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HERD

Grupo Herdez. de BMV:HERDEZ * Stock Report

Last Price

Mex$28.50

Market Cap

Mex$9.7b

7D

5.1%

1Y

-35.4%

Updated

24 Jun, 2022

Data

Company Financials +
HERDEZ * fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance1/6
Financial Health4/6
Dividends4/6

HERDEZ * Stock Overview

Grupo Herdez, S.A.B. de C.V., a food company, engages in the manufacture, purchase, distribution, and marketing of canned and packed food products in Mexico and internationally.

Grupo Herdez. de Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Grupo Herdez. de
Historical stock prices
Current Share PriceMex$28.50
52 Week HighMex$46.09
52 Week LowMex$24.00
Beta0.54
1 Month Change-8.71%
3 Month Change-2.93%
1 Year Change-35.40%
3 Year Change-30.71%
5 Year Change-27.35%
Change since IPO578.57%

Recent News & Updates

Apr 28
Grupo Herdez. de (BMV:HERDEZ) Has Affirmed Its Dividend Of Mex$0.60

Grupo Herdez. de (BMV:HERDEZ) Has Affirmed Its Dividend Of Mex$0.60

The board of Grupo Herdez, S.A.B. de C.V. ( BMV:HERDEZ ) has announced that it will pay a dividend of Mex$0.60 per...

Apr 05
Returns At Grupo Herdez. de (BMV:HERDEZ) Appear To Be Weighed Down

Returns At Grupo Herdez. de (BMV:HERDEZ) Appear To Be Weighed Down

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

HERDEZ *MX FoodMX Market
7D5.1%0.9%-0.7%
1Y-35.4%23.2%0.4%

Return vs Industry: HERDEZ * underperformed the MX Food industry which returned 22.7% over the past year.

Return vs Market: HERDEZ * underperformed the MX Market which returned -1.4% over the past year.

Price Volatility

Is HERDEZ *'s price volatile compared to industry and market?
HERDEZ * volatility
HERDEZ * Average Weekly Movement5.2%
Food Industry Average Movement5.7%
Market Average Movement4.6%
10% most volatile stocks in MX Market8.2%
10% least volatile stocks in MX Market2.6%

Stable Share Price: HERDEZ * is not significantly more volatile than the rest of MX stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HERDEZ *'s weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191410,478Héctor Hernández-Pons Torreshttps://grupoherdez.com.mx

Grupo Herdez, S.A.B. de C.V., a food company, engages in the manufacture, purchase, distribution, and marketing of canned and packed food products in Mexico and internationally. It provides mushrooms, vegetable juices, mayonnaise, honey, mustard, moles, tomato puree, jams, pastas, homemade sauces, ice creams, tea, soy sauce, tuna, coffee, spices, pasta sauces, hot sauces, ketchup, canned chilies, vegetables, olives, nopalitos, guacamole, sauces, enchilada sauces, taco sauce, chiles, tortillas, mayonnaise, marmalades, and organic products under the Aires de Campo, Barilla, Blasón, Búfalo, Cielito Querido Café, Del Fuerte, Doña María, Embasa, Helados Nestlé, Herdez, McCormick, Moyo, Nutrisa, La Victoria, Wholly Guacamole, Yemina, Carlota, ChiChi's, Don Miguel, Nutrisa, Nestlé Ice Cream, Cielito Dear Coffee, and Moyo brands. The company was founded in 1914 and is headquartered in Mexico City, Mexico.

Grupo Herdez. de Fundamentals Summary

How do Grupo Herdez. de's earnings and revenue compare to its market cap?
HERDEZ * fundamental statistics
Market CapMex$9.75b
Earnings (TTM)Mex$705.88m
Revenue (TTM)Mex$27.41b

14.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HERDEZ * income statement (TTM)
RevenueMex$27.41b
Cost of RevenueMex$17.39b
Gross ProfitMex$10.03b
Other ExpensesMex$9.32b
EarningsMex$705.88m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.03
Gross Margin36.57%
Net Profit Margin2.57%
Debt/Equity Ratio58.7%

How did HERDEZ * perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

60%

Payout Ratio

Does HERDEZ * pay a reliable dividends?

See HERDEZ * dividend history and benchmarks
When do you need to buy HERDEZ * by to receive an upcoming dividend?
Grupo Herdez. de dividend dates
Ex Dividend DateOct 10 2022
Dividend Pay DateOct 12 2022
Days until Ex dividend107 days
Days until Dividend pay date109 days

Does HERDEZ * pay a reliable dividends?

See HERDEZ * dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is HERDEZ * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HERDEZ *?

Other financial metrics that can be useful for relative valuation.

