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Hardwoods Distribution

TSX:HDI
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HDI
TSX
CA$335M
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

Hardwoods Distribution Inc. engages in the wholesale distribution of architectural building products to the residential and commercial construction sectors in Canada and the United States. The last earnings update was 32 days ago. More info.


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  • Hardwoods Distribution has significant price volatility in the past 3 months.
HDI Share Price and Events
7 Day Returns
-0.1%
TSX:HDI
0.3%
CA Trade Distributors
0.4%
CA Market
1 Year Returns
48.7%
TSX:HDI
10.7%
CA Trade Distributors
11.2%
CA Market
HDI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hardwoods Distribution (HDI) -0.1% 4.7% 31.2% 48.7% -10.8% 39.1%
CA Trade Distributors 0.3% -2.8% 2.5% 10.7% 5.1% 22.5%
CA Market 0.4% 0% 0.4% 11.2% 5.3% 14.2%
1 Year Return vs Industry and Market
  • HDI outperformed the Trade Distributors industry which returned 10.7% over the past year.
  • HDI outperformed the Market in Canada which returned 11.2% over the past year.
Price Volatility
HDI
Industry
5yr Volatility vs Market

HDI Value

 Is Hardwoods Distribution undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hardwoods Distribution to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hardwoods Distribution.

TSX:HDI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:HDI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.957 (1 + (1- 26.5%) (56.63%))
1.238
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.238 * 5.44%)
8.17%

Discounted Cash Flow Calculation for TSX:HDI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hardwoods Distribution is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:HDI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.17%)
2020 19.50 Analyst x2 18.03
2021 33.00 Analyst x1 28.20
2022 23.87 Est @ -27.66% 18.86
2023 19.35 Est @ -18.93% 14.13
2024 16.87 Est @ -12.82% 11.39
2025 15.43 Est @ -8.54% 9.63
2026 14.58 Est @ -5.55% 8.41
2027 14.07 Est @ -3.45% 7.51
2028 13.79 Est @ -1.98% 6.80
2029 13.66 Est @ -0.96% 6.23
Present value of next 10 years cash flows CA$129.00
TSX:HDI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$13.66 × (1 + 1.44%) ÷ (8.17% – 1.44%)
CA$205.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$205.78 ÷ (1 + 8.17%)10
CA$93.78
TSX:HDI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$129.00 + CA$93.78
CA$222.78
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$222.78 / 21.28
CA$10.47
TSX:HDI Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$10.47
Current discount Discount to share price of CA$15.73
= -1 x (CA$15.73 - CA$10.47) / CA$10.47
-50.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hardwoods Distribution is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hardwoods Distribution's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hardwoods Distribution's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:HDI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CAD CA$1.36
TSX:HDI Share Price ** TSX (2019-12-13) in CAD CA$15.73
Canada Trade Distributors Industry PE Ratio Median Figure of 13 Publicly-Listed Trade Distributors Companies 13.79x
Canada Market PE Ratio Median Figure of 510 Publicly-Listed Companies 15.27x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hardwoods Distribution.

TSX:HDI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:HDI Share Price ÷ EPS (both in CAD)

= 15.73 ÷ 1.36

11.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hardwoods Distribution is good value based on earnings compared to the CA Trade Distributors industry average.
  • Hardwoods Distribution is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Hardwoods Distribution's expected growth come at a high price?
Raw Data
TSX:HDI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
13.1%per year
Canada Trade Distributors Industry PEG Ratio Median Figure of 7 Publicly-Listed Trade Distributors Companies 1.04x
Canada Market PEG Ratio Median Figure of 235 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

TSX:HDI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.53x ÷ 13.1%

0.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hardwoods Distribution is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Hardwoods Distribution's assets?
Raw Data
TSX:HDI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CAD CA$13.34
TSX:HDI Share Price * TSX (2019-12-13) in CAD CA$15.73
Canada Trade Distributors Industry PB Ratio Median Figure of 18 Publicly-Listed Trade Distributors Companies 0.86x
Canada Market PB Ratio Median Figure of 2,317 Publicly-Listed Companies 1.27x
TSX:HDI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:HDI Share Price ÷ Book Value per Share (both in CAD)

= 15.73 ÷ 13.34

1.18x

* Primary Listing of Hardwoods Distribution.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hardwoods Distribution is overvalued based on assets compared to the CA Trade Distributors industry average.
X
Value checks
We assess Hardwoods Distribution's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Hardwoods Distribution has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HDI Future Performance

