H&E EQUIPMENT SERVICES INC (HEES)
US4040301081 - Common Stock
We assign a fundamental rating of 5 out of 10 to HEES. HEES was compared to 51 industry peers in the Trading Companies & Distributors industry. While HEES has a great profitability rating, there are quite some concerns on its financial health. HEES has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years HEES 4 years were profitable.
HEES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.15%, HEES is in line with its industry, outperforming 58.82% of the companies in the same industry.
HEES's Return On Equity of 30.78% is amongst the best of the industry. HEES outperforms 80.39% of its industry peers.
HEES has a Return On Invested Capital (8.95%) which is in line with its industry peers.
HEES had an Average Return On Invested Capital over the past 3 years of 7.61%. This is below the industry average of 11.26%.
The last Return On Invested Capital (8.95%) for HEES is above the 3 year average (7.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 30.78% | ||
| ROIC | 8.95% |
ROA(3y)5.7%
ROA(5y)3.97%
ROE(3y)32.81%
ROE(5y)22.61%
ROIC(3y)7.61%
ROIC(5y)6.81%
1.3 Margins
The Profit Margin of HEES (11.17%) is better than 74.51% of its industry peers.
HEES's Profit Margin has improved in the last couple of years.
HEES has a Operating Margin of 18.68%. This is in the better half of the industry: HEES outperforms 72.55% of its industry peers.
HEES's Operating Margin has improved in the last couple of years.
HEES's Gross Margin of 46.64% is fine compared to the rest of the industry. HEES outperforms 78.43% of its industry peers.
In the last couple of years the Gross Margin of HEES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.68% | ||
| PM (TTM) | 11.17% | ||
| GM | 46.64% |
OM growth 3Y28%
OM growth 5Y7.99%
PM growth 3YN/A
PM growth 5Y13.26%
GM growth 3Y9.52%
GM growth 5Y5.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEES is still creating some value.
The number of shares outstanding for HEES has been increased compared to 1 year ago.
Compared to 5 years ago, HEES has more shares outstanding
HEES has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that HEES is in the distress zone and has some risk of bankruptcy.
HEES has a worse Altman-Z score (1.56) than 62.75% of its industry peers.
HEES has a Debt/Equity ratio of 2.73. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HEES (2.73) is worse than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACC1.11
WACC8.09%
2.3 Liquidity
HEES has a Current Ratio of 0.97. 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 0.97. This is amonst the worse of the industry: HEES underperforms 90.20% of its industry peers.
HEES has a Quick Ratio of 0.97. 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 Quick ratio (0.71) than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.63% over the past year.
The Earnings Per Share has been growing by 17.55% on average over the past years. This is quite good.
HEES shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.26%.
The Revenue has been growing slightly by 3.47% on average over the past years.
EPS 1Y (TTM)21.63%
EPS 3Y53.56%
EPS 5Y17.55%
EPS growth Q2Q0%
Revenue 1Y (TTM)17.26%
Revenue growth 3Y13.42%
Revenue growth 5Y3.47%
Revenue growth Q2Q15.16%
3.2 Future
Based on estimates for the next years, HEES will show a small growth in Earnings Per Share. The EPS will grow by 5.35% on average per year.
The Revenue is expected to grow by 5.07% on average over the next years.
EPS Next Y7.04%
EPS Next 2Y10.28%
EPS Next 3Y5.35%
EPS Next 5YN/A
Revenue Next Year7.83%
Revenue Next 2Y7.39%
Revenue Next 3Y5.07%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.24, which indicates a very decent valuation of HEES.
Based on the Price/Earnings ratio, HEES is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
HEES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
HEES is valuated reasonably with a Price/Forward Earnings ratio of 8.42.
Based on the Price/Forward Earnings ratio, HEES is valued cheaply inside the industry as 84.31% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HEES to the average of the S&P500 Index (20.15), we can say HEES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEES indicates a rather cheap valuation: HEES is cheaper than 94.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.79 |
4.3 Compensation for Growth
HEES's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HEES has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)0.58
EPS Next 2Y10.28%
EPS Next 3Y5.35%
5. Dividend
5.1 Amount
HEES has a Yearly Dividend Yield of 2.29%.
Compared to an average industry Dividend Yield of 1.72, HEES pays a better dividend. On top of this HEES pays more dividend than 88.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, HEES has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
The dividend of HEES decreases each year by -0.03%.
HEES has paid a dividend for at least 10 years, which is a reliable track record.
As HEES did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.03%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
HEES pays out 23.64% of its income as dividend. This is a sustainable payout ratio.
DP23.64%
EPS Next 2Y10.28%
EPS Next 3Y5.35%
H&E EQUIPMENT SERVICES INC
NASDAQ:HEES (5/17/2024, 7:03:40 PM)
After market: 48.8 -0.17 (-0.35%)48.97
+0.87 (+1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.46
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 30.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.68% | ||
| PM (TTM) | 11.17% | ||
| GM | 46.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)21.63%
EPS 3Y53.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.26%
Revenue growth 3Y13.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y