High Liner Foods (HLF) AI Stock Analysis

• Market Cap: C$522.79M
• Dividend Yield: 5.17%
• Average Volume (3M): 21.12K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.44
• Revenue Growth: -4.45%
• EPS Growth: 90.27%
• Country: CA
• Employees: 1,215
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Packaged Foods
• EPS (TTM): 0.75
• Shares Outstanding: 29,092,459
• 10 Day Avg. Volume: 15,909
• 30 Day Avg. Volume: 21,117
• PEG Ratio: 0.21
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.54
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 3.33
• Enterprise Value/Ebitda: 1.85
• 1Y Price Target: C$20.88
• Price Target Upside: 17.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: C$21.50 ▲(20.72%Upside)

High Liner Foods exhibits strong technical momentum and a compelling valuation with a low P/E ratio and attractive dividend yield. Financial performance is solid, though revenue growth remains a challenge. Positive corporate events, including strategic acquisitions, further bolster the outlook. The earnings call revealed challenges, but the company's resilience and strategic focus provide a promising recovery trajectory.

Positive Factors

Financial Performance

High Liner's leading position as a North American seafood processor, strong free cash flow profile, and clean balance sheet supportive of M&A opportunities present compelling upside for the shares.

Market Expansion

High Liner gained market share by leaning into the QSR channel, which is benefitting from consumers trading down from casual dining.

Retail Sales and Growth

High Liner's broad portfolio, spanning across price points, and its focus on innovation fuelled retail sales and volume growth during the quarter.

Negative Factors

Consumer Demand

In the near term, a challenging macro environment is reducing consumer demand and earnings growth.

Revenue Decline

Revenue of $268 million represents a year-over-year decrease of 3.1%, with foodservice volumes coming under pressure due to consumers pulling back on out-of-home dining.

Rising Costs

Net SG&A as a percentage of sales increased by 40 bps year-over-year to 8.4%, driven by higher labour costs and professional fees.

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 makes money through the sale of its frozen seafood products across retail and foodservice channels. The company's revenue model is anchored on its ability to innovate and provide value-added seafood products that appeal to a diverse customer base. High Liner Foods generates revenue from key streams including branded retail sales under labels such as High Liner, Icelandic Seafood, and Fisher Boy, as well as private-label offerings. Additionally, the company has a significant presence in the foodservice industry, supplying seafood solutions to restaurants, institutions, and other foodservice operators. Strategic partnerships with retailers and distributors, as well as a focus on sustainability and supply chain efficiency, further contribute to High Liner Foods' earnings.

High Liner Foods Financial Statement Overview

Summary

High Liner Foods demonstrates solid financial health with improvements in profitability and leverage. Despite a slight revenue decline, the company has enhanced 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.

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.

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.

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
EBITDA	115.09M	85.17M	106.41M	86.27M	78.09M
Net Income	60.16M	31.68M	54.73M	42.25M	28.80M
Balance Sheet
Total Assets	849.31M	834.40M	1.00B	826.47M	776.56M
Cash, Cash Equivalents and Short-Term Investments	19.95M	10.50M	5.82M	983.00K	33.15M
Total Debt	228.98M	253.56M	380.69M	266.19M	303.82M
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

• Technical Analysis Sentiment: Neutral
• Last Price: 17.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 17.81 is below the 20-day moving average (MA) of 18.23, above the 50-day MA of 17.57, and above the 200-day MA of 15.48, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 20.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:HLF.

High Liner Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLF	78 Outperform	C$522.79M	6.82	14.49%	5.17%	-4.45%	90.27%
MFI	72 Outperform	C$3.53B	37.23	6.05%	4.58%	3.16%	―
PBH	66 Neutral	C$3.61B	30.35	6.75%	4.23%	6.29%	24.34%
Sector *	65 Neutral	$26.82B	14.80	-4.06%	3.24%	1.02%	2.12%
SAP	60 Neutral	C$11.26B	42.30	-2.51%	2.81%	9.20%	-147.37%

High Liner Foods Corporate Events

High Liner Foods Acquires Mrs. Paul’s and Van de Kamp’s Brands

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.

High Liner Foods Secures Shareholder Approval for Key Governance Measures

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.

High Liner Foods Reports Q1 2025 Results: Retail Gains Amid Market Challenges

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.

High Liner Foods to Participate in BMO Global Conference

High Liner Foods has announced its participation in the BMO Global Farm to Market Conference, taking place in New York City on May 14-15, 2025. The company’s President and CEO, Paul Jewer, will discuss strategies for navigating risk to achieve sustainable growth during a fireside chat. This participation highlights High Liner Foods’ commitment to engaging with industry leaders and institutional investors, potentially impacting its market positioning and stakeholder relations.

High Liner Foods Updates Management Information Circular for Shareholder Meeting

High Liner Foods has filed an amended and restated management information circular for its upcoming annual and special general meeting of shareholders. The amendment corrects the quorum requirements for meetings of directors and shareholders, ensuring accurate representation in the company’s governance documents. This update is crucial for maintaining proper corporate governance and ensuring shareholder confidence in the company’s decision-making processes.

High Liner Foods Schedules Q1 2025 Earnings Release and Conference Call

High Liner Foods announced the release of its first quarter earnings for 2025, scheduled for May 13, with a subsequent conference call on May 14 to discuss the 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 market.