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Hudson's Bay

TSX:HBC
Snowflake Description

Fair value with worrying balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HBC
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Retail
Company description

Hudson's Bay Company owns and operates department stores in Canada and the United States. The last earnings update was 43 days ago. More info.


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HBC Share Price and Events
7 Day Returns
0%
TSX:HBC
-5.2%
North America Multiline Retail
-1.6%
CA Market
1 Year Returns
-22.6%
TSX:HBC
1.5%
North America Multiline Retail
-2.4%
CA Market
HBC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hudson's Bay (HBC) 0% -5.7% -7.8% -22.6% -51.4% -59.1%
North America Multiline Retail -5.2% -7.1% -1.5% 1.5% 13.2% 14.3%
CA Market -1.6% -2.3% 2.5% -2.4% 11.9% 4.6%
1 Year Return vs Industry and Market
  • HBC underperformed the Multiline Retail industry which returned 1.5% over the past year.
  • HBC underperformed the Market in Canada which returned -2.4% over the past year.
Price Volatility
HBC
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Hudson's Bay undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hudson's Bay to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hudson's Bay.

TSX:HBC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:HBC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Multiline Retail Unlevered Beta Simply Wall St/ S&P Global 0.53
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.531 (1 + (1- 26.5%) (199.78%))
1.208
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.208 * 5.96%)
9.15%

Discounted Cash Flow Calculation for TSX:HBC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hudson's Bay is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:HBC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 9.15%)
2019 -166.00 Analyst x1 -152.09
2020 2.00 Analyst x2 1.68
2021 135.00 Analyst x2 103.82
2022 211.30 Est @ 56.52% 148.87
2023 296.13 Est @ 40.15% 191.15
2024 381.08 Est @ 28.69% 225.37
2025 459.82 Est @ 20.66% 249.14
2026 529.02 Est @ 15.05% 262.61
2027 587.85 Est @ 11.12% 267.35
2028 637.03 Est @ 8.37% 265.43
Present value of next 10 years cash flows CA$1,563.34
TSX:HBC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$637.03 × (1 + 1.95%) ÷ (9.15% – 1.95%)
CA$9,017.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$9,017.17 ÷ (1 + 9.15%)10
CA$3,757.20
TSX:HBC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,563.34 + CA$3,757.20
CA$5,320.54
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$5,320.54 / 234.83
CA$22.66
TSX:HBC Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$22.66
Current discount Discount to share price of CA$7.13
= -1 x (CA$7.13 - CA$22.66) / CA$22.66
68.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hudson's Bay is available for.
Intrinsic value
>50%
Share price is CA$7.13 vs Future cash flow value of CA$22.66
Current Discount Checks
For Hudson's Bay to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hudson's Bay's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hudson's Bay's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hudson's Bay's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hudson's Bay's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:HBC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-02) in CAD CA$-2.67
TSX:HBC Share Price ** TSX (2019-05-15) in CAD CA$7.13
North America Multiline Retail Industry PE Ratio Median Figure of 9 Publicly-Listed Multiline Retail Companies 12.93x
Canada Market PE Ratio Median Figure of 549 Publicly-Listed Companies 14.56x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hudson's Bay.

TSX:HBC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:HBC Share Price ÷ EPS (both in CAD)

= 7.13 ÷ -2.67

-2.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hudson's Bay is loss making, we can't compare its value to the North America Multiline Retail industry average.
  • Hudson's Bay is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Hudson's Bay's expected growth come at a high price?
Raw Data
TSX:HBC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -2.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
Not available
North America Multiline Retail Industry PEG Ratio Median Figure of 9 Publicly-Listed Multiline Retail Companies 1.4x
Canada Market PEG Ratio Median Figure of 250 Publicly-Listed Companies 1.26x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Hudson's Bay, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hudson's Bay's assets?
Raw Data
TSX:HBC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-02) in CAD CA$8.46
TSX:HBC Share Price * TSX (2019-05-15) in CAD CA$7.13
North America Multiline Retail Industry PB Ratio Median Figure of 14 Publicly-Listed Multiline Retail Companies 1.94x
Canada Market PB Ratio Median Figure of 2,405 Publicly-Listed Companies 1.42x
TSX:HBC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:HBC Share Price ÷ Book Value per Share (both in CAD)

