GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP
Hoegh LNG Partners LP (NYSE:HMLP)
Not Rated
Possible Value Trap, Think Twice[5]$ 6.18
GF Score: 76/100Market Cap: $ 206 Mil
Industry: Energy - Oil & Gas
Hoegh LNG Partners LP owns and operates floating storage and regasification units (FSRUs), under long-term charters, which it defines as charters of five or more years.
GF Value Rank
Rank: 4 /10CurrentIndustry MedianHistorical Median
PE Ratio4.7312.4710.75
Forward P/EN/A8.82N/A
PB Ratio0.391.461.24
PS Ratio1.491.364.13
P/FCF2.6410.206.87
Shiller P/E4.4616.223.20
PEG Ratio2.631.130.58
Valuation Analysis
Current% of Price
NCAV-12.05-195
Price6.18
GF Value14.16229
EPV14.20230
Tangible Book15.56252
Graham Number21.50348
Dividend & Ownership
Dividend Yield (TTM) %0.65
Dividend Yield (Forward) %0.65
Dividend Payout Ratio0.68
Dividend Growth (5Y) %-8.00
Yield on Cost (5Y) %0.43
Continuous Div. since2021
Insider Ownership %N/A
Institution Ownership %5.19
Financial Strength
Rank: 4 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt0.100.510.06
Equity-to-Asset0.530.470.45
Interest Coverage3.888.763.22
Piotroski F-Score766
Profitability Rank
Rank: 7 /10CurrentIndustry MedianHistorical Median
Operating Margin %54.695.6855.98
Net Margin %31.093.0539.71
ROE %5.574.728.29
ROA %4.441.424.82
ROC (Joel Greenblatt) %15.756.5316.24
Growth Rank(* per share data)
Rank: 5 /1010-Yr5-Yr1-Yr
Revenue Growth %N/A3.0-1.5
EBITDA Growth %N/A1.84.4
Oprt. Income Growth %N/A2.2-10.3
EPS w/o NRI Growth %N/A-3.9-5.7
FCF Growth %N/A8.8-7.9
Book Value Growth %N/A5.47.3
Momentum Rank
Rank: 10 /10CurrentIndustry MedianHistorical Median
5-Day RSI39.8052.27N/A
9-Day RSI41.6949.38N/A
14-Day RSI45.0848.98N/A
6-1M Momentum %48.609.76N/A
12-1M Momentum %-58.2015.66N/A
Quarterly
Dec20Mar21Jun21Sep21Dec21
Revenue36.0634.7834.7035.6036.19
Net Income-41.7123.842.6417.360.08
EPS0.430.59-0.040.400.37
Revenue YoY %-6.43-5.210.76-0.880.37
Net Income YoY %0.74335.48-86.60-10.87-100.19
EPS YoY %-2.271,375-108.51-13.04-13.95
Free Cash Flow25.6816.1521.0721.8620.18
Cash & Equiv.31.7727.0723.8445.3742.52
Current Assets55.1655.6253.2372.8671.28
Short-Term Debt & CLO59.1658.1057.0956.0546.45
Current Liabilities77.8177.7083.7079.8976.21
Total Liabilities488.50472.02480.60482.45473.49
Stockholders Equity493.32514.02498.72513.96530.52
Warning Signs
SEVEREAltman Z-Score: Distress
SEVEREBeneish M-Score: Possible manipulator
SEVERERevenue per Share: Declined
SEVEREGross Margin %: Declined
Good Signs
GOODPiotroski F-Score: High
As of 05-20-2022
* All financial numbers are in millions except for per share data, ratios and percentage change.
%GainSP500
1W1.98-0.73
1M-10.42-12.49
3M43.62-10.03
6M33.33-16.39
YTD43.52-17.75
1Y-62.37-3.96
3Y-19.6812.66
5Y-7.0812.26
10Y--13.75
25.89
10.98
3.93
688032
344016
2012201320142015201620172018201920202021CurrentPerformance
----25.8923.2519.2320.6019.7019.9116.7218.0618.17Highest Stock Price
------12.8412.5517.2514.8414.295.103.933.77Lowest Stock Price
----543490625614510520476144206Market Cap
26.326.326.326.326.832.933.133.333.333.433.4Shares Outstanding-Diluted
N/AN/A41.2811.9412.0313.617.9513.9610.213.274.73PE Ratio
----2.301.961.711.290.981.040.970.270.39PB Ratio
----7.288.535.584.283.473.573.331.021.49PS Ratio
