ASX:HRL

Stock Analysis Report

Executive Summary

HRL Holdings Limited, through its subsidiaries, provides various environmental and laboratory services in Australia and New Zealand.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Risks

  • HRL Holdings is covered by less than 3 analysts.

Share Price & News

How has HRL Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

ASX:HRL

-3.7%

AU Commercial Services

-2.5%

AU Market


1 Year Return

-29.4%

ASX:HRL

14.9%

AU Commercial Services

-0.6%

AU Market

HRL underperformed the Commercial Services industry which returned 14.9% over the past year.

HRL underperformed the Market in Australia which returned -0.7% over the past year.


Share holder returns

HRLIndustryMarket
7 Day4.3%-3.7%-2.5%
30 Day20.0%-0.8%-3.7%
90 Day9.1%1.5%0.5%
1 Year-29.4%-29.4%18.5%14.9%5.1%-0.6%
3 Year2.5%0%22.1%12.1%30.2%13.1%
5 Yearn/a73.2%49.3%36.5%5.9%

Price Volatility Vs. Market

How volatile is HRL Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HRL Holdings undervalued based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

HRL Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

HRL Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

HRL Holdings is loss making, we can't compare its value to the AU Commercial Services industry average.

HRL Holdings is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for HRL Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

HRL Holdings is good value based on assets compared to the AU Commercial Services industry average.


Next Steps

Future Growth

How is HRL Holdings expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

105.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HRL Holdings's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

HRL Holdings's earnings are expected to grow significantly at over 20% yearly.

HRL Holdings's revenue growth is expected to exceed the Australia market average.

HRL Holdings's earnings growth is expected to exceed the Australia market average.

HRL Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

HRL Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has HRL Holdings performed over the past 5 years?

-75.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

HRL Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare HRL Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare HRL Holdings's 1-year growth to the AU Commercial Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if HRL Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if HRL Holdings has efficiently used its assets last year compared to the AU Commercial Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if HRL Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is HRL Holdings's financial position?


Financial Position Analysis

HRL Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

HRL Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

HRL Holdings's level of debt (11.1%) compared to net worth is satisfactory (less than 40%).

Unable to establish if HRL Holdings's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

HRL Holdings has less than a year of cash runway based on current free cash flow.

HRL Holdings has less than a year of cash runway if free cash flow continues to grow at historical rates of 32.8% each year.


Next Steps

Dividend

What is HRL Holdings's current dividend yield, its reliability and sustainability?

0.69%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate HRL Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate HRL Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as HRL Holdings has not reported any payouts.

Unable to verify if HRL Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as HRL Holdings has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of HRL Holdings's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

What is the CEO of HRL Holdings's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Steven Dabelstein

4.6yrs

Tenure

AU$393,397

Compensation

Mr. Steven Dabelstein has been the Chief Executive Officer of HRL Holdings Limited since January 5, 2015. Mr. Dabelstein served as General Manager of Group Commercial & Mining and Maintenance Services QLD  ...


CEO Compensation Analysis

Steven's remuneration is about average for companies of similar size in Australia.

Steven's compensation has increased whilst company is loss making.


Management Age and Tenure

4.9yrs

Average Tenure

The tenure for the HRL Holdings management team is about average.


Board Age and Tenure

1.4yrs

Average Tenure

The average tenure for the HRL Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$604,27931 Jul 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares5,467,815
Max PriceAU$0.11
BuyAU$862,78308 Apr 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares8,561,473
Max PriceAU$0.16
BuyAU$47,96407 Dec 18
James Scott Todd
EntityIndividual
Role
Member of the Board of Directors
Shares400,000
Max PriceAU$0.12
BuyAU$20,00005 Dec 18
Darren Anderson
EntityIndividual
Role
Member of the Board of Directors
Shares160,000
Max PriceAU$0.12
SellAU$4,80005 Dec 18
John Taylor
EntityIndividual
Role
Member of the Board of Directors
Shares40,000
Max PriceAU$0.12
BuyAU$4,80005 Dec 18
John Taylor
EntityIndividual
Role
Member of the Board of Directors
Shares40,000
Max PriceAU$0.12
BuyAU$21,60005 Dec 18
John Taylor
EntityIndividual
Role
Member of the Board of Directors
Shares180,000
Max PriceAU$0.12
BuyAU$133,04226 Oct 18
Adam Smith Asset Management Pty Limited
EntityCompany
Shares1,026,167
Max PriceAU$0.13
SellAU$424,74126 Oct 18
Adam Smith Asset Management Pty Limited
EntityCompany
Shares2,422,353
Max PriceAU$0.18
BuyAU$247,50006 Sep 18
Viburnum Funds Pty Ltd.
EntityCompany
Shares1,500,000
Max PriceAU$0.17

Ownership Breakdown


Management Team

  • Steve Howse

    Executive Director

    • Compensation: A$180.04k
  • Steven Dabelstein

    Chief Executive Officer

    • Tenure: 4.6yrs
    • Compensation: A$393.40k
  • Michael Harvey

    Chief Finance Officer

    • Tenure: 4.9yrs
    • Compensation: A$261.14k
  • Paul Marshall

    Company Secretary

    • Tenure: 12.1yrs
    • Compensation: A$60.00k

Board Members

  • James Scott Todd

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: A$60.00k
  • Greg Kilmister (63yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: A$34.75k
  • John Taylor (65yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: A$60.00k
  • Darren Anderson

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: A$367.43k
  • Steve Howse

    Executive Director

    • Tenure: 1.4yrs
    • Compensation: A$180.04k

Company Information

HRL Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HRL Holdings Limited
  • Ticker: HRL
  • Exchange: ASX
  • Founded:
  • Industry: environmental and facilities services
  • Sector: commercial services
  • Market Cap: AU$59.208m
  • Shares outstanding: 493.40m
  • Website: Click here

Location

  • HRL Holdings Limited
  • Level 12
  • 1 Eagle Street
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2014
HRLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2014

Biography

HRL Holdings Limited, through its subsidiaries, provides various environmental and laboratory services in Australia and New Zealand. It offers asbestos and hazardous materials management; property contamin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 10:35
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.