 How is Hardwoods Distribution expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hardwoods Distribution expected to grow at an attractive rate?
  • Hardwoods Distribution's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Hardwoods Distribution's earnings growth is expected to exceed the Canada market average.
  • Hardwoods Distribution's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:HDI Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:HDI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 13.1%
TSX:HDI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 5.3%
Canada Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 9.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:HDI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:HDI Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,288 38 2
2020-12-31 1,260 40 35 5
2019-12-31 1,171 77 29 5
2019-12-13
TSX:HDI Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-09-30 1,159 70 29
2019-06-30 1,157 48 28
2019-03-31 1,151 33 30
2018-12-31 1,134 4 32
2018-09-30 1,109 14 31
2018-06-30 1,078 12 30
2018-03-31 1,057 16 30
2017-12-31 1,046 18 30
2017-09-30 1,036 2 32
2017-06-30 1,012 9 32
2017-03-31 891 10 27
2016-12-31 789 15 24

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hardwoods Distribution's earnings are expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).
  • Hardwoods Distribution's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:HDI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Hardwoods Distribution Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:HDI Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.77 1.77 1.77 1.00
2020-12-31 1.62 1.62 1.62 1.00
2019-12-31
2019-12-13
TSX:HDI Past Financials Data
Date (Data in CAD Millions) EPS *
2019-09-30 1.36
2019-06-30 1.32
2019-03-31 1.40
2018-12-31 1.50
2018-09-30 1.44
2018-06-30 1.41
2018-03-31 1.41
2017-12-31 1.40
2017-09-30 1.48
2017-06-30 1.49
2017-03-31 1.36
2016-12-31 1.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Hardwoods Distribution will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Hardwoods Distribution's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hardwoods Distribution has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HDI Past Performance

  How has Hardwoods Distribution performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hardwoods Distribution's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hardwoods Distribution's year on year earnings growth rate has been positive over the past 5 years.
  • Hardwoods Distribution's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hardwoods Distribution's 1-year earnings growth is negative, it can't be compared to the CA Trade Distributors industry average.
Earnings and Revenue History
Hardwoods Distribution's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hardwoods Distribution Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:HDI Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 1,159.08 29.24 162.88
2019-06-30 1,156.97 28.35 162.05
2019-03-31 1,150.60 30.02 158.83
2018-12-31 1,134.27 32.16 154.21
2018-09-30 1,108.82 30.86 148.00
2018-06-30 1,077.95 30.21 145.34
2018-03-31 1,057.32 30.14 143.39
2017-12-31 1,045.84 29.95 142.79
2017-09-30 1,035.75 31.59 142.46
2017-06-30 1,011.70 31.57 138.61
2017-03-31 891.18 27.18 121.47
2016-12-31 789.32 23.86 104.87
2016-09-30 690.89 21.75 88.13
2016-06-30 607.58 20.41 73.46
2016-03-31 593.90 20.06 70.79
2015-12-31 571.60 20.15 67.42
2015-09-30 544.91 18.49 63.84
2015-06-30 514.19 16.78 60.53
2015-03-31 489.88 15.76 57.82
2014-12-31 455.69 14.02 55.43
2014-09-30 432.44 13.58 53.14
2014-06-30 408.59 12.45 52.02
2014-03-31 385.17 12.85 50.20
2013-12-31 371.22 13.07 47.69
2013-09-30 354.28 12.01 46.21
2013-06-30 336.60 10.16 44.51
2013-03-31 320.13 8.13 42.97
2012-12-31 306.09 6.18 42.73

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hardwoods Distribution has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hardwoods Distribution used its assets more efficiently than the CA Trade Distributors industry average last year based on Return on Assets.
  • Hardwoods Distribution's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hardwoods Distribution's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hardwoods Distribution has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HDI Health

 How is Hardwoods Distribution's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hardwoods Distribution's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hardwoods Distribution is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hardwoods Distribution's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hardwoods Distribution's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hardwoods Distribution Company Filings, last reported 2 months ago.