----104.1714.8612.629.997.208.907.874.404.96EV-to-EBITDA
2012201320142015201620172018201920202021TTMPer Share Data
0.211.962.832.183.414.364.434.374.304.234.23Revenue per Share
0.161.540.501.561.581.371.931.121.401.321.32Earnings per Share
-2.49-2.95-5.431.591.352.432.752.562.582.382.38Free Cash Flow per Share
----0.181.351.651.701.751.761.760.900.90Dividends per Share
-2.02-1.838.988.7910.5913.6815.0514.5514.3915.5615.56Tangible Book per Share
----------------------Median PS Value
----10.0517.5619.4020.5325.5619.1521.2921.5021.50Graham Number
2012201320142015201620172018201920202021TTMIncome Statement
5.5151.5774.5757.4791.11143.53146.56145.44143.10141.26141.26Revenue
--7.6127.3545.1364.1698.54101.2293.0998.0992.0092.00Gross Profit
--14.7536.6778.5470.4268.6569.0664.0168.5565.1365.13Gross Margin %
3.199.1515.3911.3212.4912.4111.4912.7412.1414.7314.74Total Operating Expense
-3.19-1.5411.9533.8251.6886.1389.7380.3585.9577.2677.26Operating Income
-57.80-2.9916.0358.8456.7260.0161.2355.2460.0654.7054.69Operating Margin %
4.1940.471.3141.2841.3848.7877.62-7.412.9243.9243.91Net Income
75.9878.461.7671.8345.4233.9952.96-5.092.0431.0931.09Net Margin %
2.1938.285.5155.6967.2491.35112.0084.9590.5496.1996.19EBIT
2.1938.296.8358.3477.79112.40133.15106.42111.48116.60116.60EBITDA
----1.4016.9813.4611.0313.13-4.16-2.395.555.57ROE %
3.1022.250.346.295.265.227.46-0.730.294.424.44ROA %
2012201320142015201620172018201920202021Dec21Balance Sheet
0.100.1130.4832.8718.9222.6826.3339.1331.7742.5242.52Cash & Equivalents
135.13228.62549.42763.74810.471,0591,0231,013981.811,0041,004Total Assets
91.59193.4319.5332.5032.2145.4645.4644.7459.1646.4546.45Short-Term Debt & CLO
----179.14377.64343.45486.68429.38421.09373.94364.63364.63Long-Term Debt & CLO
188.35276.72313.04513.95445.68584.30502.60511.29488.50473.49473.49Total Liabilities
-53.23-48.10236.38249.80364.79474.66520.44501.51493.32530.52530.52Total Stockholders Equity
-53.23-48.10236.38249.80364.79474.66520.44501.51493.32530.52530.52Total Equity
2012201320142015201620172018201920202021TTMCashflow Statement
-7.64-41.2227.9842.7936.6079.9591.6885.2585.8379.2679.26Cash Flow from Operations
-61.71-30.78-292.2015.46-83.08-38.453.07-0.27-0.01-2.98--Cash Flow from Investing
69.4472.01294.59-55.8529.06-39.34-92.48-70.63-94.62-65.39-65.39Cash Flow from Financing
0.100.0130.372.39-17.572.162.1714.37-8.7610.8613.84Net Change in Cash
0.100.1130.4832.8741.1243.2845.4559.8251.0661.9261.92Ending Cash Position
-57.77-36.32-170.91-0.96-0.54-0.02-0.75-0.27-0.01----Capital Expenditure
-65.40-77.54-142.9341.8336.0679.9390.9384.9885.8279.2679.26Free Cash Flow
Competitor
TickerCompanyMarket Cap
($M)
PE RatioGF Score
/100
Financial
Strength /10
Profitability
Rank /10
GF Value
Rank /10
Growth
Rank /10
Momentum
Rank /10
DHA:MPETROLEUMMeghna Petroleum Ltd2437.4797999100
NYSE:HMLPHoegh LNG Partners LP2064.7376474510
NYSE:SMLPSummit Midstream Partners LP190At Loss6435337
NYSE:OSGOverseas Shipholding Group Inc176At Loss6945636
NAS:MMLPMartin Midstream Partners LP16118.826536336
GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Financial Strength[2] (Quarterly data, as of Dec. 2021) : Fair (4/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 0.10

