HRX:CA:TSX-Heroux-Devtek Inc. (CAD)

EQUITY | Aerospace & Defense | Toronto Stock Exchange

Last Closing

CAD 18.19

Change

+0.28 (+1.56)%

Market Cap

CAD 0.58B

Volume

8.32K

Analyst Target

CAD 15.00
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

Heroux-Devtek Inc designs, develops, manufactures, repairs and overhauls aircraft landing gear, hydraulic flight control actuators and fracture-critical components. It manufactures electronic enclosures, heat exchangers and cabinets for airborne radar.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2024-03-28 )

Largest Industry Peers for Aerospace & Defense

Symbol Name Price(Change) Market Cap
BBD-PD:CA Bombardier Inc Pref D

N/A

CAD 9.32B
BBD-PB:CA Bombardier Inc Pref B

N/A

CAD 8.85B
CAE:CA CAE Inc.

N/A

CAD 8.29B
BBD-B:CA Bombardier Inc

N/A

CAD 6.23B
BBD-A:CA Bombardier Inc

N/A

CAD 6.23B
BBD-PC:CA Bombardier Inc Pref C

N/A

CAD 4.94B
MDA:CA MDA Ltd

N/A

CAD 1.73B
MAL:CA Magellan Aerospace Corporation

N/A

CAD 0.46B
FTG:CA Firan Technology Group Corpora..

N/A

CAD 0.12B

ETFs Containing HRX:CA

N/A

Market Performance

  Market Performance vs. Industry/Classification (Aerospace & Defense) Market Performance vs. Exchange (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 19.67% 80% B- 89% A-
Dividend Return N/A N/A N/A N/A N/A
Total Return 19.67% 80% B- 89% A-
Trailing 12 Months  
Capital Gain 41.56% 80% B- 92% A
Dividend Return N/A N/A N/A N/A N/A
Total Return 41.56% 80% B- 91% A-
Trailing 5 Years  
Capital Gain 14.55% 71% C- 51% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 14.55% 71% C- 43% F
Average Annual (5 Year Horizon)  
Capital Gain 2.82% 40% F 55% F
Dividend Return 2.82% 40% F 50% F
Total Return N/A N/A N/A N/A N/A
Risk Return Profile  
Volatility (Standard Deviation) 37.84% 80% B- 24% F
Risk Adjusted Return 7.44% 40% F 40% F
Market Capitalization 0.58B 30% F 64% D

Key Financial Ratios

  Ratio vs. Industry/Classification (Aerospace & Defense) Ratio vs. Market (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 18.20 40% 21%
Price/Book Ratio 1.47 80% 45%
Price / Cash Flow Ratio 19.93 40% 11%
Price/Free Cash Flow Ratio 10.11 43% 29%
Management Effectiveness  
Return on Equity 6.05% 60% 49%
Return on Invested Capital 3.62% 10% 38%
Return on Assets 3.06% 30% 58%
Debt to Equity Ratio 42.59% 20% 56%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector