ASX:HUO

Stock Analysis Report

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Executive Summary

Huon Aquaculture Group Limited, together with its subsidiaries, engages in the hatching, farming, processing, marketing, and selling of Atlantic salmon and ocean trout in Australia. More Details


Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

How has Huon Aquaculture Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HUO is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HUO's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

HUO

-1.7%

AU Food

2.3%

AU Market


1 Year Return

-40.9%

HUO

9.7%

AU Food

-0.3%

AU Market

Return vs Industry: HUO underperformed the Australian Food industry which returned 9.8% over the past year.

Return vs Market: HUO underperformed the Australian Market which returned -1% over the past year.


Shareholder returns

HUOIndustryMarket
7 Day-4.5%-1.7%2.3%
30 Day-1.1%1.6%7.2%
90 Day-16.2%6.9%8.7%
1 Year-40.9%-40.9%12.4%9.7%3.1%-0.3%
3 Year-40.5%-42.6%-13.1%-20.0%24.2%8.8%
5 Year-30.0%-33.2%11.8%-2.9%55.4%24.4%

Long-Term Price Volatility Vs. Market

How volatile is Huon Aquaculture Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Huon Aquaculture Group undervalued compared to its fair value and its price relative to the market?

28.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HUO (A$2.74) is trading below our estimate of fair value (A$3.83)

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


Price To Earnings Ratio

PE vs Industry: HUO is poor value based on its PE Ratio (48.7x) compared to the AU Food industry average (25.9x).

PE vs Market: HUO is poor value based on its PE Ratio (48.7x) compared to the Australian market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: HUO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HUO is good value based on its PB Ratio (0.8x) compared to the AU Food industry average (1.5x).


Next Steps

Future Growth

How is Huon Aquaculture Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUO's forecast earnings growth (61% per year) is above the savings rate (2.3%).

Earnings vs Market: HUO's earnings (61% per year) are forecast to grow faster than the Australian market (17.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HUO's revenue (9.8% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: HUO's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUO's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Huon Aquaculture Group performed over the past 5 years?

0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUO has high quality earnings.

Growing Profit Margin: HUO's current net profit margins (1.4%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: HUO's earnings have grown by 0.1% per year over the past 5 years.

Accelerating Growth: HUO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HUO had negative earnings growth (-47.9%) over the past year, making it difficult to compare to the Food industry average (-13.2%).


Return on Equity

High ROE: HUO's Return on Equity (1.6%) is considered low.


Next Steps

Financial Health

How is Huon Aquaculture Group's financial position?


Financial Position Analysis

Short Term Liabilities: HUO's short term assets (A$329.2M) exceed its short term liabilities (A$138.3M).

Long Term Liabilities: HUO's short term assets (A$329.2M) do not cover its long term liabilities (A$363.9M).


Debt to Equity History and Analysis

Debt Level: HUO's debt to equity ratio (57.2%) is considered high.

Reducing Debt: HUO's debt to equity ratio has increased from 11.6% to 57.2% over the past 5 years.

Debt Coverage: HUO's debt is not well covered by operating cash flow (4.8%).

Interest Coverage: HUO's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Huon Aquaculture Group current dividend yield, its reliability and sustainability?

2.23%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: HUO is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HUO'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?

6.3yrs

Average board tenure


CEO

Peter Bender

no data

Tenure

AU$699,949

Compensation

Mr. Peter James Bender serves as Managing Director and Chief Executive Officer of Huon Aquaculture Group Limited. Mr. Bender serves as the Managing Director of Huon Aquaculture Company Pty Ltd. He is the F...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD509.39K) is about average for companies of similar size in the Australian market ($USD529.04K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Peter Bender
MD, CEO & Executive Directorno dataAU$699.95k12.1%
A$ 36.3m
Frances Bender
Non-Independent Executive Director15.5yrsAU$208.55k0.043%
A$ 127.8k
Neil Kearney
Independent Non Executive Chairman4.25yrsAU$160.00k0.015%
A$ 45.3k
Kevin Dynon
Independent Non-Executive Director4.25yrsAU$100.00k0.012%
A$ 35.3k
Simon Lester
Independent Non-Executive Director6.25yrsAU$100.00k0.013%
A$ 39.6k

6.3yrs

Average Tenure

Experienced Board: HUO's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 25.8%.


Top Shareholders

Company Information

Huon Aquaculture Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huon Aquaculture Group Limited
  • Ticker: HUO
  • Exchange: ASX
  • Founded: 1986
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: AU$299.953m
  • Shares outstanding: 109.87m
  • Website: https://www.huonaqua.com.au

Number of Employees


Location

  • Huon Aquaculture Group Limited
  • PO Box 42
  • Dover
  • Tasmania
  • 7117
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2014
HUOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2014
3HADB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2014

Biography

Huon Aquaculture Group Limited, together with its subsidiaries, engages in the hatching, farming, processing, marketing, and selling of Atlantic salmon and ocean trout in Australia. It also exports its pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 10:42
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.