Héroux-Devtek
Market Cap
CA$623.6m
Last Updated
2019/09/19 23:37 UTC
Data Sources
Company Financials +
Executive Summary
Héroux-Devtek Inc. engages in the design, development, manufacture, integration, testing, and repair and overhaul of aircraft landing gears, hydraulic and electromechanical flight control actuators, custom ball screws, and fracture-critical components in Canada, the United States, the United Kingdom, Spain, Rest of Europe, and internationally.
Snowflake
Fundamentals
Good value with adequate balance sheet.
Similar Companies
Share Price & News
How has Héroux-Devtek's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
1.3%
TSX:HRX
1.3%
CA Aerospace & Defense
1.2%
CA Market
1 Year Return
8.9%
TSX:HRX
20.1%
CA Aerospace & Defense
-0.4%
CA Market
HRX underperformed the Aerospace & Defense industry which returned 20.1% over the past year.
HRX outperformed the Market in Canada which returned -0.4% over the past year.
Share holder returns
| HRX | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 1.3% | 1.2% |
| 30 Day | -4.0% | -1.7% | 3.3% |
| 90 Day | -12.5% | -4.7% | 0.8% |
| 1 Year | 8.9%8.9% | 21.7%20.1% | 3.1%-0.4% |
| 3 Year | 23.5%23.5% | 70.6%63.7% | 18.0%7.4% |
| 5 Year | 67.6%67.6% | 128.2%112.3% | 22.0%4.5% |
Price Volatility Vs. Market
How volatile is Héroux-Devtek's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Should Héroux-Devtek Inc. (TSE:HRX) Be Your Next Stock Pick?2 weeks ago | Simply Wall St
A Closer Look At Héroux-Devtek Inc.'s (TSE:HRX) Uninspiring ROE3 weeks ago | Simply Wall St
Are Insiders Buying Héroux-Devtek Inc. (TSE:HRX) Stock?Valuation
Is Héroux-Devtek undervalued based on future cash flows and its price relative to the stock market?
41%
Discount to future cash flow value
Intrinsic Value Based on Future Cash Flows
Héroux-Devtek's share price is below the future cash flow value, and at a moderate discount (> 20%).
Héroux-Devtek's share price is below the future cash flow value, and at a substantial discount (> 40%).
Price Based on Earnings
Héroux-Devtek is good value based on earnings compared to the North America Aerospace & Defense industry average.
Héroux-Devtek is overvalued based on earnings compared to the Canada market.
Price Based on Expected Growth
Héroux-Devtek is poor value based on expected growth next year.
Price Based on Value of Assets
Héroux-Devtek is good value based on assets compared to the CA Aerospace & Defense industry average.
Next Steps
Future Growth
How is Héroux-Devtek expected to perform in the next 1 to 3 years based on estimates from 7 analysts?
18.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
Héroux-Devtek's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Héroux-Devtek's earnings are expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).
Héroux-Devtek's revenue growth is expected to exceed the Canada market average.
Héroux-Devtek's earnings growth is expected to exceed the Canada market average.
Héroux-Devtek's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Earnings per Share Growth Estimates
Future Return on Equity
Héroux-Devtek is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Next Steps
Past Performance
How has Héroux-Devtek performed over the past 5 years?
17.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Héroux-Devtek's year on year earnings growth rate has been positive over the past 5 years.
Héroux-Devtek's 1-year earnings growth exceeds its 5-year average (123% vs 17%)
Héroux-Devtek's earnings growth has exceeded the North America Aerospace & Defense industry average in the past year (123% vs 13%).
Return on Equity
Héroux-Devtek has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Return on Assets
Héroux-Devtek used its assets less efficiently than the North America Aerospace & Defense industry average last year based on Return on Assets.
Return on Capital Employed
Héroux-Devtek's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Next Steps
Financial Health
How is Héroux-Devtek's financial position?
Financial Position Analysis
Héroux-Devtek is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Héroux-Devtek's cash and other short term assets cover its long term commitments.
Debt to Equity History and Analysis
Héroux-Devtek's level of debt (64%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has increased over the past 5 years (33.5% vs 64% today).
Debt is well covered by operating cash flow (25.3%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 6x coverage).
Balance Sheet
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.5x debt.
Next Steps
Dividend
What is Héroux-Devtek's current dividend yield, its reliability and sustainability?
Dividend Yield and Payments Analysis
Unable to evaluate Héroux-Devtek's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Héroux-Devtek's dividend against the top 25% market benchmark as the company has not reported any payouts.
Unable to perform a dividend volatility check as Héroux-Devtek has not reported any payouts.
Unable to verify if Héroux-Devtek's dividend has been increasing as the company has not reported any payouts.
Current Payout to Shareholders
Unable to calculate sustainability of dividends as Héroux-Devtek has not reported any payouts.
Future Payout to Shareholders
Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
Next Steps
Management
What is the CEO of Héroux-Devtek's salary, the management and board of directors tenure and is there insider trading?