= 7.13 ÷ 8.46

0.84x

* Primary Listing of Hudson's Bay.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hudson's Bay is good value based on assets compared to the North America Multiline Retail industry average.
X
Value checks
We assess Hudson's Bay's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Multiline Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Multiline Retail industry average (and greater than 0)? (1 check)
  5. Hudson's Bay has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hudson's Bay expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.8%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Hudson's Bay expected to grow at an attractive rate?
  • Unable to compare Hudson's Bay's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Hudson's Bay's earnings growth to the Canada market average as no estimate data is available.
  • Hudson's Bay's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:HBC Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:HBC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -0.8%
North America Multiline Retail Industry Earnings Growth Rate Market Cap Weighted Average 12.3%
North America Multiline Retail Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:HBC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:HBC Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-01-31 9,245 410 4
2020-01-31 9,141 63 5
TSX:HBC Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-02-02 9,376 -475 -631
2018-11-03 14,402 -459 -667
2018-08-04 14,287 -431 -659
2018-05-05 14,331 -196 -612
2018-02-03 9,490 -328 -139
2017-10-28 11,038 145 -471
2017-07-29 12,266 234 -480
2017-04-29 13,314 48 -522
2017-01-28 14,455 312 -516
2016-10-29 14,341 -15 6
2016-07-30 13,607 -34 138
2016-04-30 12,393 -107 339

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Hudson's Bay is high growth as no earnings estimate data is available.
  • Hudson's Bay's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:HBC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Hudson's Bay Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:HBC Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-01-31
2020-01-31
TSX:HBC Past Financials Data
Date (Data in CAD Millions) EPS *
2019-02-02 -2.67
2018-11-03 -2.88
2018-08-04 -3.03
2018-05-05 -3.00
2018-02-03 -0.73
2017-10-28 -2.59
2017-07-29 -2.64
2017-04-29 -2.87
2017-01-28 -2.84
2016-10-29 0.03
2016-07-30 0.76
2016-04-30 1.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Hudson's Bay will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Hudson's Bay's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hudson's Bay has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hudson's Bay's growth in the last year to its industry (Multiline Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hudson's Bay does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Hudson's Bay's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Hudson's Bay's 1-year growth to the North America Multiline Retail industry average as it is not currently profitable.
Earnings and Revenue History
Hudson's Bay's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hudson's Bay Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:HBC Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-02 9,376.00 -631.00 3,567.00
2018-11-03 14,402.00 -667.00 5,597.00
2018-08-04 14,287.00 -659.00 5,557.00
2018-05-05 14,331.00 -612.00 5,534.00
2018-02-03 9,490.00 -139.00 3,508.00
2017-10-28 11,038.00 -471.00 3,989.00
2017-07-29 12,266.00 -480.00 4,510.00
2017-04-29 13,314.00 -522.00 4,945.00
2017-01-28 14,455.00 -516.00 5,403.00
2016-10-29 14,341.00 6.00 5,399.00
2016-07-30 13,607.00 138.00 4,974.00
2016-04-30 12,393.00 339.00 4,465.00
2016-01-30 11,162.00 387.00 3,891.00
2015-10-31 9,308.00 123.00 3,179.00
2015-08-01 8,655.00 103.00 2,960.00
2015-05-02 8,386.00 8.00 2,830.00
2015-01-31 8,169.00 233.00 2,726.00
2014-11-01 7,944.00 164.00 2,661.00
2014-08-02 7,015.00 51.00 2,320.00
2014-05-03 6,194.00 21.00 2,006.00
2014-02-01 5,223.00 -177.00 1,675.00
2013-11-02 4,202.50 -123.60 1,243.80
2013-08-03 4,148.90 -10.10 1,249.70
2013-05-04 4,112.80 52.80 1,267.20
2013-02-02 4,077.00 27.80 1,275.20
2012-10-27 3,990.10 36.60 1,359.00
2012-07-28 3,956.40 41.60 1,363.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Hudson's Bay has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Hudson's Bay has efficiently used its assets last year compared to the North America Multiline Retail industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Hudson's Bay improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Hudson's Bay's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Multiline Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hudson's Bay has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hudson's Bay's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hudson's Bay's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hudson's Bay is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hudson's Bay's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hudson's Bay's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hudson's Bay Company Filings, last reported 3 months ago.

