Hess Corporation (HES) Stock Fundamental Analysis
USA - NYSE:HES - US42809H1077 - Common Stock
148.97 USD
+1.42 (+0.96%)
160.31 USD
+11.34 (+7.61%)
Overall HES gets a fundamental rating of 5 out of 10. We evaluated HES against 209 industry peers in the Oil, Gas & Consumable Fuels industry. HES has an excellent profitability rating, but there are concerns on its financial health. HES is quite expensive at the moment. It does show a decent 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.
HES had positive earnings in 4 of the past 5 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 8.21%. This is in the better half of the industry: HES outperforms 78.10% of its industry peers.
HES has a Return On Equity of 19.33%. This is amongst the best in the industry. HES outperforms 83.81% of its industry peers.
HES has a Return On Invested Capital of 12.13%. This is amongst the best in the industry. HES outperforms 86.67% 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 21.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 19.33% | ||
| ROIC | 12.13% |
ROA(3y)8.62%
ROA(5y)2.43%
ROE(3y)22.25%
ROE(5y)3.6%
ROIC(3y)12.85%
ROIC(5y)N/A
1.3 Margins
HES's Profit Margin of 17.82% is fine compared to the rest of the industry. HES outperforms 69.05% of its industry peers.
In the last couple of years the Profit Margin of HES has grown nicely.
With a decent Operating Margin value of 33.02%, HES is doing good in the industry, outperforming 74.29% of the companies in the same industry.
HES's Operating Margin has improved in the last couple of years.
HES's Gross Margin of 77.56% is amongst the best of the industry. HES outperforms 88.57% of its industry peers.
HES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.02% | ||
| PM (TTM) | 17.82% | ||
| GM | 77.56% |
OM growth 3Y11.29%
OM growth 5Y32.64%
PM growth 3Y42.12%
PM growth 5YN/A
GM growth 3Y3.38%
GM growth 5Y2.03%
2. Health
2.1 Basic Checks
HES 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 HES has been increased compared to 1 year ago.
Compared to 5 years ago, HES has more shares outstanding
HES has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.99 indicates that HES is not a great score, but indicates only limited risk for bankruptcy at the moment.
HES has a Altman-Z score of 2.99. This is amongst the best in the industry. HES outperforms 81.90% of its industry peers.
HES has a debt to FCF ratio of 7.90. This is a slightly negative value and a sign of low solvency as HES would need 7.90 years to pay back of all of its debts.
HES's Debt to FCF ratio of 7.90 is in line compared to the rest of the industry. HES outperforms 53.81% of its industry peers.
HES has a Debt/Equity ratio of 0.76. This is a neutral value indicating HES is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, HES is not doing good in the industry: 63.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 7.9 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.36
WACC8.89%
2.3 Liquidity
HES has a Current Ratio of 1.08. This is a normal value and indicates that HES is financially healthy and should not expect problems in meeting its short term obligations.
HES has a Current ratio (1.08) which is in line with its industry peers.
HES has a Quick Ratio of 1.08. This is a bad value and indicates that HES is not financially healthy enough and could expect problems in meeting its short term obligations.
HES has a Quick ratio of 0.91. This is comparable to the rest of the industry: HES outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
HES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.66%, which is quite good.
Measured over the past years, HES shows a very strong growth in Earnings Per Share. The EPS has been growing by 64.11% on average per year.
The Revenue has grown by 9.55% in the past year. This is quite good.
HES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.70% yearly.
EPS 1Y (TTM)17.66%
EPS 3Y64.11%
EPS 5YN/A
EPS Q2Q%-42.72%
Revenue 1Y (TTM)9.55%
Revenue growth 3Y19.95%
Revenue growth 5Y14.7%
Sales Q2Q%-12.06%
3.2 Future
Based on estimates for the next years, HES will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.19% on average per year.
The Revenue is expected to grow by 7.19% on average over the next years.
EPS Next Y-35.51%
EPS Next 2Y-7.46%
EPS Next 3Y8.11%
EPS Next 5Y11.19%
Revenue Next Year-12.35%
Revenue Next 2Y0.34%
Revenue Next 3Y6.16%
Revenue Next 5Y7.19%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
With a Price/Earnings ratio of 17.88, HES is valued on the expensive side.
HES's Price/Earnings ratio is in line with the industry average.
HES is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
HES is valuated rather expensively with a Price/Forward Earnings ratio of 17.97.
HES's Price/Forward Earnings is on the same level as the industry average.
HES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
HES's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as HES.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.32 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
The decent profitability rating of HES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.46%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
HES has a Yearly Dividend Yield of 1.34%.
HES's Dividend Yield is slightly below the industry average, which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.30, HES's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of HES is nicely growing with an annual growth rate of 12.15%!
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)12.15%
Div Incr Years3
Div Non Decr Years34
5.3 Sustainability
26.90% of the earnings are spent on dividend by HES. This is a low number and sustainable payout ratio.
