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High Liner Foods
(TSX:HLF)
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Rating:63Neutral
Price Target:
C$16.50
▲(8.70% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by mixed financial performance: stable revenue and manageable leverage are offset by meaningful margin compression and weak/volatile free-cash-flow conversion. Technicals are supportive with the stock trading above major moving averages and positive MACD, while valuation is reasonably attractive with a low-teens P/E and a strong dividend yield. Earnings call commentary adds modest support via reiterated growth/EBITDA and deleveraging expectations, tempered by near-term margin and cash-flow pressures.
Positive Factors
Product Innovation and Volume Growth
Product innovation, new private-label wins and expanded distribution are strengthening customer reach and mix. Sustained volume growth can support scale benefits and reinforce High Liner’s position across retail and foodservice.
Negative Factors
Sustained Margin Compression
The multi-period decline in gross and net margins signals more than a single-quarter issue, reflecting inflation, mix and pricing pressure. Persistently lower margins could constrain earnings growth even if revenue continues to expand.
Read all positive and negative factors
Positive Factors
Negative Factors
Product Innovation and Volume Growth
Product innovation, new private-label wins and expanded distribution are strengthening customer reach and mix. Sustained volume growth can support scale benefits and reinforce High Liner’s position across retail and foodservice.
Read all positive factors
High Liner Foods (HLF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$393.75M
Dividend Yield4.98%
Average Volume (3M)26.05K
Price to Earnings (P/E)11.4
Beta (1Y)0.55
Revenue Growth14.25%
EPS Growth-44.39%
CountryCA
Employees1,206
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.88
Shares Outstanding28,004,871
10 Day Avg. Volume16,593
30 Day Avg. Volume26,049
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)0.79
Price to Sales (P/S)0.31
P/FCF Ratio-41.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$17.75Price Target Upside16.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.14
Revenue Forecast (FY)C$1.13B
High Liner Foods Business Overview & Revenue Model
Company Description
High Liner Foods Incorporated is a North American company specializing in the processing and distribution of frozen seafood items. Their extensive product line includes unprocessed fillets and shellfish, ready-to-eat cooked shellfish, and a variet...
How the Company Makes Money
High Liner Foods makes money by selling seafood products to customers across two primary end markets: (1) retail (grocery) and (2) foodservice (restaurants, institutional buyers, and related distributors). Revenue is generated when the company man...
High Liner Foods Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a largely constructive operational and financial trajectory: top-line growth (+12.4% revenue, +4% volume) and strong adjusted profitability (adjusted EBITDA +20.3%, adjusted net income +10.4%) were offset in reported results by one-time and timing-related negatives (a $10.1M inventory loss from a warehouse fire, gross margin compression and a Q2 reported net income decline). Substantial tariff recoveries (approximately $35.8M received to date of $41.3M applied for) and demonstrated progress on pricing, promotions and supply-chain execution support management's confidence in improved margins and deleveraging through the remainder of the year. However, persistent inflation, higher distribution costs, operating cash outflows, and species-specific supply pressures remain material headwinds. On balance, the positives — including recurring adjusted earnings growth, successful new-product momentum, and meaningful tariff recoveries that improve normalized profitability and leverage — outweigh the transitory and manageable negatives, leading to a cautiously optimistic outlook for the rest of the year.Positive Updates
Revenue Growth
Total sales increased $29.7M or 12.4% to $269.3M in Q2 FY2026 (from $239.6M), driven by higher volumes and pricing in inflationary markets.
Negative Updates
Gross Profit Compression
Gross profit decreased $3.2M or 6% to $50.1M and gross profit margin contracted 370 basis points to 18.6% from 22.3%, reflecting inflation, tariff-related costs and an insurance-related inventory loss.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total sales increased $29.7M or 12.4% to $269.3M in Q2 FY2026 (from $239.6M), driven by higher volumes and pricing in inflationary markets.