TSX:HBC Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-02 1,986.00 3,345.00 38.00
2018-11-03 1,713.00 4,249.00 27.00
2018-08-04 1,856.00 4,049.00 26.00
2018-05-05 2,100.00 4,277.00 86.00
2018-02-03 2,407.00 3,552.00 91.00
2017-10-28 1,724.00 4,958.00 97.00
2017-07-29 1,890.00 4,350.00 112.00
2017-04-29 2,270.00 4,605.00 99.00
2017-01-28 2,410.00 3,701.00 136.00
2016-10-29 2,602.00 4,552.00 86.00
2016-07-30 2,665.00 4,074.00 114.00
2016-04-30 2,720.00 3,693.00 101.00
2016-01-30 3,099.00 3,708.00 507.00
2015-10-31 2,504.00 4,399.00 292.00
2015-08-01 2,526.00 2,568.00 58.00
2015-05-02 2,345.00 3,144.00 35.00
2015-01-31 2,474.00 3,125.00 168.00
2014-11-01 2,175.00 3,176.00 44.00
2014-08-02 2,138.00 2,885.00 38.00
2014-05-03 2,190.00 2,854.00 39.00
2014-02-01 2,043.00 3,455.00 24.00
2013-11-02 723.50 1,276.80 30.20
2013-08-03 856.70 1,101.70 26.30
2013-05-04 927.90 1,090.70 31.00
2013-02-02 1,013.00 850.90 50.00
2012-10-27 692.30 1,412.60 41.80
2012-07-28 720.60 1,339.80 49.80
  • Hudson's Bay's level of debt (168.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (168.2% vs 168.4% today).
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.

  • Hudson's Bay has less than a year of cash runway based on current free cash flow.
  • Hudson's Bay has less than a year of cash runway if free cash flow continues to grow at historical rates of 8.5% each year.
X
Financial health checks
We assess Hudson's Bay's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hudson's Bay has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.7%
Current annual income from Hudson's Bay dividends. Estimated to be 0.7% next year.
If you bought CA$2,000 of Hudson's Bay shares you are expected to receive CA$14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hudson's Bay's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.05%).
  • Hudson's Bay's dividend is below the markets top 25% of dividend payers in Canada (5.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:HBC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
North America Multiline Retail Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 332 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:HBC Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-01-31 0.05 2.00
2020-01-31 0.05 4.00
TSX:HBC Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-03-19 0.050 0.664
2018-12-05 0.050 0.627
2018-09-12 0.050 0.557
2018-03-01 0.050 0.503
2017-12-06 0.050 0.470
2017-09-05 0.050 0.418
2017-02-23 0.200 1.842
2016-09-06 0.200 1.464
2016-03-21 0.200 1.221
2015-09-10 0.200 1.044
2015-03-09 0.200 0.767
2014-09-17 0.200 0.928
2014-06-19 0.200 1.196
2014-03-20 0.200 1.149
2013-12-04 0.200 1.141
2013-09-12 0.375 2.000
2013-06-12 0.375 2.231
2013-03-15 0.375 2.358
2012-12-11 0.375 2.309
2012-12-10 0.375 2.233

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hudson's Bay is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • Hudson's Bay is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Hudson's Bay's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Hudson's Bay's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • No need to calculate the sustainability of Hudson's Bay's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Hudson's Bay's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hudson's Bay afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hudson's Bay has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Helena Foulkes
AGE 54
TENURE AS CEO 1.3 years
CEO Bio

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, 2018. Ms. Foulkes was the Executive Vice President of CVS Health Corporation since January 2009. She was the Chief Health Care Strategy & Marketing Officer of CVS Caremark Corporation from March 2011 to December 2013. She served as the Chief Marketing Officer at CVS Caremark Corporation from January 2009 to February 2011. She served as Senior Vice President of Health Services at CVS Pharmacy, Inc. from March 2007 to January 2009. She served as Senior Vice President of Health Services at CVS Caremark Corporation from May 2008 to January 2009. She served as Senior Vice President of Marketing and Operations Services of CVS Pharmacy, Inc., from March 2007 to October 2007 and was responsible for the operational support of the pharmacy and front store business. Ms. Foulkes served as Senior Vice President of Marketing and Advertising of CVS Pharmacy, Inc. from April 2002 to January 2007. She began her career at CVS in 1992 and has served as a Category Manager and Vice President in CVS Corporation's Merchandising Department and also served as Vice President of Relationship Marketing and Vice President of Marketing. Ms. Foulkes played a key role in the development of Internet strategy, which resulted in the successful launch of CVS.com in 1999. She held corporate finance positions at Goldman Sachs and Tiffany & Co. She has been an Independent Director at Home Depot, Inc. since September 20, 2013. She is a Director of Home Depot U.S.A., Inc. She serves as a Member of Board of Governors at Boys & Girls Clubs of America, Inc. She served as Vice Chairwoman of Rhode Island Economic Development Corporation from February 2011 to June 1, 2012. Ms. Foulkes holds a Bachelor's degree in Economics from Harvard College and received M.B.A. from Harvard Business School.

