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High Liner Foods Inc (TSE:HLF)
TSX:HLF
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High Liner Foods (HLF) AI Stock Analysis

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TSE:HLF

High Liner Foods

(TSX:HLF)

Rating:61Neutral
Price Target:
C$17.50
▲(8.23% Upside)
High Liner Foods' overall stock score reflects a combination of stable financial performance and attractive valuation, offset by bearish technical indicators and mixed earnings call results. The company's strong sales growth and strategic acquisitions are positive, but challenges such as margin compression and increased debt due to tariffs weigh on the score.
Positive Factors
Innovation and Market Strategy
High Liner's broad portfolio and focus on innovation fueled retail sales and volume growth.
Market Share
High Liner gained market share by leaning into the QSR channel, benefitting from consumers trading down from casual dining.
Negative Factors
Consumer Demand
Consumer pressures continued to weigh on demand in foodservice.
Revenue Decline
Revenue of $268 million represents a year-over-year decrease of 3.1%, with foodservice volumes coming under pressure.

High Liner Foods (HLF) vs. iShares MSCI Canada ETF (EWC)

High Liner Foods Business Overview & Revenue Model

Company DescriptionHigh 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 MoneyHigh Liner Foods generates revenue primarily through the sale of its frozen seafood products across North America. The company operates a business-to-business model by supplying its products to foodservice distributors, which then distribute them to restaurants, hotels, and other foodservice establishments. Additionally, High Liner Foods sells directly to retail grocery stores, where consumers can purchase their products. The company's revenue streams are bolstered by its strong brand portfolio and its ability to innovate and introduce new products that cater to consumer preferences and trends. Strategic partnerships with seafood suppliers and retailers also play a significant role in ensuring a stable supply chain and broad market presence, contributing to the company's earnings.

High Liner Foods Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. Highlights included strong sales growth, an increase in adjusted EBITDA, and a strategic acquisition from Conagra. However, there were challenges such as gross margin compression due to tariffs, a significant decrease in net income, and increased net debt. The company is taking steps to mitigate these challenges, but the impact of tariffs and rising costs remains a concern.
Q2-2025 Updates
Positive Updates
Sales and Volume Growth
Sales volume increased by 3.1 million pounds or 6% to 54.8 million pounds. Sales increased by $21.3 million or 9.8% to $239.6 million, driven by increased demand across retail and foodservice and a favorable product mix.
Adjusted EBITDA Increase
Adjusted EBITDA increased by $1.3 million or 5.5% to $25.1 million, reflecting the increase in net sales and gross profit.
Acquisition of Conagra Brands
Acquired Mrs. Paul's and Van de Kamp's brands from Conagra, securing existing volume and benefiting from cost and margin synergies. This acquisition positions the company as the second largest producer of frozen seafood in the U.S. by pounds.
U.S. Retail Business Performance
The U.S. retail business outperformed the category, gaining market share with core brands delivering double-digit volume growth.
Negative Updates
Gross Margin Compression
Gross profit as a percentage of sales decreased by 170 basis points to 22.3%, down from 24% in the second quarter of 2024, due to tariffs and higher raw material costs.
Net Income Decline
Reported net income decreased by $10.8 million or 56% to $8.5 million, with diluted earnings per share dropping to $0.28 from $0.59 in the prior year.
Increased Net Debt
Net debt increased by $42.7 million to $275.9 million, reflecting higher bank loans and lower cash balance.
Impact of Tariffs
Higher-than-expected costs from tariffs on seafood imported into the U.S. negatively impacted Q2 margins, with a net impact of approximately $1.6 million.
Company Guidance
During the second quarter of 2025, High Liner Foods reported a sales increase of 9.8% to $239.6 million, driven by a 6% rise in sales volume to 54.8 million pounds, partly due to the later timing of Lent. Adjusted EBITDA grew by 5.5% to $25.1 million, although the gross profit margin decreased by 170 basis points to 22.3%, impacted by higher raw material costs and tariffs. The company also reported a decrease in net income by 56% to $8.5 million, while adjusted net income rose by 2.7% to $11.5 million. Additionally, net debt increased to $275.9 million, with a net debt to adjusted EBITDA ratio of 2.7x. High Liner Foods successfully acquired two brands, Mrs. Paul's and Van de Kamp's, aiming to leverage cost synergies and expand its U.S. retail footprint.