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.53

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.78

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 7

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 6.56% vs ROIC : 6.12%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 20.83%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Profitability[3] (Annual data, as of Dec. 2021) : Good (7/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $36 Mil vs Net Income : $0 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $43 Mil vs Long-Term Debt* : $365 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : 45.55%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $0.37

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.01

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $0.61

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Valuation (Quarterly data, as of Dec. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $6.18)


PE Ratio without NRI : 3.27

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 0.27

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 1.02

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 1.82

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : 5.33

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Altman Z-Score : Distress

Altman Z-score of 0.71 is in distress zone. This implies bankrupcy possibility in the next two years.

Beneish M-Score : Possible manipulator

Beneish M-Score 4.52 higher than -1.78, which implies that the company might have manipulated its financial results.

Revenue per Share : Declined

Hoegh LNG Partners LP revenue per share has been in decline over the past 3 years.

Gross Margin % : Declined

Hoegh LNG Partners LP gross margin has been in long term decline. The average rate of decline per year is -1.3%.

Good Signs

Piotroski F-Score : High

Piotroski F-Score is 7, indicating very healthy situation.

Medium Warning Signs

Dividend Yield % : Close to 10-year low

Hoegh LNG Partners LP stock dividend yield is close to 10-year low.
GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
BSE:COTEConpet SA10/10No Debt0.870.0085.0575.33-2.564.022.34
DHA:MPETROLEUMMeghna Petroleum Ltd9/10222.490.230.014.6072.790.008.6626.05
TSE:9386NIPPON CONCEPT Corp5/100.900.590.5136.5083.410.001.4113.70
NYSE:GLOPGasLog Partners LP4/100.120.451.185.2160.33-3.185.716.37
NYSE:HMLPHoegh LNG Partners LP4/100.100.530.783.8870.714.526.566.12
NYSE:OSGOverseas Shipholding Group Inc4/100.130.311.820.0030.06-1.903.32-0.37
OSL:SIOFFSiem Offshore Inc4/100.120.321.951.5570.39-2.204.153.34
NAS:MMLPMartin Midstream Partners LP3/100.00-0.07-13.401.3262.34-2.5310.218.72
NYSE:SMLPSummit Midstream Partners LP3/100.010.361.470.7230.27-2.557.142.12
NYSE:TNPTsakos Energy Navigation Ltd3/100.080.431.180.0020.2246.462.97-0.94

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
TSE:9386NIPPON CONCEPT Corp10/1016.4911.2915.809.248.4421.5811.5010.9012.20
BSE:COTEConpet SA9/103.6412.958.307.160.0012.472.60-6.40-6.50
DHA:MPETROLEUMMeghna Petroleum Ltd9/100.711.6115.994.241.85235.95-0.60-7.10-7.80
NYSE:GLOPGasLog Partners LP7/1043.261.65-4.050.241.181.56-9.60-27.700.00
NYSE:HMLPHoegh LNG Partners LP7/1054.6931.095.574.442.6415.75-1.50-4.60-11.90
NAS:MMLPMartin Midstream Partners LP6/106.890.910.001.504.3714.64-4.501.5072.70
OSL:SIOFFSiem Offshore Inc6/1014.5741.4947.239.3949.1413.88-58.70-39.600.00
NYSE:OSGOverseas Shipholding Group Inc5/10-1.55-8.09-8.91-2.740.00-1.25-1.20-30.300.00
NYSE:SMLPSummit Midstream Partners LP5/1013.92-7.28-3.51-1.161.122.15-16.80-19.500.00
NYSE:TNPTsakos Energy Navigation Ltd5/10-5.07-27.72-14.24-5.024.50-4.04-3.00-50.60-7.70

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NYSE:GLOPGasLog Partners LPAt Loss0.270.790.130.000.000.000.002.6176.76
NYSE:OSGOverseas Shipholding Group IncAt Loss0.510.480.240.000.000.000.00-1.62-4.22
NYSE:SMLPSummit Midstream Partners LPAt Loss0.210.350.190.000.120.000.002.5084.97
NYSE:TNPTsakos Energy Navigation LtdAt Loss0.240.420.170.000.680.000.00-6.591.57
NYSE:HMLPHoegh LNG Partners LP4.730.391.490.180.000.000.000.2916.6639.21
DHA:MPETROLEUMMeghna Petroleum Ltd7.471.130.120.340.370.000.300.62-26.2537.66
TSE:9386NIPPON CONCEPT Corp10.331.521.160.730.680.000.000.8413.5514.92
BSE:COTEConpet SA12.521.041.621.020.000.000.920.7612.0414.83
OSL:SIOFFSiem Offshore Inc17.051.300.276.720.000.570.000.9910.93-1777.71
NAS:MMLPMartin Midstream Partners LP18.820.000.160.410.000.310.000.009.5119.68
GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Per Share Data


Per Share Data

Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
TTM Fiscal Period
0.21
1.96
2.83
2.18
3.41
4.36
4.43
4.37
4.30
4.23
4.23
Revenue per Share
0.08
1.46
0.26
2.22
2.91
3.41
4.02
3.20
3.35
3.49
3.49
EBITDA per Share
0.08
1.46
0.21
2.12
2.51
2.77
3.38
2.56
2.72
2.88
2.88
EBIT per Share
0.16
1.54
0.50
1.56
1.58
1.37
1.93
1.12
1.40
1.32
1.32
Earnings per Share (Diluted)
0.16
1.54
0.50
1.56
1.58
1.37
1.93
1.12
1.40
1.32
1.32
EPS without NRI
--
--
--
--
--
0.43
1.86
0.64
0.70
2.36
2.36
Owner Earnings per Share (TTM)
-2.49
-2.95
-5.43
1.59
1.35
2.43
2.75
2.56
2.58
2.38
2.38
Free Cash Flow per Share
-0.29
-1.57
1.06
1.63
1.37
2.43
2.77
2.56
2.58
2.38
2.38
Operating Cash Flow per Share
0.00
0.00
1.16
1.25
0.58
0.69
0.79
1.18
0.95
1.27
1.27
Cash per Share
--
--
0.18
1.35
1.65
1.70
1.75
1.76
1.76
0.90
0.90
Dividends per Share
-2.02
-1.83
8.98
9.49
11.08
14.42
15.68
15.07
14.81
15.90
15.90
Book Value per Share
-2.02
-1.83
8.98
8.79
10.59
13.68
15.05
14.55
14.39
15.56
15.56
Tangible Book per Share
3.48
7.35
7.55
15.59
11.41
16.16
14.30
14.00
13.00
12.32
12.32
Total Debt per Share
--
--
20.64
18.62
19.00
18.65
15.35
15.63
14.30
4.32
6.18
Month End Stock Price

