Héroux-Devtek
Market Cap
CA$525.6m
Last Updated
2021/01/18 23:15 UTC
Data Sources
Company Financials +
Executive Summary
Héroux-Devtek Inc. engages in the design, development, manufacture, and repair and overhaul of aircraft landing gears, hydraulic and electromechanical flight control actuators, custom ball screws, and fracture-critical components. More Details
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet with moderate growth potential.
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
Stable Share Price: HRX is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: HRX's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-3.4%
HRX
-3.0%
CA Aerospace & Defense
0.2%
CA Market
1 Year Return
-32.0%
HRX
-15.7%
CA Aerospace & Defense
1.5%
CA Market
Return vs Industry: HRX underperformed the Canadian Aerospace & Defense industry which returned -15.8% over the past year.
Return vs Market: HRX underperformed the Canadian Market which returned 1.6% over the past year.
Shareholder returns
| HRX | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | -3.0% | 0.2% |
| 30 Day | 4.1% | 1.0% | 3.6% |
| 90 Day | 33.5% | 46.8% | 13.3% |
| 1 Year | -32.0%-32.0% | -15.1%-15.7% | 5.2%1.5% |
| 3 Year | -0.2%-0.2% | 23.5%19.1% | 13.1%2.3% |
| 5 Year | 9.8%9.8% | 97.8%84.8% | 69.3%43.3% |
Long-Term 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
2 weeks ago | Simply Wall St
A Look At Héroux-Devtek's (TSE:HRX) Share Price Returns1 month ago | Simply Wall St
What You Need To Know About Héroux-Devtek Inc.'s (TSE:HRX) Investor Composition1 month ago | Simply Wall St
How Much Are Héroux-Devtek Inc. (TSE:HRX) Insiders Spending On Buying Shares?Valuation
Is Héroux-Devtek undervalued compared to its fair value and its price relative to the market?
5.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HRX (CA$14.18) is trading below our estimate of fair value (CA$14.97)
Significantly Below Fair Value: HRX is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HRX is unprofitable, so we can't compare its PE Ratio to the XN Aerospace & Defense industry average.
PE vs Market: HRX is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate HRX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: HRX is good value based on its PB Ratio (1.5x) compared to the CA Aerospace & Defense industry average (4.5x).
Next Steps
Future Growth
How is Héroux-Devtek forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
74.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HRX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: HRX is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: HRX's is expected to become profitable in the next 3 years.
Revenue vs Market: HRX's revenue (3% per year) is forecast to grow slower than the Canadian market (7.9% per year).
High Growth Revenue: HRX's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if HRX's Return on Equity is forecast to be high in 3 years time
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Past Performance
How has Héroux-Devtek performed over the past 5 years?
-36.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HRX is currently unprofitable.
Growing Profit Margin: HRX is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: HRX is unprofitable, and losses have increased over the past 5 years at a rate of 36.5% per year.
Accelerating Growth: Unable to compare HRX's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: HRX is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-13.1%).
Return on Equity
High ROE: HRX has a negative Return on Equity (-17.08%), as it is currently unprofitable.
Next Steps
Financial Health
How is Héroux-Devtek's financial position?
Financial Position Analysis
Short Term Liabilities: HRX's short term assets (CA$447.9M) exceed its short term liabilities (CA$208.3M).
Long Term Liabilities: HRX's short term assets (CA$447.9M) exceed its long term liabilities (CA$328.2M).
Debt to Equity History and Analysis
Debt Level: HRX's debt to equity ratio (68.5%) is considered high.
Reducing Debt: HRX's debt to equity ratio has increased from 41.9% to 68.5% over the past 5 years.
Debt Coverage: HRX's debt is well covered by operating cash flow (27.5%).
Interest Coverage: HRX is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Héroux-Devtek current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HRX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HRX'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 HRX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HRX'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 HRX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Martin Brassard
1.58yrs
Tenure
CA$1,711,698
Compensation
Mr. Martin Brassard has been President and Chief Executive Officer of Héroux-Devtek Inc since June 1, 2019. Mr. Brassard was an Executive VP and Chief Operating Officer at Héroux-Devtek Inc from November 2...
CEO Compensation Analysis
Compensation vs Market: Martin's total compensation ($USD1.34M) is above average for companies of similar size in the Canadian market ($USD785.01K).
Compensation vs Earnings: Martin's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 1.58yrs | CA$1.67m | 10.23% CA$ 53.8m | |
| President | 1.58yrs | CA$1.71m | 0.49% CA$ 2.5m | |
| CFO & VP | 7.33yrs | CA$887.58k | 0.15% CA$ 806.3k | |
| Managing Director of UK Runcorn - Landing Gear | no data | CA$697.48k | no data | |
| Director of Legal Affairs | no data | no data | no data | |
| Vice-President of Sales & Program Management | no data | no data | 0.12% CA$ 645.7k | |
| Vice President of Human Resources | no data | no data | no data | |
| President of Progressive Incorporated - Aerostructure Division | no data | CA$342.63k | no data | |
| Corporate Secretary | no data | no data | no data | |
| VP & Corporate Controller | no data | no data | no data | |
| Consultant | no data | CA$9.33k | no data |
1.6yrs
Average Tenure
Experienced Management: HRX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 1.58yrs | CA$1.67m | 10.23% CA$ 53.8m | |
| President | 1.58yrs | CA$1.71m | 0.49% CA$ 2.5m | |
| Independent Corporate Director | 10.42yrs | CA$105.00k | 0.047% CA$ 245.7k | |
| Independent Director | 12.83yrs | CA$105.00k | 0.055% CA$ 289.0k | |
| Honorary Director | 12.42yrs | CA$49.67k | no data | |
| Independent Lead Director | 1.58yrs | CA$131.67k | 0.14% CA$ 722.5k | |
| Independent Corporate Director | 5.42yrs | CA$95.00k | 0.045% CA$ 235.5k | |
| Independent Corporate Director | 7.42yrs | CA$125.15k | 0.12% CA$ 650.2k | |
| Independent Corporate Director | 1.92yrs | CA$126.15k | 0.038% CA$ 199.4k |
5.4yrs
Average Tenure
69yo
Average Age
Experienced Board: HRX's board of directors are considered experienced (5.4 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
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$525.578m
- Shares outstanding: 36.37m
- 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 |
| 5D6 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Aug 1988 |
Biography
Héroux-Devtek Inc. engages in the design, development, manufacture, and repair and overhaul of aircraft landing gears, hydraulic and electromechanical flight control actuators, custom ball screws, and frac...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/18 23:15 |
| End of Day Share Price | 2021/01/18 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.