Is it a good company at a reasonable price? The company currently looks like a dividend growth stock, but it does not have a stable history and I can see why an analyst thinks this stock is high risk. I agree it is risky. To me, it does make sense to buy a consumer stock that is risky. However, the stock price could just be cheap and make this stock a bit of a bargain.
I do not own this stock of High Liner Foods (TSX-HLF, OTC-HLNFF). When I started to follow this stock, it was liked by the Investment Reporter and was considered to be of average risk. The Investment reporter no longer exists. Ryan Irvine of Keystone also liked this company at that time.
When I was updating my spreadsheet, I noticed a number of employees, who had not stock last year when I started to follow them, bought stock over the past year. They are growing their earnings at a good pace, but not their revenue. The Dividends are growing at a good pace and has comparable growth to earnings. Revenue is growing over the past 5 years by 0.4% per year. Revenue over the past 5 year is growing at 44% per year. Dividend growth over the past 5 years is at 16% per year. There is not much growth in anything over past 10 years.
If you had invested in this company in December 2014, for $1,019.70 you would have bought 45 shares at $22.66 per share. In December 2024, after 10 years you would have received $204.53 in dividends. The stock would be worth $718.65. Your total return would have been $923.18. This would be a total loss of 1.09% per year with 3.44% from capital loss and 2.34% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $22.66 | $1,019.70 | 45 | 10 | $204.53 | $718.65 | $923.18 |
If you had invested in this company in December 2019, for $1,004.66 you would have bought 122 shares at $8.23 per share. In December 2024, after 5 years you would have received $258.64 in dividends. The stock would be worth $1,948.34. Your total return would have been $2,206.98. This would be a total gain of 17.97% per year with 14.18% from capital loss and 3.73% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $8.23 | $1,004.06 | 122 | 5 | $258.64 | $1,948.34 | $2,206.98 |
The current dividend yield is moderate with dividend growth good. The current dividend yield is moderate (2% to 4% ranges) at 4.21%. The 5, 10 and historical dividend yields are also moderate at 3.30%, 3.26% and 2.58%. The dividend growth is good (15% per year and higher) at 16% per year over the past 5 years. The last dividend increase was in 2024 and it was for 13%. Note that dividends were decreased in by 65.5% in 2019.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 23% with 5 year coverage at 25%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 29% with 5 year coverage at 24%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 13% with 5 year coverage at 11%. The DPR for 2024 for Free Cash Flow (FCF) is good at 21% with 5 year coverage at 19%. The FCF for 2024 ranges from $66.78M to 54.78M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 22.80% | 24.54% |
| AEPS | 28.54% | 24.19% |
| CFPS | 12.64% | 10.81% |
| FCF | 21.32% | 18.82% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is fine at 0.64 and currently at 0.70. The Liquidity Ratio for 2024 is good at 2.44 and 2.61 currently. The Debt Ratio for 2024 is good at 1.91 and 1.92 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.09 and 1.09 and currently at 2.09 and 1.09.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.64 | 0.70 |
| Intang/GW | 0.82 | 0.77 |
| Liquidity | 2.44 | 2.61 |
| Liq. + CF | 2.89 | 2.95 |
| Debt Ratio | 1.91 | 1.92 |
| Leverage | 2.09 | 2.09 |
| D/E Ratio | 1.09 | 1.09 |
The Total Return per year is shown below for years of 5 to 41 to the end of 2024 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 16.01% | 17.91% | 14.18% | 3.73% |
| 2014 | 10 | 4.22% | -1.09% | -3.44% | 2.34% |
| 2009 | 15 | 10.70% | 13.34% | 8.61% | 4.73% |
| 2004 | 20 | 9.55% | 9.11% | 5.90% | 3.20% |
| 1999 | 25 | 12.77% | 9.25% | 3.52% | |
| 1994 | 30 | 6.57% | 4.72% | 1.84% | |
| 1989 | 35 | 2.52% | 1.35% | 1.17% | |
| 1984 | 40 | 2.24% | 1.11% | 1.13% | |
| 1983 | 41 | 1.23% | 0.24% | 1.00% |
The Total Return per year is shown below for years of 5 to 20 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 14.19% | 16.25% | 12.41% | 3.84% |
| 2014 | 10 | 2.00% | -3.36% | -5.59% | 2.23% |
| 2009 | 15 | 8.40% | 11.00% | 6.37% | 4.63% |