Read all positive updates
Company Guidance
Guidance: management reiterated a full‑year outlook of low single‑digit volume growth and said it expects year‑over‑year adjusted EBITDA growth independent of tariff recoveries, with net debt/adjusted‑EBITDA poised to improve to slightly below its 3.0x long‑term target by the end of FY26. Q2 metrics that frame the guidance included volume of 57.0M lbs (+2.2M lbs, +4%), sales $269.3M (+$29.7M, +12.4%), gross profit $50.1M (18.6% of sales, down 370 bps and down $3.2M), adjusted EBITDA $30.2M (11.2% of sales, +20.3%), adjusted net income $12.7M (adjusted EPS $0.44), reported net income $5.1M (EPS $0.18), an inventory loss of $10.1M (expected insurance recovery by end‑of‑26), tariff recoveries recognized of $7.9M in Q2 plus $27.9M received subsequent (of $41.3M applied for) to be recorded in Q3, distribution expense $14.2M (+24.6%), net cash from operations an outflow of $3.0M (vs $15.6M inflow prior year), net debt $335.8M (up $13.4M) and net debt/adj‑EBITDA 3.6x at 07/04/2026; management also kept CapEx guidance at $20–25M (majority in Q3) and said H2 gross margin should be just shy of 20% as pricing, promotion discipline and supply‑chain efficiencies take further effect.High Liner Foods Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
43
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.12B | 1.03B | 959.22M | 1.08B | 1.07B | 875.40M |
| Gross Profit | 212.66M | 212.84M | 217.27M | 218.69M | 229.93M | 198.54M |
| EBITDA | 82.84M | 89.57M | 115.09M | 85.17M | 106.41M | 86.27M |
| Net Income | 25.86M | 36.56M | 60.16M | 31.68M | 54.73M | 42.25M |
Balance Sheet | ||||||
| Total Assets | 991.08M | 963.96M | 849.31M | 834.40M | 1.00B | 826.47M |
| Cash, Cash Equivalents and Short-Term Investments | 15.57M | 1.42M | 19.95M | 10.50M | 5.82M | 983.00K |
| Total Debt | 326.85M | 298.10M | 228.98M | 253.56M | 380.69M | 266.19M |
| Total Liabilities | 583.12M | 554.95M | 443.58M | 448.54M | 630.07M | 493.94M |
| Stockholders Equity | 407.96M | 409.01M | 405.73M | 385.86M | 373.42M | 332.52M |
Cash Flow | ||||||
| Free Cash Flow | 8.35M | -7.83M | 66.78M | 160.26M | -96.83M | 8.37M |
| Operating Cash Flow | 27.18M | 10.03M | 90.59M | 179.31M | -76.16M | 28.68M |
| Investing Cash Flow | -51.83M | -70.46M | -40.24M | -18.80M | -20.67M | -20.32M |
| Financing Cash Flow | 37.68M | 43.06M | -40.66M | -153.85M | 100.14M | -41.42M |
High Liner Foods Technical Analysis
Negative
15.18
Price Trends
14.58
Negative
14.35
Negative
14.45
Negative
Market Momentum
-0.19
Positive
35.42
Neutral
13.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HLF, the sentiment is Negative. The current price of 15.18 is above the 20-day moving average (MA) of 14.57, above the 50-day MA of 14.58, and above the 200-day MA of 14.45, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 13.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HLF.
High Liner Foods Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$15.79B | 32.10 | 7.45% | 2.02% | -4.63% | ― | |
66 Neutral | C$1.88B | 24.16 | 15.93% | 2.07% | 14.96% | 35.61% | |
63 Neutral | C$393.75M | 11.41 | 6.30% | 4.98% | 14.25% | -44.39% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | C$3.31B | 6.24 | 36.83% | 5.43% | -21.88% | 189.83% | |
55 Neutral | C$3.95B | 46.07 | 4.19% | 4.45% | 20.43% | -21.27% | |
41 Neutral | C$254.60M | -13.33 | -311.77% | ― | 82.33% | -570.45% |
* Consumer Defensive Sector Average
TSE:HLF
High Liner Foods
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High Liner Foods Corporate Events
Business Operations and StrategyFinancial Disclosures
High Liner Foods Grows Sales and EBITDA but Sees Profit and Margin Pressure in Q2 2026
Negative
Aug 13, 2026
High Liner Foods reported second-quarter 2026 results showing solid sales and volume growth, driven by sustained demand, new product innovation, and a more disciplined promotional strategy. Adjusted EBITDA rose 20.3% to $30.2 million and sales inc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.