CEO Compensation
  • Insufficient data for Helena to compare compensation growth.
  • Insufficient data for Helena to establish whether their remuneration is reasonable compared to companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Hudson's Bay management team in years:

2.7
Average Tenure
51.5
Average Age
  • The tenure for the Hudson's Bay management team is about average.
Management Team

Richard Baker

TITLE
Governor & Executive Chairman
COMPENSATION
CA$55M
AGE
53
TENURE
10.8 yrs

Ed Record

TITLE
Chief Financial Officer
COMPENSATION
CA$8M
AGE
50
TENURE
1.8 yrs

Ian Putnam

TITLE
President of Real Estate & Chief Corporate Development Officer
COMPENSATION
CA$7M
TENURE
4.4 yrs

Marc Metrick

TITLE
President of Saks Fifth Avenue
COMPENSATION
CA$6M
AGE
44
TENURE
4.1 yrs

Helena Foulkes

TITLE
CEO & Director
AGE
54
TENURE
1.3 yrs

Kerry Mader

TITLE
Chief Business Operations Officer
TENURE
1.5 yrs

Todd Zator

TITLE
Chief Accounting Officer
TENURE
5.2 yrs

Stephen Gold

TITLE
Chief Technology & Digital Operations Officer
AGE
58
TENURE
1 yrs

Jennifer Bewley

TITLE
Head of Investor Relations

David Schwartz

TITLE
Executive VP
AGE
50
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the Hudson's Bay board of directors in years:

7.2
Average Tenure
59
Average Age
  • The tenure for the Hudson's Bay board of directors is about average.
Board of Directors

Helena Foulkes

TITLE
CEO & Director
AGE
54
TENURE
1.3 yrs

Wayne Pommen

TITLE
Independent Director
COMPENSATION
CA$289K
AGE
39
TENURE
7.2 yrs

Richard Baker

TITLE
Governor & Executive Chairman
COMPENSATION
CA$55M
AGE
53

Matt Rubel

TITLE
Independent Director
COMPENSATION
CA$318K
AGE
60
TENURE
6.5 yrs

Andrea Wong

TITLE
Independent Director
COMPENSATION
CA$207K
AGE
51
TENURE
4.7 yrs

David Leith

TITLE
Lead Director
COMPENSATION
CA$334K
AGE
58
TENURE
6.5 yrs

Robert Baker

TITLE
Non Executive Director
COMPENSATION
CA$205K
AGE
82
TENURE
7.3 yrs

Bill Mack

TITLE
Non-Executive Director
COMPENSATION
CA$205K
AGE
78
TENURE
7.3 yrs

Lee Neibart

TITLE
Non-Executive Director
COMPENSATION
CA$205K
AGE
67
TENURE
7.3 yrs

Earl Rotman

TITLE
Independent Non-Executive Director
COMPENSATION
CA$283K
AGE
63
TENURE
7.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
17. Jan 19 Sell The Stephen Mack And Kelly Mack Family Foundation Inc Company 11. Jan 19 15. Jan 19 -113,333 CA$8.23 CA$-917,296
08. Jan 19 Buy Rupert of the Rhine LLC Company 03. Jan 19 03. Jan 19 17,953,536 CA$9.45 CA$169,660,922
08. Jan 19 Sell The Stephen Mack And Kelly Mack Family Foundation Inc Company 28. Oct 18 28. Oct 18 -20,000 CA$7.03 CA$-140,602
12. Oct 18 Sell Richard And Christine Mack Family Foundation, Inc., Endowment Arm Company 05. Oct 18 05. Oct 18 -17,000 CA$9.32 CA$-158,386
05. Oct 18 Sell Robert Baker Family Foundation, Endowment Arm Company 01. Oct 18 04. Oct 18 -82,498 CA$9.57 CA$-788,846
28. Sep 18 Sell Robert Baker Family Foundation, Endowment Arm Company 27. Sep 18 27. Sep 18 -24,200 CA$9.95 CA$-240,790
21. Sep 18 Sell Robert Baker Family Foundation, Endowment Arm Company 17. Sep 18 18. Sep 18 -15,800 CA$10.84 CA$-168,842
19. Jun 18 Sell Todd Zator Individual 14. Jun 18 14. Jun 18 -1,800 CA$11.51 CA$-20,713
X
Management checks
We assess Hudson's Bay's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hudson's Bay has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Have Insiders Been Selling Hudson's Bay Company (TSE:HBC) Shares This Year?

