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Héroux-Devtek

TSX:HRX
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HRX
TSX
CA$392M
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

Héroux-Devtek Inc. engages in the design, development, manufacture, integration, testing, and repair and overhaul of aircraft landing gears, hydraulic and electromechanical flight control actuators, custom ball screws, and fracture-critical components in Canada, the United States, the United Kingdom, Spain, Rest of Europe, and internationally. The last earnings update was 62 days ago. More info.


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  • Héroux-Devtek has significant price volatility in the past 3 months.
HRX Share Price and Events
7 Day Returns
7.7%
TSX:HRX
1.9%
CA Aerospace & Defense
2.1%
CA Market
1 Year Returns
-35.1%
TSX:HRX
-46.5%
CA Aerospace & Defense
-21.2%
CA Market
HRX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Héroux-Devtek (HRX) 7.7% -29.4% -47.5% -35.1% -10.1% 6.7%
CA Aerospace & Defense 1.9% -42.4% -53.7% -46.5% -25.6% 1.2%
CA Market 2.1% -13.8% -21.9% -21.2% -19.3% -13.6%
1 Year Return vs Industry and Market
  • HRX outperformed the Aerospace & Defense industry which returned -46.5% over the past year.
  • HRX underperformed the Market in Canada which returned -21.2% over the past year.
Price Volatility
HRX
Industry
5yr Volatility vs Market
Related Companies

HRX Value

 Is Héroux-Devtek 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 Héroux-Devtek 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 Héroux-Devtek.

TSX:HRX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
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:HRX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.849 (1 + (1- 26.5%) (71.17%))
1.196
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.196 * 5.44%)
7.95%

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

The calculations below outline how an intrinsic value for Héroux-Devtek 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:HRX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.95%)
2020 34.97 Analyst x4 32.40
2021 38.78 Analyst x4 33.28
2022 46.45 Analyst x3 36.93
2023 45.62 Est @ -1.79% 33.60
2024 45.25 Est @ -0.82% 30.87
2025 45.18 Est @ -0.14% 28.55
2026 45.33 Est @ 0.33% 26.54
2027 45.63 Est @ 0.66% 24.75
2028 46.04 Est @ 0.9% 23.13
2029 46.53 Est @ 1.06% 21.65
Present value of next 10 years cash flows CA$291.00
TSX:HRX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$46.53 × (1 + 1.44%) ÷ (7.95% – 1.44%)
CA$725.15
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$725.15 ÷ (1 + 7.95%)10
CA$337.49
TSX:HRX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$291.00 + CA$337.49
CA$628.49
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$628.49 / 36.37
CA$17.28
TSX:HRX Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$17.28
Current discount Discount to share price of CA$10.78
= -1 x (CA$10.78 - CA$17.28) / CA$17.28
37.6%

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

Current Discount
Amount off the current price Héroux-Devtek is available for.
Intrinsic value
38%
Share price is CA$10.78 vs Future cash flow value of CA$17.28
Current Discount Checks
For Héroux-Devtek to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Héroux-Devtek's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Héroux-Devtek's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Héroux-Devtek's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Héroux-Devtek's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:HRX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$0.94
TSX:HRX Share Price ** TSX (2020-04-08) in CAD CA$10.78
North America Aerospace & Defense Industry PE Ratio Median Figure of 43 Publicly-Listed Aerospace & Defense Companies 13.07x
Canada Market PE Ratio Median Figure of 501 Publicly-Listed Companies 10.83x

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

** Primary Listing of Héroux-Devtek.

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

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

= 10.78 ÷ 0.94

11.49x

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

  • Héroux-Devtek is good value based on earnings compared to the North America Aerospace & Defense industry average.
  • Héroux-Devtek is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Héroux-Devtek's expected growth come at a high price?
Raw Data
TSX:HRX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
3.8%per year
North America Aerospace & Defense Industry PEG Ratio Median Figure of 34 Publicly-Listed Aerospace & Defense Companies 1.62x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.49x ÷ 3.8%

3.03x

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

  • Héroux-Devtek is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Héroux-Devtek's assets?
Raw Data
TSX:HRX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$11.60
TSX:HRX Share Price * TSX (2020-04-08) in CAD CA$10.78
Canada Aerospace & Defense Industry PB Ratio Median Figure of 10 Publicly-Listed Aerospace & Defense Companies 1.74x
Canada Market PB Ratio Median Figure of 2,366 Publicly-Listed Companies 1.02x
TSX:HRX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 10.78 ÷ 11.60

0.93x

* Primary Listing of Héroux-Devtek.

