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

Total Energy Services, Inc.

Stampede Drilling, Inc.

Highwood Asset Management Ltd.

Calfrac Well Services Ltd.

McCoy Global, Inc.

Pulse Seismic, Inc.

Cleantek Industries, Inc.

Divergent Energy Services Corp.

NXT Energy Solutions, Inc.

Gelum Resources Ltd.

CWC Energy Services Corp.

Why is Highwood Asset Management Ltd. ?

The company is Net-Debt Free

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
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)

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

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

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 -4.04%, its profits have risen by 201% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.04% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Highwood Asset Management Ltd.

-12.43%

-0.21

40.82%

S&P/TSX 60

29.6%

2.24

12.72%

Quality

Management Risk

Growth

Capital Structure

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)

0.40

Debt to EBITDA (avg)

2.32

Net Debt to Equity (avg)

0.66

Sales to Capital Employed (avg)

0.38

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

0.60

EV to EBIT

3.87

EV to EBITDA

2.54

EV to Capital Employed

0.77

EV to Sales

1.67

PEG Ratio

0.04

Dividend Yield

ROCE (Latest)

19.99%

ROE (Latest)

27.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

NET PROFIT(HY)

At CAD 13.76 MM has Grown at 59.96%

RAW MATERIAL COST(Y)

Fallen by -48.21% (YoY

-5What is not working for the Company

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

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

Net Profit

At CAD 13.76 MM has Grown at 59.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Raw Material Cost

Fallen by -48.21% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Pre-Tax Profit

At CAD 6.72 MM has Fallen at -36.83%

over average net sales of the previous four periods of CAD 10.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

EPS

Lowest at CAD -1.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)