Ratios

Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
TTM Fiscal Period
--
--
1.40
16.98
13.46
11.03
13.13
-4.16
-2.39
5.55
5.57
ROE %
--
--
0.61
8.66
7.87
8.55
13.40
-4.00
-2.46
20.56
14.28
ROE % Adjusted to Book Value
3.10
22.25
0.34
6.29
5.26
5.22
7.46
-0.73
0.29
4.42
4.44
ROA %
Neg. E
Neg. E
1.40
17.66
14.28
11.59
13.75
-4.32
-2.47
5.69
5.71
Return-on-Tangible-Equity
3.10
22.25
0.34
6.38
5.38
5.33
7.62
-0.74
0.30
4.48
4.50
Return-on-Tangible-Asset
2.55
36.68
8.91
31.44
19.31
17.86
16.74
13.07
14.37
15.74
15.75
ROC (Joel Greenblatt) %
5.19
155
2.17
9.33
9.31
10.45
11.42
8.87
9.77
10.50
10.56
ROCE %
-1.45
-0.53
2.05
5.45
6.15
8.68
7.78
6.98
7.92
6.12
6.12
ROIC %
--
--
7.43
7.94
7.89
7.51
7.24
6.53
8.39
6.08
6.56
WACC %
-2.18
-1.54
1.90
4.63
5.60
6.23
5.18
5.30
4.86
4.71
4.72
Effective Interest Rate on Debt %
--
14.75
36.67
78.54
70.42
68.65
69.06
64.01
68.55
65.13
65.13
Gross Margin %
-57.80
-2.99
16.03
58.84
56.72
60.01
61.23
55.24
60.06
54.70
54.69
Operating Margin %
75.98
78.46
1.76
71.83
45.42
33.99
52.96
-5.09
2.04
31.09
31.09
Net Margin %
39.80
74.23
9.16
102
85.38
78.31
90.85
73.17
77.90
82.55
82.54
EBITDA Margin %
-1,187
-150
-192
72.79
39.58
55.69
62.05
58.43
59.97
56.11
56.11
FCF Margin %
-1.72
-4.02
0.84
1.64
1.03
1.12
0.91
0.93
0.88
0.78
0.78
Debt-to-Equity
-0.39
-0.21
0.43
0.33
0.45
0.45
0.51
0.50
0.50
0.53
0.53
Equity-to-Asset
0.68
0.85
0.36
0.54
0.46
0.50
0.46
0.46
0.44
0.41
0.41
Debt-to-Asset
1.39
1.21
0.57
0.67
0.55
0.55
0.49
0.51
0.50
0.47
0.47
Liabilities-to-Assets
--
4.18
7.03
6.87
8.15
10.54
9.72
9.15
9.84
9.27
9.30
Gross-Profit-to-Asset %
0.04
0.28
0.19
0.09
0.12
0.15
0.14
0.14
0.14
0.14
0.14
Asset Turnover
--
--
0.37
0.87
1.04
1.24
0.91
1.57
1.26
0.68
0.68
Dividend Payout Ratio
--
--
30.29
45.70
20.61
12.27
10.95
2.46
1.47
5.26
11.06
Days Sales Outstanding
14.04
1.76
6.68
32.76
15.73
5.49
3.66
3.70
4.05
16.14
10.99
Days Payable
--
--
--
22.70
9.92
5.54
5.29
3.87
3.75
--
0.17
Days Inventory
-14.04
-1.76
23.61
35.64
14.80
12.32
12.58
2.63
1.17
-10.88
0.24
Cash Conversion Cycle
--
--
--
16.08
36.81
65.93
69.01
94.40
97.21
--
2,189
Inventory Turnover
1.00
0.85
0.63
0.21
0.30
0.31
0.31
0.36
0.31
0.35
0.35
COGS-to-Revenue
--
--
--
0.01
0.01
0.01
0.00
0.00
0.00
--
-- Inventory-to-Revenue
10.48
0.70
2.29
0.02
0.01
--
0.01
0.00
--
--
-- Capex-to-Revenue
--
--
14.30
0.03
0.01
--
0.01
0.00
--
--
-- Capex-to-Operating-Income
--
--
6.11
0.02
0.02
--
0.01
0.00
--
--
-- Capex-to-Operating-Cash-Flow
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Financial Statement

