Friday, September 12, 2014

High Liner Foods

I do not own this stock of High Liner Foods (TSX-HLF, OTC-HLNFF). This is a stock liked by the Investment Reporter and is considered to be of average risk. The MPL Communication’s site is here. I have been meaning to look at it for a while. Ryan Irvine of Keystone also likes this company.

This company has been around for quite a while, but they just started to pay dividends in 2004. The Dividend Payout Ratios, especially for EPS has varied a lot of the years. The 5 year DPRs for EPS and CFPS are at 33% and 17%. The 2013 DPRs for EPS and CFPS are at 36% and 18.5%.

The current dividend yield is decent at 1.98% and the growth in dividends has been very good. The dividends have increased by 26% and 15% per year over the past 5 and 9 years. They increased the dividend again in 2014 with a 20% increase.

The shareholders total return has also been very good. The 5 and 10 year total returns are at 38.56% and 17.10% per year with 35.60% and 15.38% per year from capital gains and 2.97% and 1.72% per year from dividends.

The Outstanding Shares have decreased by 4.5% and increased by 3.4% per year over the past 5 and 10 years. The shares have increased due to Debenture Conversions, Share Issues and Stock Options. They have decreased due to Buy Backs.

The Revenues and Cash Flows has been growing well. Earnings have done well over the past 5 year, but not over the past 10 years. The company also reports an Adjusted Net Income and some analysts think that it better reflects on how the company is really doing as far as earnings go. Also, this company just started to report in US$ in 2012.

Revenues are up by 10.5% and 12.4% per year over the past 5 and 10 years. Revenue per Share is up by 15.6% and 8.6% per year over the past 5 and 10 years.

EPS is up by 22.8% and down by 6.3% per year over the past 5 and 10 years. The Adjusted EPS is up by 23% and 12% per year over the past 5 and 10 years. Net Income is up by 18.8% and down by 3.13% per year over the past 5 and 10 years.

The Return on Equity has only been below 10% once in the past 5 years. The 5 years before, that is 6 to 10 years ago, it did not break the 10% level.

Cash Flow is up by 19% and 12% per year over the past 5 and 10 years. CFPS is up by 24.6% and 8.6% per year over the past 5 and 10 years. The ROE for 2013 was 17% and the 5 year median ROE is at 12.6%. The ROE on comprehensive income is close with a ROE for 2013 at 16.5% and a 5 year median ROE at 12%.

The debt ratios are generally good. The Liquidity Ratios for 2013 was 1.73. The Debt Ratio for 2013 is at 1.38 with a 5 year median at 1.35. This is acceptable, although a bit lower than I would like. Leverage and Debt/Equity Ratios are a bit higher than what I would like with 2013 values at 3.66 and 2.66.

Sound bit for Twitter and StockTwits is: Consumer Discretionary Dividend Growth Stock. See my spreadsheet at hlf.htm.

This is the first of two parts. The second part will be posted on Monday, September 15, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.

High Liner Foods is the leading North American processor and marketer of value-added frozen seafood. Their retail branded products are sold throughout the United States, Canada and Mexico and are available in most grocery and club stores. They also sell their branded products to restaurants and institutions and they are the major supplier of private label value-added frozen seafood products to North American food retailers and food service distributors. Its web site is here High Liner Foods.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.

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