TSXV:HTL

Stock Analysis Report

Executive Summary

Hamilton Thorne Ltd., together with its subsidiary, Hamilton Thorne, Inc., develops, manufactures, and sells precision laser devices and advanced image analysis systems for living cell applications in the fertility, stem cell, and developmental biology research markets.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Hamilton Thorne's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HTL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

HTL

1.5%

CA Medical Equipment

1.1%

CA Market


1 Year Return

-18.7%

HTL

-31.6%

CA Medical Equipment

-22.9%

CA Market

Return vs Industry: HTL exceeded the Canadian Medical Equipment industry which returned -32.1% over the past year.

Return vs Market: HTL exceeded the Canadian Market which returned -24.8% over the past year.


Shareholder returns

HTLIndustryMarket
7 Day-3.8%1.5%1.1%
30 Day-24.2%-25.4%-17.3%
90 Day-5.7%-16.6%-23.4%
1 Year-18.7%-18.7%-31.6%-31.6%-20.4%-22.9%
3 Year78.6%78.6%-53.1%-53.1%-12.7%-20.8%
5 Year138.1%138.1%-39.6%-39.6%0.1%-14.9%

Price Volatility Vs. Market

How volatile is Hamilton Thorne's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hamilton Thorne undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HTL (CA$1) is trading below our estimate of fair value (CA$2.16)

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


Price To Earnings Ratio

PE vs Industry: HTL is good value based on its PE Ratio (32.9x) compared to the Medical Equipment industry average (37.4x).

PE vs Market: HTL is poor value based on its PE Ratio (32.9x) compared to the Canadian market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: HTL is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: HTL is overvalued based on its PB Ratio (2.4x) compared to the CA Medical Equipment industry average (2.4x).


Next Steps

Future Growth

How is Hamilton Thorne forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

30.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTL's forecast earnings growth (30.8% per year) is above the savings rate (1.4%).

Earnings vs Market: HTL's earnings (30.8% per year) are forecast to grow faster than the Canadian market (5.1% per year).

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

Revenue vs Market: HTL's revenue (11.7% per year) is forecast to grow faster than the Canadian market (3.3% per year).

High Growth Revenue: HTL's revenue (11.7% 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 HTL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hamilton Thorne performed over the past 5 years?

32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HTL has a large one-off loss of $719.8K impacting its September 30 2019 financial results.

Growing Profit Margin: HTL's current net profit margins (8%) are lower than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: HTL's earnings have grown significantly by 32.8% per year over the past 5 years.

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

Earnings vs Industry: HTL had negative earnings growth (-46.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (0.2%).


Return on Equity

High ROE: HTL's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Hamilton Thorne's financial position?


Financial Position Analysis

Short Term Liabilities: HTL's short term assets ($20.9M) exceed its short term liabilities ($10.6M).

Long Term Liabilities: HTL's short term assets ($20.9M) exceed its long term liabilities ($8.4M).


Debt to Equity History and Analysis

Debt Level: HTL's debt to equity ratio (28.3%) is considered satisfactory.

Reducing Debt: HTL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: HTL's debt is well covered by operating cash flow (44.5%).

Interest Coverage: HTL's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Hamilton Thorne's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HTL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HTL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HTL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HTL'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 HTL'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?

9.3yrs

Average management tenure


CEO

David Wolf

8.58s

Tenure

US$467,275

Compensation

Mr. David B. Wolf has been the Chief Executive Officer of Hamilton Thorne Ltd. since September 2011 and serves as its President. Mr. Wolf has been a Director of Hamilton Thorne Ltd., since September 2011.  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD467.28K) is above average for companies of similar size in the Canadian market ($USD159.20K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Meg Spencer
Co-Founder & Chairman of the Boardno dataUS$19.25k1.08% $1.4m
David Wolf
President8.58yrsUS$467.28k1.19% $1.5m
Diarmaid Douglas-Hamilton
Co-Founder10.5yrsUS$190.31k0.78% $992.8k
Michael Bruns
VP of Finance & CFO9.33yrsUS$241.75k0.41% $524.1k
Fabian Sell
Chief Executive Officer of Gynemedno dataUS$259.40kno data
Keith Edwards
Senior VP & GM4.42yrsUS$171.70k0.013% $16.7k
Eric Dorman
President of Embryotech Laboratories Incno dataUS$215.25kno data

9.3yrs

Average Tenure

Experienced Management: HTL's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Meg Spencer
Co-Founder & Chairman of the Boardno dataUS$19.25k1.08% $1.4m
David Wolf
President8.58yrsUS$467.28k1.19% $1.5m
Diarmaid Douglas-Hamilton
Co-Founder10.5yrsUS$190.31k0.78% $992.8k
Robert Potter
Independent Director10.5yrsUS$26.50k0.052% $65.8k
Daniel Thorne
Independent Director10.5yrsUS$19.25k15.73% $20.0m
Bruno Maruzzo
Independent Director13.08yrsUS$29.75k0.45% $568.0k
David Zhang
Member of Scientific Advisory Boardno datano datano data
Fred Kramer
Chairman of Scientific Advisory Boardno datano datano data
Alan Trounson
Member of Scientific Advisory Boardno datano datano data
Barbara Talamo
Member of Scientific Advisory Boardno datano datano data

10.5yrs

Average Tenure

67yo

Average Age

Experienced Board: HTL's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HTL insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Top Shareholders

Company Information

Hamilton Thorne Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hamilton Thorne Ltd.
  • Ticker: HTL
  • Exchange: TSXV
  • Founded:
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: CA$127.442m
  • Shares outstanding: 127.44m
  • Website: https://www.hamiltonthorne.ltd

Location

  • Hamilton Thorne Ltd.
  • 100 Cummings Center
  • Suite 465E
  • Beverly
  • Massachusetts
  • 1915
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HTLTSXV (TSX Venture Exchange)YesCommon StockCACADNov 2009
HTLZ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2009
0ZMDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2009

Biography

Hamilton Thorne Ltd., together with its subsidiary, Hamilton Thorne, Inc., develops, manufactures, and sells precision laser devices and advanced image analysis systems for living cell applications in the fertility, stem cell, and developmental biology research markets. The company offers clinical lasers, such as LYKOS and ZILOS-tk lasers, as well as clinical laser software and hardware for clinical assisted reproduction; and research lasers, including XYRCOS and XYClone lasers for stem cell research, gene targeting, knock out mouse production, SCNT, ICSI, IVF, and assisted hatching applications, as well as Stiletto lasers for isolation of cells of interest, ablation of unwanted cells, and precision scoring of cell colonies. It also provides clinical sperm analysis (CASA) products comprising IVOS II Clinical and CEROS II Clinical, as well as Human Motility II and Dimensions II Strict Morphology software to clinics, hospitals, and assisted reproduction centers; animal and research CASA systems, and motility software packages; and various sperm analyzer options. In addition, the company offers sperm analysis accessories, such as accu-beads+ for use in counting procedures in semen analysis; 2X-CEL disposable semen analysis slides; IDENT Stains for determining sperm motility and concentration; VIADENT stain to determine viable sperm count, concentration, and percentage from a motile sample; and MiniTherm Stage Warmer for CASA and manual sperm motility analysis. Further, it offers IMSI-Strict, an automated software solution for live sperm morphology under high magnification; Oosight imaging system for research purposes; and CIVA, a custom software to capture images/video and annotate. The company sells its products to pharmaceutical and biotechnology companies, fertility clinics, university research centers, and other commercial and academic research establishments worldwide. Hamilton Thorne Ltd. is based in Beverly, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 02:49
End of Day Share Price2020/04/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.