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Highwood Asset Management Ltd.

  • Market Cap: Micro Cap
  • Industry: Oil
  • ISIN: CA43127Q1000
  • TSX: HOCL
CAD
5.87
0.18 (3.16%)

Sep 22

TSX

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Total Energy Services, Inc.
Stampede Drilling, Inc.
Calfrac Well Services Ltd.
Highwood Asset Management Ltd.
Cleantek Industries, Inc.
McCoy Global, Inc.
Pulse Seismic, Inc.
Divergent Energy Services Corp.
NXT Energy Solutions, Inc.
Gelum Resources Ltd.
CWC Energy Services Corp.

Why is Highwood Asset Management Ltd. ?

1
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 38.72% and Operating profit at 67.43% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Capital Employed (avg) of 4.75% signifying low profitability per unit of total capital (equity and debt)
2
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 43.46%
3
Flat results in Mar 26
  • ROCE(HY) Lowest at 3.54%
  • PRE-TAX PROFIT(Q) At CAD 6.72 MM has Fallen at -36.83%
  • EPS(Q) Lowest at CAD -1.03
4
With ROE of 27.85%, it has a expensive valuation with a 0.52 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 -10.58%, its profits have risen by 51.7% ; the PEG ratio of the company is 0
5
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -10.58% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to Highwood Asset Management Ltd. should be less than 10%
  2. Overall Portfolio exposure to Oil should be less than 30%

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

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

Is Highwood Asset Management Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Highwood Asset Management Ltd.
-100.0%
-0.45
40.53%
S&P/TSX 60
20.36%
2.23
12.57%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
38.72%
EBIT Growth (5y)
67.43%
EBIT to Interest (avg)
1.95
Debt to EBITDA (avg)
2.10
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.38
Tax Ratio
43.29%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.75%
ROE (avg)
43.46%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
2
Industry P/E
Price to Book Value
0.52
EV to EBIT
3.62
EV to EBITDA
2.38
EV to Capital Employed
0.72
EV to Sales
1.56
PEG Ratio
0.04
Dividend Yield
NA
ROCE (Latest)
19.99%
ROE (Latest)
27.85%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

8What is working for the Company
PRE-TAX PROFIT(Q)

At CAD 25.51 MM has Grown at 114.57%

NET PROFIT(Q)

At CAD 19.78 MM has Grown at 103.26%

DEBT-EQUITY RATIO (HY)

Lowest at 1.83 %

EPS(Q)

Highest at CAD 2.11

-8What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at CAD 45.99 MM

NET SALES(9M)

At CAD 74.03 MM has Grown at -21.95%

ROCE(HY)

Lowest at 13.92%

RAW MATERIAL COST(Y)

Grown by 25.61% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.48 times

Here's what is working for Highwood Asset Management Ltd.

Pre-Tax Profit
At CAD 25.51 MM has Grown at 114.57%
over average net sales of the previous four periods of CAD 11.89 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit
At CAD 19.78 MM has Grown at 103.26%
over average net sales of the previous four periods of CAD 9.73 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (CAD MM)

EPS
Highest at CAD 2.11
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio
Lowest at 1.83 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Highwood Asset Management Ltd.

Net Sales
At CAD 74.03 MM has Grown at -21.95%
Year on Year (YoY)
MOJO Watch
Near term sales trend is negative

Net Sales (CAD MM)

Operating Cash Flow
Lowest at CAD 45.99 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debtors Turnover Ratio
Lowest at 3.48 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost
Grown by 25.61% (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

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