LSE:HFG

Stock Analysis Report

Executive Summary

Hilton Food Group plc, together with its subsidiaries, engages in the food packing business.

Rewards

Trading at 28.4% below its fair value

Earnings are forecast to grow 13.15% per year

Earnings grew by 13% over the past year

Pays a high and reliable dividend of 2.03%

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Hilton Food Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.2%

HFG

-1.3%

GB Food

1.7%

GB Market


1 Year Return

16.9%

HFG

8.2%

GB Food

8.1%

GB Market

Return vs Industry: HFG exceeded the UK Food industry which returned 8.2% over the past year.

Return vs Market: HFG exceeded the UK Market which returned 8.1% over the past year.


Shareholder returns

HFGIndustryMarket
7 Day4.2%-1.3%1.7%
30 Day3.7%-0.2%0.1%
90 Day6.2%2.7%0.6%
1 Year19.5%16.9%10.9%8.2%13.8%8.1%
3 Year77.2%65.9%1.4%-5.2%19.2%4.0%
5 Year193.7%159.8%-2.1%-11.6%40.2%8.0%

Price Volatility Vs. Market

How volatile is Hilton Food Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hilton Food Group undervalued compared to its fair value and its price relative to the market?

28.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HFG (£10.52) is trading below our estimate of fair value (£14.69)

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


Price To Earnings Ratio

PE vs Industry: HFG is poor value based on its PE Ratio (28.2x) compared to the Food industry average (14.8x).

PE vs Market: HFG is poor value based on its PE Ratio (28.2x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: HFG is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: HFG is overvalued based on its PB Ratio (4.9x) compared to the GB Food industry average (1x).


Next Steps

Future Growth

How is Hilton Food Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HFG's forecast earnings growth (13.1% per year) is above the savings rate (0.5%).

Earnings vs Market: HFG's earnings (13.1% per year) are forecast to grow faster than the UK market (12.4% per year).

High Growth Earnings: HFG's earnings are forecast to grow, but not significantly.

Revenue vs Market: HFG's revenue (13.5% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: HFG's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HFG's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Hilton Food Group performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HFG has a high level of non-cash earnings.

Growing Profit Margin: HFG's current net profit margins (1.8%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: HFG's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: HFG's earnings growth over the past year (13%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: HFG earnings growth over the past year (13%) exceeded the Food industry 8%.


Return on Equity

High ROE: HFG's Return on Equity (18.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hilton Food Group's financial position?


Financial Position Analysis

Short Term Liabilities: HFG's short term assets (£369.2M) do not cover its short term liabilities (£375.1M).

Long Term Liabilities: HFG's short term assets (£369.2M) exceed its long term liabilities (£303.8M).


Debt to Equity History and Analysis

Debt Level: HFG's debt to equity ratio (100.4%) is considered high.

Reducing Debt: HFG's debt to equity ratio has increased from 42.4% to 100.4% over the past 5 years.

Debt Coverage: HFG's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: HFG's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

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

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


Next Steps

Dividend

What is Hilton Food Group's current dividend yield, its reliability and sustainability?

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.0%markettop25%5.2%industryaverage2.6%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: HFG's dividend (2.03%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: HFG's dividend (2.03%) is low compared to the top 25% of dividend payers in the UK market (5.21%).


Stability and Growth of Payments

Stable Dividend: HFG's dividends per share have been stable in the past 10 years.

Growing Dividend: HFG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.3%), HFG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HFG's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).


Next Steps

Management

What is the CEO of Hilton Food Group's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average board tenure


CEO

Philip Heffer 0

1.4yrs

Tenure

UK£1,405,000

Compensation

Mr. Philip Heffer has been Chief Executive Officer of Hilton Food Group PLC since July 01, 2018. Mr. Heffer served as the Chief Operating Officer of Hilton Food Group PLC from April 22, 2016 to July 01, 20 ...


CEO Compensation Analysis

Compensation vs Market: Philip's total compensation ($USD1.87M) is above average for companies of similar size in the UK market ($USD1.17M).

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


Board Age and Tenure

2.5yrs

Average Tenure

68yo

Average Age

Experienced Board: HFG's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£475,00011 Jan 19
Robert Watson
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares50,000
Max PriceUK£9.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Management Team

  • Robert Watson

    Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£1.52m
  • Nigel Majewski

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£1.23m
  • Philip Heffer

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£1.41m
  • Neil George

    Company Secretary

    • Tenure: 0yrs
  • Julia Brown

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Chris Cross (68yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£55.00k
  • Angus Porter (62yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£25.00k
  • John Worby (68yo)

    Senior Independent Director

    • Tenure: 3.6yrs
    • Compensation: UK£55.00k
  • Robert Watson

    Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£1.52m
  • Nigel Majewski

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£1.23m
  • Philip Heffer

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£1.41m

Company Information

Hilton Food Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hilton Food Group plc
  • Ticker: HFG
  • Exchange: LSE
  • Founded: 1994
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: UK£859.732m
  • Shares outstanding: 81.72m
  • Website: https://www.hiltonfoodgroupplc.com

Number of Employees


Location

  • Hilton Food Group plc
  • 2-8 The Interchange
  • Latham Road
  • Huntingdon
  • Cambridgeshire
  • PE29 6YE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HFGLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2007
HFGlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2007

Biography

Hilton Food Group plc, together with its subsidiaries, engages in the food packing business. The company offers a range of fresh items, such as roasting joints, steaks, chops, and minces. It also provides  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 21:11
End of Day Share Price2019/12/13 00:00
Earnings2019/07/14
Annual Earnings2018/12/30


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.