94.64 USD
-0.6 (-0.63%)
94.64 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to HEES. HEES was compared to 50 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HEES was profitable.
In the past year HEES had a positive cash flow from operations.
Of the past 5 years HEES 4 years were profitable.
In the past 5 years HEES always reported a positive cash flow from operatings.
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's Return On Equity of 15.05% is fine compared to the rest of the industry. HEES outperforms 63.27% of its industry peers.
The Return On Invested Capital of HEES (5.96%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for HEES is in line with the industry average of 9.42%.
| 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
Looking at the Profit Margin, with a value of 6.21%, HEES is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of HEES has remained more or less at the same level.
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
HEES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HEES has more shares outstanding
The number of shares outstanding for HEES has been increased compared to 5 years ago.
The debt/assets ratio for HEES has been reduced compared to a year ago.
2.2 Solvency
HEES has an Altman-Z score of 1.93. This is not the best score and indicates that HEES is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of HEES (1.93) is worse than 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'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's Debt to Equity ratio of 2.26 is on the low side compared to the rest of the industry. HEES is outperformed by 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 worse Current ratio (0.63) 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's Quick ratio of 0.59 is on the low side compared to the rest of the industry. HEES is outperformed by 81.63% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 5.09% on average over the past years.
Looking at the last year, HEES shows a decrease in Revenue. The Revenue has decreased by -3.52% in the last year.
The Revenue has been growing slightly by 6.18% on average over the past years.
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
The Earnings Per Share is expected to decrease by -0.18% on average over the next years.
HEES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.68% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 34.04, which means the current valuation is very expensive for 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.
HEES is valuated rather expensively when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.45, the valuation of HEES can be described as expensive.
65.31% of the companies in the same industry are cheaper than HEES, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HEES to the average of the S&P500 Index (23.69), we can say HEES is valued inline with the index average.
| 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.
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
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 2.97, HEES pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.16, HEES pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of HEES decreases each year by -0.02%.
HEES has paid a dividend for at least 10 years, which is 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
HEES pays out 44.29% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of HEES has been decling, while earnings will also be 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 Owners78.62%
Inst Owner Change-36.02%
Ins Owners0.67%
Ins Owner Change0%
Market Cap3.47B
Revenue(TTM)1.46B
Net Income(TTM)90.89M
Analysts47.5
Price Target86.7 (-8.39%)
Short Float %N/A
Short RatioN/A
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)-19.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-38.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.18%
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
Graham NumberN/A
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%
ROICexgc growth 3Y1.18%
ROICexgc 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%
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 of H&E EQUIPMENT SERVICES INC (HEES) stock?
ChartMill assigns a valuation rating of 2 / 10 to H&E EQUIPMENT SERVICES INC (HEES). This can be considered as Overvalued.
How profitable is H&E EQUIPMENT SERVICES INC (HEES) stock?
H&E EQUIPMENT SERVICES INC (HEES) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for HEES stock?
The Earnings per Share (EPS) of H&E EQUIPMENT SERVICES INC (HEES) is expected to decline by -31.61% in the next year.
How sustainable is the dividend of H&E EQUIPMENT SERVICES INC (HEES) stock?
The dividend rating of H&E EQUIPMENT SERVICES INC (HEES) is 5 / 10 and the dividend payout ratio is 44.29%.