Income Statement

Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
TTM Fiscal Period
5.51
51.57
74.57
57.47
91.11
144
147
145
143
141
141
Revenue
5.51
43.97
47.22
12.33
26.95
45.00
45.34
52.35
45.01
49.26
49.26
Cost of Goods Sold
--
7.61
27.35
45.13
64.16
98.54
101
93.09
98.09
92.00
92.00
Gross Profit
--
14.75
36.67
78.54
70.42
68.65
69.06
64.01
68.55
65.13
65.13
Gross Margin %
3.19
8.04
12.57
8.73
9.72
9.91
8.92
9.86
9.74
12.41
12.41
Selling, General, & Admin. Expense
0.00
1.11
2.83
2.59
2.77
2.50
2.57
2.88
2.40
2.32
2.33
Other Operating Expense
3.19
9.15
15.39
11.32
12.49
12.41
11.49
12.74
12.14
14.73
14.74
Total Operating Expense
-3.19
-1.54
11.95
33.82
51.68
86.13
89.73
80.35
85.95
77.26
77.26
Operating Income
-57.80
-2.99
16.03
58.84
56.72
60.01
61.23
55.24
60.06
54.70
54.69
Operating Margin %
2.48
2.12
4.96
7.57
0.86
0.50
0.73
0.95
0.61
0.55
0.55
  Interest Income
1.99
2.19
-3.72
-14.10
-21.99
-28.28
-26.08
-24.93
-21.83
-19.90
-19.90
  Interest Expense
2.37
1.77
-4.79
-10.28
-24.50
-29.69
-26.23
-27.04
-24.10
-26.84
-26.84
Net Interest Income
5.01
40.24
-5.37
18.06
18.08
6.63
22.43
6.71
6.86
25.86
25.86
Other Income (Expense)
4.19
40.47
1.80
41.59
45.25
63.07
85.93
60.02
68.71
76.29
76.29
Pre-Tax Income
--
--
-0.48
-0.31
-3.87
-3.88
-8.31
-7.28
-5.56
-16.29
-16.29
Tax Provision
--
--
26.80
0.75
8.56
6.15
9.67
12.12
8.10
21.35
21.36
Tax Rate %
4.19
40.47
1.31
41.28
41.38
59.19
77.62
52.74
63.15
60.00
59.99
Net Income (Continuing Operations)
--
--
--
--
--
-10.41
--
--
--
--
--   Other Income (Minority Interest)
4.19
40.47
1.31
41.28
41.38
48.78
77.62
-7.41
2.92
43.92
43.91
Net Income
75.98
78.46
1.76
71.83
45.42
33.99
52.96
-5.09
2.04
31.09
31.09
Net Margin %
--
--
--
--
--
2.48
12.30
13.85
14.80
15.51
15.51
Preferred Dividends
0.16
1.54
0.50
1.56
1.58
1.37
1.93
1.12
1.40
1.32
1.32
EPS (Basic)
0.16
1.54
0.50
1.56
1.58
1.37
1.93
1.12
1.40
1.32
1.32
EPS (Diluted)
26.31
26.31
26.31
26.31
26.76
32.93
33.12
33.25
33.29
33.37
33.38
Shares Outstanding (Diluted Average)
2.19
38.28
5.51
55.69
67.24
91.35
112
84.95
90.54
96.19
96.19
EBIT
--
0.01
1.32
2.65
10.55
21.05
21.15
21.48
20.94
20.42
20.42
Depreciation, Depletion and Amortization
2.19
38.29
6.83
58.34
77.79
112
133
106
111
117
117
EBITDA
39.80
74.23
9.16
102
85.38
78.31
90.85
73.17
77.90
82.55
82.54
EBITDA Margin %
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Financial Statement

