H&E EQUIPMENT SERVICES INC (HEES) Stock Fundamental Analysis
NASDAQ:HEES - Nasdaq - US4040301081 - Common Stock - Currency: USD
Taking everything into account, HEES scores 3 out of 10 in our fundamental rating. HEES was compared to 48 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 does not seem to be growing, but still is valued expensively.
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
Looking at the Return On Assets, with a value of 3.39%, HEES is in line with its industry, outperforming 51.02% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.05%, HEES is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
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 9.84%.
| 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
The Profit Margin of HEES (6.21%) is better than 71.43% of its industry peers.
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.
In the last couple of years the Operating Margin of HEES has remained more or less at the same level.
HEES has a better Gross Margin (43.28%) 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
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.
HEES has more shares outstanding than it did 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.
HEES has a Altman-Z score of 1.93. This is in the lower half of the industry: HEES underperforms 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.
Looking at the Debt to FCF ratio, with a value of 13.77, HEES is in line with its industry, outperforming 53.06% of the companies in the same industry.
A Debt/Equity ratio of 2.26 is on the high side and indicates that HEES has dependencies on debt financing.
The Debt to Equity ratio of HEES (2.26) is worse 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.
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.
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
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.
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
Based on estimates for the next years, HEES will show a decrease in Earnings Per Share. The EPS will decrease by -0.18% on average per year.
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.
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.
61.22% of the companies in the same industry are cheaper than HEES, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.48, HEES is valued a bit more expensive.
With a Price/Forward Earnings ratio of 27.45, HEES can be considered very expensive at the moment.
HEES's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HEES is more expensive than 65.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.04. HEES is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.04 | ||
| Fwd PE | 27.45 |
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 85.71% of the companies listed in the same industry.
HEES's Price/Free Cash Flow ratio is in line with 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%.
Compared to an average industry Dividend Yield of 2.05, 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 2.40.
| 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
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-1.78%
Ins Owners0.67%
Ins Owner Change-9809.67%
Market Cap3.47B
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
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%