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High Liner Foods Inc (TSE:HLF)
TSX:HLF
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High Liner Foods
(TSX:HLF)
71Outperform
Positive Factors
Business Model
High Liner's diversified business model positions the company to drive growth in a challenging macro environment.
Financial Performance
EBITDA margins increased year-over-year, with gross margin expansion driven by lower raw material costs and a balanced approach to pricing and promotions.
Retail Volume
Retail volume growth inflected positively for the first time since 2023.
Negative Factors
Consumer Demand
Consumer pressures continued to weigh on demand in foodservice.
Macro Environment
In the near term, a challenging macro environment is reducing consumer demand and earnings growth.
High Liner Foods (HLF) vs. S&P 500 (SPY)
Market Cap
C$488.84M
Dividend Yield3.75%
Average Volume (3M)26.84K
Price to Earnings (P/E)6.4
Beta (1Y)0.56
Revenue Growth-9.94%
EPS Growth102.18%
CountryCA
Employees1,202
SectorConsumer Defensive
Sector Strength71
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)2.57
Shares Outstanding29,573,153
10 Day Avg. Volume26,561
30 Day Avg. Volume26,836
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)0.36
Price to Cash Flow (P/CF)4.10
P/FCF Ratio5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$19.00Price Target Upside13.50% Upside
Rating ConsensusHold
Number of Analyst Covering1
High Liner Foods Business Overview & Revenue Model
Company DescriptionHigh Liner Foods (HLF) is a leading North American processor and marketer of value-added frozen seafood. The company operates in the food industry, focusing on providing a wide range of high-quality seafood products to retail and foodservice customers. High Liner Foods is known for its commitment to sustainability and innovation, offering products under well-recognized brands like High Liner, Fisher Boy, Mirabel, Sea Cuisine, and C. Wirthy & Co.
How the Company Makes MoneyHigh Liner Foods generates revenue through the sale of its value-added frozen seafood products to both retail and foodservice sectors. The company's key revenue streams include branded retail sales, where it offers a diverse portfolio of seafood products to grocery stores and supermarkets, and foodservice sales, where it supplies seafood products to restaurants, institutions, and other foodservice operators. High Liner Foods leverages its strong distribution network and relationships with major retailers and foodservice distributors to drive sales. Additionally, the company focuses on product innovation and sustainability to maintain a competitive edge and meet consumer demand for convenient and responsibly sourced seafood options.
High Liner Foods Financial Statement Overview
Summary
High Liner Foods is showing solid financial health with improvements in profitability and leverage. Despite a slight revenue decline, the company has managed to enhance its margins and cash flow generation, indicating resilience in operations. However, maintaining revenue growth amidst industry challenges remains a critical focus.Income Statement
High Liner Foods has shown a mixed trend in revenue with slight growth over the past year, but a decline compared to two years ago. The gross profit margin for 2024 stands at approximately 22.7%, indicating a healthy profitability level. The net profit margin improved from 2.9% in 2023 to 6.3% in 2024, showcasing a strong recovery. However, the revenue decline from 2023 to 2024 indicates potential challenges in maintaining sales growth.72
Positive
Balance Sheet
The company's debt-to-equity ratio has improved, moving from 0.66 in 2023 to 0.56 in 2024, reflecting better leverage management. Return on equity increased to 14.8% in 2024, suggesting effective use of equity capital. However, the equity ratio remains stable at around 47.8%, indicating a balanced approach between debt and equity financing.68
Positive
Cash Flow
Free cash flow has decreased from previous years but remains positive, with a free cash flow to net income ratio of approximately 1.11 in 2024. The operating cash flow to net income ratio is robust at around 1.51, indicating strong cash generation relative to net income. Although free cash flow growth has slowed, the company maintains a healthy cash flow position.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 959.22M | 1.08B | 1.07B | 875.40M | 827.45M | Gross Profit |
| 217.27M | 218.69M | 229.93M | 198.54M | 177.92M | EBIT |
| 80.55M | 60.29M | 84.08M | 56.58M | 56.16M | EBITDA |
| 115.09M | 85.17M | 106.41M | 86.27M | 78.09M | Net Income Common Stockholders |
| 60.16M | 31.68M | 54.73M | 42.25M | 28.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.95M | 7.30M | 5.82M | 983.00K | 33.15M | Total Assets |
| 849.31M | 834.40M | 1.00B | 826.47M | 776.56M | Total Debt |
| 228.98M | 253.56M | 380.69M | 266.19M | 303.82M | Net Debt |
| 213.52M | 246.26M | 380.53M | 265.74M | 270.89M | Total Liabilities |
| 443.58M | 448.54M | 630.07M | 493.94M | 485.56M | Stockholders Equity |
| 405.73M | 385.86M | 373.42M | 332.52M | 291.00M |
| Cash Flow | Free Cash Flow | |||
| 66.78M | 160.26M | -96.83M | 8.37M | 94.05M | Operating Cash Flow |
| 90.59M | 179.31M | -76.16M | 28.68M | 103.00M | Investing Cash Flow |
| -40.24M | -18.80M | -20.67M | -20.32M | -8.95M | Financing Cash Flow |
| -40.66M | -153.85M | 100.14M | -41.42M | -63.86M |
High Liner Foods Technical Analysis
Positive
16.74
Price Trends
15.78
Positive
15.22
Positive
14.05
Positive
Market Momentum
0.21
Negative
60.19
Neutral
81.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HLF, the sentiment is Positive. The current price of 16.74 is above the 20-day moving average (MA) of 16.20, above the 50-day MA of 15.78, and above the 200-day MA of 14.05, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 81.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HLF.