Cashflow Statement

Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
TTM Fiscal Period
4.19
40.47
1.31
41.28
41.38
59.19
77.62
52.74
63.15
60.00
59.99
Net Income From Continuing Operations
--
0.01
1.32
2.65
10.55
21.05
21.15
21.48
20.94
20.42
20.42
Depreciation, Depletion and Amortization
-4.11
-51.12
49.06
-2.01
-0.08
-1.04
6.34
0.54
0.18
-3.24
-3.24
  Change In Receivables
--
--
--
0.27
0.07
0.03
0.02
0.18
0.46
--
--   Change In Inventory
--
-0.53
0.03
0.24
-0.08
0.19
-0.07
-2.08
-1.17
0.30
0.30
  Change In Prepaid Assets
-0.33
10.88
18.32
3.89
-5.76
-3.85
-0.34
4.50
-2.66
6.51
6.51
  Change In Payables And Accrued Expense
-0.00
-0.00
-22.18
10.01
--
--
-0.00
--
-0.00
--
0.00
  Change In Other Working Capital
-4.44
-40.78
45.23
12.39
-5.86
-4.67
5.95
3.15
-3.19
3.58
3.58
Change In Working Capital
--
--
-26.32
-1.03
3.55
2.48
6.12
4.57
2.99
11.02
11.02
Deferred Tax
-7.39
-40.92
6.44
-12.51
-13.02
1.90
-19.17
3.31
1.95
-15.76
-15.76
Cash Flow from Others
-7.64
-41.22
27.98
42.79
36.60
79.95
91.68
85.25
85.83
79.26
79.26
Cash Flow from Operations
-57.77
-36.27
-171
-0.96
-0.54
-0.02
-0.75
-0.27
-0.01
--
-- Purchase Of Property, Plant, Equipment
--
--
--
--
--
-137
--
--
--
--
-- Purchase Of Business
--
--
--
--
--
3.79
--
--
--
--
-- Sale Of Business
-3.94
5.49
-121
16.41
-82.55
95.25
3.81
--
--
--
-- Cash From Other Investing Activities
-61.71
-30.78
-292
15.46
-83.08
-38.45
3.07
-0.27
-0.01
-2.98
-- Cash Flow from Investing
--
--
203
--
112
111
43.22
14.09
3.17
9.14
8.32
Issuance of Stock
--
--
-43.47
--
--
--
--
--
--
--
-- Repurchase of Stock
61.66
101
258
--
8.62
25.73
5.40
372
21.75
20.75
20.75
  Issuance of Debt
--
--
-67.62
-27.12
-38.44
-110
-67.95
-377
-44.66
-44.43
-44.43
  Payments of Debt
61.66
101
190
-27.12
-29.82
-84.31
-62.55
-5.05
-22.91
-23.68
-23.68
Net Issuance of Debt
--
-35.33
-16.02
-35.52
-43.88
-57.04
-72.50
-73.80
-74.89
-46.33
-46.33
Cash Flow for Dividends
7.78
5.85
-39.51
6.79
-8.77
-8.92
-0.65
-5.86
--
-4.51
-3.70
Other Financing
69.44
72.01
295
-55.85
29.06
-39.34
-92.48
-70.63
-94.62
-65.39
-65.39
Cash Flow from Financing
0.00
0.10
0.11
30.48
58.70
41.12
43.28
45.45
59.82
51.06
48.08
Beginning Cash Position
--
--
--
--
-0.15
--
-0.10
0.01
0.05
-0.02
-0.02
  Effect of Exchange Rate Changes
0.10
0.01
30.37
2.39
-17.57
2.16
2.17
14.37
-8.76
10.86
13.84
Net Change in Cash
0.10
0.11
30.48
32.87
41.12
43.28
45.45
59.82
51.06
61.92
61.92
Ending Cash Position
-57.77
-36.32
-171
-0.96
-0.54
-0.02
-0.75
-0.27
-0.01
--
-- Capital Expenditure
-65.40
-77.54
-143
41.83
36.06
79.93
90.93
84.98
85.82
79.26
79.26
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Financial Satement

