H&E EQUIPMENT SERVICES INC (HEES) Stock Fundamental Analysis
NASDAQ:HEES - Nasdaq - US4040301081 - Common Stock - Currency: USD
HEES gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 49 industry peers in the Trading Companies & Distributors industry. HEES has a medium profitability rating, but doesn't score so well on its financial health evaluation. HEES has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
HEES had positive earnings in the past year.
In the past year HEES had a positive cash flow from operations.
HEES had positive earnings in 4 of the past 5 years.
HEES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.39%, HEES perfoms like the industry average, outperforming 51.02% of the companies in the same industry.
HEES has a Return On Equity of 15.05%. This is in the better half of the industry: HEES outperforms 63.27% of its industry peers.
HEES has a Return On Invested Capital (5.96%) which is comparable to the rest of the industry.
HEES had an Average Return On Invested Capital over the past 3 years of 8.17%. This is in line with the industry average of 9.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 15.05% | ||
| ROIC | 5.96% |
ROA(3y)5.53%
ROA(5y)3.97%
ROE(3y)28.14%
ROE(5y)20.89%
ROIC(3y)8.17%
ROIC(5y)6.83%
1.3 Margins
With a decent Profit Margin value of 6.21%, HEES is doing good in the industry, outperforming 71.43% of the companies in the same industry.
HEES's Profit Margin has been stable in the last couple of years.
HEES has a Operating Margin of 12.36%. This is in the better half of the industry: HEES outperforms 75.51% of its industry peers.
HEES's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 43.28%, HEES is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
In the last couple of years the Gross Margin of HEES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.36% | ||
| PM (TTM) | 6.21% | ||
| GM | 43.28% |
OM growth 3Y7.13%
OM growth 5Y0.88%
PM growth 3Y-5.62%
PM growth 5Y0.89%
GM growth 3Y4.44%
GM growth 5Y2.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HEES is destroying value.
The number of shares outstanding for HEES has been increased compared to 1 year ago.
The number of shares outstanding for HEES has been increased compared to 5 years ago.
Compared to 1 year ago, HEES has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.93 indicates that HEES is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.93, HEES is doing worse than 71.43% of the companies in the same industry.
The Debt to FCF ratio of HEES is 13.77, which is on the high side as it means it would take HEES, 13.77 years of fcf income to pay off all of its debts.
HEES's Debt to FCF ratio of 13.77 is in line compared to the rest of the industry. HEES outperforms 53.06% of its industry peers.
A Debt/Equity ratio of 2.26 is on the high side and indicates that HEES has dependencies on debt financing.
HEES has a worse Debt to Equity ratio (2.26) than 79.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 13.77 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.62
WACC9.54%
2.3 Liquidity
HEES has a Current Ratio of 0.63. This is a bad value and indicates that HEES is not financially healthy enough and could expect problems in meeting its short term obligations.
HEES has a Current ratio of 0.63. This is amonst the worse of the industry: HEES underperforms 95.92% of its industry peers.
A Quick Ratio of 0.59 indicates that HEES may have some problems paying its short term obligations.
With a Quick ratio value of 0.59, HEES is not doing good in the industry: 81.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
HEES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.84%.
Measured over the past 5 years, HEES shows a small growth in Earnings Per Share. The EPS has been growing by 5.09% on average per year.
The Revenue has decreased by -3.52% in the past year.
Measured over the past years, HEES shows a small growth in Revenue. The Revenue has been growing by 6.18% on average per year.
EPS 1Y (TTM)-41.84%
EPS 3Y24.34%
EPS 5Y5.09%
EPS Q2Q%-95.77%
Revenue 1Y (TTM)-3.52%
Revenue growth 3Y12.58%
Revenue growth 5Y6.18%
Sales Q2Q%-13.98%
3.2 Future
HEES is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.18% yearly.
Based on estimates for the next years, HEES will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y-31.61%
EPS Next 2Y-0.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.39%
Revenue Next 2Y3.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HEES is valuated quite expensively with a Price/Earnings ratio of 34.04.
HEES's Price/Earnings is on the same level as the industry average.
HEES is valuated rather expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.45, HEES can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEES indicates a slightly more expensive valuation: HEES is more expensive than 63.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. HEES is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.04 | ||
| Fwd PE | 27.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HEES is valued cheaper than 85.71% of the companies in the same industry.
HEES's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.07 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
The decent profitability rating of HEES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.69
EPS Next 2Y-0.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HEES has a Yearly Dividend Yield of 1.16%.
