DB:HBNC

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: HBNC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.3%

HBNC

2.2%

DE Multiline Retail

0.1%

DE Market


1 Year Return

49.6%

HBNC

9.3%

DE Multiline Retail

14.1%

DE Market

Return vs Industry: HBNC exceeded the German Multiline Retail industry which returned 9.3% over the past year.

Return vs Market: HBNC exceeded the German Market which returned 14.1% over the past year.


Shareholder returns

HBNCIndustryMarket
7 Day1.3%2.2%0.1%
30 Day2.0%0.4%0.2%
90 Day23.6%3.2%3.3%
1 Year50.5%49.6%15.2%9.3%17.6%14.1%
3 Year-12.1%-13.8%30.9%12.8%14.8%4.8%
5 Year-48.8%-50.9%-8.9%-28.3%22.2%5.4%

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

No news available

Valuation

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

3.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HBNC (€7.6) is trading above our estimate of fair value (€0.13)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: HBNC is overvalued based on its PB Ratio (3.3x) compared to the XE Multiline Retail industry average (2.9x).


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: HBNC is forecast to remain unprofitable over the next 3 years.

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

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

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

High Growth Revenue: HBNC'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 HBNC'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: HBNC is currently unprofitable.

Growing Profit Margin: HBNC is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: HBNC is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (4.7%).


Return on Equity

High ROE: HBNC 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: HBNC's short term assets (CA$4.9B) exceed its short term liabilities (CA$4.7B).

Long Term Liabilities: HBNC'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: HBNC's debt to equity ratio (360.5%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: HBNC'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: HBNC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: HBNC has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -24.2% 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%1.3%markettop25%3.6%industryaverage3.5%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: HBNC's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: HBNC's dividend (0.46%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: HBNC is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HBNC's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Helena Foulkes (55yo)

2yrs

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 ($USD22.19M) is above average for companies of similar size in the German market ($USD1.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Baker
Governor & Executive Chairman0yrsCA$1.85m5.12% CA$92.1m
Helena Foulkes
CEO & Director2yrsCA$29.42m0.026% CA$471.2k
Edward Record
Chief Financial Officer2.5yrsCA$2.23m0.025% CA$458.2k
Stephen Gold
Chief Technology & Digital Operations Officer1.8yrsCA$3.08m0.0025% CA$45.1k
Ian Putnam
President of Real Estate & Chief Corporate Development Officer5.2yrsCA$1.78m0.020% CA$366.7k
Marc Metrick
President of Saks Fifth Avenue4.8yrsCA$2.19m0.013% CA$236.3k
Iain Nairn
President0.08yrsno datano data
Jennifer Bewley
Head of Investor Relations0yrsno datano data
David Schwartz
Executive VP3.4yrsno data0.015% CA$278.7k
Bari Harlam
Chief Marketing Officer1.8yrsno data0.0031% CA$55.9k

2.5yrs

Average Tenure

54yo

Average Age

Experienced Management: HBNC's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Baker
Governor & Executive Chairman0yrsCA$1.85m5.12% CA$92.1m
Helena Foulkes
CEO & Director2yrsCA$29.42m0.026% CA$471.2k
William Mack
Non-Executive Director8.1yrsCA$223.99k0.068% CA$1.2m
Lee Neibart
Non-Executive Director8.1yrsCA$223.99k1.4% CA$25.2m
Earl Rotman
Independent Non-Executive Director7.9yrsCA$286.44k0.0086% CA$154.8k
David Leith
Lead Director7.3yrsCA$338.06kno data
Matthew Rubel
Independent Director7.3yrsCA$262.30k0.0076% CA$136.5k
Robert Baker
Non Executive Director8.1yrsCA$223.99k1.42% CA$25.6m
Andrea Wong
Independent Director5.4yrsCA$247.48kno data
Wayne Pommen
Independent Director7.9yrsCA$312.74k0.0013% CA$23.6k

7.9yrs

Average Tenure

60yo

Average Age

Experienced Board: HBNC's board of directors are considered experienced (7.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Hudson's Bay Company
  • Ticker: HBNC
  • Exchange: DB
  • Founded: 1670
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: CA$2.580b
  • Listing Market Cap: CA$1.798b
  • 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 Analysis2020/02/18 22:19
End of Day Share Price2020/02/18 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.