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

  • Héroux-Devtek is good value based on assets compared to the CA Aerospace & Defense industry average.
X
Value checks
We assess Héroux-Devtek'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 Aerospace & Defense 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 Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Héroux-Devtek 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.

HRX Future Performance

 How is Héroux-Devtek expected to perform in the next 1 to 3 years based on estimates from 6 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
3.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Héroux-Devtek expected to grow at an attractive rate?
  • Héroux-Devtek's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Héroux-Devtek's earnings growth is positive but not above the Canada market average.
  • Héroux-Devtek's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:HRX Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:HRX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 3.8%
TSX:HRX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 1.4%
North America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
North America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*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:HRX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:HRX Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 628 74 36 5
2021-03-31 596 61 24 6
2020-04-08
2020-03-31 609 49 33 6
TSX:HRX Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 604 63 34
2019-09-30 591 66 33
2019-06-30 542 65 29
2019-03-31 484 70 26
2018-12-31 439 51 20
2018-09-30 391 58 13
2018-06-30 385 62 13
2018-03-31 387 56 14
2017-12-31 394 67 17
2017-09-30 396 63 24
2017-06-30 398 53 31
2017-03-31 407 56 32

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Héroux-Devtek's earnings are expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
  • Héroux-Devtek's revenue is expected to grow by 1.4% 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:HRX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Héroux-Devtek Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:HRX Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 1.00 1.38 0.48 4.00
2021-03-31 0.68 1.11 0.48 4.00
2020-04-08
2020-03-31 0.91 0.92 0.89 4.00
TSX:HRX Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 0.94
2019-09-30 0.90
2019-06-30 0.81
2019-03-31 0.73
2018-12-31 0.55
2018-09-30 0.37
2018-06-30 0.36
2018-03-31 0.38
2017-12-31 0.46
2017-09-30 0.67
2017-06-30 0.85
2017-03-31 0.88

*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.
  • Héroux-Devtek is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Héroux-Devtek'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 North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America 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.
Héroux-Devtek has a total score of 1/6, 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.

HRX Past Performance

  How has Héroux-Devtek 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 Héroux-Devtek's growth in the last year to its industry (Aerospace & Defense).
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.
  • Héroux-Devtek's year on year earnings growth rate has been positive over the past 5 years.
  • Héroux-Devtek's 1-year earnings growth exceeds its 5-year average (69.8% vs 17.3%)
  • Héroux-Devtek's earnings growth has exceeded the North America Aerospace & Defense industry average in the past year (69.8% vs 3.4%).
Earnings and Revenue History
Héroux-Devtek'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 Héroux-Devtek Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:HRX Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 604.11 34.12 49.87
2019-09-30 591.39 32.71 48.88
2019-06-30 541.53 29.44 45.46
2019-03-31 483.88 26.45 41.07
2018-12-31 438.99 20.09 37.39
2018-09-30 391.47 13.33 33.65
2018-06-30 385.48 13.20 32.01
2018-03-31 386.56 13.67 30.96
2017-12-31 394.43 16.71 31.78
2017-09-30 395.91 24.26 32.20
2017-06-30 397.80 30.62 33.68
2017-03-31 406.54 31.77 35.29
2016-12-31 403.15 31.96 34.71
2016-09-30 401.22 30.80 34.98
2016-06-30 404.17 27.31 35.35
2016-03-31 406.81 26.64 35.04
2015-12-31 395.37 15.91 33.84
2015-09-30 387.18 6.99 34.03
2015-06-30 376.75 4.23 32.83
2015-03-31 364.92 3.22 31.83
2014-12-31 350.07 6.09 30.90
2014-09-30 323.15 10.61 27.12
2014-06-30 295.47 9.92 23.75
2014-03-31 272.03 9.24 21.45
2013-12-31 254.64 12.61 20.18
2013-09-30 254.93 13.21 19.97
2013-06-30 256.21 13.27 19.51

*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.
  • Héroux-Devtek has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Héroux-Devtek used its assets less efficiently than the North America Aerospace & Defense industry average last year based on Return on Assets.
  • Héroux-Devtek has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Héroux-Devtek'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 Aerospace & Defense 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.
Héroux-Devtek has a total score of 4/6, 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.

