Héroux-Devtek Valuation

Is HRX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HRX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HRX (CA$24.31) is trading below our estimate of fair value (CA$49.19)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for HRX?

Other financial metrics that can be useful for relative valuation.

HRX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA12.2x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does HRX's PE Ratio compare to its peers?

The above table shows the PE ratio for HRX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.3x
MDA MDA Space
30.9x46.0%CA$1.4b
MAL Magellan Aerospace
41.2x53.3%CA$478.3m
BBD.B Bombardier
23.1x18.9%CA$8.5b
ARE Aecon Group
6.2x-21.5%CA$1.0b
HRX Héroux-Devtek
21.4x19.2%CA$808.2m

Price-To-Earnings vs Peers: HRX is good value based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (25.3x).


Price to Earnings Ratio vs Industry

How does HRX's PE Ratio compare vs other companies in the North American Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a71.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a71.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: HRX is good value based on its Price-To-Earnings Ratio (21.4x) compared to the North American Aerospace & Defense industry average (31.8x).


Price to Earnings Ratio vs Fair Ratio

What is HRX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HRX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.4x
Fair PE Ratio17.8x

Price-To-Earnings vs Fair Ratio: HRX is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (17.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HRX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$24.31
CA$30.25
+24.4%
13.1%CA$37.00CA$27.00n/a4
Jun ’25CA$23.00
CA$30.25
+31.5%
13.1%CA$37.00CA$27.00n/a4
May ’25CA$18.65
CA$24.50
+31.4%
6.1%CA$26.00CA$22.50n/a5
Apr ’25CA$18.41
CA$23.60
+28.2%
7.4%CA$26.00CA$21.00n/a5
Mar ’25CA$18.27
CA$22.80
+24.8%
8.0%CA$26.00CA$21.00n/a5
Feb ’25CA$15.31
CA$19.90
+30.0%
4.6%CA$21.00CA$19.00n/a5
Jan ’25CA$15.20
CA$19.10
+25.7%
5.3%CA$21.00CA$18.00n/a5
Dec ’24CA$15.45
CA$19.10
+23.6%
5.3%CA$21.00CA$18.00n/a5
Nov ’24CA$15.81
CA$19.40
+22.7%
5.3%CA$21.00CA$18.00n/a5
Oct ’24CA$16.02
CA$19.40
+21.1%
5.3%CA$21.00CA$18.00n/a5
Sep ’24CA$15.97
CA$19.40
+21.5%
5.3%CA$21.00CA$18.00n/a5
Aug ’24CA$15.93
CA$19.20
+20.5%
10.1%CA$22.00CA$17.00n/a5
Jul ’24CA$15.34
CA$19.20
+25.2%
10.1%CA$22.00CA$17.00n/a5
Jun ’24CA$13.35
CA$19.00
+42.3%
9.6%CA$22.00CA$17.00CA$23.006
May ’24CA$13.08
CA$18.25
+39.5%
10.2%CA$22.00CA$16.50CA$18.656
Apr ’24CA$13.08
CA$18.25
+39.5%
10.2%CA$22.00CA$16.50CA$18.416
Mar ’24CA$13.43
CA$18.25
+35.9%
10.2%CA$22.00CA$16.50CA$18.276
Feb ’24CA$15.19
CA$20.17
+32.8%
15.8%CA$25.00CA$15.00CA$15.316
Jan ’24CA$13.15
CA$20.00
+52.1%
17.1%CA$25.00CA$15.00CA$15.206
Dec ’23CA$13.58
CA$20.00
+47.3%
17.1%CA$25.00CA$15.00CA$15.456
Nov ’23CA$12.28
CA$19.75
+60.8%
19.3%CA$25.00CA$13.50CA$15.816
Oct ’23CA$12.25
CA$21.20
+73.1%
12.1%CA$25.00CA$18.00CA$16.025
Sep ’23CA$13.02
CA$21.20
+62.8%
12.1%CA$25.00CA$18.00CA$15.975
Aug ’23CA$14.26
CA$23.57
+65.3%
10.6%CA$27.00CA$20.50CA$15.936
Jul ’23CA$13.90
CA$23.73
+70.7%
10.2%CA$27.00CA$20.50CA$15.346
Jun ’23CA$15.90
CA$23.73
+49.3%
10.2%CA$27.00CA$20.50CA$13.356

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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