TSX:HLF

Stock Analysis Report

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Executive Summary

High Liner Foods Incorporated processes and markets prepared and packaged frozen seafood products in the United States and Canada.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has High Liner Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HLF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

HLF

4.0%

CA Food

2.7%

CA Market


1 Year Return

-20.0%

HLF

-19.4%

CA Food

-11.5%

CA Market

Return vs Industry: HLF matched the Canadian Food industry which returned -19.4% over the past year.

Return vs Market: HLF underperformed the Canadian Market which returned -11.5% over the past year.


Shareholder returns

HLFIndustryMarket
7 Day0%4.0%2.7%
30 Day4.9%0.7%1.6%
90 Day-9.2%-1.9%-8.4%
1 Year-18.0%-20.0%-17.8%-19.4%-8.5%-11.5%
3 Year-61.3%-66.3%-20.5%-24.7%-0.5%-9.8%
5 Year-63.6%-70.1%19.0%9.3%14.6%-2.4%

Price Volatility Vs. Market

How volatile is High Liner Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is High Liner Foods undervalued compared to its fair value and its price relative to the market?

6.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLF (CA$6.69) is trading below our estimate of fair value (CA$7.12)

Significantly Below Fair Value: HLF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HLF is poor value based on its PE Ratio (16.8x) compared to the Food industry average (16.6x).

PE vs Market: HLF is poor value based on its PE Ratio (16.8x) compared to the Canadian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: HLF is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: HLF is good value based on its PB Ratio (0.6x) compared to the CA Food industry average (1.5x).


Next Steps

Future Growth

How is High Liner Foods forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

47.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLF's forecast earnings growth (47.2% per year) is above the savings rate (1.7%).

Earnings vs Market: HLF's earnings (47.2% per year) are forecast to grow faster than the Canadian market (23.7% per year).

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

Revenue vs Market: HLF's revenue (1.1% per year) is forecast to grow slower than the Canadian market (5.9% per year).

High Growth Revenue: HLF's revenue (1.1% 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 HLF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has High Liner Foods performed over the past 5 years?

-14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLF has a large one-off loss of $11.0M impacting its March 28 2020 financial results.

Growing Profit Margin: HLF's current net profit margins (1%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: HLF's earnings have declined by -14.3% per year over the past 5 years.

Accelerating Growth: HLF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HLF had negative earnings growth (-54.1%) over the past year, making it difficult to compare to the Food industry average (-18.8%).


Return on Equity

High ROE: HLF's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is High Liner Foods's financial position?


Financial Position Analysis

Short Term Liabilities: HLF's short term assets ($364.7M) exceed its short term liabilities ($170.6M).

Long Term Liabilities: HLF's short term assets ($364.7M) exceed its long term liabilities ($348.0M).


Debt to Equity History and Analysis

Debt Level: HLF's debt to equity ratio (130.3%) is considered high.

Reducing Debt: HLF's debt to equity ratio has reduced from 174.4% to 130.3% over the past 5 years.

Debt Coverage: HLF's debt is not well covered by operating cash flow (7.5%).

Interest Coverage: HLF's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is High Liner Foods's current dividend yield, its reliability and sustainability?

2.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLF's dividend (2.83%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: HLF's dividend (2.83%) is low compared to the top 25% of dividend payers in the Canadian market (6.39%).


Stability and Growth of Payments

Stable Dividend: HLF's dividend payments have been volatile in the past 10 years.

Growing Dividend: HLF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.8%), HLF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Rod Hepponstall (52yo)

2yrs

Tenure

US$2,608,693

Compensation

Mr. Rodney W. Hepponstall, also known as Rod, has been President and Chief Executive Officer at High Liner Foods Incorporated since May 1, 2018 and has been its Director since 2018. Mr. Hepponstall had ser ...


CEO Compensation Analysis

Compensation vs Market: Rod's total compensation ($USD2.61M) is above average for companies of similar size in the Canadian market ($USD728.98K).

Compensation vs Earnings: Insufficient data to compare Rod's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Rodney Hepponstall
President2yrsUS$2.61m0.020% $44.8k
Paul Jewer
Executive VP & CFO6.17yrsUS$903.15k0.026% $57.0k
Timothy Rorabeck
Executive VP of Corporate Affairs8yrsUS$588.45k0.0075% $16.5k
Craig Murray
Senior Vice President of Marketing & Innovation2.33yrsUS$555.40kno data
Paul Snow
Executive VP & Chief Supply Chain Officer20.33yrsUS$777.39k0.13% $294.0k
Heather Keeler-Hurshman
Vice President of Investor Relations & Communicationsno datano data0.0073% $16.2k
John Kramer
Director of Sales & Operations Planningno datano datano data
Johanne McNally-Myers
Vice President of Human Resources1.08yrsno datano data
Ron van der Giesen
Senior Vice President of Supply Chain0.67yrno datano data
Brian Wynn
President of Rubicon Resourcesno dataUS$591.25k2.43% $5.4m

2.3yrs

Average Tenure

Experienced Management: HLF's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rodney Hepponstall
President2yrsUS$2.61m0.020% $44.8k
David Hennigar
Independent Director36.33yrsUS$79.41k0.70% $1.5m
Andrew Miller
Independent Director8yrsUS$73.82k0.019% $41.6k
Robert Pace
Independent Chairman1yrUS$115.93k0.28% $612.5k
Robert Dexter
Independent Director28.33yrsUS$73.82k1.47% $3.2m
Shelly Jamieson
Independent Director7.42yrsUS$85.12k0.034% $73.8k
Joan Chow
Independent Director3yrsUS$97.98k0.015% $33.0k
M. Mahody
Independent Director6.33yrsUS$80.93k0.030% $66.1k
Frank B. Van Schaayk
Independent Director5.5yrsUS$76.19k0.077% $168.9k
Andrew Hennigar
Independent Directorno dataUS$19.15kno data

6.3yrs

Average Tenure

64yo

Average Age

Experienced Board: HLF's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HLF 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

High Liner Foods Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: High Liner Foods Incorporated
  • Ticker: HLF
  • Exchange: TSX
  • Founded: 1899
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$220.268m
  • Shares outstanding: 33.32m
  • Website: https://www.highlinerfoods.com

Number of Employees


Location

  • High Liner Foods Incorporated
  • 100 Battery Point
  • PO Box 910
  • Lunenburg
  • Nova Scotia
  • B0J 2C0
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLFTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1986
HLNF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1986
28YDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1986

Biography

High Liner Foods Incorporated processes and markets prepared and packaged frozen seafood products in the United States and Canada. The company provides a range of frozen seafood products, such as raw fillets and shellfishes; cooked shellfishes; and value-added products comprising sauced, glazed, breaded, and battered seafood products, as well as seafood entrées. It also produces breaded cheese sticks and breaded chicken; and imports and distributes frozen shrimp products. The company markets its products under the High Liner, Fisher Boy, Sea Cuisine, Catch of the Day, High Liner Foodservice, Mirabel, Icelandic Seafood, and FPI brand names. It sells its products directly, as well as through distributors to retail and club stores; and through foodservice distributors to hotels, restaurants, and healthcare and educational organizations. High Liner Foods Incorporated was founded in 1899 and is headquartered in Lunenburg, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 03:25
End of Day Share Price2020/05/29 00:00
Earnings2020/03/28
Annual Earnings2019/12/28


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.