Holly Energy Partners LP (HEP) Stock Fundamental Analysis
NYSE:HEP - New York Stock Exchange, Inc. - US4357631070 - Currency: USD
Taking everything into account, HEP scores 4 out of 10 in our fundamental rating. HEP was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. HEP has a medium profitability rating, but doesn't score so well on its financial health evaluation. HEP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HEP was profitable.
HEP had a positive operating cash flow in the past year.
In the past 5 years HEP has always been profitable.
HEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEP has a Return On Assets (8.82%) which is comparable to the rest of the industry.
HEP has a Return On Equity of 26.66%. This is in the better half of the industry: HEP outperforms 65.90% of its industry peers.
HEP's Return On Invested Capital of 7.61% is on the low side compared to the rest of the industry. HEP is outperformed by 60.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEP is significantly below the industry average of 23.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 26.66% | ||
| ROIC | 7.61% |
ROA(3y)8.55%
ROA(5y)8.88%
ROE(3y)39.57%
ROE(5y)43.91%
ROIC(3y)7.99%
ROIC(5y)8.68%
1.3 Margins
The Profit Margin of HEP (40.91%) is better than 80.18% of its industry peers.
HEP's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 42.93%, HEP is doing good in the industry, outperforming 74.65% of the companies in the same industry.
HEP's Operating Margin has declined in the last couple of years.
HEP has a better Gross Margin (62.77%) than 61.75% of its industry peers.
HEP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.93% | ||
| PM (TTM) | 40.91% | ||
| GM | 62.77% |
OM growth 3Y-6.27%
OM growth 5Y-3.66%
PM growth 3Y-2.17%
PM growth 5Y2.34%
GM growth 3Y-4.02%
GM growth 5Y-2.47%
2. Health
2.1 Basic Checks
HEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HEP has been increased compared to 1 year ago.
The debt/assets ratio for HEP has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HEP is 4.77, which is a neutral value as it means it would take HEP, 4.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.77, HEP is in line with its industry, outperforming 55.30% of the companies in the same industry.
HEP has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.71, HEP is doing worse than 81.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 4.77 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC7.28%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HEP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, HEP is in line with its industry, outperforming 48.39% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that HEP should not have too much problems paying its short term obligations.
HEP has a Quick ratio of 1.15. This is comparable to the rest of the industry: HEP outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
HEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.86%, which is quite good.
Measured over the past years, HEP shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.41% on average per year.
Looking at the last year, HEP shows a quite strong growth in Revenue. The Revenue has grown by 11.56% in the last year.
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)13.86%
EPS 3Y-0.56%
EPS 5Y-1.41%
EPS Q2Q%51.52%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y0.91%
Revenue growth 5Y3.8%
Sales Q2Q%6.31%
3.2 Future
HEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.09% yearly.
HEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y7.71%
EPS Next 2Y11.49%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue Next Year9.05%
Revenue Next 2Y7.91%
Revenue Next 3Y5.53%
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 accelerating.
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
HEP is valuated reasonably with a Price/Earnings ratio of 10.82.
HEP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of HEP to the average of the S&P500 Index (27.50), we can say HEP is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.29, the valuation of HEP can be described as very reasonable.
HEP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, HEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
70.51% of the companies in the same industry are cheaper than HEP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HEP is valued a bit cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
HEP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.4
PEG (5Y)N/A
EPS Next 2Y11.49%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.85%, HEP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.48, HEP pays a bit more dividend than its industry peers.
HEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
5.2 History
The dividend of HEP decreases each year by -12.46%.
HEP has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HEP decreased recently.
Dividend Growth(5Y)-12.46%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
74.17% of the earnings are spent on dividend by HEP. This is not a sustainable payout ratio.
DP74.17%
EPS Next 2Y11.49%
EPS Next 3Y9.09%
20.45
-0.16 (-0.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners1.48%
Ins Owner Change0%
Market Cap2.59B
Analysts46
Price Target21.93 (7.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
Yearly Dividend1.47
Dividend Growth(5Y)-12.46%
DP74.17%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.42%
Min EPS beat(2)-10.9%
Max EPS beat(2)-3.94%
EPS beat(4)2
Avg EPS beat(4)-1.66%
Min EPS beat(4)-10.9%
Max EPS beat(4)4.89%
EPS beat(8)3
Avg EPS beat(8)-5.14%
EPS beat(12)7
Avg EPS beat(12)1.36%
EPS beat(16)10
Avg EPS beat(16)10.6%
Revenue beat(2)1
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-5.17%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)15.53%
Revenue beat(8)5
Avg Revenue beat(8)2.44%
Revenue beat(12)7
Avg Revenue beat(12)1.28%
Revenue beat(16)9
Avg Revenue beat(16)1.05%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.29 | ||
| P/S | 4.43 | ||
| P/FCF | 8.05 | ||
| P/OCF | 7.37 | ||
| P/B | 2.89 | ||
| P/tB | 5.16 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)1.89
EY9.24%
EPS(NY)2.2
Fwd EY10.76%
FCF(TTM)2.54
FCFY12.42%
OCF(TTM)2.78
OCFY13.57%
SpS4.62
BVpS7.09
TBVpS3.97
PEG (NY)1.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 26.66% | ||
| ROCE | 9.64% | ||
| ROIC | 7.61% | ||
| ROICexc | 7.65% | ||
| ROICexgc | 9.02% | ||
| OM | 42.93% | ||
| PM (TTM) | 40.91% | ||
| GM | 62.77% | ||
| FCFM | 55% |
ROA(3y)8.55%
ROA(5y)8.88%
ROE(3y)39.57%
ROE(5y)43.91%
ROIC(3y)7.99%
ROIC(5y)8.68%
ROICexc(3y)8.05%
ROICexc(5y)8.73%
ROICexgc(3y)9.47%
ROICexgc(5y)10.46%
ROCE(3y)10.11%
ROCE(5y)10.99%
ROICexcg growth 3Y-13.07%
ROICexcg growth 5Y-5.5%
ROICexc growth 3Y-12.24%
ROICexc growth 5Y-4.64%
OM growth 3Y-6.27%
OM growth 5Y-3.66%
PM growth 3Y-2.17%
PM growth 5Y2.34%
GM growth 3Y-4.02%
GM growth 5Y-2.47%
F-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 4.77 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 29.92% | ||
| Cap/Sales | 5.1% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 100.2% | ||
| Profit Quality | 134.45% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | N/A |
F-Score8
WACC7.28%
ROIC/WACC1.05
Cap/Depr(3y)64.95%
Cap/Depr(5y)54.8%
Cap/Sales(3y)12.41%
Cap/Sales(5y)10.45%
Profit Quality(3y)126.74%
Profit Quality(5y)127.52%
High Growth Momentum
Growth
EPS 1Y (TTM)13.86%
EPS 3Y-0.56%
EPS 5Y-1.41%
EPS Q2Q%51.52%
EPS Next Y7.71%
EPS Next 2Y11.49%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue 1Y (TTM)11.56%
Revenue growth 3Y0.91%
Revenue growth 5Y3.8%
Sales Q2Q%6.31%
Revenue Next Year9.05%
Revenue Next 2Y7.91%
Revenue Next 3Y5.53%
Revenue Next 5YN/A
EBIT growth 1Y18.14%
EBIT growth 3Y-5.42%
EBIT growth 5Y0%
EBIT Next Year83.08%
EBIT Next 3Y24.67%
EBIT Next 5YN/A
FCF growth 1Y38.39%
FCF growth 3Y3.03%
FCF growth 5Y8.56%
OCF growth 1Y5.91%
OCF growth 3Y3.67%
OCF growth 5Y6.77%