DB:13N

Stock Analysis Report

Horizon North Logistics

Executive Summary

Horizon North Logistics Inc. provides industrial, commercial, and residential products and services in Canada.

Rewards

Trading at 79.1% below its fair value

Revenue is forecast to grow 5.39% per year

Risk Analysis

Dividend of 7.84% is not well covered by earnings or forecast to be in the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Horizon North Logistics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 13N has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

13N

1.9%

DE Commercial Services

2.0%

DE Market


1 Year Return

-45.7%

13N

-2.5%

DE Commercial Services

15.1%

DE Market

Return vs Industry: 13N underperformed the German Commercial Services industry which returned -0.5% over the past year.

Return vs Market: 13N underperformed the German Market which returned 15% over the past year.


Shareholder returns

13NIndustryMarket
7 Day3.0%1.9%2.0%
30 Day-13.1%0.5%1.0%
90 Day6.1%6.7%3.8%
1 Year-42.4%-45.7%1.0%-2.5%18.6%15.1%
3 Year-38.7%-47.3%12.0%2.2%16.8%6.6%
5 Year-41.0%-56.7%4.9%-9.8%23.7%6.7%

Price Volatility Vs. Market

How volatile is Horizon North Logistics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Horizon North Logistics 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: 13N (€0.7) is trading below our estimate of fair value (€3.32)

Significantly Below Fair Value: 13N is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 13N is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: 13N is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 13N's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 13N is good value based on its PB Ratio (0.5x) compared to the DE Commercial Services industry average (3.3x).


Next Steps

Future Growth

How is Horizon North Logistics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

41.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 13N is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 13N is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 13N is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 13N's revenue (5.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 13N's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 13N is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Horizon North Logistics performed over the past 5 years?

-43.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 13N is currently unprofitable.

Growing Profit Margin: 13N is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 13N is unprofitable, and losses have increased over the past 5 years at a rate of -43.6% per year.

Accelerating Growth: Unable to compare 13N's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 13N is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (10.8%).


Return on Equity

High ROE: 13N has a negative Return on Equity (-2.77%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Horizon North Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: 13N's short term assets (CA$150.4M) exceed its short term liabilities (CA$91.9M).

Long Term Liabilities: 13N's short term assets (CA$150.4M) do not cover its long term liabilities (CA$168.5M).


Debt to Equity History and Analysis

Debt Level: 13N's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: 13N's debt to equity ratio has reduced from 51.5% to 32.4% over the past 5 years.


Balance Sheet

Inventory Level: 13N has a high level of physical assets or inventory.

Debt Coverage by Assets: 13N's debt is covered by short term assets (assets are 1.5x 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: 13N has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 13N has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Horizon North Logistics's current dividend yield, its reliability and sustainability?

7.84%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%1.3%markettop25%3.6%industryaverage3.3%forecastin3Years7.8%

Current dividend yield vs market & industry

Notable Dividend: 13N's dividend (7.84%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 13N's dividend (7.84%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: 13N has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 13N has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: 13N is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 13N is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Rod Graham (51yo)

5.3yrs

Tenure

CA$1,285,811

Compensation

Mr. Roderick W. Graham, also known as Rod, CFA, MBA has been the Chief Executive Officer and President of Horizon North Logistics Inc. since November 4, 2014. Mr. Graham served as an Senior Vice President  ...


CEO Compensation Analysis

Compensation vs Market: Rod's total compensation ($USD970.27K) is above average for companies of similar size in the German market ($USD412.37K).

Compensation vs Earnings: Rod's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Roderick Graham
President5.3yrsCA$1.29m0.42% CA$489.1k
Scott Matson
Senior VP of Finance & CFO10.1yrsCA$651.34k0.0025% CA$3.0k
Warren Murray
Executive Vice President of Strategic Partnerships0yrsCA$413.11k0.039% CA$45.5k
Joseph Kiss
President of Modular Solutions0yrsCA$500.29k0.069% CA$80.6k
Mark Becker
President of Industrial Services1.5yrsCA$621.43k0.19% CA$226.7k
Lyle Guard
Vice President of Legal & General Counsel5.3yrsno datano data
Wendy Mullane
Vice President of Human Resources0.3yrsno datano data
William Anderson
Executive Vice President of Quality3.7yrsCA$230.00k0.018% CA$21.3k
Jan Campbell
Corporate Secretary13.7yrsno data0.0022% CA$2.6k

5.3yrs

Average Tenure

Experienced Management: 13N's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roderick Graham
President5.3yrsCA$1.29m0.42% CA$489.1k
Dale Tremblay
Independent Director9.8yrsCA$133.59k0.046% CA$54.0k
Bradley P. Fedora
Independent Director4.8yrsCA$131.92k0.016% CA$18.4k
Kevin Nabholz
Independent Chairman2.9yrsCA$160.78k0.84% CA$981.1k
Richard Ballantyne
Independent Director4.8yrsCA$131.92k0.035% CA$40.9k
Russell Newmark
Independent Director13.7yrsCA$136.92k0.66% CA$776.2k
Ann Rooney
Independent Director7.5yrsCA$139.42k0.023% CA$26.9k
Mary Garden
Independent Director3.8yrsCA$143.26k0.042% CA$49.3k

5.0yrs

Average Tenure

61yo

Average Age

Experienced Board: 13N's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 9.6%.


Top Shareholders

Company Information

Horizon North Logistics Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Horizon North Logistics Inc.
  • Ticker: 13N
  • Exchange: DB
  • Founded:
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: CA$168.725m
  • Listing Market Cap: CA$117.427m
  • Shares outstanding: 165.42m
  • Website: https://www.horizonnorth.ca

Number of Employees


Location

  • Horizon North Logistics Inc.
  • 240-4th Avenue SW
  • Suite 900
  • Calgary
  • Alberta
  • T2P 4H4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNLTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2006
HZNO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2006
13NDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2006

Biography

Horizon North Logistics Inc. provides industrial, commercial, and residential products and services in Canada. The company operates in two segments, Industrial Services and Modular Solutions. The Industrial Services segment supplies workforce accommodations, camp management services, access solutions, relocatable structures, and maintenance and utilities services. The Modular Solutions segment integrates modern design concepts and technology with off-site manufacturing processes. This segment also produces building solutions for commercial and residential offerings, including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. It serves energy, mining, forestry, and construction sectors. Horizon North Logistics Inc. is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:14
End of Day Share Price2020/02/17 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.