So before you buy or sell Hudson's Bay Company (TSE:HBC), you may well want to know whether insiders have been buying or selling. … In the last twelve months, the biggest single sale by an insider was when President of Saks Fifth Avenue & Gilt and Saks OFF 5TH Marc Metrick sold CA$115k worth of shares at a price of CA$10.44 per share. … So we know that an insider sold shares at around the present share price of CA$9.04.

Simply Wall St -

Should You Buy Hudson's Bay Company (TSE:HBC) Now?

Hudson's Bay Company (TSE:HBC), a multiline retail company based in Canada,. … Let’s examine Hudson's Bay’s valuation and outlook in more detail to determine if there’s still a bargain opportunity? … What does the future of Hudson's Bay look like?

Simply Wall St -

Hudson's Bay Company (TSE:HBC): Risks You Need To Consider Before Buying

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, HBC appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … However, this is the opposite to what HBC’s actual beta value suggests, which is lower stock volatility relative to the market.

Simply Wall St -

Hudson's Bay Company's (TSE:HBC) Earnings Dropped -10.84%, Did Its Industry Show Weakness Too?

Assessing Hudson's Bay Company's (TSX:HBC) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Hudson's Bay is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its multiline retail industry peers. … Hudson's Bay's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.

Simply Wall St -

Is Hudson's Bay Company's (TSE:HBC) Balance Sheet Strong Enough To Weather A Storm?

Additionally, HBC has generated CA$312.00M in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 8.47%, meaning that HBC’s debt is not appropriately covered by operating cash. … Looking at HBC’s most recent CA$3.53B liabilities, it seems that the business has been able to meet these commitments with a current assets level of CA$4.07B, leading to a 1.15x current account ratio. … Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.Next Steps: At its current level of cash flow coverage, HBC has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

Why Hudson's Bay Company (TSE:HBC) Could Be A Buy

The stock’s ratio of 1.11x is currently trading slightly below its industry peers’ ratio of 2.46x, which means if you buy Hudson's Bay today, you’d be paying a relatively fair price for it. … In addition to this, it seems like Hudson's Bay’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. … Hudson's Bay’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Is Hudson's Bay Company (TSX:HBC) A Retail Leader?

However this rate still came in below the growth rate of the Canadian stock market as a whole. … In the previous year, the industry saw growth of 3.47%, though still underperforming the wider Canadian stock market. … If HBC has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the retail industry.

Simply Wall St -

Who Are The Major Shareholders Of Hudson's Bay Company (TSX:HBC)?

When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … See our latest analysis for HBC TSX:HBC Ownership Summary Oct 27th 17 Institutional Ownership HBC's 27.76% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … I am going to further examine HBC's ownership structure to check how other major shareholders can affect its investment case.

Simply Wall St -

Company Info

Description

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 Toronto, Canada.

Details
Name: Hudson's Bay Company
HBC
Exchange: TSX
Founded: 1670
CA$1,674,328,303
234,828,654
Website: http://www3.hbc.com
Address: Hudson's Bay Company
401 Bay Street,
Suite 500,
Toronto,
Ontario, M5H 2Y4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX HBC Class B Common Shares The Toronto Stock Exchange CA CAD 20. Nov 2012
OTCPK HBAY.F Class B Common Shares Pink Sheets LLC US USD 20. Nov 2012
DB HBNC Class B Common Shares Deutsche Boerse AG DE EUR 20. Nov 2012
Number of employees
Current staff
Staff numbers
40,000
Hudson's Bay employees.
Industry
Department Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 02:30
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/04/03
Last earnings reported: 2019/02/02
Last annual earnings reported: 2019/02/02


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.