Latest news with #HFG
Yahoo
25-05-2025
- Business
- Yahoo
Hilton Food Group plc (LON:HFG) Goes Ex-Dividend Soon
Hilton Food Group plc (LON:HFG) stock is about to trade ex-dividend in three days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. In other words, investors can purchase Hilton Food Group's shares before the 29th of May in order to be eligible for the dividend, which will be paid on the 27th of June. The company's next dividend payment will be UK£0.249 per share, and in the last 12 months, the company paid a total of UK£0.34 per share. Last year's total dividend payments show that Hilton Food Group has a trailing yield of 3.9% on the current share price of UK£8.92. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Its dividend payout ratio is 79% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. It could become a concern if earnings started to decline. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Dividends consumed 59% of the company's free cash flow last year, which is within a normal range for most dividend-paying organisations. It's positive to see that Hilton Food Group'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. View our latest analysis for Hilton Food Group Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That explains why we're not overly excited about Hilton Food Group's flat earnings over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share. A payout ratio of 79% looks like a tacit signal from management that reinvestment opportunities in the business are low. In line with limited earnings growth in recent years, this is not the most appealing combination. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last 10 years, Hilton Food Group has lifted its dividend by approximately 10% a year on average. From a dividend perspective, should investors buy or avoid Hilton Food Group? Earnings per share have barely grown, and although Hilton Food Group paid out over half its earnings and free cash flow last year, the payout ratios are within a normal range for most companies. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Hilton Food Group's dividend merits. With that being said, if dividends aren't your biggest concern with Hilton Food Group, you should know about the other risks facing this business. For example, Hilton Food Group has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
National Post
23-05-2025
- Business
- National Post
Hamilton ETFs Announces May 2025 Cash Distributions
Article content TORONTO — Hamilton Capital Partners Inc. (' Hamilton ETFs ') is pleased to announce the cash distributions for its ETFs that pay monthly distributions, all of which trade on the Toronto Stock Exchange, for the period ended May 31, 2025. Article content Article content Distributions may vary from period to period. Article content The ex-dividend date for these distributions is anticipated to be May 30, 2025, for all unitholders of record on May 30, 2025. The distributions will be paid in cash, or if the unitholder has enrolled in the dividend reinvestment plan (DRIP), reinvested in additional units of the ETF, on or about June 6, 2025. Article content ETF Name Ticker Regular Cash Distribution per unit Frequency Hamilton Global Financials ETF HFG $0.0700 Monthly Hamilton Canadian Bank Mean Reversion Index ETF HCA $0.0960 Monthly Hamilton Canadian Bank Equal-Weight Index ETF HEB $0.0690 Monthly Hamilton Enhanced Canadian Bank ETF HCAL $0.1270 Monthly Hamilton Enhanced Canadian Financials ETF HFIN $0.0750 Monthly Hamilton Enhanced Utilities ETF HUTS $0.0760 Monthly Hamilton Enhanced Multi-Sector Covered Call ETF HDIV $0.1720 Monthly Hamilton Enhanced U.S. Covered Call ETF HYLD $0.1450 Monthly HYLD.U $0.1450 Monthly Hamilton Canadian Financials YIELD MAXIMIZER™ ETF HMAX $0.1650 Monthly Hamilton Utilities YIELD MAXIMIZER™ ETF UMAX $0.1640 Monthly Hamilton U.S. Bond YIELD MAXIMIZER™ ETF HBND $0.1260 Monthly HBND.U $0.1290 Monthly Hamilton U.S. Equity YIELD MAXIMIZER™ ETF SMAX $0.1780 Monthly Hamilton Technology YIELD MAXIMIZER™ ETF QMAX $0.2000 Monthly Hamilton Gold Producer YIELD MAXIMIZER™ ETF AMAX $0.1950 Monthly Hamilton Energy YIELD MAXIMIZER™ ETF EMAX $0.1550 Monthly Hamilton U.S. Financials YIELD MAXIMIZER™ ETF FMAX $0.1700 Monthly Hamilton Healthcare YIELD MAXIMIZER™ ETF LMAX $0.1510 Monthly Hamilton REITs YIELD MAXIMIZER™ ETF RMAX $0.1420 Monthly Hamilton U.S. T-Bill YIELD MAXIMIZER™ ETF HBIL $0.0950 Monthly HBIL.U $0.0950 Monthly Hamilton Canadian Financials Index ETF HFN $0.0470 Monthly HAMILTON CHAMPIONS™ Canadian Dividend Index ETF CMVP $0.0460 Monthly HAMILTON CHAMPIONS™ Enhanced Canadian Dividend ETF CWIN $0.0560 Monthly HAMILTON CHAMPIONS™ U.S. Dividend Index ETF SMVP $0.0240 Monthly HAMILTON CHAMPIONS™ Enhanced U.S. Dividend ETF SWIN $0.0300 Monthly Article content About Hamilton ETFs With over $8 billion in assets under management, Hamilton ETFs is one of Canada's fastest growing ETF providers, offering a suite of innovative exchange traded funds (ETFs) designed to maximize income and growth from trusted sectors in Canada and across the globe. The firm is also an active commentator on the global financial services sector and Canadian banks; the firm's most recent Insights can be found at Article content Commissions, management fees and expenses all may be associated with an investment in exchange traded funds (ETFs). Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Article content Article content Article content Article content Article content
Yahoo
18-03-2025
- Business
- Yahoo
A Look At The Intrinsic Value Of Hilton Food Group plc (LON:HFG)
Using the 2 Stage Free Cash Flow to Equity, Hilton Food Group fair value estimate is UK£9.01 With UK£8.39 share price, Hilton Food Group appears to be trading close to its estimated fair value The UK£10.81 analyst price target for HFG is 20% more than our estimate of fair value In this article we are going to estimate the intrinsic value of Hilton Food Group plc (LON:HFG) by taking the expected future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. See our latest analysis for Hilton Food Group We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£60.4m UK£64.3m UK£50.9m UK£43.8m UK£39.8m UK£37.6m UK£36.4m UK£35.8m UK£35.6m UK£35.8m Growth Rate Estimate Source Analyst x3 Analyst x3 Est @ -20.86% Est @ -13.91% Est @ -9.05% Est @ -5.65% Est @ -3.26% Est @ -1.59% Est @ -0.43% Est @ 0.39% Present Value (£, Millions) Discounted @ 6.4% UK£56.8 UK£56.8 UK£42.2 UK£34.2 UK£29.2 UK£25.9 UK£23.5 UK£21.8 UK£20.4 UK£19.2 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£330m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 6.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£36m× (1 + 2.3%) ÷ (6.4%– 2.3%) = UK£892m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£892m÷ ( 1 + 6.4%)10= UK£479m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£809m. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of UK£8.4, the company appears about fair value at a 6.9% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Hilton Food Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.4%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Earnings growth over the past year exceeded the industry. Debt is well covered by cash flow. Dividends are covered by earnings and cash flows. Weakness Interest payments on debt are not well covered. Dividend is low compared to the top 25% of dividend payers in the Food market. Opportunity Annual earnings are forecast to grow for the next 4 years. Current share price is below our estimate of fair value. Threat Annual earnings are forecast to grow slower than the British market. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Hilton Food Group, there are three pertinent factors you should explore: Risks: Case in point, we've spotted 1 warning sign for Hilton Food Group you should be aware of. Future Earnings: How does HFG's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
