Highwood Asset Management Ltd. (HOCL) 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

Pulse Seismic, Inc.

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Highwood Asset Management Ltd.

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Divergent Energy Services Corp.

Gelum Resources Ltd.

CWC Energy Services Corp.

Why is Highwood Asset Management Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 35.80% and Operating profit at 44.57% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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)

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 43.46%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 57.95 MM
NET PROFIT(9M) Higher at CAD 26.39 MM
DEBTORS TURNOVER RATIO(HY) Highest at 5.07 times

With ROE of 22.79%, it has a fair valuation with a 0.49 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 -14.69%, its profits have risen by 201% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Highwood Asset Management Ltd. should be less than 10%
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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Highwood Asset Management Ltd.

-100.0%

-0.61

31.92%

S&P/TSX 60

21.87%

1.55

15.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

35.80%

EBIT Growth (5y)

44.57%

EBIT to Interest (avg)

0.40

Debt to EBITDA (avg)

2.32

Net Debt to Equity (avg)

0.66

Sales to Capital Employed (avg)

0.36

Tax Ratio

23.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.75%

ROE (avg)

43.46%

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

0.49

EV to EBIT

3.45

EV to EBITDA

2.28

EV to Capital Employed

0.70

EV to Sales

1.55

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

20.38%

ROE (Latest)

22.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 57.95 MM

NET PROFIT(9M)

Higher at CAD 26.39 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.07 times

-11What is not working for the Company

NET SALES(Q)

At CAD 20.14 MM has Fallen at -33.7%

PRE-TAX PROFIT(Q)

At CAD 4.67 MM has Fallen at -65.76%

NET PROFIT(Q)

At CAD 2.49 MM has Fallen at -74.67%

RAW MATERIAL COST(Y)

Grown by 37.34% (YoY

EPS(Q)

Lowest at CAD 0.02

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

Operating Cash Flow

Highest at CAD 57.95 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debtors Turnover Ratio

Highest at 5.07 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Net Sales

At CAD 20.14 MM has Fallen at -33.7%

over average net sales of the previous four periods of CAD 30.37 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 4.67 MM has Fallen at -65.76%

over average net sales of the previous four periods of CAD 13.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 2.49 MM has Fallen at -74.67%

over average net sales of the previous four periods of CAD 9.83 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Raw Material Cost

Grown by 37.34% (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