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High Liner Foods Inc (TSE:HLF)
TSX:HLF
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High Liner Foods
(TSX:HLF)
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Rating:58Neutral
Price Target:
C$14.00
▼(-1.96% Downside)
High Liner Foods faces significant challenges with declining profitability and bearish technical indicators. While the stock's valuation is attractive, and strategic initiatives offer some long-term potential, the immediate financial and operational hurdles weigh heavily on the overall score.
Positive Factors
Strategic Initiatives
The integration of new brands and focus on automation and innovation can enhance operational efficiency and product offerings, supporting long-term growth.
Sales Growth
Consistent sales growth, driven by pricing adjustments, indicates strong demand and the ability to pass on costs, which is crucial for sustaining revenue.
Brand Recognition
Recognition from major distributors enhances brand credibility and can lead to stronger partnerships and increased market penetration.
Negative Factors
Profitability Challenges
Declining gross profit margins indicate challenges in cost management and pricing power, which could pressure future profitability.
Cash Flow Issues
Negative free cash flow growth highlights liquidity risks and limits the company's ability to invest in growth opportunities or manage debt.
Net Income Decline
A significant drop in net income reflects operational challenges and could impact investor confidence and the company's ability to reinvest in the business.
High Liner Foods (HLF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$406.43M
Dividend Yield4.84%
Average Volume (3M)31.42K
Price to Earnings (P/E)8.7
Beta (1Y)0.60
Revenue Growth6.15%
EPS Growth-36.76%
CountryCA
Employees1,215
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.20
Shares Outstanding28,702,797
10 Day Avg. Volume24,630
30 Day Avg. Volume31,424
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.83
Price to Sales (P/S)0.35
P/FCF Ratio5.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$19.52Price Target Upside36.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
High Liner Foods Business Overview & Revenue Model
Company DescriptionHigh Liner Foods (HLF) is a leading North American seafood company specializing in the processing and marketing of frozen seafood products. Established in 1899, the company operates across various sectors, including food service and retail, providing a diverse range of products such as fish fillets, seafood blends, and value-added seafood items. High Liner Foods is committed to sustainability and quality, sourcing seafood from responsible fisheries and aquaculture operations, and serving customers in both Canada and the United States.
How the Company Makes MoneyHigh Liner Foods generates revenue primarily through the sale of its frozen seafood products to retail and food service customers. The company has a diverse portfolio of well-known brands, including High Liner, Sea Cuisine, and Fisher Boy, which contribute significantly to its revenue streams. Key revenue sources include direct sales to grocery stores, restaurants, and food distributors. Additionally, strategic partnerships with major retailers and food service operators enhance their market presence and distribution capabilities. The company's focus on innovation, sustainability, and meeting consumer demand for quality seafood products also plays a crucial role in driving sales and overall profitability.
High Liner Foods Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a challenging quarter for High Liner Foods, with significant macroeconomic headwinds impacting profitability and volumes. However, there were positive signs in terms of sales growth, strategic brand integration, and recognition from partners. Despite short-term pressures, the company remains focused on long-term growth through innovation and strategic initiatives.Q3-2025 Updates
Positive Updates
Sales Increase
Sales increased in the third quarter by $19.7 million or 8.6% to $248.6 million compared to $228.9 million in the same period last year, driven by increased pricing reflecting the inflationary markets.
Successful Promotional Campaigns
Momentum in the premium Sea Cuisine brand accelerated, becoming the fastest-growing brand in the category, driven by successful promotional activations and expanded distribution.
USDA Contract Secured
A larger USDA award has been secured that will begin supporting volumes in the fourth quarter and throughout 2026.
Strategic Initiatives Advancements
Successfully integrated Mrs. Paul's and Van de Kamp's brands ahead of schedule and continued investments in automation and innovation.
Recognition from Distributors
Sysco Canada recognized High Liner Foods as a top 10 supplier, and Gordon Food Service awarded the Cornerstone Partner Award in the U.S.
Negative Updates
Gross Profit and Margin Decline
Gross profit decreased by $2 million or 4.1% to $46.3 million, with gross profit as a percentage of net sales decreasing by 250 basis points to 18.6% compared to 21.1% in the third quarter of 2024.
Adjusted EBITDA Decline
Adjusted EBITDA decreased by $6.3 million or 29.3% to $15.2 million compared to $21.5 million in the prior year, reflecting decreased gross profit and increased expenses.
Net Income Drop
Reported net income decreased by $13.5 million or 73.8% to $4.8 million, with diluted earnings per share decreasing to $0.16 compared to $0.61 in the prior year.
Inventory Cost Impact
The inventory acquired from Conagra was recorded at a higher fair market value, resulting in a temporary noncash impact of approximately $2.5 million on gross margin.
Volume Decrease
Sales volume decreased by 1 million pounds or 1.8% to 55 million pounds compared to 56.8 million pounds in the third quarter of 2024, due to customer and consumer pullback and global trade uncertainty.
