TSX:HBC

Stock Analysis Report

Executive Summary

Hudson's Bay Company owns and operates department stores in Canada and the United States.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Hudson's Bay's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

HBC

-1.9%

CA Multiline Retail

1.6%

CA Market


1 Year Return

39.3%

HBC

19.7%

CA Multiline Retail

9.9%

CA Market

Return vs Industry: HBC exceeded the Canadian Multiline Retail industry which returned 25.5% over the past year.

Return vs Market: HBC exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

HBCIndustryMarket
7 Day-0.2%-1.9%1.6%
30 Day30.1%-3.9%2.9%
90 Day15.1%-2.8%6.4%
1 Year40.1%39.3%22.6%19.7%13.5%9.9%
3 Year14.1%11.9%55.9%44.9%17.4%6.7%
5 Year-52.4%-54.4%31.0%14.6%36.5%16.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hudson's Bay undervalued compared to its fair value and its price relative to the market?

3.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HBC (CA$10.88) is trading above our estimate of fair value (CA$0.19)

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


Price To Earnings Ratio

PE vs Industry: HBC is unprofitable, so we can't compare its PE Ratio to the Multiline Retail industry average.

PE vs Market: HBC 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 HBC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HBC is overvalued based on its PB Ratio (3.3x) compared to the XN Multiline Retail industry average (1.9x).


Next Steps

Future Growth

How is Hudson's Bay forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

92.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HBC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HBC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HBC's revenue is expected to decline over the next 3 years (-4.1% per year).

High Growth Revenue: HBC's revenue is forecast to decline over the next 3 years (-4.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HBC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hudson's Bay performed over the past 5 years?

-53.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBC is currently unprofitable.

Growing Profit Margin: HBC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HBC is unprofitable, and losses have increased over the past 5 years at a rate of -53.8% per year.

Accelerating Growth: Unable to compare HBC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HBC is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (-8.6%).


Return on Equity

High ROE: HBC has a negative Return on Equity (-87.45%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hudson's Bay's financial position?


Financial Position Analysis

Short Term Liabilities: HBC's short term assets (CA$4.9B) exceed its short term liabilities (CA$4.7B).

Long Term Liabilities: HBC's short term assets (CA$4.9B) do not cover its long term liabilities (CA$6.9B).


Debt to Equity History and Analysis

Debt Level: HBC's debt to equity ratio (360.5%) is considered high.

Reducing Debt: HBC's debt to equity ratio has increased from 145.5% to 360.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HBC's debt is covered by short term assets (assets are 1.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HBC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: HBC has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -4.2% each year


Next Steps

Dividend

What is Hudson's Bay's current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.9%markettop25%5.4%industryaverage2.4%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: HBC's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: HBC's dividend (0.46%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

Stable Dividend: HBC is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: HBC is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HBC is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HBC'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 Hudson's Bay's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Helena Foulkes (55yo)

1.9yrs

Tenure

CA$29,422,485

Compensation

Ms. Helena B. Foulkes has been Chief Executive Officer and Director of Hudson's Bay Co. since February 19, 2018. Ms. Foulkes served as the President of CVS Pharmacy from January 01, 2014 to February 9, 201 ...


CEO Compensation Analysis

Compensation vs Market: Helena's total compensation ($USD22.52M) is above average for companies of similar size in the Canadian market ($USD2.17M).

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


Management Age and Tenure

2.9yrs

Average Tenure

54yo

Average Age

Experienced Management: HBC's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

60yo

Average Age

Experienced Board: HBC's board of directors are considered experienced (7.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.5%.


Management Team

  • Helena Foulkes (55yo)

    CEO & Director

    • Tenure: 1.9yrs
    • Compensation: CA$29.42m
  • Ed Record (51yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: CA$2.23m
  • Stephen Gold (59yo)

    Chief Technology & Digital Operations Officer

    • Tenure: 1.7yrs
    • Compensation: CA$3.08m
  • David Schwartz (51yo)

    Executive VP

    • Tenure: 3.3yrs
  • Iain Nairn (57yo)

    President

    • Richard Baker (54yo)

      Governor & Executive Chairman

      • Compensation: CA$1.85m
    • Marc Metrick (45yo)

      President of Saks Fifth Avenue

      • Tenure: 4.8yrs
      • Compensation: CA$2.19m
    • Ian Putnam

      President of Real Estate & Chief Corporate Development Officer

      • Tenure: 5.1yrs
      • Compensation: CA$1.78m
    • Kerry Mader

      Chief Business Operations Officer

      • Tenure: 2.2yrs
    • Jennifer Bewley

      Head of Investor Relations


      Board Members

      • Bill Mack (79yo)

        Non-Executive Director

        • Tenure: 8yrs
        • Compensation: CA$223.99k
      • Lee Neibart (68yo)

        Non-Executive Director

        • Tenure: 8yrs
        • Compensation: CA$223.99k
      • Helena Foulkes (55yo)

        CEO & Director

        • Tenure: 1.9yrs
        • Compensation: CA$29.42m
      • Earl Rotman (64yo)

        Independent Non-Executive Director

        • Tenure: 7.8yrs
        • Compensation: CA$286.44k
      • David Leith (59yo)

        Lead Director

        • Tenure: 7.2yrs
        • Compensation: CA$338.06k
      • Matt Rubel (61yo)

        Independent Director

        • Tenure: 7.2yrs
        • Compensation: CA$262.30k
      • Robert Baker (83yo)

        Non Executive Director

        • Tenure: 8yrs
        • Compensation: CA$223.99k
      • Richard Baker (54yo)

        Governor & Executive Chairman

        • Compensation: CA$1.85m
      • Andrea Wong (52yo)

        Independent Director

        • Tenure: 5.3yrs
        • Compensation: CA$247.48k
      • Wayne Pommen (40yo)

        Independent Director

        • Tenure: 7.8yrs
        • Compensation: CA$312.74k

      Company Information

      Hudson's Bay Company's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Hudson's Bay Company
      • Ticker: HBC
      • Exchange: TSX
      • Founded: 1670
      • Industry: Department Stores
      • Sector: Retail
      • Market Cap: CA$2.565b
      • Shares outstanding: 235.79m
      • Website: https://www3.hbc.com

      Number of Employees


      Location

      • Hudson's Bay Company
      • 8925 Torbram Road
      • Suite 500
      • Brampton
      • Ontario
      • L6T 4G1
      • Canada

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      HBCTSX (The Toronto Stock Exchange)YesClass B Common SharesCACADNov 2012
      HBNCDB (Deutsche Boerse AG)YesClass B Common SharesDEEURNov 2012
      HBAY.FOTCPK (Pink Sheets LLC)YesClass B Common SharesUSUSDNov 2012

      Biography

      Hudson's Bay Company owns and operates department stores in Canada and the United States. Its stores offers fashion apparels, accessories, cosmetics, and home products. The company operates its stores under the Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Saks OFF 5TH, Find @ Lord & Taylor, Home Outfitters, Galeria Kaufhof, Galeria INNO, and Sportarena names. As of February 2, 2019, it operated 342 stores. The company also operates e-commerce sites. The company was founded in 1670 and is based in Brampton, Canada. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/18 00:30
      End of Day Share Price2020/01/17 00:00
      Earnings2019/11/02
      Annual Earnings2019/02/02


      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.