HRG Group Stock Analysis, Valuation (NYSE:HRG)

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$15.81 $0.01 (0.06%) HRG stock closing price Apr 18, 2018 (Closing)
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HRG Group
Updated on : Apr 18, 2018
previous close
HRG 15.8 (0%)
S&P 500 2708.6 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Consumer Staples-Misc
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.2%
Operating Profit
Operating Margin:
9.5%
Sector Average:
11.9%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
5.82B
Debt/Equity Ratio:
 3.58
Compared to the industry
Cash Flow
Operating cash flow:
-$60.8M
Net Income:
$507.4M
PROS      CONS
ROE
FCF Margin
PS Valuation
Recent Growth
Long Term Growth
Net Margins
High Debt Burden
Cash Flow
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
HRG PS :
0.7
Industry PS :
1.7
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1%
Return on Equity:
22.5%
Free Cash Flow Margin:
218.3%
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HRG Group Stock Analysis

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Investors can watch the Amigobulls HRG Group stock analysis video here. Our analyst opinion covering the buy and sell arguments for HRG stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

HRG Group Inc Stock Rating 2.9/5

Amigobulls HRG stock analysis takes into account various financial ratios like relative valuation, HRG Group revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check HRG Group dividend performance. HRG Group valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our HRG Group stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy HRG stock?

  • HRG stock is trading at a favorable price to sales multiple of 0.7 as against the Consumer Staples-Misc industry average multiple of 1.7.
  • HRG Group has a good Return On Equity (ROE) of 22.5%.
  • The company has a healthy free cash flow margin of 218.3%.

Should you sell HRG stock?

  • HRG Group sales declined by -45.7% year on year in 2018 Q1.
  • Revenue declined at a CAGR of -0.2% over the last 5 years.
  • HRG Group posted a TTM Net margin of 8.9%.
  • With a debt/equity ratio of  3.58, HRG Group is highly leveraged in comparison to Consumer Staples peers.
  • The company does not have profits. Hence the PE ratio is meaningless for HRG stock.
  • HRG Group has a low ROIC (Return on Invested Capital) of 1%.

Comments on this video and HRG Group stock

Amigobulls HRG Group stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of HRG stock. Company's fundamentals remain one of the key driver of HRG stock and helps investors in making good buy and sell decision.

Among the financials of the company, HRG Group revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of HRG Group stock.