TSX:HDI Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 283.88 90.35 7.35
2019-06-30 274.27 95.73 3.39
2019-03-31 274.56 103.31 0.79
2018-12-31 285.93 111.93 1.55
2018-09-30 268.15 126.97 0.33
2018-06-30 265.00 127.22 1.64
2018-03-31 251.84 113.17 0.41
2017-12-31 238.83 90.28 0.31
2017-09-30 233.47 105.55 0.32
2017-06-30 234.81 102.31 1.53
2017-03-31 230.83 108.72 0.36
2016-12-31 226.00 97.41 0.77
2016-09-30 216.38 98.85 0.68
2016-06-30 144.15 29.26 0.78
2016-03-31 139.92 32.18
2015-12-31 142.95 25.85
2015-09-30 134.85 44.33
2015-06-30 123.05 47.31
2015-03-31 119.77 47.47
2014-12-31 108.49 37.37 0.01
2014-09-30 103.54 45.06 0.02
2014-06-30 96.51 44.53 0.02
2014-03-31 95.36 36.40 0.02
2013-12-31 90.68 27.44 0.08
2013-09-30 86.84 42.48 0.02
2013-06-30 85.31 45.07 0.01
2013-03-31 79.55 32.11 0.02
2012-12-31 76.01 24.56 0.09
  • Hardwoods Distribution's level of debt (31.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (43.4% vs 31.8% today).
  • Debt is well covered by operating cash flow (77.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11x coverage).
X
Financial health checks
We assess Hardwoods Distribution's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hardwoods Distribution has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HDI Dividends

 What is Hardwoods Distribution's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.16%
Current annual income from Hardwoods Distribution dividends. Estimated to be 2.13% next year.
If you bought CA$2,000 of Hardwoods Distribution shares you are expected to receive CA$43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hardwoods Distribution's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2%).
  • Hardwoods Distribution's dividend is below the markets top 25% of dividend payers in Canada (5.68%).
Upcoming dividend payment

Purchase Hardwoods Distribution before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:HDI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Canada Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:HDI Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.35 1.00
2019-12-31 0.32 1.00
2019-12-13
TSX:HDI Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-11-11 0.340 2.215
2019-08-12 0.320 2.690
2019-05-09 0.320 2.551
2019-03-14 0.320 2.534
2018-08-08 0.320 2.431
2018-03-15 0.290 1.614
2017-08-10 0.290 1.459
2017-05-10 0.250 1.337
2017-03-17 0.250 1.491
2016-11-08 0.250 1.456
2016-08-11 0.250 1.319
2016-05-13 0.220 1.324
2016-03-11 0.220 1.294
2015-11-10 0.220 1.288
2015-11-09 0.220 1.239
2015-08-13 0.220 1.303
2015-05-14 0.220 1.356
2015-03-27 0.180 1.403
2015-03-26 0.180 1.392
2014-08-13 0.180 1.578
2014-05-15 0.180 1.619
2014-05-14 0.180 1.562
2014-03-10 0.180 1.673
2013-11-14 0.140 1.470
2013-05-09 0.140 1.773
2013-03-21 0.140 2.304
2013-03-19 0.140 2.237
2012-11-06 0.120 2.276
2012-08-07 0.120 2.415
2012-05-07 0.120 2.760
2012-03-12 0.080 2.135
2011-11-08 0.080 2.340
2011-08-09 0.080 3.089
2011-08-08 0.080 3.048
2011-05-05 0.080 2.783
2010-08-04 0.000 0.000
2010-05-10 0.000 0.000
2010-05-07 0.000 0.000
2010-03-29 0.000 0.000
2009-11-03 0.000 0.000
2009-08-06 0.000 0.000
2009-04-30 0.000 0.000
2009-03-27 0.000 0.000
2009-03-26 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Hardwoods Distribution has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Hardwoods Distribution only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Hardwoods Distribution's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Hardwoods Distribution's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hardwoods Distribution afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hardwoods Distribution has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HDI Management

 What is the CEO of Hardwoods Distribution's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob Brown
COMPENSATION CA$1,755,659
TENURE AS CEO 3.9 years
CEO Bio

Mr. Robert J. Brown, also known as Rob, has been the Chief Executive Officer at Hardwoods Distribution Inc. since January 7, 2016 and serves as its President and served as its Chief Operating Officer since March 18, 2015. He served as a Vice President of Hardwoods Distribution Inc. since 2004 until March 18, 2015. Mr. Brown served as an Acting Chief Executive Officer of Hardwoods Distribution Inc. from July 29, 2014 to March 18, 2015. He served as Vice President of Finance of Hardwoods Distribution Income Fund since August 2004 and its Chief Financial Officer since November 1, 2004 and also serves as its Secretary. Mr. Brown has been Chief Financial Officer of Hardwoods Specialty Products GP Inc. and Hardwoods Specialty Products USGP Inc. since November 1, 2004. He has been Vice President of Finance of Hardwoods Specialty Products GP Inc. and Hardwoods Specialty Products USGP Inc. since August 2004. He served as Chief Financial Officer of Hardwoods Distribution Inc. since November 2004 until March 18, 2015 and served as its Vice President and Secretary. He served as a Business Manager of Canadian Operations for Weyerhaeuser's building products distribution business for six years. He has been Director of Hardwoods Distribution Inc. since January 7, 2016. Mr. Brown is a Chartered Accountant with a Chartered Financial Analyst designation, he gained public practice experience at Deloitte & Touche in Vancouver, British Columbia and at a predecessor firm to PriceWaterhouse Coopers in the United Kingdom. Mr. Brown holds a Bachelor of Commerce from the University of British Columbia.