Balance Sheet

Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
TTM Fiscal Period
0.10
0.11
30.48
32.87
18.92
22.68
26.33
39.13
31.77
42.52
42.52
  Cash And Cash Equivalents
0.10
0.11
30.48
32.87
18.92
22.68
26.33
39.13
31.77
42.52
42.52
Cash, Cash Equivalents, Marketable Securities
--
--
6.19
8.20
2.09
7.56
1.23
0.74
0.42
3.65
3.65
  Accounts Receivable
6.68
7.11
150
7.13
6.28
--
--
--
--
--
--   Loans Receivable
--
55.17
2.89
7.43
7.72
8.55
11.01
10.63
10.35
15.25
15.25
  Other Current Receivables
6.68
62.29
159
22.76
16.09
16.12
12.24
11.36
10.77
18.91
18.91
Total Receivables
--
--
--
0.77
0.70
0.67
0.65
0.46
--
--
--   Inventories, Other
--
--
--
0.77
0.70
0.67
0.65
0.46
--
--
-- Total Inventories
0.38
3.43
22.84
11.16
8.66
6.96
7.65
8.82
12.62
9.86
9.86
Other Current Assets
7.15
65.82
212
67.55
44.36
46.43
46.87
59.77
55.16
71.28
71.28
Total Current Assets
--
--
--
--
--
--
--
3.27
9.69
35.71
35.71
Investments And Advances
86.07
123
--
--
--
--
--
--
--
--
--   Buildings And Improvements
--
0.09
0.05
356
356
714
714
717
717
720
720
  Other Gross PPE
86.07
123
0.05
356
356
714
714
717
717
720
720
Gross Property, Plant and Equipment
--
-0.01
--
-2.62
-13.11
-34.30
-55.44
-76.24
-97.06
-117
-117
  Accumulated Depreciation
86.07
123
0.05
353
343
680
659
641
620
602
602
Property, Plant and Equipment
--
--
--
18.65
16.24
24.37
20.74
17.11
14.06
11.30
11.30
Intangible Assets
--
--
--
0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.25
  Goodwill
41.90
40.14
337
324
407
309
297
292
283
283
283
Other Long Term Assets
128
163
337
696
766
1,013
976
953
927
933
933
Total Long-Term Assets
135
229
549
764
810
1,059
1,023
1,013
982
1,004
1,004
Total Assets
0.21
--
0.86
1.35
0.97
0.38
0.53
0.53
0.47
3.89
3.89
  Accounts Payable
--
4.62
3.57
2.21
1.26
2.84
2.55
5.33
1.91
2.25
2.25
  Total Tax Payable
--
15.21
11.58
21.22
13.05
7.32
2.30
2.51
2.60
3.66
3.66
  Other Current Payables
1.10
7.84
5.30
9.10
5.50
5.82
4.25
7.11
5.83
8.15
8.15
  Current Accrued Expense
1.31
27.67
21.31
33.89
20.77
16.35
9.63
15.49
10.81
17.94
17.94
Accounts Payable & Accrued Expense
91.59
193
19.53
32.50
32.21
45.46
45.46
44.66
59.12
46.39
46.39
  Short-Term Debt
--
--
--
--
--
--
--
0.08
0.04
0.06
0.06
  Short-Term Capital Lease Obligation
91.59
193
19.53
32.50
32.21
45.46
45.46
44.74
59.16
46.45
46.45
Short-Term Debt & Capital Lease Obligation
--
0.39
--
--
--
--
--
--
--
2.60
2.60
  Current Deferred Taxes Liabilities
--
0.39
--
--
--
--
--
--
--
2.60
2.60
DeferredTaxAndRevenue
--
--
6.68
5.84
4.84
2.02
2.09
3.03
7.84
9.22
9.22
Other Current Liabilities
92.89
221
47.52
72.22
57.82
63.82
57.18
63.25
77.81
76.21
76.21
Total Current Liabilities
--
--
179
378
343
487
429
421
374
365
365
  Long-Term Debt
--
--
179
378
343
487
429
421
374
365
365
Long-Term Debt & Capital Lease Obligation
-1.72
-4.02
0.84
1.64
1.03
1.12
0.91
0.93
0.88
0.78
0.78
Debt-to-Equity
0.93
0.93
22.21
15.73
12.79
10.87
8.97
12.55
14.43
18.46
18.46
NonCurrent Deferred Liabilities
94.53
54.30
64.17
48.36
31.63
22.93
7.07
14.40
22.32
14.19
14.19
Other Long-Term Liabilities
95.46
55.23
266
442
388
520
445
448
411
397
397
Total Long-Term Liabilities
188
277
313
514
446
584
503
511
488
473
473
Total Liabilities
--
--
-8.18
-7.24
-5.74
-2.75
-5.34
-17.94
-29.57
-15.70
-15.70
Accumulated other comprehensive income (loss)
-53.23
-48.10
245
257
371
477
526
519
523
546
546
Other Stockholders Equity
-53.23
-48.10
236
250
365
475
520
502
493
531
531
Total Stockholders Equity
-53.23
-48.10
236
250
365
475
520
502
493
531
531
Total Equity
-0.39
-0.21
0.43
0.33
0.45
0.45
0.51
0.50
0.50
0.53
0.53
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Valuation Ratios

Valuation Ratios

Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
TTM Fiscal Period
N/A
N/A
41.28
11.94
12.03
13.61
7.95
13.96
10.21
3.27
4.73
PE Ratio
N/A
N/A
41.28
11.94
12.03
13.61
7.95
13.96
10.21
3.27
4.73
PE Ratio without NRI
--
--
--
--
--
42.97
8.27
24.54
20.46
1.83
2.65
Price-to-Owner-Earnings
--
--
2.30
1.96
1.71
1.29
0.98
1.04
0.97
0.27
0.39
PB Ratio
--
--
2.30
2.12
1.79
1.36
1.02
1.07
0.99
0.28
0.40
Price-to-Tangible-Book
--
--
--
11.71
14.09
7.68
5.59
6.12
5.55
1.82
2.64
Price-to-Free-Cash-Flow
--
--
19.42
11.45
13.89
7.68
5.55
6.10
5.55
1.82
2.64
Price-to-Operating-Cash-Flow
--
--
7.28
8.53
5.58
4.28
3.47
3.57
3.33
1.02
1.49
PS Ratio
--
--
--
--
--
--
0.08
0.37
1.53
--
2.63
PEG Ratio
--
--
9.54
15.09
10.78
7.83
6.54
6.51
6.13
3.63
4.10
EV-to-Revenue
--
--
104
14.86
12.62
9.99
7.20
8.90
7.87
4.40
4.96
EV-to-EBITDA
--
--
129
15.57
14.61
12.30
8.55
11.15
9.69
5.33
6.01
EV-to-EBIT
--
--
0.77
6.42
6.84
8.13
11.70
8.97
10.32
18.76
16.66
Earnings Yield (Joel Greenblatt) %
--
--
--
--
--
--
23.37
33.19
22.90
56.25
39.21
Forward Rate of Return (Yacktman) %
--
--
--
--
--
--
--
--
--
3.08
4.46
Shiller PE Ratio
--
--
0.89
7.26
8.69
9.13
11.40
11.26
12.31
20.83
0.65
Dividend Yield %