HEES's Dividend Yield is a higher than the industry average which is at 2.04.
With a Dividend Yield of 1.16, HEES pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of HEES decreases each year by -0.02%.
HEES has been paying a dividend for at least 10 years, so it has a reliable track record.
HEES has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.02%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
44.29% of the earnings are spent on dividend by HEES. This is a bit on the high side, but may be sustainable.
HEES's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP44.29%
EPS Next 2Y-0.18%
EPS Next 3YN/A
94.64
-0.6 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners85.48%
Inst Owner Change-4.69%
Ins Owners12.41%
Ins Owner Change-97.06%
Market Cap3.47B
Analysts47.5
Price Target86.7 (-8.39%)
Short Float %5.24%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.1
Dividend Growth(5Y)-0.02%
DP44.29%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-37.57%
Min EPS beat(2)-95.33%
Max EPS beat(2)20.2%
EPS beat(4)1
Avg EPS beat(4)-26.33%
Min EPS beat(4)-95.33%
Max EPS beat(4)20.2%
EPS beat(8)4
Avg EPS beat(8)-10.27%
EPS beat(12)8
Avg EPS beat(12)1.39%
EPS beat(16)12
Avg EPS beat(16)7.88%
Revenue beat(2)1
Avg Revenue beat(2)-6.27%
Min Revenue beat(2)-13.63%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-4.69%
Min Revenue beat(4)-13.63%
Max Revenue beat(4)1.09%
Revenue beat(8)4
Avg Revenue beat(8)-1.43%
Revenue beat(12)7
Avg Revenue beat(12)-0.3%
Revenue beat(16)9
Avg Revenue beat(16)-1.57%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)35.45%
EPS NQ rev (3m)-22.4%
EPS NY rev (1m)-37.8%
EPS NY rev (3m)-38.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.41%
Revenue NY rev (1m)3.15%
Revenue NY rev (3m)-3.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.04 | ||
| Fwd PE | 27.45 | ||
| P/S | 2.37 | ||
| P/FCF | 35.07 | ||
| P/OCF | 6.8 | ||
| P/B | 5.75 | ||
| P/tB | 8.51 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)2.78
EY2.94%
EPS(NY)3.45
Fwd EY3.64%
FCF(TTM)2.7
FCFY2.85%
OCF(TTM)13.91
OCFY14.7%
SpS39.94
BVpS16.47
TBVpS11.12
PEG (NY)N/A
PEG (5Y)6.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 15.05% | ||
| ROCE | 7.87% | ||
| ROIC | 5.96% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 6.54% | ||
| OM | 12.36% | ||
| PM (TTM) | 6.21% | ||
| GM | 43.28% | ||
| FCFM | 6.76% |
ROA(3y)5.53%
ROA(5y)3.97%
ROE(3y)28.14%
ROE(5y)20.89%
ROIC(3y)8.17%
ROIC(5y)6.83%
ROICexc(3y)8.33%
ROICexc(5y)7.4%
ROICexgc(3y)8.97%
ROICexgc(5y)7.96%
ROCE(3y)10.79%
ROCE(5y)9.02%
ROICexcg growth 3Y1.18%
ROICexcg growth 5Y-1.16%
ROICexc growth 3Y0.48%
ROICexc growth 5Y-0.78%
OM growth 3Y7.13%
OM growth 5Y0.88%
PM growth 3Y-5.62%
PM growth 5Y0.89%
GM growth 3Y4.44%
GM growth 5Y2.47%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 13.77 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 93.34% | ||
| Cap/Sales | 28.07% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 82.07% | ||
| Profit Quality | 108.88% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.93 |
F-Score5
WACC9.54%
ROIC/WACC0.62
Cap/Depr(3y)155.79%
Cap/Depr(5y)138%
Cap/Sales(3y)40.66%
Cap/Sales(5y)35.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.84%
EPS 3Y24.34%
EPS 5Y5.09%
EPS Q2Q%-95.77%
EPS Next Y-31.61%
EPS Next 2Y-0.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.52%
Revenue growth 3Y12.58%
Revenue growth 5Y6.18%
Sales Q2Q%-13.98%
Revenue Next Year0.39%
Revenue Next 2Y3.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-36.15%
EBIT growth 3Y20.61%
EBIT growth 5Y7.11%
EBIT Next Year175.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y142.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.44%
OCF growth 3Y24.05%
OCF growth 5Y9.2%