CEO Compensation
  • Rob's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rob's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Hardwoods Distribution management team in years:

3.9
Average Tenure
  • The tenure for the Hardwoods Distribution management team is about average.
Management Team

Rob Brown

TITLE
President
COMPENSATION
CA$2M
TENURE
3.9 yrs

Faiz Karmally

TITLE
VP, CFO & Secretary
COMPENSATION
CA$507K
TENURE
4.8 yrs

Lance Blanco

TITLE
Senior Vice President of Corporate Development
COMPENSATION
CA$653K
TENURE
3.9 yrs

David Hughes

TITLE
Senior Vice President of Acquisitions
COMPENSATION
CA$896K
TENURE
1.3 yrs

Dave Dickinson

TITLE
President of Rugby Architectural Building Products
COMPENSATION
CA$742K
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure of the Hardwoods Distribution board of directors in years:

3.9
Average Tenure
  • The tenure for the Hardwoods Distribution board of directors is about average.
Board of Directors

E. Sauder

TITLE
Chairman of the Board
COMPENSATION
CA$140K
AGE
66

Rob Brown

TITLE
President
COMPENSATION
CA$2M
TENURE
3.9 yrs

Graham Wilson

TITLE
Independent Director
COMPENSATION
CA$100K
AGE
74
TENURE
15.9 yrs

William Sauder

TITLE
Independent Director
COMPENSATION
CA$90K
TENURE
8.5 yrs

Peter Bull

TITLE
Independent Director
COMPENSATION
CA$90K
TENURE
6.7 yrs

Jim Macaulay

TITLE
Independent Director
COMPENSATION
CA$90K
TENURE
3.3 yrs

Michelle Lewis

TITLE
Independent Director
COMPENSATION
CA$90K
TENURE
2.6 yrs

Rob Taylor

TITLE
Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
15. Nov 19 Buy Arbutus Distributors Ltd. Company 15. Nov 19 15. Nov 19 10,000 CA$15.19 CA$151,858
03. Jan 19 Buy Arbutus Distributors Ltd. Company 02. Jan 19 02. Jan 19 42,500 CA$11.00 CA$467,606
18. Dec 18 Buy Arbutus Distributors Ltd. Company 17. Dec 18 18. Dec 18 20,800 CA$10.43 CA$216,252
X
Management checks
We assess Hardwoods Distribution's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hardwoods Distribution has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HDI News

Simply Wall St News

Hardwoods Distribution Inc. (TSE:HDI): Does The Earnings Decline Make It An Underperformer?

After reading Hardwoods Distribution Inc.'s (TSX:HDI) latest earnings update (30 June 2019), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … Check out our latest analysis for Hardwoods Distribution Commentary On HDI's Past Performance HDI's trailing twelve-month earnings (from 30 June 2019) of CA$28m has declined by -6.1% compared to the previous year. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 17%, indicating the rate at which HDI is growing has slowed down.

Simply Wall St -

Should You Be Concerned About Hardwoods Distribution Inc.'s (TSE:HDI) Historical Volatility?

Check out our latest analysis for Hardwoods Distribution What we can learn from HDI's beta value Given that it has a beta of 1.09, we can surmise that the Hardwoods Distribution share price has been fairly sensitive to market volatility (over the last 5 years). … If this beta value holds true in the future, Hardwoods Distribution shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Since Hardwoods Distribution tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Is Hardwoods Distribution Inc.'s (TSE:HDI) 11% ROE Better Than Average?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Hardwoods Distribution: 11% = CA$30m ÷ CA$275m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Hardwoods Distribution's Debt And Its 11% ROE While Hardwoods Distribution does have some debt, with debt to equity of just 0.38, we wouldn't say debt is excessive. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

We Think Hardwoods Distribution (TSE:HDI) Is Taking Some Risk With Its Debt

(TSE:HDI) does have debt on its balance sheet. … TSX:HDI Historical Debt, July 26th 2019 How Healthy Is Hardwoods Distribution's Balance Sheet? … Zooming in on the latest balance sheet data, we can see that Hardwoods Distribution had liabilities of CA$176.2m due within 12 months and liabilities of CA$86.7m due beyond that.

