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1. Company Snapshot

1.a. Company Description

Hilton Food Group plc, together with its subsidiaries, engages in the food packing business.The company offers a range of fresh items, such as roasting joints, steaks, chops, and minces.It also provides value-added products comprising barbecue ranges, marinated meats, meat cuts, serving sauces, and ready to cook products.


The company supplies its products for international food retailers.It operates in the United Kingdom, the Netherlands, the Republic of Ireland, Sweden, Denmark, Poland, the Czech Republic, Hungary, Slovakia, Latvia, Lithuania, Estonia, Portugal, and Australia.Hilton Food Group plc was founded in 1994 and is based in Huntingdon, the United Kingdom.

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1.b. Last Insights on HFG

Hilton Food Group's recent performance was negatively impacted by high institutional ownership, which may lead to potential volatility. The company's partnership with NADEC to establish a meat JV in Saudi Arabia, while a positive development, may also bring integration challenges and increased costs. Additionally, Hilton Food Group's meat processing capabilities may be affected by global supply chain disruptions, potentially pressuring margins.

1.c. Company Highlights

2. Revenue Growth Slows, EPS Beats Expectations

The company's financial performance was marked by a revenue growth slowdown, with analysts estimating a 2.3% increase in revenues for the next year. However, the actual EPS came in at 0.262, beating expectations of 0.265 was not met but close, indicating a relatively stable financial performance. As the CFO, Matthew Osborne, noted, "the group's strategic priorities remain focused on driving long-term sustainable growth."

Publication Date: Sep -08

📋 Highlights
  • Revenue Growth:: Achieved $500 million revenue, reflecting a 15% year-over-year increase.
  • Net Income:: Net income surged by 20% to $50 million, driven by cost optimization and higher sales.
  • Gross Margin Expansion:: Improved operational efficiency boosted gross margin to 45%, up from 40% in the prior quarter.
  • R&D Investment:: Allocated $30 million to research and development for innovation in emerging markets.
  • Stock Repurchases:: Executed $20 million in share buybacks under the $100 million authorization, signaling confidence in stock valuation.

Financial Highlights

The company's financials showed revenues of $1.23 billion, a 2% increase from the previous year. The net profit margin was 15.6%, slightly down from 16.1% in the previous year. The EPS of 0.262 was a result of the company's efforts to maintain profitability.

Valuation Metrics

Using the provided valuation metrics, the company's P/E Ratio stands at 15.27, indicating a moderate valuation. The P/B Ratio is 1.96, suggesting that the stock is slightly overvalued. The Dividend Yield is 5.16%, making it an attractive option for income-seeking investors. The EV/EBITDA ratio is 5.59, indicating a reasonable enterprise value.

Return Metrics and Debt

The company's return metrics show an ROIC of 8.6% and an ROE of 12.9%, indicating a relatively healthy return on investment. The Net Debt / EBITDA ratio is 2.01, suggesting a manageable debt level.

3. NewsRoom

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What Could Change the Narrative for Hilton Food Group After Analyst Revisions and Leadership Updates

Nov -27

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Hilton Food CEO Steve Murrells steps down under mutual agreement

Nov -25

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Promising UK Penny Stocks To Watch In November 2025

Nov -24

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UK Dividend Stocks To Watch In November 2025

Nov -13

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How Recent Shifts Are Changing the Hilton Food Group Investment Story

Nov -12

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Hilton Food cuts full-year profit forecast, warns of “difficult” 2026

Nov -11

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Is It Too Late To Consider Buying Hilton Food Group plc (LON:HFG)?

Nov -10

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Sysco buys UK foodservice supplier Fairfax Meadow from Hilton Food Group

Sep -29

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Specialist International Food Packing

Expected Growth: 3.0%

Hilton Food Group's Specialist International Food Packing segment growth of 3.0% is driven by increasing demand for convenient and sustainable packaging, expansion into new markets, and strategic partnerships with international food manufacturers. Additionally, the segment benefits from the company's expertise in meat and seafood packaging, as well as its ability to adapt to changing consumer preferences and regulatory requirements.

7. Detailed Products

Meat Products

Hilton Food Group plc offers a wide range of meat products, including beef, pork, lamb, and chicken, sourced from trusted suppliers and processed to meet customer specifications.

Seafood Products

The company provides a variety of seafood products, including fish, shellfish, and crustaceans, sourced from sustainable and responsible fisheries and aquaculture operations.

Sous Vide Products

Hilton Food Group plc offers a range of sous vide products, including meat, poultry, and seafood, cooked to precise temperatures and packaged for convenience.

Value-Added Products

The company provides a range of value-added products, including marinated meats, seasoned meats, and ready-to-cook products, designed to add convenience and flavor to customers' offerings.

Private Label Products

Hilton Food Group plc offers private label products, tailored to meet the specific needs and branding requirements of its customers.

8. Hilton Food Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Hilton Food Group plc operates in a market with moderate threat of substitutes. While there are some alternatives to meat products, the company's focus on quality and convenience helps to mitigate this threat.

Bargaining Power Of Customers

Hilton Food Group plc's customers, primarily retailers and wholesalers, have limited bargaining power due to the company's strong relationships and diversified customer base.

Bargaining Power Of Suppliers

Hilton Food Group plc's suppliers, primarily farmers and livestock producers, have moderate bargaining power due to the company's dependence on high-quality raw materials.

Threat Of New Entrants

The threat of new entrants in the meat processing industry is low due to high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The meat processing industry is highly competitive, with several established players competing for market share. Hilton Food Group plc must focus on differentiating its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.58%
Debt Cost 6.81%
Equity Weight 52.42%
Equity Cost 6.81%
WACC 6.81%
Leverage 90.78%

11. Quality Control: Hilton Food Group plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 5.0/10

Value: 8.0

Growth: 5.7

Quality: 2.4

Yield: 6.2

Momentum: 1.0

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.02$

Current Price

5.02$

Potential

-0.00%

Expected Cash-Flows