0.3yrs
Average management tenure
CEO
Martin Brassard 0
0.3yrs
Tenure
CA$1,102,441
Compensation
Mr. Martin Brassard has been President and Chief Executive Officer of Héroux-Devtek Inc since June 1, 2019. Mr. Brassard was an Executive VP and Chief Operating Officer at Héroux-Devtek Inc until June 1, 2 ...
CEO Compensation Analysis
Martin's remuneration is about average for companies of similar size in Canada.
Martin's compensation has been consistent with company performance over the past year, both up more than 20%.
Management Age and Tenure
0.3yrs
Average Tenure
The average tenure for the Héroux-Devtek management team is less than 2 years, this suggests a new team.
Board Age and Tenure
4.1yrs
Average Tenure
68yo
Average Age
The tenure for the Héroux-Devtek board of directors is about average.
Insider Trading
No 3 month open market individual insider trading information.
Recent Insider Transactions
| Entity | Individual |
| Role | Head of Sales Vice-President of Sales & Program Management |
| Shares | 3,300 |
| Max Price | CA$16.86 |
| Entity | Company |
| Shares | 50,000 |
| Max Price | CA$12.80 |
| Entity | Individual |
| Role | Head of Sales Vice-President of Sales & Program Management |
| Shares | 1,995 |
| Max Price | CA$11.92 |
| Entity | Individual |
| Role | Head of Human Resources Vice President of Human Resources |
| Shares | 100 |
| Max Price | CA$13.05 |
| Entity | Individual |
| Shares | 950 |
| Max Price | CA$12.90 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman of the Board |
| Shares | 7,000 |
| Max Price | CA$13.05 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman of the Board |
| Shares | 40,000 |
| Max Price | CA$12.93 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & VP |
| Shares | 7,000 |
| Max Price | CA$12.90 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | CA$12.76 |
| Entity | Individual |
| Role | Head of Human Resources Vice President of Human Resources |
| Shares | 1,900 |
| Max Price | CA$13.04 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,500 |
| Max Price | CA$13.21 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 8,000 |
| Max Price | CA$12.90 |
Ownership Breakdown
Management Team
Martin Brassard
President
- Tenure: 0.3yrs
- Compensation: CA$1.10m
Gaétan Roy
Managing Director of UK Runcorn - Landing Gear
- Tenure: 0yrs
- Compensation: CA$606.54k
Guinn Crousen
President of Progressive Incorporated - Aerostructure Division
- Tenure: 0yrs
- Compensation: CA$283.30k
Jean Gravel
Vice-President of Sales & Program Management
- Tenure: 0yrs
François Renaud
Corporate Secretary
- Tenure: 0yrs
Stéphane Arsenault
CFO & VP
- Tenure: 6yrs
- Compensation: CA$745.43k
Gilles Labbé (63yo)
Executive Chairman of the Board
- Tenure: 0.3yrs
- Compensation: CA$1.82m
Jean-Philippe Sanche
Director of Legal Affairs
- Tenure: 0yrs
Stéphane Rainville
Vice President of Human Resources
- Tenure: 0yrs
Annie Goudreault
VP & Corporate Controller
- Tenure: 0yrs
Board Members
Paule Doré (68yo)
Independent Director
- Tenure: 9.1yrs
- Compensation: CA$95.00k
Louis Morin (61yo)
Independent Director
- Tenure: 11.5yrs
- Compensation: CA$95.00k
Helmut Hofmann
Honorary Director
- Tenure: 11.1yrs
- Compensation: CA$49.67k
Brian Robbins (72yo)
Lead Director
- Tenure: 0.3yrs
- Compensation: CA$121.11k
Martin Brassard
President
- Tenure: 0.3yrs
- Compensation: CA$1.10m
Nathalie Bourque
Independent Director
- Tenure: 4.1yrs
- Compensation: CA$85.00k
Jim Morris (70yo)
Independent Director
- Tenure: 6.1yrs
- Compensation: CA$110.82k
Gilles Labbé (63yo)
Executive Chairman of the Board
- Tenure: 0.3yrs
- Compensation: CA$1.82m
Beverly Wyse
Independent Director
- Tenure: 0.6yrs
- Compensation: CA$37.26k
Company Information
Héroux-Devtek Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Héroux-Devtek Inc.
- Ticker: HRX
- Exchange: TSX
- Founded: 1942
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: CA$623.612m
- Shares outstanding: 36.36m
- Website: https://www.herouxdevtek.com
Number of Employees
Location
- Héroux-Devtek Inc.
- Complexe Saint-Charles
- East Tower
- Longueuil
- Quebec
- J4K 5G4
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HRX | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Aug 1988 |
| HERX.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Aug 1988 |
Biography
Héroux-Devtek Inc. engages in the design, development, manufacture, integration, testing, and repair and overhaul of aircraft landing gears, hydraulic and electromechanical flight control actuators, custom ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/09/19 23:37 |
| End of Day Share Price | 2019/09/19 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/03/31 |
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.