The dividend of HES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.9%
EPS Next 2Y-7.46%
EPS Next 3Y8.11%
148.97
+1.42 (+0.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.07%
Inst Owner Change-1.25%
Ins Owners8.84%
Ins Owner Change-323.05%
Market Cap46.07B
Revenue(TTM)12.50B
Net Income(TTM)2.23B
Analysts74
Price Target164.07 (10.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend1.88
Dividend Growth(5Y)12.15%
DP26.9%
Div Incr Years3
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.68%
Min EPS beat(2)11.23%
Max EPS beat(2)18.14%
EPS beat(4)4
Avg EPS beat(4)13.4%
Min EPS beat(4)4.48%
Max EPS beat(4)19.75%
EPS beat(8)8
Avg EPS beat(8)28.25%
EPS beat(12)11
Avg EPS beat(12)19.9%
EPS beat(16)15
Avg EPS beat(16)19.88%
Revenue beat(2)2
Avg Revenue beat(2)9.14%
Min Revenue beat(2)7.15%
Max Revenue beat(2)11.13%
Revenue beat(4)4
Avg Revenue beat(4)9.07%
Min Revenue beat(4)5.82%
Max Revenue beat(4)12.18%
Revenue beat(8)8
Avg Revenue beat(8)12.91%
Revenue beat(12)12
Avg Revenue beat(12)13.99%
Revenue beat(16)16
Avg Revenue beat(16)15.83%
PT rev (1m)0.82%
PT rev (3m)-0.2%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)-24.19%
EPS NY rev (1m)0.95%
EPS NY rev (3m)-6.27%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-6.17%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 17.97 | ||
| P/S | 3.69 | ||
| P/FCF | 41.32 | ||
| P/OCF | 7.53 | ||
| P/B | 4 | ||
| P/tB | 4.13 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)8.33
EY5.59%
EPS(NY)8.29
Fwd EY5.57%
FCF(TTM)3.61
FCFY2.42%
OCF(TTM)19.78
OCFY13.27%
SpS40.41
BVpS37.25
TBVpS36.09
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 19.33% | ||
| ROCE | 16.99% | ||
| ROIC | 12.13% | ||
| ROICexc | 12.83% | ||
| ROICexgc | 13.03% | ||
| OM | 33.02% | ||
| PM (TTM) | 17.82% | ||
| GM | 77.56% | ||
| FCFM | 8.92% |
ROA(3y)8.62%
ROA(5y)2.43%
ROE(3y)22.25%
ROE(5y)3.6%
ROIC(3y)12.85%
ROIC(5y)N/A
ROICexc(3y)14.1%
ROICexc(5y)N/A
ROICexgc(3y)14.37%
ROICexgc(5y)N/A
ROCE(3y)18.01%
ROCE(5y)N/A
ROICexgc growth 3Y15.5%
ROICexgc growth 5Y44.85%
ROICexc growth 3Y15.83%
ROICexc growth 5Y44.98%
OM growth 3Y11.29%
OM growth 5Y32.64%
PM growth 3Y42.12%
PM growth 5YN/A
GM growth 3Y3.38%
GM growth 5Y2.03%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 7.9 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 196.2% | ||
| Cap/Sales | 40.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.61% | ||
| Profit Quality | 50.07% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.99 |
F-Score6
WACC8.89%
ROIC/WACC1.36
Cap/Depr(3y)186.56%
Cap/Depr(5y)155.99%
Cap/Sales(3y)33.83%
Cap/Sales(5y)34.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.66%
EPS 3Y64.11%
EPS 5YN/A
EPS Q2Q%-42.72%
EPS Next Y-35.51%
EPS Next 2Y-7.46%
EPS Next 3Y8.11%
EPS Next 5Y11.19%
Revenue 1Y (TTM)9.55%
Revenue growth 3Y19.95%
Revenue growth 5Y14.7%
Sales Q2Q%-12.06%
Revenue Next Year-12.35%
Revenue Next 2Y0.34%
Revenue Next 3Y6.16%
Revenue Next 5Y7.19%
EBIT growth 1Y11.3%
EBIT growth 3Y33.49%
EBIT growth 5Y52.14%
EBIT Next Year25.05%
EBIT Next 3Y24.03%
EBIT Next 5Y27.46%
FCF growth 1Y-35.25%
FCF growth 3Y-16.98%
FCF growth 5YN/A
OCF growth 1Y29.08%
OCF growth 3Y24.67%
OCF growth 5Y27.81%
Hess Corporation / HES FAQ
Can you provide the ChartMill fundamental rating for Hess Corporation?
ChartMill assigns a fundamental rating of 5 / 10 to HES.
What is the valuation status for HES stock?
ChartMill assigns a valuation rating of 3 / 10 to Hess Corporation (HES). This can be considered as Overvalued.
Can you provide the profitability details for Hess Corporation?
Hess Corporation (HES) has a profitability rating of 7 / 10.
Can you provide the financial health for HES stock?
The financial health rating of Hess Corporation (HES) is 3 / 10.
What is the earnings growth outlook for Hess Corporation?
The Earnings per Share (EPS) of Hess Corporation (HES) is expected to decline by -35.51% in the next year.