Company Guidance
During the High Liner Foods Inc. conference call discussing the third quarter of 2025, the company reported some challenges, including a sales volume decrease of 1.8% to 55 million pounds and a gross profit decrease of 4.1% to $46.3 million, with the gross profit margin contracting by 250 basis points to 18.6%. Adjusted EBITDA also dropped by 29.3% to $15.2 million. Net income fell 73.8% to $4.8 million, influencing a diluted EPS of $0.16. The company's net debt increased by $100.2 million to $333.4 million, raising its net debt to adjusted EBITDA ratio to 3.5x. Despite these setbacks, High Liner Foods emphasized its strategic investments in innovation and automation, which are anticipated to bolster future profitability and growth. The company also highlighted the successful integration of new brands, Mrs. Paul’s and Van de Kamp's, and ongoing efforts to address rising raw material costs and tariffs through pricing adjustments.High Liner Foods Financial Statement Overview
Summary
High Liner Foods shows stable revenue growth and a balanced capital structure, but faces challenges in operational efficiency and cash flow generation. The decline in EBIT and EBITDA margins, along with significant cash flow challenges, could pose risks if not addressed.Income Statement
High Liner Foods shows a stable revenue growth rate of 2.03% TTM, indicating resilience in the packaged foods industry. The gross profit margin of 22.24% and net profit margin of 4.94% TTM suggest moderate profitability. However, the decline in EBIT and EBITDA margins compared to previous years indicates potential challenges in operational efficiency.72
Positive
Balance Sheet
The company's debt-to-equity ratio of 0.62 TTM reflects a moderate leverage position, which is a positive sign of financial stability. However, the return on equity has decreased to 11.68% TTM, indicating a decline in profitability from equity investments. The equity ratio of 43.89% TTM suggests a balanced capital structure.68
Positive
Cash Flow
The cash flow statement reveals a concerning free cash flow growth rate of -212.61% TTM, highlighting significant cash flow challenges. The operating cash flow to net income ratio of 0.25 TTM indicates limited cash generation relative to net income, which could impact future liquidity.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 991.70M | 959.22M | 1.08B | 1.07B | 875.40M | 827.45M |
| Gross Profit | 214.07M | 217.27M | 218.69M | 229.93M | 198.54M | 177.92M |
| EBITDA | 97.64M | 115.09M | 85.17M | 106.41M | 86.27M | 78.09M |
| Net Income | 34.46M | 60.16M | 31.68M | 54.73M | 42.25M | 28.80M |
Balance Sheet | ||||||
| Total Assets | 941.26M | 849.31M | 834.40M | 1.00B | 826.47M | 776.56M |
| Cash, Cash Equivalents and Short-Term Investments | 313.00K | 19.95M | 10.50M | 5.82M | 983.00K | 33.15M |
| Total Debt | 316.18M | 228.98M | 253.56M | 380.69M | 266.19M | 303.82M |
| Total Liabilities | 527.99M | 443.58M | 448.54M | 630.07M | 493.94M | 485.56M |
| Stockholders Equity | 413.28M | 405.73M | 385.86M | 373.42M | 332.52M | 291.00M |
Cash Flow | ||||||
| Free Cash Flow | -19.57M | 66.78M | 160.26M | -96.83M | 8.37M | 94.05M |
| Operating Cash Flow | 526.00K | 90.59M | 179.31M | -76.16M | 28.68M | 103.00M |
| Investing Cash Flow | -67.17M | -40.24M | -18.80M | -20.67M | -20.32M | -8.95M |
| Financing Cash Flow | 57.36M | -40.66M | -153.85M | 100.14M | -41.42M | -63.86M |
High Liner Foods Technical Analysis
Negative
14.28
Price Trends
14.74
Negative
15.45
Negative
16.18
Negative
Market Momentum
-0.08
Negative
57.86
Neutral
91.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HLF, the sentiment is Negative. The current price of 14.28 is above the 20-day moving average (MA) of 13.57, below the 50-day MA of 14.74, and below the 200-day MA of 16.18, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 91.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HLF.
High Liner Foods Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$3.12B | 15.16 | 11.72% | 3.46% | -0.03% | 497.79% | |
69 Neutral | C$4.33B | 65.13 | 3.86% | 3.42% | 13.05% | -33.72% | |
68 Neutral | C$1.38B | 22.08 | 13.44% | 2.67% | 11.25% | 58.21% | |
63 Neutral | C$16.97B | -207.53 | -1.32% | 1.89% | 5.37% | -135.85% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | C$406.43M | 8.75 | 8.60% | 4.84% | 6.15% | -36.76% | |
45 Neutral | C$281.14M | -124.59 | -95.27% | ― | 212.16% | -46.40% |
* Consumer Defensive Sector Average
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High Liner Foods
14.28
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High Liner Foods Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
High Liner Foods Faces Q3 Challenges but Eyes Growth with New Product Line
Neutral
Nov 5, 2025
High Liner Foods reported a challenging third quarter of 2025, with a decline in adjusted EBITDA and net income due to macroeconomic pressures such as tariffs, consumer sentiment, and reduced foodservice traffic. Despite these challenges, the company is implementing pricing adjustments and cost management strategies while investing in brand innovation and automation. The integration of Conagra Brands is ahead of schedule, and the company is launching a new fully cooked frozen seafood product line, aiming for sustainable growth and shareholder value.
Financial Disclosures
High Liner Foods to Release Q3 2025 Earnings and Host Conference Call
Neutral
Oct 23, 2025
High Liner Foods has announced the release of its third-quarter earnings for 2025, scheduled for November 5, with a subsequent conference call on November 6 to discuss the financial results. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning within the competitive frozen seafood industry.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.