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.

Rewards

Trading at 42.6% below its fair value

Earnings are forecast to grow 70.85% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (8%) are lower than last year (17.2%)

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and undervalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

HTL

-2.7%

CA Medical Equipment

-0.9%

CA Market


1 Year Return

22.4%

HTL

-2.4%

CA Medical Equipment

8.3%

CA Market

Return vs Industry: HTL exceeded the Canadian Medical Equipment industry which returned -5.1% over the past year.

Return vs Market: HTL exceeded the Canadian Market which returned 9.2% over the past year.


Shareholder returns

HTLIndustryMarket
7 Day0%-2.7%-0.9%
30 Day14.3%5.4%1.1%
90 Day15.4%15.6%5.3%
1 Year22.4%22.4%-2.4%-2.4%11.7%8.3%
3 Year150.0%150.0%-39.5%-39.5%17.3%6.7%
5 Year192.7%192.7%-34.4%-34.4%33.3%13.9%

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?

40.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HTL (CA$1.15) is trading below our estimate of fair value (CA$2)

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 (40.9x) compared to the Medical Equipment industry average (46.3x).

PE vs Market: HTL is poor value based on its PE Ratio (40.9x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: HTL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: HTL is good value based on its PB Ratio (3x) compared to the CA Medical Equipment industry average (4.2x).


Next Steps

Future Growth

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

70.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTL's forecast earnings growth (70.9% per year) is above the savings rate (1.4%).

Earnings vs Market: HTL's earnings (70.9% per year) are forecast to grow faster than the Canadian market (10.3% per year).

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

Revenue vs Market: HTL's revenue (15.4% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: HTL's revenue (15.4% 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 (28.3%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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

Inventory Level: HTL has a low level of unsold assets or inventory.

Debt Coverage by Assets: HTL's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of Hamilton Thorne's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

David Wolf 0

8.3yrs

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 ($USD467.28K) is above average for companies of similar size in the Canadian market ($USD165.67K).

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


Management Age and Tenure

9.1yrs

Average Tenure

Experienced Management: HTL's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

67yo

Average Age

Experienced Board: HTL's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$9,43818 Jan 20
Keith Edwards
EntityIndividual
Role
Senior Key Executive
Senior VP & GM
Shares31,250
Max PriceCA$0.63
SellCA$29,57510 Jan 20
Robert Potter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares26,900
Max PriceCA$1.10
SellCA$52,02109 Jan 20
Dean Gendron
EntityIndividual
Shares50,000
Max PriceCA$1.04
SellCA$130,00009 Jan 20
Bruno Maruzzo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares125,000
Max PriceCA$1.04
SellCA$69,41013 Dec 19
Robert Potter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares63,100
Max PriceCA$1.10
SellCA$33,12527 Nov 19
Keith Edwards
EntityIndividual
Role
Senior Key Executive
Senior VP & GM
Shares31,250
Max PriceCA$1.06
SellCA$262,50001 Nov 19
David Wolf
EntityIndividual
Role
Chief Executive Officer
President
Shares250,000
Max PriceCA$1.05
SellCA$12,14120 Sep 19
Keith Edwards
EntityIndividual
Role
Senior Key Executive
Senior VP & GM
Shares11,563
Max PriceCA$1.05
SellCA$33,23612 Jun 19
Keith Edwards
EntityIndividual
Role
Senior Key Executive
Senior VP & GM
Shares31,250
Max PriceCA$1.07
SellCA$8,13707 Mar 19
Keith Edwards
EntityIndividual
Role
Senior Key Executive
Senior VP & GM
Shares7,750
Max PriceCA$1.05
SellCA$4,09805 Mar 19
Keith Edwards
EntityIndividual
Role
Senior Key Executive
Senior VP & GM
Shares3,900
Max PriceCA$1.05
SellCA$5,98504 Mar 19
Keith Edwards
EntityIndividual
Role
Senior Key Executive
Senior VP & GM
Shares5,700
Max PriceCA$1.05

Ownership Breakdown

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


Management Team

  • Michael Bruns (62yo)

    VP of Finance & CFO

    • Tenure: 9.1yrs
    • Compensation: US$241.75k
  • Diarmaid Douglas-Hamilton

    Co-Founder

    • Tenure: 10.3yrs
    • Compensation: US$190.31k
  • Eric Dorman

    President of Embryotech Laboratories Inc

    • Compensation: US$215.25k
  • Meg Spencer

    Co-Founder & Chairman of the Board

    • Compensation: US$19.25k
  • David Wolf

    President

    • Tenure: 8.3yrs
    • Compensation: US$467.28k
  • Keith Edwards

    Senior VP & GM

    • Tenure: 4.2yrs
    • Compensation: US$171.70k
  • Fabian Sell

    Chief Executive Officer of Gynemed

    • Compensation: US$259.40k

Board Members

  • Bob Potter (65yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$26.50k
  • Daniel Thorne (67yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$19.25k
  • Bruno Maruzzo (67yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$29.75k
  • David Zhang

    Member of Scientific Advisory Board

    • Diarmaid Douglas-Hamilton

      Co-Founder

      • Tenure: 10.3yrs
      • Compensation: US$190.31k
    • Fred Kramer

      Chairman of Scientific Advisory Board

      • Alan Trounson (73yo)

        Member of Scientific Advisory Board

        • Barbara Talamo

          Member of Scientific Advisory Board

          • Meg Spencer

            Co-Founder & Chairman of the Board

            • Compensation: US$19.25k
          • David Wolf

            President

            • Tenure: 8.3yrs
            • Compensation: US$467.28k

          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$151.541m
          • Shares outstanding: 127.35m
          • 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 Analysis2020/01/29 00:30
          End of Day Share Price2020/01/28 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.