HRX Health

 How is Héroux-Devtek'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 Héroux-Devtek's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Héroux-Devtek is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Héroux-Devtek's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Héroux-Devtek'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 1.6x 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 Héroux-Devtek Company Filings, last reported 3 months ago.

TSX:HRX Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 423.55 236.48 25.35
2019-09-30 402.74 237.19 19.63
2019-06-30 402.71 257.68 36.97
2019-03-31 404.10 260.31 35.51
2018-12-31 392.80 288.48 28.64
2018-09-30 379.77 250.50 196.72
2018-06-30 378.19 133.65 99.00
2018-03-31 379.03 133.36 93.21
2017-12-31 362.92 130.44 70.64
2017-09-30 363.39 129.70 52.81
2017-06-30 361.10 131.06 40.28
2017-03-31 355.87 134.40 42.46
2016-12-31 343.48 138.00 18.86
2016-09-30 333.93 145.48 15.83
2016-06-30 326.66 136.90 7.67
2016-03-31 331.11 147.02 19.27
2015-12-31 330.02 148.63 21.37
2015-09-30 317.27 132.80 4.24
2015-06-30 307.66 130.50 14.80
2015-03-31 293.46 113.62 35.10
2014-12-31 292.58 106.15 40.61
2014-09-30 295.44 102.29 50.94
2014-06-30 295.69 99.05 43.49
2014-03-31 240.14 149.24 47.35
2013-12-31 235.61 68.67 98.22
2013-09-30 231.31 61.06 92.68
2013-06-30 225.63 61.79 96.70
  • Héroux-Devtek's level of debt (55.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.3% vs 55.8% today).
  • Debt is well covered by operating cash flow (26.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess Héroux-Devtek'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. Héroux-Devtek has a total score of 4/6, 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.

HRX Dividends

 What is Héroux-Devtek'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
0%
Current annual income from Héroux-Devtek dividends.
If you bought CA$2,000 of Héroux-Devtek shares you are expected to receive CA$0 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?
  • Unable to evaluate Héroux-Devtek's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Héroux-Devtek's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:HRX 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 6 Analyst Estimates (S&P Global) See Below
North America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.6%
Canada Top 25% Dividend Yield 75th Percentile 8.2%

Industry and Market average data is calculated daily.

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

TSX:HRX Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-03-31
2021-03-31
2020-04-08
2020-03-31

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

  • Unable to perform a dividend volatility check as Héroux-Devtek has not reported any payouts.
  • Unable to verify if Héroux-Devtek's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Héroux-Devtek's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Héroux-Devtek has not reported any payouts.
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 Héroux-Devtek's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 Héroux-Devtek afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Héroux-Devtek has a total score of 0/6, see the detailed checks below.


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

HRX Management

 What is the CEO of Héroux-Devtek'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
Martin Brassard
COMPENSATION CA$1,102,441
TENURE AS CEO 0.8 years
CEO Bio

Mr. Martin Brassard has been President and Chief Executive Officer of Héroux-Devtek Inc since June 1, 2019. Mr. Brassard was an Executive VP and Chief Operating Officer at Héroux-Devtek Inc until June 1, 2019. Mr. Brassard served as Vice President and Chief Operating Officer for Landing Gear Division of Héroux-Devtek Inc. since November 21, 2014. Mr. Brassard served as a Vice President of Landing Gear Division and General Manager of Landing Gear Division at Héroux-Devtek Inc. since May 2005. Mr. Brassard served as the Vice President of Control and Information Technology of Landing Gear Division at Héroux-Devtek Inc. from 1999 to 2005. He serves as Director of Héroux-Devtek Inc. since June 1, 2019.

