TSX:HDI

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Hardwoods Distribution

Executive Summary

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


Snowflake Analysis

Solid track record and good value.

Share Price & News

How has Hardwoods Distribution's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

HDI

0.08%

CA Trade Distributors

-0.4%

CA Market


1 Year Return

104.3%

HDI

19.0%

CA Trade Distributors

-3.9%

CA Market

Return vs Industry: HDI exceeded the Canadian Trade Distributors industry which returned 19% over the past year.

Return vs Market: HDI exceeded the Canadian Market which returned -3.9% over the past year.


Shareholder returns

HDIIndustryMarket
7 Day-2.6%0.08%-0.4%
30 Day13.5%12.1%3.1%
90 Day42.5%19.2%2.4%
1 Year108.5%104.3%22.9%19.0%-0.4%-3.9%
3 Year20.0%12.7%11.7%1.8%6.7%-3.8%
5 Year64.7%50.5%74.3%48.9%35.5%14.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HDI (CA$24.74) is trading below our estimate of fair value (CA$38.84)

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


Price To Earnings Ratio

PE vs Industry: HDI is good value based on its PE Ratio (15x) compared to the CA Trade Distributors industry average (20x).

PE vs Market: HDI is good value based on its PE Ratio (15x) compared to the Canadian market (16.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HDI is overvalued based on its PB Ratio (1.7x) compared to the CA Trade Distributors industry average (1.1x).


Next Steps

Future Growth

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

4.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HDI's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if HDI's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: HDI's revenue (4.3% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: HDI's revenue (4.3% 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 (12%).


Next Steps

Past Performance

How has Hardwoods Distribution performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDI has high quality earnings.

Growing Profit Margin: HDI's current net profit margins (2.9%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: HDI's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: HDI's earnings growth over the past year (25.5%) exceeds its 5-year average (11% per year).

Earnings vs Industry: HDI earnings growth over the past year (25.5%) exceeded the Trade Distributors industry 9.8%.


Return on Equity

High ROE: HDI's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Hardwoods Distribution's financial position?


Financial Position Analysis

Short Term Liabilities: HDI's short term assets (CA$394.5M) exceed its short term liabilities (CA$230.3M).

Long Term Liabilities: HDI's short term assets (CA$394.5M) exceed its long term liabilities (CA$94.3M).


Debt to Equity History and Analysis

Debt Level: HDI's debt to equity ratio (44.3%) is considered high.

Reducing Debt: HDI's debt to equity ratio has increased from 38.3% to 44.3% over the past 5 years.

Debt Coverage: HDI's debt is well covered by operating cash flow (87%).

Interest Coverage: HDI's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HDI's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.66%).

High Dividend: HDI's dividend (1.37%) is low compared to the top 25% of dividend payers in the Canadian market (5.83%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HDI has been paying a dividend for less than 10 years.

Growing Dividend: HDI's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.3%), 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 well covered by earnings (18.1% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Rob Brown

4.75yrs

Tenure

CA$1,775,434

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 ($USD1.35M) is above average for companies of similar size in the Canadian market ($USD849.99K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Brown
President4.75yrsCA$1.78m0.67%
CA$ 3.5m
Faiz Karmally
VP, CFO & Secretary5.58yrsCA$517.71k0.082%
CA$ 426.6k
Lance Blanco
Senior Vice President of Corporate Development4.75yrsCA$664.42k0.49%
CA$ 2.6m
Drew Dickinson
President of Rugby Architectural Building Products2.17yrsCA$643.37k0.29%
CA$ 1.5m
Daniel Besen
Vice President of Hardwoods USA25.75yrsCA$645.59k0.14%
CA$ 745.7k
David Hughes
Senior Vice President of Acquisitions2.17yrsCA$895.98k1.41%
CA$ 7.4m

4.8yrs

Average Tenure

Experienced Management: HDI's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Brown
President4.75yrsCA$1.78m0.67%
CA$ 3.5m
Graham Wilson
Independent Director16.75yrsCA$93.52k0.13%
CA$ 680.1k
E. Sauder
Independent Chairman of the Boardno dataCA$140.00k1.03%
CA$ 5.4m
Peter Bull
Independent Director7.5yrsCA$90.00k0.035%
CA$ 181.4k
William Sauder
Independent Director9.33yrsCA$90.00k0.34%
CA$ 1.8m
Michelle Lewis
Independent Director3.42yrsCA$90.00k0.036%
CA$ 186.7k
James Macaulay
Independent Director4.17yrsCA$96.48k0.074%
CA$ 388.0k
Rob Taylor
Independent Director1.25yrsCA$37.83k0.0070%
CA$ 36.6k

4.8yrs

Average Tenure

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: 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Hardwoods Distribution Inc.
  • Ticker: HDI
  • Exchange: TSX
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: CA$521.182m
  • Shares outstanding: 21.13m
  • Website: https://www.hdidist.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HDITSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2004
HDIU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2004

Biography

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 decora ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 23:58
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.