HERDEZ * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA7.4x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does HERDEZ *'s PE Ratio compare to its peers?

HERDEZ * PE Ratio vs Peers
The above table shows the PE ratio for HERDEZ * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.9x

Price-To-Earnings vs Peers: HERDEZ * is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (14.9x).


Price to Earnings Ratio vs Industry

How does HERDEZ *'s PE Ratio compare vs other companies in the Food Industry?

Price-To-Earnings vs Industry: HERDEZ * is expensive based on its Price-To-Earnings Ratio (14x) compared to the MX Food industry average (13.4x)


Price to Earnings Ratio vs Fair Ratio

What is HERDEZ *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HERDEZ * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio17.1x

Price-To-Earnings vs Fair Ratio: HERDEZ * is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (17.1x).


Share Price vs Fair Value

What is the Fair Price of HERDEZ * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HERDEZ * (MX$28.5) is trading below our estimate of fair value (MX$95.78)

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


Price to Earnings Growth Ratio

PEG Ratio: HERDEZ * is good value based on its PEG Ratio (0.9x)


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Future Growth

How is Grupo Herdez. de forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HERDEZ *'s forecast earnings growth (15.8% per year) is above the savings rate (7.1%).

Earnings vs Market: HERDEZ *'s earnings (15.8% per year) are forecast to grow faster than the MX market (10.7% per year).

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

Revenue vs Market: HERDEZ *'s revenue (4.4% per year) is forecast to grow slower than the MX market (6.2% per year).

High Growth Revenue: HERDEZ *'s revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HERDEZ *'s Return on Equity is forecast to be low in 3 years time (16.9%).


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Past Performance

How has Grupo Herdez. de performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HERDEZ * has high quality earnings.

Growing Profit Margin: HERDEZ *'s current net profit margins (2.6%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: HERDEZ *'s earnings have declined by 5.7% per year over the past 5 years.

Accelerating Growth: HERDEZ *'s has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HERDEZ * had negative earnings growth (-7.3%) over the past year, making it difficult to compare to the Food industry average (9.8%).


Return on Equity

High ROE: HERDEZ *'s Return on Equity (11.5%) is considered low.


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Financial Health

How is Grupo Herdez. de's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HERDEZ *'s short term assets (MX$13.1B) exceed its short term liabilities (MX$7.3B).

Long Term Liabilities: HERDEZ *'s short term assets (MX$13.1B) exceed its long term liabilities (MX$11.4B).


Debt to Equity History and Analysis

Debt Level: HERDEZ *'s net debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: HERDEZ *'s debt to equity ratio has increased from 49.4% to 58.7% over the past 5 years.

Debt Coverage: HERDEZ *'s debt is not well covered by operating cash flow (19.3%).

Interest Coverage: HERDEZ *'s interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


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Dividend

What is Grupo Herdez. de current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.21%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 25 2022Ex Dividend DateOct 10 2022Dividend Pay DateOct 12 20222 days from Ex DividendBuy in the next 107 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HERDEZ *'s dividend (4.21%) is higher than the bottom 25% of dividend payers in the MX market (1.94%).

High Dividend: HERDEZ *'s dividend (4.21%) is low compared to the top 25% of dividend payers in the MX market (5.89%).


Stability and Growth of Payments

Stable Dividend: HERDEZ *'s dividend payments have been volatile in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.2%), HERDEZ *'s dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43.9%), HERDEZ *'s dividend payments are well covered by cash flows.


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Management

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

18.3yrs

Average management tenure


CEO

Héctor Hernández-Pons Torres (66 yo)

18.25yrs

Tenure

Mr. Héctor Ignacio Hernández-Pons Torres has been the Managing Director of Grupo Herdez, S.A.B. de C.V. since March 2004. Mr. Hernández-Pons Torres served as a General Director of Grupo Herdez, S.A.B. de C...


Leadership Team

Experienced Management: HERDEZ *'s management team is seasoned and experienced (18.3 years average tenure).


Board Members

Experienced Board: HERDEZ *'s board of directors are seasoned and experienced ( 19.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Grupo Herdez, S.A.B. de C.V.'s employee growth, exchange listings and data sources


Key Information

  • Name: Grupo Herdez, S.A.B. de C.V.
  • Ticker: HERDEZ *
  • Exchange: BMV
  • Founded: 1914
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: Mex$9.746b
  • Shares outstanding: 347.81m
  • Website: https://grupoherdez.com.mx

Number of Employees


Location

  • Grupo Herdez, S.A.B. de C.V.
  • Monte Pelvoux 215
  • Colonia Lomas de Chapultepec
  • Mexico City
  • Distrito Federal
  • 11000
  • Mexico

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.