TSX:HRX

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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


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 not significantly more volatile than the rest 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

-1.0%

HRX

-3.4%

CA Aerospace & Defense

0.04%

CA Market


1 Year Return

-18.9%

HRX

-12.3%

CA Aerospace & Defense

1.3%

CA Market

Return vs Industry: HRX underperformed the Canadian Aerospace & Defense industry which returned -12.5% over the past year.

Return vs Market: HRX underperformed the Canadian Market which returned 0.7% over the past year.


Shareholder returns

HRXIndustryMarket
7 Day-1.0%-3.4%0.04%
30 Day41.5%36.9%10.9%
90 Day40.4%53.5%7.2%
1 Year-18.9%-18.9%-11.4%-12.3%5.0%1.3%
3 Year3.0%3.0%25.6%20.8%13.5%2.4%
5 Year15.9%15.9%86.6%73.9%54.2%30.5%

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

Valuation

Is Héroux-Devtek undervalued compared to its fair value and its price relative to the market?

1.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HRX (CA$14.4) is trading above our estimate of fair value (CA$13.89)

Significantly Below Fair Value: HRX is trading above our estimate of fair value.


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 (3.7x).


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 (1.7%).

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 (3.1% per year) is forecast to grow slower than the Canadian market (6.2% per year).

High Growth Revenue: HRX's revenue (3.1% 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


Next Steps

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 (-4%).


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.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Martin Brassard

1.5yrs

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 ($USD1.32M) is above average for companies of similar size in the Canadian market ($USD851.43K).

Compensation vs Earnings: Martin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Gilles Labbé
Executive Chairman of the Board1.5yrsCA$1.67m10.23%
CA$ 53.1m
Martin Brassard
President1.5yrsCA$1.71m0.49%
CA$ 2.5m
Stéphane Arsenault
CFO & VP7.25yrsCA$887.58k0.15%
CA$ 796.9k
Gaétan Roy
Managing Director of UK Runcorn - Landing Gearno dataCA$697.48kno data
Jean-Philippe Sanche
Director of Legal Affairsno datano datano data
Jean Gravel
Vice-President of Sales & Program Managementno datano data0.12%
CA$ 638.1k
Stéphane Rainville
Vice President of Human Resourcesno datano datano data
Guinn Crousen
President of Progressive Incorporated - Aerostructure Divisionno dataCA$283.30kno data
François Renaud
Corporate Secretaryno datano datano data
Patrick Gagnon
VP & Corporate Controllerno datano datano data
Claude Boivin
Consultantno dataCA$9.33kno data

1.5yrs

Average Tenure

Experienced Management: HRX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gilles Labbé
Executive Chairman of the Board1.5yrsCA$1.67m10.23%
CA$ 53.1m
Martin Brassard
President1.5yrsCA$1.71m0.49%
CA$ 2.5m
Paule Doré
Independent Corporate Director10.33yrsCA$105.00k0.047%
CA$ 242.8k
Louis Morin
Independent Director12.75yrsCA$105.00k0.055%
CA$ 285.6k
Helmut Hofmann
Honorary Director12.33yrsCA$49.67kno data
Brian Robbins
Independent Lead Director1.5yrsCA$131.67k0.14%
CA$ 714.0k
Nathalie Bourque
Independent Corporate Director5.33yrsCA$95.00k0.045%
CA$ 232.8k
James Morris
Independent Corporate Director7.33yrsCA$125.15k0.12%
CA$ 642.6k
Beverly Wyse
Independent Corporate Director1.83yrsCA$126.15k0.038%
CA$ 197.1k

5.3yrs

Average Tenure

69yo

Average Age

Experienced Board: HRX's board of directors are considered experienced (5.3 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$519.324m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRXTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 1988
HERX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1988
5D6DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:13
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.