| 2004 | 20 | 8.58% | 8.45% | 4.98% | 3.47% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.10, 8.14, 10.10. The corresponding 10 year ratios are 8.49, 12.22 and 15.06. The corresponding historical ratios are 8.14, 10.35 and 12.53. The current ratio is 7.31 based on a stock price of $15.88 and EPS estimate for 2025 of $2.17 ($1.57 US$). The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 5.37, 6.62 and 9.12. The corresponding 10 year ratios are 6.62, 8.37 and 10.42. The corresponding historical ratios are 7.07, 9.59 and 12.22. The current ratio is 7.31 based on a stock price of $15.88 and AEPS estimate for 2025 of $2.17 ($1.57 US$). The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I get a Graham Price of $30.86. The 10-year low, median, and high median Price/Graham Price Ratios are 0.47, 0.59 and 0.71. The current ratio is 0.51 based on a stock price of $15.88. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I get a 10-year median Price/Book Value per Share Ratio of 0.92. The current ratio is 0.81 based on a Book Value of $578.85, Book Value per Share of $19.50 and a stock price of $15.88. The current ratio is 12% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I get a 10-year median Price/Cash Flow per Share Ratio of 3.80. The current ratio is 4.95 based on Cash Flow per Share estimate for 2025 of $3.21 ($2.32 US$), Cash Flow of $95.2M and a stock price of $15.88. The current ratio is 30% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.
I get an historical median dividend yield of 2.58%. The current ratio is 4.28% based on a stock price of $15.88 and Dividends of $0.68. The current dividend yield is 66% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.
I get a 10 year median dividend yield of 3.26%. The current ratio is 4.28% based on a stock price of $15.88 and Dividends of $0.68. The current dividend yield is 31% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 0.34. The current P/S Ratio is 0.34 based on a Stock Price of $15.88, Revenue estimate for 2025 of $1,398M ($1,1011M US$) and Revenue per Share of $47.10. The current ratio is 2% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
Results of stock price testing is that the stock price is probably reasonable, but could be cheap. The dividend yield testing is saying that the stock price is relatively cheap. The P/S Ratio test says that it is reasonable and below the median. Rest of the testing says that it is cheap or reasonable, except for the P/CF Ratio test that says the stock price is expensive, but Cash Flow has varied a lot of time. I did all the testing in CDN$. Testing in US$ will vary but not generally, by much.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2), and Hold (2). The consensus is a Buy. The 12 month stock price consensus is $21.41 ($15.48 US$), with a high of $24.15 ($17.46 US$) and Low of $20.05 ($14.50 US$). The stock price consensus of $21.41 implies a total return of 39.09% with 34.81% from capital gains and 4.28% from dividends based on a current stock price of $15.88.
There is only one analyst’s recommendation on Stock Chase for 2025. The stock is thought of as a buy, but of high risk. Christopher Liew on Motley Fool thinks this is a consumer stock to buy and hold forever. Aditya Raghunath on Motley Fool thinks you should buy this stock for passive income and capital gains. The company put out a Press Release on their fourth quarter results for 2024. The company put out a Press Release about their second quarter of 2025 results.
Simply Wall Street via Yahoo Finance looks at this company and notes that dividends have a history of instability, but are well covered by earnings and cash flow. Simply Wall Street via Yahoo Finance looks at this company and likes the fact that insider have been buying stock. Simply Wall Street has two warning out on this stock of debt is not well covered by operating cash flow; and unstable dividend track record.
High Liner Foods Inc is a Canadian company that is mainly engaged in the processing and marketing of prepared and packaged frozen seafood products. The company sells its products to institutions, healthcare facilities, and quick-service family and casual dining establishments. Its food service brands include High Liner, Mirabel, FPI, Viking, American Pride, High Liner, Fisher Boy, Sea Cuisine, and others. Its web site is here High Liner Foods.
The last stock I wrote about was about was Boralex Inc (TSX-BLX, OTC-BRLXF) ... learn more. The next stock I will write about will be SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more on Wednesday, September 10, 2025 around 5 pm. Tomorrow on my other blog I will write about Losing Your Job.... … learn more on Tuesday, September 9, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.
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