High Liner Foods Financial Statement Overview

Summary
High Liner Foods shows stable margins and operational efficiency, but faces challenges with declining revenues and fluctuating cash flows, which could impact growth.
Income Statement
65
Positive
High Liner Foods has maintained relatively stable margins, with a consistent Gross Profit Margin around 22-23% and a Net Profit Margin around 6-7% in recent periods. However, there is a notable decline in revenue from 2023 to 2024, indicating potential challenges in sales growth. The company has managed to improve EBIT and EBITDA margins over time, signaling operational efficiency despite revenue fluctuations.
Balance Sheet
70
Positive
The company's Debt-to-Equity ratio has improved, showing reduced leverage from previous years. The Return on Equity is relatively strong, indicating efficient use of equity capital. However, the Equity Ratio remains moderate, suggesting a balanced but cautious capital structure. The company appears to be managing its liabilities effectively while maintaining a stable equity base.
Cash Flow
60
Neutral
High Liner Foods demonstrates consistent positive Free Cash Flow in the recent periods, although there is a decline in Operating Cash Flow from 2023 to TTM 2025. The Free Cash Flow to Net Income Ratio is healthy, indicating effective conversion of earnings to cash. However, fluctuations in cash flow from operating activities may pose risks to financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue971.97M959.22M1.08B1.07B875.40M827.45M
Gross Profit216.14M217.27M218.69M229.93M198.54M177.92M
EBITDA103.43M115.09M85.17M106.41M86.27M78.09M
Net Income48.04M60.16M31.68M54.73M42.25M28.80M
Balance Sheet
Total Assets873.86M849.31M834.40M1.00B826.47M776.56M
Cash, Cash Equivalents and Short-Term Investments2.34M19.95M10.50M5.82M983.00K33.15M
Total Debt257.87M228.98M253.56M380.69M266.19M303.82M
Total Liabilities455.28M443.58M448.54M630.07M493.94M485.56M
Stockholders Equity418.58M405.73M385.86M373.42M332.52M291.00M
Cash Flow
Free Cash Flow17.38M66.78M160.26M-96.83M8.37M94.05M
Operating Cash Flow38.99M90.59M179.31M-76.16M28.68M103.00M
Investing Cash Flow-47.67M-40.24M-18.80M-20.67M-20.32M-8.95M
Financing Cash Flow-7.47M-40.66M-153.85M100.14M-41.42M-63.86M

High Liner Foods Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.17
Price Trends
50DMA
17.40
Negative
100DMA
17.34
Negative
200DMA
16.45
Negative
Market Momentum
MACD
-0.35
Negative
RSI
34.76
Neutral
STOCH
11.36
Positive
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 16.17 is below the 20-day moving average (MA) of 16.49, below the 50-day MA of 17.40, and below the 200-day MA of 16.45, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 11.36 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$4.25B45.265.36%3.63%8.42%-17.99%
72
Outperform
C$4.42B24.6911.29%2.56%5.44%1391.43%
63
Neutral
C$13.98B42.30-2.20%2.21%7.58%-155.93%
63
Neutral
$20.42B14.38-3.63%3.17%2.07%-6.17%
61
Neutral
C$468.20M7.2612.01%4.98%1.05%13.40%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:HLF
High Liner Foods
16.17
3.19
24.58%
TSE:MFI
Maple Leaf Foods
35.99
14.45
67.08%
TSE:PBH
Premium Brands
93.74
10.78
12.99%
TSE:SAP
Saputo Inc.
34.33
5.15
17.65%

High Liner Foods Corporate Events

Business Operations and StrategyFinancial Disclosures
High Liner Foods Sees Growth in Q2 2025 Amid Strategic Expansion
Positive
Aug 7, 2025