Simply Wall St -

Should We Worry About Hardwoods Distribution Inc.'s (TSE:HDI) P/E Ratio?

Hardwoods Distribution has a price to earnings ratio of 9.33, based on the last twelve months. … View our latest analysis for Hardwoods Distribution How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Hardwoods Distribution: P/E of 9.33 = CA$13.04 ÷ CA$1.4 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Be Sure To Check Out Hardwoods Distribution Inc. (TSE:HDI) Before It Goes Ex-Dividend

Hardwoods Distribution's upcoming dividend is CA$0.08 a share, following on from the last 12 months, when the company distributed a total of CA$0.32 per share to shareholders. … It's positive to see that Hardwoods Distribution's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … It's great that Hardwoods Distribution is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow.

Simply Wall St -

You Have To Love Hardwoods Distribution Inc.'s (TSE:HDI) Dividend

(TSE:HDI) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. While Hardwoods Distribution's 2.5% dividend yield is not the highest, we think its lengthy payment history is quite interesting. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Explore this interactive chart for our latest analysis on Hardwoods Distribution! TSX:HDI Historical Dividend Yield, June 30th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Hardwoods Distribution paid out 22% of its profit as dividends, over the trailing twelve month period. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Hardwoods Distribution's cash payout ratio last year was 23%. Cash flows are typically lumpy, but this looks like an appropriately conservative payout. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Hardwoods Distribution's Balance Sheet Risky? As Hardwoods Distribution has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. … Rapid earnings growth and a low payout ratio suggests this company has been effectively reinvesting in its business. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

A Holistic Look At Hardwoods Distribution Inc. (TSE:HDI)

Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. … If you're interested in understanding beyond my broad commentary, read the full report on Hardwoods Distribution here. … Take a look at our free research report of analyst consensus for HDI’s outlook.

Simply Wall St -

Is Hardwoods Distribution Inc.’s (TSE:HDI) Return On Capital Employed Any Good?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Hardwoods Distribution: 0.12 = CA$44m ÷ (CA$537m - CA$176m) (Based on the trailing twelve months to March 2019.) So, Hardwoods Distribution has an ROCE of 12%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … Our Take On Hardwoods Distribution's ROCE With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better.

Simply Wall St -

Introducing Hardwoods Distribution (TSE:HDI), The Stock That Dropped 34% In The Last Year

Investors should note that there's a difference between Hardwoods Distribution's total shareholder return (TSR) and its share price change, which we've covered above. … Dividends have been really beneficial for Hardwoods Distribution shareholders, and that cash payout explains why its total shareholder loss of 32%, over the last year, isn't as bad as the share price return. … A Different Perspective Hardwoods Distribution shareholders are down 32% for the year (even including dividends), but the market itself is up 2.5%.

Simply Wall St -

HDI Company Info

Description

Hardwoods Distribution Inc. engages in the wholesale distribution of architectural building products to the residential and commercial construction sectors in Canada and the United States. The company offers a range of decorative surfaces, including architectural grade plywood and veneers, hardwood lumber, laminates, acrylics, and composites for use in commercial and residential applications; specialty plywood and composite panel products for residential and commercial cabinet, countertop, store fixture, and RV and furniture industries; and other products comprising moldings, cabinet hardware, doors, millwork, adhesives, and solid surfaces. It also manufactures, imports, and distributes hardwood lumber, millwork, and architectural sheet goods; and provides custom molding and millwork services, as well as owns a sawmill and kiln drying operation. The company serves the manufacturers of cabinetry, furniture, custom millwork and moldings, retail point-of-purchase displays, recreational vehicles, and office interior and lobbies; restaurant and bar interiors; schools, hospitals, and yacht interiors; and other specialty areas in the residential, commercial, and renovation construction sectors. As of December 31, 2018, it operated 62 distribution facilities. Hardwoods Distribution Inc. is headquartered in Langley, Canada.

Details
Name: Hardwoods Distribution Inc.
HDI
Exchange: TSX
Founded:
CA$334,798,672
21,284,086
Website: http://www.hdidist.com
Address: Hardwoods Distribution Inc.
9440 202nd Street,
Suite 306,
Langley,
British Columbia, V1M 4A6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX HDI Common Shares The Toronto Stock Exchange CA CAD 23. Mar 2004
OTCPK HDIU.F Common Shares Pink Sheets LLC US USD 23. Mar 2004
Number of employees
Current staff
Staff numbers
1,163
Hardwoods Distribution employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/13 23:57
End of day share price update: 2019/12/13 00:00
Last estimates confirmation: 2019/12/10
Last earnings filing: 2019/11/11
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.