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

Average tenure of the Héroux-Devtek management team in years:

0.8
Average Tenure
  • The average tenure for the Héroux-Devtek management team is less than 2 years, this suggests a new team.
Management Team

Gilles Labbé

TITLE
Executive Chairman of the Board
COMPENSATION
CA$2M
AGE
63
TENURE
0.8 yrs

Martin Brassard

TITLE
President
COMPENSATION
CA$1M
TENURE
0.8 yrs

Stéphane Arsenault

TITLE
CFO & VP
COMPENSATION
CA$745K
TENURE
6.6 yrs

Gaétan Roy

TITLE
Managing Director of UK Runcorn - Landing Gear
COMPENSATION
CA$607K

Jean-Philippe Sanche

TITLE
Director of Legal Affairs

Jean Gravel

TITLE
Vice-President of Sales & Program Management

Stéphane Rainville

TITLE
Vice President of Human Resources

Guinn Crousen

TITLE
President of Progressive Incorporated - Aerostructure Division
COMPENSATION
CA$283K

François Renaud

TITLE
Corporate Secretary

Annie Goudreault

TITLE
VP & Corporate Controller
Board of Directors Tenure

Average tenure and age of the Héroux-Devtek board of directors in years:

4.7
Average Tenure
68
Average Age
  • The tenure for the Héroux-Devtek board of directors is about average.
Board of Directors

Gilles Labbé

TITLE
Executive Chairman of the Board
COMPENSATION
CA$2M
AGE
63
TENURE
0.8 yrs

Martin Brassard

TITLE
President
COMPENSATION
CA$1M
TENURE
0.8 yrs

Louis Morin

TITLE
Independent Director
COMPENSATION
CA$95K
AGE
61
TENURE
12.1 yrs

Paule Doré

TITLE
Independent Director
COMPENSATION
CA$95K
AGE
68
TENURE
9.7 yrs

Brian Robbins

TITLE
Lead Director
COMPENSATION
CA$121K
AGE
72
TENURE
0.8 yrs

Jim Morris

TITLE
Independent Director
COMPENSATION
CA$111K
AGE
70
TENURE
6.7 yrs

Nathalie Bourque

TITLE
Independent Director
COMPENSATION
CA$85K
TENURE
4.7 yrs

Beverly Wyse

TITLE
Independent Director
COMPENSATION
CA$37K
TENURE
1.2 yrs

Helmut Hofmann

TITLE
Honorary Director
COMPENSATION
CA$50K
TENURE
11.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Héroux-Devtek individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
12. Mar 20 Buy Alexandre Verdon Individual 11. Mar 20 11. Mar 20 2,000 CA$15.00 CA$29,994
13. Mar 20 Buy Martin Brassard Individual 12. Mar 20 12. Mar 20 4,000 CA$14.30 CA$57,200
04. Jun 19 Sell Jean Gravel Individual 31. May 19 31. May 19 -3,300 CA$16.86 CA$-55,638
X
Management checks
We assess Héroux-Devtek'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. Héroux-Devtek 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.

HRX News

Simply Wall St News

A Closer Look At Héroux-Devtek Inc.'s (TSE:HRX) Uninspiring ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Héroux-Devtek: 7.2% = CA$29m ÷ CA$403m (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Héroux-Devtek Have A Good Return On Equity? … Combining Héroux-Devtek's Debt And Its 7.2% Return On Equity Although Héroux-Devtek does use debt, its debt to equity ratio of 0.64 is still low.

Simply Wall St -

Is Héroux-Devtek Inc.'s (TSE:HRX) Future Growth Already Accounted For In Today's Price?

HRX is trading at price-to-earnings (PE) ratio of 26.84x, which suggests that Héroux-Devtek is overvalued based on current earnings compared to the Aerospace &amp; Defense industry average of 24.1x , and overvalued compared to the CA market average ratio of 14.01x. … TSX:HRX Price Estimation Relative to Market, August 12th 2019 We understand HRX seems to be overvalued based on its current earnings, compared to its industry peers. … So, when we include the growth factor in our analysis, Héroux-Devtek appears slightly overvalued , based on fundamental analysis.

Simply Wall St -

What Does Héroux-Devtek Inc.'s (TSE:HRX) P/E Ratio Tell You?

View our latest analysis for Héroux-Devtek 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 Héroux-Devtek: P/E of 26.13 = CA$19.03 ÷ CA$0.73 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Héroux-Devtek Inc. (TSE:HRX): Will The Growth Last?

(TSE:HRX) released its earnings in March 2019, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 38% next year relative to the past 5-year average growth rate of 17%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … TSX:HRX Past and Future Earnings, July 22nd 2019 By 2022, HRX's earnings should reach CA$47m, from current levels of CA$26m, resulting in an annual growth rate of 18%.

