94.64 USD
-0.6 (-0.63%)
94.64 USD
0 (0%)
Overall HEES gets a fundamental rating of 3 out of 10. We evaluated HEES against 50 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of HEES while its profitability can be described as average. 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.
- In the past 5 years HEES always reported a positive cash flow from operatings.
1.2 Ratios
- HEES's Return On Assets of 3.39% is in line compared to the rest of the industry. HEES outperforms 51.02% of its industry peers.
- HEES has a better Return On Equity (15.05%) than 63.27% of its industry peers.
- The Return On Invested Capital of HEES (5.96%) 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 9.64%.
| 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
- HEES has a better Profit Margin (6.21%) than 71.43% of its industry peers.
- In the last couple of years the Profit Margin of HEES has remained more or less at the same level.
- With a decent Operating Margin value of 12.36%, HEES is doing good in the industry, outperforming 75.51% of the companies in the same industry.
- In the last couple of years the Operating Margin of HEES has remained more or less at the same level.
- The Gross Margin of HEES (43.28%) is better than 77.55% of its industry peers.
- HEES's Gross Margin has improved in the last couple of years.
| 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
- HEES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- HEES has more shares outstanding than it did 1 year ago.
- HEES has more shares outstanding than it did 5 years ago.
- HEES has a better debt/assets ratio than last year.
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.
- HEES's Altman-Z score of 1.93 is on the low side compared to the rest of the industry. HEES is outperformed by 71.43% of its industry peers.
- HEES has a debt to FCF ratio of 13.77. This is a negative value and a sign of low solvency as HEES would need 13.77 years to pay back of all of its debts.
- HEES has a Debt to FCF ratio of 13.77. This is comparable 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 Debt to Equity ratio of 2.26. This is in the lower half of the industry: HEES underperforms 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.
- The Current ratio of HEES (0.63) is worse than 95.92% of its industry peers.
- HEES has a Quick 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 Quick ratio of 0.59. This is amonst the worse of the industry: HEES underperforms 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The earnings per share for HEES have decreased strongly by -41.84% in the last year.
- The Earnings Per Share has been growing slightly by 5.09% on average over the past years.
- HEES shows a decrease in Revenue. In the last year, the revenue decreased by -3.52%.
- 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.
- The Revenue is expected to grow by 3.68% on average over the next years.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 34.04 indicates a quite expensive valuation of HEES.
- Based on the Price/Earnings ratio, HEES is valued a bit more expensive than the industry average as 61.22% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, HEES is valued a bit more expensive.
- HEES is valuated quite expensively with a Price/Forward Earnings ratio of 27.45.
- 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 65.31% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. HEES is around the same levels.
| 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 cheaply inside the industry as 85.71% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEES is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.07 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
- HEES has a very decent profitability rating, which 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%.
- Compared to an average industry Dividend Yield of 1.48, HEES pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, HEES is paying slightly less dividend.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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
H&E EQUIPMENT SERVICES INC / HEES FAQ
Can you provide the ChartMill fundamental rating for H&E EQUIPMENT SERVICES INC?
ChartMill assigns a fundamental rating of 3 / 10 to HEES.
What is the valuation status for HEES stock?
ChartMill assigns a valuation rating of 2 / 10 to H&E EQUIPMENT SERVICES INC (HEES). This can be considered as Overvalued.
What is the profitability of HEES stock?
H&E EQUIPMENT SERVICES INC (HEES) has a profitability rating of 6 / 10.
Can you provide the financial health for HEES stock?
The financial health rating of H&E EQUIPMENT SERVICES INC (HEES) is 1 / 10.
Is the dividend of H&E EQUIPMENT SERVICES INC sustainable?
The dividend rating of H&E EQUIPMENT SERVICES INC (HEES) is 5 / 10 and the dividend payout ratio is 44.29%.