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.

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

0%

HRL

4.2%

AU Commercial Services

1.3%

AU Market


1 Year Return

-38.9%

HRL

9.8%

AU Commercial Services

9.9%

AU Market

Return vs Industry: HRL underperformed the Australian Commercial Services industry which returned 9.8% over the past year.

Return vs Market: HRL underperformed the Australian Market which returned 9.9% over the past year.


Share holder returns

HRLIndustryMarket
7 Day0%4.2%1.3%
30 Day0%1.3%-0.7%
90 Day-8.3%-3.5%-0.4%
1 Year-38.9%-38.9%12.9%9.8%16.3%9.9%
3 Year-22.3%-24.1%22.3%11.8%35.8%17.6%
5 Year23.9%20.9%74.8%50.8%51.9%17.8%

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?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: HRL (A$0.11) is trading below our estimate of fair value (A$0.23)

Significantly Undervalued: HRL is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: HRL is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: HRL is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate HRL's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: HRL is good value based on its PB Ratio (1.9x) compared to the AU Commercial Services industry average (2.3x).


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

Earnings vs Savings Rate: HRL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: HRL is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: HRL's loss is forecast to worsen by 0% next year.

Revenue vs Market: HRL's revenue (9.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: HRL's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: HRL's Return on Equity is forecast to be low in 3 years time (14.7%).


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

Earnings Trend: HRL is unprofitable, and losses have increased over the past 5 years at a rate of -75.1% per year.

Accelerating Growth: Unable to compare HRL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HRL is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (20.4%).


Return on Equity

High ROE: HRL has a negative Return on Equity (-24.74%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HRL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HRL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is HRL Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HRL's short term assets (A$6.7M) exceeds its short term liabilities (A$6.6M)

Long Term Liabilities: HRL's short term assets (A$6.7M) exceeds its long term liabilities (A$2.5M)


Debt to Equity History and Analysis

Debt Level: HRL's debt to equity ratio (9.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if HRL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: HRL has a high level of physical assets or inventory.

Debt Coverage by Assets: HRL's debt is covered by short term assets (assets are 2.356330x 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.

Stable Cash Runway: HRL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HRL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.76%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage3.0%forecastin3Years0.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

High Dividend: Unable to evaluate HRL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if HRL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HRL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HRL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Steven Dabelstein 0

4.8yrs

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

Compensation vs. Market: Steven's total compensation ($USD267.85K) is about average for companies of similar size in the Australian market ($USD257.37K).

Compensation vs Earnings: Steven's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: HRL's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

Experienced Board: HRL's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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
Non-Executive Director
Shares400,000
Max PriceAU$0.12
BuyAU$20,00005 Dec 18
Darren Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares160,000
Max PriceAU$0.12
BuyAU$21,60005 Dec 18
John Taylor
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares180,000
Max PriceAU$0.12
BuyAU$4,80005 Dec 18
John Taylor
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares40,000
Max PriceAU$0.12
SellAU$4,80005 Dec 18
John Taylor
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares40,000
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

Ownership Breakdown


Management Team

  • Steve Howse

    Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$180.04k
  • Steven Dabelstein

    Chief Executive Officer

    • Tenure: 4.8yrs
    • Compensation: AU$393.40k
  • Michael Harvey

    Chief Finance Officer

    • Tenure: 5.1yrs
    • Compensation: AU$261.14k
  • Paul Marshall

    Company Secretary

    • Tenure: 12.3yrs
    • Compensation: AU$60.00k

Board Members

  • James Scott Todd

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$60.00k
  • Greg Kilmister (63yo)

    Non-Executive Chairman

    • Tenure: 0.7yrs
    • Compensation: AU$34.75k
  • John Taylor (65yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: AU$60.00k
  • Darren Anderson

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$367.43k
  • Steve Howse

    Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$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$54.274m
  • Shares outstanding: 493.40m
  • Website: https://www.hrlholdings.com

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 Analysis2019/10/13 10:35
End of Day Share Price2019/10/11 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.

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