Simply Wall St -

We Think Héroux-Devtek (TSE:HRX) Can Stay On Top Of Its Debt

(TSE:HRX) does have debt on its balance sheet. … When we think about a company's use of debt, we first look at cash and debt together. … Either way, since Héroux-Devtek does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Is There An Opportunity With Héroux-Devtek Inc.'s (TSE:HRX) 25% Undervaluation?

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$45.6m CA$54.9m CA$61.5m CA$64.2m CA$66.6m CA$68.7m CA$70.6m CA$72.4m CA$74.1m CA$75.7m Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x3 Est @ 4.39% Est @ 3.66% Est @ 3.14% Est @ 2.79% Est @ 2.53% Est @ 2.36% Est @ 2.23% Present Value (CA$, Millions) Discounted @ 8.41% CA$42.1 CA$46.7 CA$48.3 CA$46.5 CA$44.5 CA$42.3 CA$40.1 CA$37.9 CA$35.8 CA$33.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$418.0m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$76m × (1 + 1.9%) ÷ (8.4% – 1.9%) = CA$1.2b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$1.2b ÷ ( 1 + 8.4%)10 = CA$533.04m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$951.07m.

Simply Wall St -

Why We’re Not Keen On Héroux-Devtek Inc.’s (TSE:HRX) 6.1% Return On Capital

What is Return On Capital Employed (ROCE)? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Héroux-Devtek: 0.061 = CA$42m ÷ (CA$875m - CA$187m) (Based on the trailing twelve months to March 2019.) So, Héroux-Devtek has an ROCE of 6.1%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Do Insiders Own Lots Of Shares In Héroux-Devtek Inc. (TSE:HRX)?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … See our latest analysis for Héroux-Devtek TSX:HRX Ownership Summary, June 23rd 2019 What Does The Institutional Ownership Tell Us About Héroux-Devtek? … Insider Ownership Of Héroux-Devtek The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

The Héroux-Devtek (TSE:HRX) Share Price Is Up 59% And Shareholders Are Holding On

During five years of share price growth, Héroux-Devtek achieved compound earnings per share (EPS) growth of 20% per year. … TSX:HRX Past and Future Earnings, June 12th 2019 We like that insiders have been buying shares in the last twelve months. … Héroux-Devtek is not the only stock insiders are buying.

Simply Wall St -

What Do Analysts Think About Héroux-Devtek Inc.'s (TSE:HRX) Long Term Outlook?

Below, I've laid out key growth figures on how market analysts perceive Héroux-Devtek's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … See our latest analysis for Héroux-Devtek Market analysts' consensus outlook for this coming year seems optimistic, with earnings increasing by a robust 38%. … TSX:HRX Past and Future Earnings, June 2nd 2019 Although it’s useful to understand the rate of growth each year relative to today’s value, it may be more insightful to analyze the rate at which the earnings are rising or falling every year, on average.

Simply Wall St -

HRX Company Info

Description

Héroux-Devtek Inc. engages in the design, development, manufacture, integration, testing, and repair and overhaul of aircraft landing gears, hydraulic and electromechanical flight control actuators, custom ball screws, and fracture-critical components in Canada, the United States, the United Kingdom, Spain, Rest of Europe, and internationally. The company also manufactures and sells hydraulic systems, fluid filtration systems, electronic enclosures, heat exchangers, and cabinets for suppliers of airborne radar, electro-optic systems, and aircraft controls. It serves commercial and military sectors of the aerospace market. The company was formerly known as Heroux Inc. and changed its name to Héroux-Devtek Inc. in 2000. Héroux-Devtek Inc. was founded in 1942 and is based in Longueuil, Canada.

Details
Name: Héroux-Devtek Inc.
HRX
Exchange: TSX
Founded: 1942
CA$392,038,523
36,367,210
Website: http://www.herouxdevtek.com
Address: Héroux-Devtek Inc.
Complexe Saint-Charles,
East Tower,
Longueuil,
Quebec, J4K 5G4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX HRX Common Shares The Toronto Stock Exchange CA CAD 31. Aug 1988
OTCPK HERX.F Common Shares Pink Sheets LLC US USD 31. Aug 1988
Number of employees
Current staff
Staff numbers
1,848
Héroux-Devtek employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 23:38
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/02/06
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


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.