High Liner Foods reported an increase in volume, net sales, and adjusted EBITDA for the second quarter of 2025 compared to the previous year, despite a decrease in net income and gross profit margins. The company attributes its growth to improved retail sales and foodservice volumes, aided by a later Lent, and plans to continue expanding its U.S. market footprint by integrating new brands and optimizing operational efficiencies.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$14.50 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
High Liner Foods Sees Growth in Q2 2025 Despite Profit Margin Challenges
Neutral
Aug 7, 2025

High Liner Foods reported an increase in volume, net sales, and adjusted EBITDA for the second quarter of 2025, with retail sales and foodservice volumes showing significant improvement. Despite a decrease in net income and gross profit margins, the company remains optimistic about future growth opportunities, driven by its strategic integration of new brands and operational efficiencies.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$14.50 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
High Liner Foods to Engage Investors at Canaccord Genuity Conference
Positive
Jul 31, 2025

High Liner Foods announced its participation in Canaccord Genuity’s 45th Annual Growth Conference, where President and CEO Paul Jewer will discuss the company’s growth strategy and recent acquisitions. The event presents an opportunity for High Liner Foods to engage with institutional investors and highlight its strategic positioning in the evolving North American seafood market.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$16.40 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

Financial Disclosures
High Liner Foods to Announce Q2 2025 Earnings
Neutral
Jul 24, 2025

High Liner Foods announced that it will release its second quarter earnings for 2025 on August 7, with a conference call scheduled for August 8 to discuss the financial results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the competitive frozen seafood industry.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$14.50 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
High Liner Foods Completes Acquisition of U.S. Seafood Brands
Positive
Jun 30, 2025

High Liner Foods has completed the acquisition of the Mrs. Paul’s and Van de Kamp’s seafood brands from Conagra Brands for an adjusted price of USD $42.4 million. This acquisition is expected to enhance High Liner Foods’ market presence in the U.S., securing approximately 29 million pounds of seafood sales annually and delivering an estimated USD $11 million in annual run rate Adjusted EBITDA by 2027. The purchase was funded through the company’s existing lending facility, maintaining a strong balance sheet.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$14.50 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
High Liner Foods Acquires Mrs. Paul’s and Van de Kamp’s Brands
Positive
Jun 6, 2025

High Liner Foods has announced the acquisition of the Mrs. Paul’s and Van de Kamp’s brands from Conagra Brands for USD $55 million. This strategic move is expected to enhance High Liner Foods’ market position in the U.S. by securing existing contract manufacturing business, increasing annual volume, and providing growth opportunities through expanded distribution and customer relationships. The transaction is anticipated to deliver significant financial benefits, including an estimated USD $11 million annual run rate Adjusted EBITDA by 2027, and is expected to be slightly accretive to Adjusted EBITDA starting in the second half of 2025.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$20.00 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
High Liner Foods Secures Shareholder Approval for Key Governance Measures
Positive
May 14, 2025

High Liner Foods announced that all proposed nominees were elected as directors during its Annual and Special General Meeting. Additionally, PricewaterhouseCoopers LLP was appointed as the auditor, and shareholders approved amendments to the company’s articles of association and an advisory resolution on executive compensation, indicating strong shareholder support for the company’s governance and strategic direction.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$14.50 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
High Liner Foods Reports Q1 2025 Results: Retail Gains Amid Market Challenges
Neutral
May 13, 2025

High Liner Foods reported its financial results for the first quarter of 2025, noting a decrease in sales volume and net income compared to the previous year. Despite these challenges, the company experienced improved retail performance due to value-driven promotions and growth in the Club category, which helped offset market pressures. The later timing of the Lenten period affected overall performance, but a strong finish to the quarter and a positive start to the second quarter were observed. The company remains committed to supporting foodservice operators and driving profitable growth amid an uncertain macro environment.

The most recent analyst rating on (TSE:HLF) stock is a Hold with a C$14.50 price target. To see the full list of analyst forecasts on High Liner Foods stock, see the TSE:HLF Stock Forecast page.

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.Date of analysis: Aug 19, 2025