OTCPK:HZNO.F

Stock Analysis Report

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Executive Summary

Horizon North Logistics Inc. provides a range of products and services to end markets in Canada. More Details


Snowflake Analysis

Undervalued average dividend payer.

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


Market Performance


7 Day Return

-4.2%

HZNO.F

0.2%

US Commercial Services

0.4%

US Market


1 Year Return

n/a

HZNO.F

8.7%

US Commercial Services

17.8%

US Market

Return vs Industry: Insufficient data to determine how HZNO.F performed against the US Commercial Services industry.

Return vs Market: Insufficient data to determine how HZNO.F performed against the US Market.


Shareholder returns

HZNO.FIndustryMarket
7 Day-4.2%0.2%0.4%
30 Day47.1%4.3%6.1%
90 Day47.1%12.0%8.9%
1 Yearn/a10.4%8.7%20.5%17.8%
3 Yearn/a50.8%41.1%42.3%32.9%
5 Yearn/a110.3%88.9%84.2%63.4%

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: HZNO.F ($3.78) is trading below our estimate of fair value ($9.7)

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


Price To Earnings Ratio

PE vs Industry: HZNO.F is good value based on its PE Ratio (2.8x) compared to the US Commercial Services industry average (27.1x).

PE vs Market: HZNO.F is good value based on its PE Ratio (2.8x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: HZNO.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HZNO.F is good value based on its PB Ratio (1.1x) compared to the US Commercial Services industry average (1.6x).


Next Steps

Future Growth

How is Horizon North Logistics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-57.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HZNO.F's earnings are forecast to decline over the next 3 years (-57.2% per year).

Earnings vs Market: HZNO.F's earnings are forecast to decline over the next 3 years (-57.2% per year).

High Growth Earnings: HZNO.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HZNO.F's revenue (31.2% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: HZNO.F's revenue (31.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HZNO.F's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

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

543.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: HZNO.F has a large one-off gain of CA$33.0M impacting its June 30 2020 financial results.

Growing Profit Margin: HZNO.F's current net profit margins (19%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if HZNO.F's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare HZNO.F's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: HZNO.F earnings growth over the past year (543.8%) exceeded the Commercial Services industry -10.8%.


Return on Equity

High ROE: HZNO.F's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is Horizon North Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: HZNO.F's short term assets (CA$173.8M) exceed its short term liabilities (CA$86.2M).

Long Term Liabilities: HZNO.F's short term assets (CA$173.8M) exceed its long term liabilities (CA$149.8M).


Debt to Equity History and Analysis

Debt Level: HZNO.F's debt to equity ratio (42.1%) is considered high.

Reducing Debt: Insufficient data to determine if HZNO.F's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HZNO.F's debt is not well covered by operating cash flow (11.8%).

Interest Coverage: HZNO.F's interest payments on its debt are well covered by EBIT (23.6x coverage).


Balance Sheet


Next Steps

Dividend

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

6.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HZNO.F's dividend (6.02%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: HZNO.F's dividend (6.02%) is in the top 25% of dividend payers in the US market (4.56%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HZNO.F's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HZNO.F's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.5%), HZNO.F's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HZNO.F's dividends in 3 years are forecast to be covered by earnings (82.3% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Commercial Services industry.

Management

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

0.5yrs

Average management tenure


CEO

John Mac Cuish (64 yo)

0.17

Tenure

Mr. John Mac Cuish serves as President of Facilities Management & Non-Independent Director at Horizon North Logistics Inc. since May 29, 2020 and serves as its Chief Executive Officer since August 18, 2020 ...


Leadership Team

NamePositionTenureCompensationOwnership
John Mac Cuish
CEO, President of Facilities Management Business & Non-Independent Director0.17yrno datano data
R. Knight
Chief Financial Officer0.25yrno data0.00059%
CA$ 1.4k
Mark Becker
COO and President of Workforce Accommodations0.17yrno data0.020%
CA$ 48.4k
Tara Gracie
Executive VP of Legal & General Counselno datano datano data
Cindy Mcarthur
Chief Human Resources Officer0.75yrno datano data
J. Maccuish
Executive Vice President of Strategy and Corporate Planning0.75yrno datano data
Lee-Anne Lyon-Bartley
Executive Vice President of Health0.75yrno datano data
Jan Campbell
Corporate Secretaryno datano data0.00022%
CA$ 540.6

0.5yrs

Average Tenure

Experienced Management: HZNO.F's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Mac Cuish
CEO, President of Facilities Management Business & Non-Independent Director0.17yrno datano data
David Johnston
Independent Director0.42yrno data0.082%
CA$ 200.9k
Kevin Nabholz
Independent Director0.42yrno data0.051%
CA$ 125.4k
Roderick Graham
Non-Independent Director0.42yrno data0.047%
CA$ 116.1k
R. McFarland
Independent Chair of the Board0.42yrno data0.028%
CA$ 69.7k
Russell Newmark
Independent Director0.42yrno data0.018%
CA$ 44.5k
Mary Garden
Independent Director0.42yrno data0.012%
CA$ 28.7k
Simon Landy
Independent Director0.42yrno data0.0031%
CA$ 7.6k

0.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: HZNO.F's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: HZNO.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: HZNO.F only recently listed within the past 12 months.


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: HZNO.F
  • Exchange: OTCPK
  • Founded: 1985
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: CA$323.050m
  • Listing Market Cap: CA$245.749m
  • Shares outstanding: 64.87m
  • Website: https://www.horizonnorth.ca

Number of Employees


Location

  • Horizon North Logistics Inc.
  • 5915 Airport Road
  • Suite 425
  • Mississauga
  • Ontario
  • L4V 1T1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNLTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2020
HZNO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2020
13N1DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2020

Biography

Horizon North Logistics Inc. provides a range of products and services to end markets in Canada. It operates in three segments: Modular Solutions, Facilities Management, and Workforce Accommodations, Fores ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 01:26
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.