High Liner Foods (HLF) AI Stock Analysis

• Market Cap: C$442.62M
• Dividend Yield: 4.83%
• Average Volume (3M): 31.42K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.56
• Revenue Growth: 6.15%
• EPS Growth: -36.76%
• Country: CA
• Employees: 1,215
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.19
• Shares Outstanding: 28,556,196
• 10 Day Avg. Volume: 24,630
• 30 Day Avg. Volume: 31,424
• PEG Ratio: 0.05
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 5.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$18.63
• Price Target Upside: 20.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: C$16.00 ▲(3.23% Upside)

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

Brand integration and portfolio expansion

Completing acquisitions and integrating Mrs. Paul’s and Van de Kamp’s ahead of plan strengthens High Liner’s product portfolio and channel reach. Durable benefit: broader SKU assortment and scale can drive cross-sell, procurement leverage, and higher shelf presence over multiple quarters.

Moderate leverage / balanced capital structure

A debt-to-equity near 0.62 and ~44% equity ratio indicate moderate leverage, giving the company capacity to fund investments and absorb shocks. This balanced structure supports sustainable operations and strategic initiatives without excessive refinancing risk over the medium term.

Strategic investments and contract-backed volumes

Automation investments improve long-term manufacturing efficiency and unit economics while a multi-year USDA award provides contracted volume visibility. Together these structural moves can stabilize utilization, lower per-unit costs, and support margin recovery over 2–6 months and beyond.

Negative Factors

Severe free cash flow deterioration

A >200% decline in free cash flow growth signals persistent cash generation issues that can constrain capex, debt repayment, and working capital. Weak FCF reduces financial flexibility and increases risk that the firm must raise external capital or cut investments, impacting medium-term growth plans.

Margin compression and profitability decline

A 250bp gross margin hit and nearly 30% EBITDA reduction indicate structural pressure from higher input costs and cost absorption issues. Unless material cost or pricing improvements occur, these margin headwinds can persist, eroding operating leverage and long-term return on capital.

Rising net debt and leverage coverage stress

A material increase in net debt and a ~3.5x net debt/EBITDA ratio tightens covenant and refinancing risk over time. Higher leverage reduces financial optionality and elevates interest and coverage pressure, limiting capacity for M&A, capex, or dividends absent sustained cash-flow improvement.

High Liner Foods Business Overview & Revenue Model

Company Description

High Liner Foods Incorporated processes and markets prepared and packaged frozen seafood products in North America. The company provides a range of frozen seafood products, including raw fillets and shellfish, cooked shellfish; and value added products, which include sauced, glazed, breaded and battered seafood, seafood entrees, and breaded cheese sticks, including High Liner, Fisher Boy, Sea Cuisine, Catch of the Day, C.Wirthy & Co., High Liner Foodservice, Mirabel, Icelandic Seafood, and FPI brands. It sells its products directly, as well as through distributors to retail and club stores; and through foodservice distributors to hotels, restaurants, and healthcare and educational organizations. The company was founded in 1899 and is headquartered in Lunenburg, Canada.

How the Company Makes Money

High 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 15.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 15.5 is above the 20-day moving average (MA) of 15.20, above the 50-day MA of 14.37, and below the 200-day MA of 16.02, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 68.86 is Neutral, neither overbought nor oversold. The STOCH value of 65.68 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBH	69 Neutral	C$4.88B	63.21	3.86%	3.34%	13.05%	-33.72%
JWEL	68 Neutral	C$1.45B	23.20	13.44%	2.67%	11.25%	58.21%
SAP	66 Neutral	C$16.72B	-206.22	-1.32%	1.89%	5.37%	-135.85%
MFI	64 Neutral	C$3.14B	15.33	11.72%	4.95%	-0.03%	497.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HLF	58 Neutral	C$442.62M	9.58	8.60%	4.83%	6.15%	-36.76%
HBFG	45 Neutral	C$232.76M	-97.27	-95.27%	―	212.16%	-46.40%

High Liner Foods Corporate Events

High Liner Foods Boosts Liquidity With US$60 Million Term Loan and Five-Year ABL Extension

High Liner Foods has bolstered its balance sheet and funding flexibility by completing a US$60 million incremental addition to its senior secured Term Loan B and securing a five-year extension of its US$200 million asset-based revolving credit facility at unchanged pricing. Proceeds from the new term debt will be used primarily to repay borrowings tied to the recent acquisition of the Mrs. Paul’s and Van de Kamp’s U.S. retail seafood brands and to support higher working capital needs, while the oversubscribed financing and extended ABL maturity underscore lender confidence in the company’s strategy, credit profile and liquidity position, reinforcing its capacity to pursue growth and manage ongoing operational requirements.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$14.00 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

High Liner Foods Faces Q3 Challenges but Eyes Growth with New Product Line

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.

The most recent analyst rating on (TSE:HLF) stock is a Buy with a C$16.76 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.