company background image
HDI

Hardwoods DistributionTSX:HDI Stock Report

Market Cap

CA$878.6m

7D

3.8%

1Y

65.8%

Updated

26 Oct, 2021

Data

Company Financials +
HDI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends4/6

HDI Overview

Hardwoods Distribution Inc. engages in the wholesale distribution of architectural building products to the residential, repair and remodel, and commercial construction markets.

Price History & Performance

Summary of all time highs, changes and price drops for Hardwoods Distribution
Historical stock prices
Current Share PriceCA$41.27
52 Week HighCA$23.10
52 Week LowCA$43.00
Beta1.71
1 Month Change6.17%
3 Month Change19.87%
1 Year Change65.81%
3 Year Change235.80%
5 Year Change121.05%
Change since IPO298.74%

Recent News & Updates

Sep 28
An Intrinsic Calculation For Hardwoods Distribution Inc. (TSE:HDI) Suggests It's 29% Undervalued

An Intrinsic Calculation For Hardwoods Distribution Inc. (TSE:HDI) Suggests It's 29% Undervalued

Does the September share price for Hardwoods Distribution Inc. ( TSE:HDI ) reflect what it's really worth? Today, we...

Aug 10
Hardwoods Distribution (TSE:HDI) Has A Rock Solid Balance Sheet

Hardwoods Distribution (TSE:HDI) Has A Rock Solid Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

HDICA Trade DistributorsCA Market
7D3.8%0.8%1.0%
1Y65.8%46.0%36.8%

Return vs Industry: HDI exceeded the Canadian Trade Distributors industry which returned 45.6% over the past year.

Return vs Market: HDI exceeded the Canadian Market which returned 36.5% over the past year.

Price Volatility

Is HDI's price volatile compared to industry and market?
HDI volatility
HDI Beta1.71
Industry Beta1.18
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
20121,043Rob Brownhttps://www.hdidist.com

Hardwoods Distribution Inc. engages in the wholesale distribution of architectural building products to the residential, repair and remodel, and commercial construction markets. It offers a range of decorative surfaces, including architectural grade plywood and veneers, hardwood lumber, laminates, acrylics, and composites for use in commercial and residential applications; specialty plywood and composite panel products for residential and commercial cabinet, countertop, store fixture, and RV and furniture industries; and other products comprising moldings, cabinet hardware, doors, millwork, adhesives, solid surface products, and decorative laminates. The company also manufactures, imports, and distributes hardwood lumber, millwork, and architectural sheet goods; and provides custom molding and millwork services, as well as owns a sawmill and kiln drying operation.

Hardwoods Distribution Fundamentals Summary

How do Hardwoods Distribution's earnings and revenue compare to its market cap?
HDI fundamental statistics
Market CapUS$709.79m
Earnings (TTM)US$53.28m
Revenue (TTM)US$1.18b

13.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HDI income statement (TTM)
RevenueUS$1.18b
Cost of RevenueUS$940.41m
Gross ProfitUS$238.92m
ExpensesUS$185.64m
EarningsUS$53.28m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 08, 2021

Earnings per share (EPS)2.50
Gross Margin20.26%
Net Profit Margin4.52%
Debt/Equity Ratio43.5%

How did HDI perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

18%

Payout Ratio

Valuation

Is Hardwoods Distribution undervalued compared to its fair value and its price relative to the market?

42.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HDI (CA$41.27) is trading below our estimate of fair value (CA$72.03)

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


Price To Earnings Ratio

PE vs Industry: HDI is poor value based on its PE Ratio (13.3x) compared to the Canadian Trade Distributors industry average (10.8x).

PE vs Market: HDI is good value based on its PE Ratio (13.3x) compared to the Canadian market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: HDI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: HDI is overvalued based on its PB Ratio (2.6x) compared to the CA Trade Distributors industry average (1.3x).


Future Growth

How is Hardwoods Distribution forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDI's forecast earnings growth (12.1% per year) is above the savings rate (1.6%).

Earnings vs Market: HDI's earnings (12.1% per year) are forecast to grow slower than the Canadian market (12.1% per year).

High Growth Earnings: HDI's earnings are forecast to grow, but not significantly.

Revenue vs Market: HDI's revenue (12.5% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: HDI's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDI's Return on Equity is forecast to be low in 3 years time (15%).


Past Performance

How has Hardwoods Distribution performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDI has a high level of non-cash earnings.

Growing Profit Margin: HDI's current net profit margins (4.5%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: HDI's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: HDI's earnings growth over the past year (107.1%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: HDI earnings growth over the past year (107.1%) underperformed the Trade Distributors industry 107.1%.


Return on Equity

High ROE: HDI's Return on Equity (19.4%) is considered low.


Financial Health

How is Hardwoods Distribution's financial position?


Financial Position Analysis

Short Term Liabilities: HDI's short term assets ($373.2M) exceed its short term liabilities ($210.1M).

Long Term Liabilities: HDI's short term assets ($373.2M) exceed its long term liabilities ($65.3M).


Debt to Equity History and Analysis

Debt Level: HDI's debt to equity ratio (43.5%) is considered high.

Reducing Debt: HDI's debt to equity ratio has increased from 20.7% to 43.5% over the past 5 years.

Debt Coverage: HDI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HDI's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet


Dividend

What is Hardwoods Distribution current dividend yield, its reliability and sustainability?

0.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HDI's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.56%).

High Dividend: HDI's dividend (0.93%) is low compared to the top 25% of dividend payers in the Canadian market (4.49%).


Stability and Growth of Payments

Stable Dividend: HDI's dividends per share have been stable in the past 10 years.

Growing Dividend: HDI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.8%), HDI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HDI's dividends in 3 years are forecast to be thoroughly covered by earnings (11.4% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Rob Brown

5.75yrs

Tenure

US$1,818,234

Compensation

Mr. Robert J. Brown, also known as Rob, has been the Chief Executive Officer at Hardwoods Distribution Inc. since January 7, 2016 and serves as its President and served as its Chief Operating Officer since...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.82M) is above average for companies of similar size in the Canadian market ($USD1.11M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HDI's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: HDI's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HDI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hardwoods Distribution Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hardwoods Distribution Inc.
  • Ticker: HDI
  • Exchange: TSX
  • Founded: 2012
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: CA$878.566m
  • Shares outstanding: 21.29m
  • Website: https://www.hdidist.com

Number of Employees


Location

  • Hardwoods Distribution Inc.
  • 9440 202nd Street
  • Suite 306
  • Langley
  • British Columbia
  • V1M 4A6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:38
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.