High Liner Foods Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$488.84M | 6.37 | 15.03% | 3.75% | -9.94% | 102.18% | |
66 Neutral | C$1.18B | 24.13 | 8.63% | 3.20% | 3.68% | 19.78% | |
62 Neutral | $20.57B | 13.88 | -9.95% | 7.35% | 1.49% | 7.33% | |
61 Neutral | C$687.47M | 26.96 | -6.52% | 1.63% | -7.99% | -128.98% | |
54 Neutral | $632.93M | ― | -6.77% | ― | -5.50% | 89.98% | |
50 Neutral | $782.61M | ― | -18.73% | ― | -8.81% | -13.99% | |
45 Neutral | ― | -10.69% | ― | ― | ― |
* Consumer Defensive Sector Average
Performance Comparison
TSE:HLF
High Liner Foods
16.74
4.91
41.50%
STKL
SunOpta
5.39
-1.25
-18.83%
TSE:IFP
Interfor
15.80
-6.24
-28.31%
TSE:AFN
Ag Growth International
35.60
-27.34
-43.44%
TSE:SIS
Savaria
16.99
0.65
3.98%
TSE:AGT
Applied Graphite Technologies Corporation
0.13
-0.03
-18.75%
High Liner Foods Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 7.45% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
High Liner Foods demonstrated strong operational performance with increased sales volume and adjusted EBITDA, along with effective cash flow management. However, the company faced challenges in the foodservice segment and a decrease in net income, along with currency impacts. Despite these challenges, strategic investments and reduced net debt indicate a positive outlook.Highlights
Increase in Sales Volume and Adjusted EBITDA
Sales volume increased by 1.3% to 60.4 million pounds in Q4 2024, with an 8.7% increase in adjusted EBITDA compared to the fourth quarter of the previous year.
Strong Free Cash Flow
High Liner Foods generated a total of $90.6 million in free cash flow from operating activities for the full fiscal year of 2024.
Decreased Net Debt
Net debt at the end of Q4 2024 decreased by $16.7 million to $233.2 million compared to $249.9 million at the end of fiscal 2023.
Strategic Investments in Aquaculture
Investment of approximately $6 million in Norcod and $10 million in Andfjord to support sustainable aquaculture growth.
Lowlights
Decrease in Sales Revenue
Sales decreased by $2.1 million or 0.9% to $235 million in Q4 2024, attributed to reduced pricing and increased promotional activity.
Challenges in Foodservice Segment
Volume in the foodservice business was flat due to a slowdown in the industry as customers pulled back on dining outside of the home.
Decreased Net Income
Reported net income decreased by $0.5 million or 7.8% to $5.9 million in Q4 2024.
Impact of Weaker Canadian Dollar
The weaker Canadian dollar decreased the value of reported U.S. dollar sales from Canadian operations by approximately $1.5 million.
Company Guidance
During the High Liner Foods fourth quarter 2024 conference call, numerous metrics were highlighted that reflect the company's performance and guidance. The company reported a 1.3% increase in volume over Q4 2023 and an 8.7% rise in adjusted EBITDA year-over-year. For fiscal 2024, High Liner Foods generated $90.6 million in free cash flow from operating activities. The fourth quarter sales volume increased by 0.8 million pounds to 60.4 million pounds, while sales decreased slightly by $2.1 million to $235 million. Gross profit improved by $2.3 million to $51 million, with gross profit as a percentage of sales rising to 21.7%. Adjusted net income surged by 71.2% to $12.5 million. Net debt was reduced by $16.7 million to $233.2 million, with a net debt to adjusted EBITDA ratio of 2.3 times. Looking forward, the company plans to maintain financial flexibility to invest in strategic growth while managing potential macroeconomic headwinds such as tariffs, with a continued focus on volume growth and profitability.High Liner Foods Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
High Liner Foods Appoints PwC as New Auditor for 2025
Neutral
Mar 14, 2025
High Liner Foods has announced the appointment of PricewaterhouseCoopers LLP (PwC) as its new external auditor for fiscal 2025, following a comprehensive request for proposal process. This change reflects the company’s commitment to best corporate governance practices and comes after Ernst & Young LLP’s long tenure as the company’s auditor. The transition has been smooth, with no reservations or reportable events noted in Ernst & Young’s recent reports.
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
High Liner Foods Achieves Strong EBITDA Growth Amid Market Challenges
Positive
Feb 26, 2025
High Liner Foods reported an 8.6% growth in annual adjusted EBITDA for 2024, driven by volume and bottom-line growth in the fourth quarter. Despite market volatility, the company improved its retail business performance and supported foodservice operators, while also strengthening its balance sheet and increasing financial flexibility. This allowed High Liner Foods to invest further in Norcod and Andfjord, increase dividends, and expand its share buyback program, delivering value to shareholders.
Financial Disclosures
High Liner Foods Schedules Q4 2024 Earnings Release and Conference Call
Neutral
Feb 13, 2025
High Liner Foods announced that it will release its financial results for the fourth quarter and full year of 2024 on February 26, 2025. The company has scheduled a conference call for February 27, 2025, to discuss these results. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and potential future outlook, which could impact its market positioning and stakeholder decisions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.