Valuation and Quality

Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
TTM Fiscal Period
--
--
543
490
625
614
510
520
476
144
206
Market Cap
--
--
711
867
982
1,123
958
947
878
513
575
Enterprise Value
--
--
20.64
18.62
19.00
18.65
15.35
15.63
14.30
4.32
6.18
Month End Stock Price
-7.15
-10.51
-10.74
-18.28
-12.97
-17.06
-14.34
-14.18
-13.71
-12.91
-12.91
Net Cash per Share
-6.89
-8.02
-3.83
-16.97
-12.19
-16.34
-13.73
-13.56
-13.01
-12.05
-12.05
Net Current Asset Value
-7.15
-10.51
-10.56
-18.04
-12.91
-16.88
-14.31
-14.16
-13.70
-12.83
-12.83
Net-Net Working Capital
--
--
--
--
--
--
16.10
24.58
42.10
34.33
34.33
Intrinsic Value: Projected FCF
--
--
--
--
--
--
48.00
27.75
9.37
--
-- Peter Lynch Fair Value
--
--
10.05
17.56
19.40
20.53
25.56
19.15
21.29
21.50
21.50
Graham Number
--
--
--
--
--
-22.85
-12.32
9.66
13.44
14.20
14.20
Earnings Power Value (EPV)
--
--
1.57
0.88
1.21
1.03
1.10
1.03
1.01
0.63
0.71
Altman Z-Score
N/A
N/A
N/A
6.00
4.00
5.00
7.00
4.00
6.00
7.00
7.00
Piotroski F-Score
--
--
--
12.03
-2.66
-1.04
-3.37
-3.29
-3.33
4.52
4.52
Beneish M-Score
0.28
1.08
1.77
1.14
0.95
1.21
0.92
0.91
0.88
0.92
0.90
Scaled Net Operating Assets
54.42
49.19
48.33
-2.22
10.84
0.69
-1.67
-9.12
-8.44
-3.22
-- Sloan Ratio %
0.08
0.30
4.47
0.94
0.77
0.73
0.82
0.94
0.71
0.94
0.94
Current Ratio
0.08
0.30
4.47
0.92
0.76
0.72
0.81
0.94
0.71
0.94
0.94
Quick Ratio
--
--
0.64
0.46
0.33
0.36
0.46
0.62
0.41
0.56
0.56
Cash Ratio
--
--
3.22
2.40
2.35
3.05
3.44
3.22
3.94
3.88
3.88
Interest Coverage
--
--
25.89
23.25
19.23
20.60
19.70
19.91
16.72
18.06
18.17
Highest Stock Price
--
--
--
12.84
12.55
17.25
14.84
14.29
5.10
3.93
3.77
Lowest Stock Price
--
--
--
--
-25.08
-0.03
-0.85
-0.25
-0.07
-0.19
-0.19
Shares Buyback Ratio %
--
--
-29.46
--
-17.84
-18.07
-8.48
-2.71
-0.67
-6.34
-4.03
Buyback Yield %
--
838
44.59
-22.94
55.91
28.02
1.51
-1.15
-1.74
-1.51
-1.51
YoY Rev. per Sh. Growth
--
867
-67.49
212
1.28
-13.29
40.88
-41.97
25.00
-5.71
-5.71
YoY EPS Growth
--
1,653
-82.13
753
31.12
17.41
17.78
-20.40
4.62
4.36
4.36
YoY EBITDA Growth
--
--
--
--
--
--
104
37.84
6.69
-0.17
1.80
5-Year EBITDA Growth Rate
26.31
26.31
26.31
26.31
26.75
32.92
33.11
33.24
33.29
33.36
33.38
Shares Outstanding (Basic Average)
26.31
26.31
26.31
26.31
32.91
32.92
33.20
33.29
33.31
33.37
33.37
Shares Outstanding (EOP)
--
--
--
--
--
1.04
1.23
1.06
1.91
1.89
1.92
Beta
11/30/15
08/08/14
04/24/15
04/28/16
04/06/17
04/06/18
04/10/19
04/03/20
02/25/21
04/25/22
  Filing Date
11/30/15
04/28/16
04/06/17
04/06/18
04/10/19
04/03/20
04/09/21
04/25/22
04/25/22
04/25/22
  Restated Filing Date
02/28/17
02/28/18
02/27/19
02/27/20
02/25/21
02/23/22
  Earnings Release Date
--
--
160
200
260
260
260
260
260
665
665
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  May 20, 2022
Hoegh LNG Partners LP (NYSE:HMLP)
www.gurufocus.com/stock/NYSE:HMLP

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

Disclaimer

GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.