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H&E EQUIPMENT SERVICES INC (HEES) Stock Fundamental Analysis

NASDAQ:HEES - Nasdaq - US4040301081 - Common Stock - Currency: USD

94.64  -0.6 (-0.63%)

After market: 94.64 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to HEES. HEES was compared to 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.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year HEES was profitable.
HEES had a positive operating cash flow in the past year.
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.
HEES Yearly Net Income VS EBIT VS OCF VS FCFHEES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

HEES has a Return On Assets (3.39%) which is in line with its industry peers.
With a decent Return On Equity value of 15.05%, HEES is doing good in the industry, outperforming 63.27% of the companies in the same industry.
With a Return On Invested Capital value of 5.96%, HEES perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HEES is in line with the industry average of 9.77%.
Industry RankSector 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%
HEES Yearly ROA, ROE, ROICHEES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

1.3 Margins

HEES has a Profit Margin of 6.21%. This is in the better half of the industry: HEES outperforms 71.43% of its industry peers.
HEES's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 12.36%, HEES is in the better half of 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.
HEES has a Gross Margin of 43.28%. This is in the better half of the industry: HEES outperforms 77.55% of its industry peers.
In the last couple of years the Gross Margin of HEES has grown nicely.
Industry RankSector 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%
HEES Yearly Profit, Operating, Gross MarginsHEES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HEES is destroying value.
Compared to 1 year ago, HEES has more shares outstanding
HEES has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HEES has an improved debt to assets ratio.
HEES Yearly Shares OutstandingHEES Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
HEES Yearly Total Debt VS Total AssetsHEES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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.
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.
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 (13.77) which is in line with its industry peers.
HEES has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.26, HEES is doing worse than 79.59% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.26
Debt/FCF 13.77
Altman-Z 1.93
ROIC/WACC0.64
WACC9.37%
HEES Yearly LT Debt VS Equity VS FCFHEES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

A Current Ratio of 0.63 indicates that HEES may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.63, HEES is doing worse than 95.92% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that HEES may have some problems paying its short term obligations.
The Quick ratio of HEES (0.59) is worse than 81.63% of its industry peers.
Industry RankSector Rank
Current Ratio 0.63
Quick Ratio 0.59
HEES Yearly Current Assets VS Current LiabilitesHEES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2

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%.
HEES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.09% yearly.
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.
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.
HEES Yearly Revenue VS EstimatesHEES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
HEES Yearly EPS VS EstimatesHEES Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 34.04, HEES can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HEES is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.53. HEES is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.45, the valuation of HEES can be described as expensive.
Based on the Price/Forward Earnings ratio, HEES is valued a bit more expensive than the industry average as 63.27% of the companies are valued more cheaply.
HEES's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.27.
Industry RankSector Rank
PE 34.04
Fwd PE 27.45
HEES Price Earnings VS Forward Price EarningsHEES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 35.07
EV/EBITDA 7.76
HEES Per share dataHEES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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

5. Dividend

5.1 Amount

HEES has a Yearly Dividend Yield of 1.16%.
Compared to an average industry Dividend Yield of 2.04, 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 2.39.
Industry RankSector 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
HEES Yearly Dividends per shareHEES Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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
HEES Yearly Income VS Free CF VS DividendHEES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M -300M
HEES Dividend Payout.HEES Dividend Payout, showing the Payout Ratio.HEES Dividend Payout.PayoutRetained Earnings

H&E EQUIPMENT SERVICES INC

NASDAQ:HEES (5/30/2025, 8:01:00 PM)

After market: 94.64 0 (0%)

94.64

-0.6 (-0.63%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)07-28 2025-07-28/bmo
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 RankSector Rank
Dividend Yield 1.16%
Yearly Dividend1.1
Dividend Growth(5Y)-0.02%
DP44.29%
Div Incr Years0
Div Non Decr Years10
Ex-Date02-18 2025-02-18 (0.275)
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 RankSector 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 RankSector 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 RankSector 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
WACC9.37%
ROIC/WACC0.64
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%