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High Liner Foods Inc T.HLF

Alternate Symbol(s):  HLNFF

High Liner Foods Incorporated is a Canada-based value-added frozen seafood company. The Company is a processor and marketer of value-added frozen seafood, producing a range of products from breaded and battered items to seafood entrees, which are sold to North American food retailers and foodservice distributors. In addition, it is a supplier of commodity products in the North American market. The Company’s retail channel includes grocery and club stores, and its products are sold throughout the United States and Canada under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and Catch of the Day labels. The foodservice channel includes sales of seafood that is usually eaten outside the home and its branded products are sold through distributors to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood and FPI labels. It owns and operates over three food-processing plants located in Lunenburg, Nova Scotia, Portsmouth, New Hampshire, and Newport News, Virginia.


TSX:HLF - Post by User

Post by Torontojayon Jan 12, 2024 9:35am
271 Views
Post# 35823337

Ben Graham would have liked High Liner

Ben Graham would have liked High Liner

Ok so let's go over this for a second. 

We have a P/E ratio under 15 - check 
 

The dividends have not grown compared to 5 years ago but they will grow with the 15 cent quarterly payment going forward. The company paid out 14.5 cents per share per quarter in 2018 and dropped the dividend to 5 cents by May 30th 2019. It is now back up to 15 cents per share quarterly  going forward. 


Price to book under 1.5 - check 

eps growth over the last 5 years greater than 3% - check

I prefer to use a smoothed out version when computing eps growth. For instance, I may look at a 3 year average eps and compare that figure with a 3 year average eps taken over a 5 year period. This avoids some of the volatility that you get from year to year. I think this is a better way to look at eps growth. 

Current ratio > 2 - check 

Additional points: 

The company has been consistently profitable over the year although there is a lot of volatility in its earnings. This volatility can be advantageous to investors picking up shares on the cheap when the opportunity presents itself. 







 

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