Why Fundamental Investors Might Love High Liner Foods Incorporated (TSE:HLF)
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Attractive stocks have exceptional fundamentals. In the case of High Liner Foods Incorporated (TSE:HLF), there's is a financially-healthy company with a strong track record high-grade dividend payments, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, read the full report on High Liner Foods here.
Very undervalued with adequate balance sheet and pays a dividend
HLF's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that HLF manages its cash and cost levels well, which is an important determinant of the company’s health. HLF seems to have put its debt to good use, generating operating cash levels of 0.21x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. HLF is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the food industry, HLF is also trading below its peers, relative to earnings generated. This further reaffirms that HLF is potentially undervalued.
Income investors would also be happy to know that HLF is one of the highest dividend payers in the market, with current dividend yield standing at 6.0%. HLF has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For High Liner Foods, there are three pertinent factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for HLF’s future growth? Take a look at our free research report of analyst consensus for HLF’s outlook.
Historical Performance: What has HLF's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HLF? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
