Skip to main content

The Globe and Mail

Validea analysts drill deep into Husky's energy plays

Husky Energy’s Tucker operation.


Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Try it.

Calgary-based Husky Energy Inc. is one of Canada's largest integrated energy companies, having raked in more than $24-billion in sales over past 12 months. It has a market cap of $29-billion.

Husky has 18.9-per-cent free cash flow yield. Narrowing crack spreads have negatively impacted earnings, but that's helped keep valuations reasonable. Shares trade for less than 14 times trailing 12-month EPS, 1.2 times TTM sales, and 1.47 times book value, all very reasonable.

Story continues below advertisement

Husky has a 4.1-per-cent dividend yield and $5.13 in cash flow per share (more than four times the market mean), two reasons it gets strong interest from the James O'Shaughnessy-based value model.

Husky could pay off its $3.2-billion in debt in less than two years given its $2.1-billion in annual earnings, which the Warren Buffett-based model considers exceptional.

Husky also has a solid 11-per-cent return on equity and has averaged net profit margins of nearly 8 per cent over past three years.

Click here for a complete breakdown of Validea's investing guru report.

Read other research reports here.

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