similar Price/Forward Earnings ratio as HRX.
- HRX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRX is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRX indicates a slightly more expensive valuation: HRX is more expensive than 72.73% of the companies listed 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.
- 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)4.5
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)11-12 2024-11-12/bmo
Earnings (Next)02-24 2025-02-24/amc
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.