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1. Company Snapshot

1.a. Company Description

Höegh Autoliners ASA engages in the deep sea transportation of roll-on roll-off (RoRo) cargoes worldwide.The company offers transportation services for agricultural, automotive, boats, breakbulk, construction and mining equipment, machineries, power equipment, railcars and tramways, trucks, buses, equipment handling, and trailers.It also provides shortsea, terminal, and supply chain management services.


Höegh Autoliners ASA was founded in 1927 and is based in Oslo, Norway.

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1.b. Last Insights on HAUTO

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1.c. Company Highlights

2. Höegh Autoliners' Strong Q3 Earnings Amidst Market Challenges

Höegh Autoliners reported a robust third-quarter performance, with EBITDA reaching $155 million, slightly down due to market imbalances and charter costs. The company's profit after tax stood at $132 million, and gross rate was $92.3 million. Earnings per share (EPS) came in at $0.698, significantly beating analyst estimates of $0.4703. Revenue growth was driven by a 4% quarter-over-quarter and 17% year-over-year increase in volume to 4 million CBM.

Publication Date: Nov -16

📋 Highlights
  • Financial Performance:: EBITDA of $155M and $132M profit after tax, driven by strong contract backlog but impacted by market imbalances and charter costs.
  • Dividend Policy Adjustment:: Dividend payouts will now depend on quarterly cash reserves, not outlooks, due to $20M Q4 USTR fee impact and elevated U.S. port costs ($60–70M annualized).
  • Order Book Growth:: Net fleet capacity set to grow 12% in 2025 and 8% in 2026, with 5 short-term charters added in Q3 and 4 new vessels arriving by mid-2027.
  • Sustainability Progress:: 6 newbuilds operational, 100% biofuel use, and carbon intensity reduced, supporting fuel efficiency upgrades across the fleet.

Operational Performance

The company's operational performance was strong, with a significant order book in the industry and net fleet growth expected to be up 12% in 2025 and another 8% in 2026. Höegh Autoliners is using the charter market to a larger extent than before, with 5 short-term charters in the third quarter, and pricing is stabilizing around $40,000 to $45,000 for a large ship. As noted by Espen Stubberud, "We're using the charter market to a larger extent than before, with 5 short-term charters in the third quarter."

Impact of U.S. Port Fees

The company faced challenges due to the tripling of U.S. port fees, which is expected to have an annual impact of $60 million to $70 million. Höegh Autoliners plans to introduce these fees in full for their liner business and have dialogues with customers to recover some of the costs. The estimated $20 million impact for Q4 takes into consideration the shorter lead time to optimize. The company expects to continue strong growth in Asia, with more cargo than they can carry.

Valuation and Outlook

Analysts estimate next year's revenue growth at -6.9%. Given the current valuation metrics, with a P/E Ratio of 2.93 and EV/EBITDA of 3.1, the stock appears to be undervalued. The Dividend Yield stands at 26.55%, indicating a significant return for investors. The company's commitment to paying out excess cash as dividends is expected to continue, although the timing of payouts will be based on the cash balance at the end of the quarter.

Future Prospects

Höegh Autoliners is well-positioned to navigate the current market challenges, with a strong equity ratio of 54% and a robust balance sheet. The company's fleet renewal strategy is ongoing, with a gap until mid-2027 when they will receive four more vessels. The reopening of the Suez Canal and Red Sea is expected to allow for a more efficient trade system and add capacity to their system, although the company refrains from providing guidance on the timing due to external factors.

3. NewsRoom

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Assessing Höegh Autoliners (OB:HAUTO) Valuation After Recent Share Price Volatility

Sep -24

Source:

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22 Shipping Companies Presenting at the 2nd Maritime Leaders Summit Hosted By: Capital Link & DNV - Nor-Shipping - Monday, June 2, 2025, Oslo

May -07

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Freight Income

Expected Growth: 2%

Höegh Autoliners ASA's 2% freight income growth is driven by increasing global automotive production, rising demand for finished vehicles, and growing seaborne trade. Additionally, the company's strategic focus on operational efficiency, cost savings, and fleet modernization contribute to its revenue growth.

Terminal Related Income

Expected Growth: 3%

Höegh Autoliners ASA's 3% terminal related income growth is driven by increasing vehicle production and trade volumes, coupled with strategic partnerships and investments in digitalization and sustainability initiatives. Additionally, the company's focus on operational efficiency and cost savings measures contribute to the growth.

7. Detailed Products

Roll-on/Roll-off (RORO) Shipping

Höegh Autoliners ASA provides RORO shipping services for vehicles, heavy equipment, and project cargo, offering a safe and efficient way to transport goods.

Breakbulk Shipping

The company offers breakbulk shipping services for oversized and heavy cargo, including construction equipment, wind turbines, and other project cargo.

High and Heavy Cargo Shipping

Höegh Autoliners ASA provides specialized shipping services for high and heavy cargo, including construction equipment, military equipment, and other oversized cargo.

Project Cargo Shipping

The company offers customized shipping solutions for complex project cargo, including wind turbines, oil and gas equipment, and other specialized cargo.

Vehicle Shipping

Höegh Autoliners ASA provides vehicle shipping services for cars, trucks, buses, and other vehicles, offering a safe and efficient way to transport vehicles globally.

8. Höegh Autoliners ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Höegh Autoliners ASA is moderate due to the availability of alternative transportation methods, such as air freight and rail transport. However, the company's specialized RoRo vessels and expertise in breakbulk cargo provide a competitive advantage.

Bargaining Power Of Customers

The bargaining power of customers is relatively low due to the specialized nature of Höegh Autoliners' services and the lack of alternative providers. This gives the company some pricing power and flexibility in its customer relationships.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of several shipyards and equipment providers. However, Höegh Autoliners' long-term relationships with its suppliers and its significant purchasing power help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the significant barriers to entry in the RoRo shipping industry, including high capital costs, regulatory hurdles, and the need for specialized expertise and equipment.

Intensity Of Rivalry

The intensity of rivalry in the RoRo shipping industry is high due to the presence of several established players, including Grimaldi Lines, Wallenius Wilhelmsen Logistics, and K Line. This competition puts pressure on Höegh Autoliners to maintain its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.24%
Debt Cost 5.40%
Equity Weight 76.76%
Equity Cost 5.40%
WACC 5.40%
Leverage 30.27%

11. Quality Control: Höegh Autoliners ASA passed 6 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

Stock-Card
Danaos

A-Score: 7.1/10

Value: 8.5

Growth: 6.4

Quality: 7.6

Yield: 6.9

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Euroseas

A-Score: 7.0/10

Value: 7.6

Growth: 8.2

Quality: 7.8

Yield: 8.1

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Ernst Russ

A-Score: 6.2/10

Value: 8.4

Growth: 9.6

Quality: 8.8

Yield: 3.1

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
MPC Container Ships

A-Score: 6.2/10

Value: 8.6

Growth: 6.9

Quality: 7.8

Yield: 10.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
d'Amico Shipping

A-Score: 5.8/10

Value: 7.8

Growth: 7.9

Quality: 6.7

Yield: 9.4

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Höegh Autoliners

A-Score: 5.1/10

Value: 8.4

Growth: 2.0

Quality: 7.3

Yield: 10.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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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

92.05$

Current Price

92.05$

Potential

-0.00%

Expected Cash-Flows