High Liner Foods, Inc. (HLF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

High Liner Foods, Inc.

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Why is High Liner Foods, Inc. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 7.42% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.42% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CAD 63.17 MM
ROCE(HY) Lowest at 6.93%
RAW MATERIAL COST(Y) Grown by 16.28% (YoY)

With ROE of 8.23%, it has a very attractive valuation with a 0.72 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.75%, its profits have fallen by -16.5%

Below par performance in long term as well as near term

Along with generating -19.75% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to High Liner Foods, Inc. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is High Liner Foods, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

High Liner Foods, Inc.

-19.75%

0.50

23.76%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.42%

EBIT Growth (5y)

3.65%

EBIT to Interest (avg)

2.91

Debt to EBITDA (avg)

3.02

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

1.51

Tax Ratio

17.80%

Dividend Payout Ratio

40.01%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

10.34%

ROE (avg)

10.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.72

EV to EBIT

9.70

EV to EBITDA

6.88

EV to Capital Employed

0.83

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

8.58%

ROE (Latest)

8.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

NET PROFIT(HY)

At CAD 27.11 MM has Grown at 57.6%

DIVIDEND PER SHARE(HY)

Highest at CAD 9.82

DIVIDEND PAYOUT RATIO(Y)

Highest at 46.6%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.79 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.82 times

NET SALES(Q)

Highest at CAD 459.41 MM

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 63.17 MM

ROCE(HY)

Lowest at 6.93%

RAW MATERIAL COST(Y)

Grown by 16.28% (YoY

INTEREST(Q)

Highest at CAD 10.07 MM

PRE-TAX PROFIT(Q)

Fallen at -30.77%

NET PROFIT(Q)

Fallen at -34.64%

Here's what is working for High Liner Foods, Inc.

Dividend per share

Highest at CAD 9.82 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 459.41 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Inventory Turnover Ratio

Highest at 2.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 46.6%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for High Liner Foods, Inc.

Operating Cash Flow

Lowest at CAD 63.17 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

At CAD 10.07 MM has Grown at 7,834.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest

Highest at CAD 10.07 MM

in the last five periods and Increased by 7,834.91% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

Fallen at -30.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Fallen at -34.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 16.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales