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 Analysis

Reasonable growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HRL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.7%

HRL

3.5%

AU Commercial Services

0.02%

AU Market


1 Year Return

61.6%

HRL

10.1%

AU Commercial Services

14.6%

AU Market

Return vs Industry: HRL exceeded the Australian Commercial Services industry which returned 10.1% over the past year.

Return vs Market: HRL exceeded the Australian Market which returned 14.6% over the past year.


Shareholder returns

HRLIndustryMarket
7 Day6.7%3.5%0.02%
30 Day33.3%4.4%0.2%
90 Day61.6%0.9%5.7%
1 Year61.6%61.6%15.5%10.1%19.7%14.6%
3 Year60.0%60.0%38.2%23.7%38.7%20.2%
5 Year110.2%105.1%58.8%30.0%50.6%17.1%

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 compared to its fair value and its price relative to the market?

29.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HRL (A$0.16) is trading below our estimate of fair value (A$0.23)

Significantly Below Fair Value: HRL is trading below fair value by more than 20%.


Price To Earnings Ratio

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 to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HRL is overvalued based on its PB Ratio (3x) compared to the AU Commercial Services industry average (2.6x).


Next Steps

Future Growth

How is HRL Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

100.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

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

High Growth Earnings: HRL's is expected to become profitable in the next 3 years.

Revenue vs Market: HRL's revenue (9.2% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: HRL's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HRL's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has HRL Holdings performed over the past 5 years?

-67.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRL is currently unprofitable.

Growing Profit Margin: HRL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HRL is unprofitable, and losses have increased over the past 5 years at a rate of -67.8% 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 (21.8%).


Return on Equity

High ROE: HRL has a negative Return on Equity (-21.4%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HRL Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HRL's short term assets (A$6.3M) do not cover its short term liabilities (A$7.8M).

Long Term Liabilities: HRL's short term assets (A$6.3M) exceed its long term liabilities (A$2.6M).


Debt to Equity History and Analysis

Debt Level: HRL's debt to equity ratio (13.5%) is considered satisfactory.

Reducing Debt: HRL's debt to equity ratio has increased from 0.04% to 13.5% 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 1.8x 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?

0.47%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.3%industryaverage2.5%forecastin3Years0.5%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Steven Dabelstein 0

5.1yrs

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 ($USD261.03K) is about average for companies of similar size in the Australian market ($USD251.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Dabelstein
Chief Executive Officer5.1yrsAU$393.40k0.34% A$272.3k
Michael Harvey
Chief Finance Officer5.4yrsAU$261.14k0.16% A$128.2k
Steve Howse
Executive Director1.9yrsAU$180.04k2.47% A$2.0m
Paul Marshall
Company Secretary12.6yrsAU$60.00k0.53% A$420.2k

5.4yrs

Average Tenure

Experienced Management: HRL's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steve Howse
Executive Director1.9yrsAU$180.04k2.47% A$2.0m
James Scott Todd
Non-Executive Director1.9yrsAU$60.00k0.10% A$80.0k
Gregory Kilmister
Non-Executive Chairman1yrsAU$34.75k0.22% A$176.0k
Tracy Dare
Non-Executive Director0.3yrsno data0.018% A$14.5k

1.5yrs

Average Tenure

Experienced Board: HRL's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HRL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

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$78.944m
  • 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 contamination testing and work place drug testing; environmental testing; and on-site testing and monitoring services, as well as environmental and property management software solutions. The company also provides food and environmental laboratory services, which include honey, milk, and dairy laboratory testing; food origin testing; drugs of abuse laboratory testing; asbestos laboratory analysis; environmental laboratory testing; and other laboratory research and development services. In addition, it offers geotechnical investigation and study; temporary works design and inspection; construction phase verification; earthworks supervision; soil, concrete, and aggregate testing; and onsite mobile laboratory testing services. Further, the company provides information management software solutions for asbestos and hazardous materials; field management software solutions; and customized compliance solutions and applications relating to workplace health and safety. It serves customers in the food, environmental, occupational hygiene, and construction industries. The company is headquartered in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 10:37
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.