HESS CORP (HES)
US42809H1077 - Common Stock
HES gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 204 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of HES while its profitability can be described as average. HES has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HES had positive earnings in the past year.
In the past year HES had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HES reported negative net income in multiple years.
Each year in the past 5 years HES had a positive operating cash flow.
1.2 Ratios
HES has a Return On Assets of 10.25%. This is in the better half of the industry: HES outperforms 73.53% of its industry peers.
With a decent Return On Equity value of 25.23%, HES is doing good in the industry, outperforming 78.43% of the companies in the same industry.
HES has a Return On Invested Capital of 13.36%. This is in the better half of the industry: HES outperforms 74.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HES is significantly below the industry average of 22.91%.
The last Return On Invested Capital (13.36%) for HES is above the 3 year average (10.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.25% | ||
| ROE | 25.23% | ||
| ROIC | 13.36% |
ROA(3y)6.05%
ROA(5y)-0.04%
ROE(3y)16.98%
ROE(5y)-2.28%
ROIC(3y)10.55%
ROIC(5y)N/A
1.3 Margins
HES's Profit Margin of 21.47% is fine compared to the rest of the industry. HES outperforms 68.14% of its industry peers.
The Operating Margin of HES (35.47%) is better than 70.59% of its industry peers.
In the last couple of years the Operating Margin of HES has grown nicely.
Looking at the Gross Margin, with a value of 75.02%, HES belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
HES's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.47% | ||
| PM (TTM) | 21.47% | ||
| GM | 75.02% |
OM growth 3YN/A
OM growth 5Y26.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.36%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HES is still creating some value.
The number of shares outstanding for HES has been increased compared to 1 year ago.
The number of shares outstanding for HES has been increased compared to 5 years ago.
The debt/assets ratio for HES has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.96 indicates that HES is not a great score, but indicates only limited risk for bankruptcy at the moment.
HES has a better Altman-Z score (2.96) than 72.55% of its industry peers.
The Debt to FCF ratio of HES is 16.38, which is on the high side as it means it would take HES, 16.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.38, HES is doing worse than 64.22% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that HES is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, HES is not doing good in the industry: 69.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 16.38 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.69
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.27 indicates that HES should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, HES is in line with its industry, outperforming 51.96% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that HES should not have too much problems paying its short term obligations.
HES has a Quick ratio (1.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
HES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.06%, which is quite impressive.
The Revenue has grown by 14.56% in the past year. This is quite good.
The Revenue has been growing by 10.70% on average over the past years. This is quite good.
EPS 1Y (TTM)66.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%303.08%
Revenue 1Y (TTM)14.56%
Revenue growth 3Y31.08%
Revenue growth 5Y10.7%
Sales Q2Q%40.3%
3.2 Future
HES is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.22% yearly.
HES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.60% yearly.
EPS Next Y112.75%
EPS Next 2Y51.38%
EPS Next 3Y36.29%
EPS Next 5Y26.22%
Revenue Next Year23.28%
Revenue Next 2Y12.98%
Revenue Next 3Y12.43%
Revenue Next 5Y10.6%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.36, HES is valued correctly.
HES's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 31.46, HES is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.01, HES is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as HES.
The average S&P500 Price/Forward Earnings ratio is at 22.63. HES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HES.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HES indicates a slightly more expensive valuation: HES is more expensive than 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.91 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
HES's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HES has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HES's earnings are expected to grow with 36.29% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y51.38%
EPS Next 3Y36.29%
5. Dividend
5.1 Amount
HES has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
HES's Dividend Yield is slightly below the industry average, which is at 6.41.
HES's Dividend Yield is slightly below the S&P500 average, which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
On average, the dividend of HES grows each year by 9.08%, which is quite nice.
HES has paid a dividend for at least 10 years, which is a reliable track record.
HES has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.08%
Div Incr Years2
Div Non Decr Years33
5.3 Sustainability
HES pays out 20.37% of its income as dividend. This is a sustainable payout ratio.
HES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.37%
EPS Next 2Y51.38%
EPS Next 3Y36.29%
HESS CORP
NYSE:HES (10/22/2024, 1:28:01 PM)
139.07
-0.52 (-0.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap42.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)
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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 | 15.37 | ||
| Fwd PE | 12.02 | ||
| 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)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.25% | ||
| ROE | 25.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.47% | ||
| PM (TTM) | 21.47% | ||
| GM | 75.02% | ||
| 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.14 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)66.06%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y112.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.56%
Revenue growth 3Y31.08%
Revenue growth 5Y
Sales 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