TSX:HLF

Stock Analysis Report

Executive Summary

High Liner Foods Incorporated engages in the processing and marketing of prepared and packaged frozen seafood products in the United States and Canada.

Snowflake

Fundamentals

Fair value with moderate growth potential.

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

-0.9%

HLF

0.2%

CA Food

0.5%

CA Market


1 Year Return

44.1%

HLF

-2.5%

CA Food

7.9%

CA Market

Return vs Industry: HLF exceeded the Canadian Food industry which returned -2.8% over the past year.

Return vs Market: HLF exceeded the Canadian Market which returned 7.4% over the past year.


Shareholder returns

HLFIndustryMarket
7 Day-0.9%0.2%0.5%
30 Day-8.6%-1.9%3.2%
90 Day-13.1%-10.0%3.9%
1 Year51.8%44.1%-0.7%-2.5%11.5%7.9%
3 Year-46.9%-53.8%-9.4%-13.9%17.1%6.6%
5 Year-47.1%-56.3%31.3%20.9%27.7%9.0%

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?

19.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLF (CA$9.41) is trading above our estimate of fair value (CA$8.69)

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


Price To Earnings Ratio

PE vs Industry: HLF is good value based on its PE Ratio (19.2x) compared to the Food industry average (20.5x).

PE vs Market: HLF is poor value based on its PE Ratio (19.2x) compared to the Canadian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: HLF is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HLF is good value based on its PB Ratio (0.9x) 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?

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLF's forecast earnings growth (27% per year) is above the savings rate (1.9%).

Earnings vs Market: HLF's earnings (27% per year) are forecast to grow faster than the Canadian market (9.8% per year).

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

Revenue vs Market: HLF's revenue (0.2% per year) is forecast to grow slower than the Canadian market (4.8% per year).

High Growth Revenue: HLF's revenue (0.2% 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?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLF has high quality earnings.

Growing Profit Margin: HLF's current net profit margins (1.3%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: HLF's earnings have declined by -8.6% 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 (-60.7%) over the past year, making it difficult to compare to the Food industry average (-25.4%).


Return on Equity

High ROE: HLF's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is High Liner Foods's financial position?


Financial Position Analysis

Short Term Liabilities: HLF's short term assets ($379.4M) exceeds its short term liabilities ($158.8M)

Long Term Liabilities: HLF's short term assets ($379.4M) do not cover its long term liabilities (381.5M)


Debt to Equity History and Analysis

Debt Level: HLF's debt to equity ratio (119.8%) is considered high.

Reducing Debt: HLF's debt to equity ratio has reduced from 171.7% to 119.8% over the past 5 years.

Debt Coverage: HLF's debt is well covered by operating cash flow (26.5%).

Interest Coverage: HLF's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: HLF has a high level of physical assets or inventory.

Debt Coverage by Assets: HLF's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.0%markettop25%5.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HLF's dividend (2.1%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: HLF's dividend (2.1%) is low compared to the top 25% of dividend payers in the Canadian market (5.66%).


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 (74.1%), 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

What is the CEO of High Liner Foods's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Rod Hepponstall (52yo)

1.5yrs

Tenure

US$5,090,846

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 ($USD5.09M) is above average for companies of similar size in the Canadian market ($USD673.77K).

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


Management Age and Tenure

5.2yrs

Average Tenure

Experienced Management: HLF's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

64yo

Average Age

Experienced Board: HLF's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$37,95323 May 19
Matthew Hennigar
EntityIndividual
Shares4,250
Max PriceUS$8.93
BuyUS$31,74721 Mar 19
David Hennigar
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,250
Max PriceUS$7.47
BuyUS$31,74721 Mar 19
Geoffrey Hennigar
EntityIndividual
Shares4,250
Max PriceUS$7.47
BuyUS$31,74721 Mar 19
Matthew Hennigar
EntityIndividual
Shares4,250
Max PriceUS$7.47

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Paul Jewer

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$910.81k
  • Paul Snow

    Executive VP & Chief Supply Chain Officer

    • Tenure: 19.8yrs
    • Compensation: US$815.87k
  • Tim Rorabeck

    Executive VP of Corporate Affairs

    • Tenure: 7.5yrs
  • Heather Keeler-Hurshman

    Vice President of Investor Relations & Corporate Performance

    • Tenure: 0yrs
  • Chris Mulder

    Senior Vice President of North American Sales

    • Tenure: 4.6yrs
    • Compensation: US$754.53k
  • Peter Burns

    Chief Information Officer

    • Tenure: 0yrs
  • Craig Murray

    Senior Vice President of Marketing & Innovation

    • Tenure: 1.8yrs
  • Rod Hepponstall (52yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$5.09m
  • Brian Wynn

    President of Rubicon Resources

    • Tenure: 0yrs
    • Compensation: US$591.25k
  • John Kramer

    Director of Sales & Operations Planning

    • Tenure: 0yrs

Board Members

  • David Hennigar (79yo)

    Independent Director

    • Tenure: 35.8yrs
    • Compensation: US$108.06k
  • Andy Miller

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$92.62k
  • Robert Pace (64yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: US$104.20k
  • Rob Dexter (67yo)

    Independent Director

    • Tenure: 27.8yrs
    • Compensation: US$92.62k
  • Shelly Jamieson

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$104.20k
  • Joan Chow (58yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$120.00k
  • M. Mahody

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$92.62k
  • Frank B. VanSchaayk

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$92.62k
  • Rod Hepponstall (52yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$5.09m
  • Jill Hennigar

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$73.47k

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$314.139m
  • Shares outstanding: 33.38m
  • 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 engages in the processing and marketing of prepared and packaged frozen seafood products in the United States and Canada. The company provides a range of frozen seafood produc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 23:37
End of Day Share Price2019/11/18 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


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.