HESS CORP (HES) Stock Fundamental Analysis
NYSE:HES - New York Stock Exchange, Inc. - US42809H1077 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HES. HES was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While HES belongs to the best of the industry regarding profitability, there are concerns on its financial health. 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.
HES had positive earnings in 4 of the past 5 years.
HES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.21%, HES is doing good in the industry, outperforming 77.46% of the companies in the same industry.
HES's Return On Equity of 19.33% is amongst the best of the industry. HES outperforms 82.16% of its industry peers.
HES's Return On Invested Capital of 12.13% is amongst the best of the industry. HES outperforms 84.04% 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 25.88%.
| 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 69.01% of its industry peers.
HES's Profit Margin has improved in the last couple of years.
HES has a better Operating Margin (33.02%) than 73.24% of its industry peers.
HES's Operating Margin has improved in the last couple of years.
HES has a Gross Margin of 77.56%. This is amongst the best in the industry. HES outperforms 87.79% 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
The debt/assets ratio for HES has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HES is 7.90, which is on the high side as it means it would take HES, 7.90 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HES (7.90) is comparable to the rest of the industry.
HES has a Debt/Equity ratio of 0.76. This is a neutral value indicating HES is somewhat dependend on debt financing.
HES has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: HES underperforms 65.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 7.9 | ||
| Altman-Z | N/A |
ROIC/WACC1.23
WACC9.85%
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's Current ratio of 1.08 is in line compared to the rest of the industry. HES outperforms 45.54% of its industry peers.
A Quick Ratio of 1.08 indicates that HES should not have too much problems paying its short term obligations.
HES has a Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.66% over the past year.
HES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 64.11% yearly.
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
The Earnings Per Share is expected to grow by 10.07% on average over the next years. This is quite good.
HES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.22% yearly.
EPS Next Y-34.57%
EPS Next 2Y-5.89%
EPS Next 3Y9.43%
EPS Next 5Y10.07%
Revenue Next Year-12.28%
Revenue Next 2Y1.31%
Revenue Next 3Y6.85%
Revenue Next 5Y7.22%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.55, HES is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HES is on the same level as its industry peers.
HES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 15.11, which indicates a correct valuation of HES.
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 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 15.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HES is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HES is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.94 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
HES has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.89%
EPS Next 3Y9.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, HES has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.03, HES is paying slightly less dividend.
HES's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.15%
Div Incr Years2
Div Non Decr Years33
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-5.89%
EPS Next 3Y9.43%
NYSE:HES (5/22/2025, 12:14:04 PM)
129.57
-0.59 (-0.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners81.52%
Inst Owner Change-3.16%
Ins Owners8.8%
Ins Owner Change16.7%
Market Cap40.08B
Analysts74
Price Target163.46 (26.16%)
Short Float %3.08%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend1.88
Dividend Growth(5Y)12.15%
DP26.9%
Div Incr Years2
Div Non Decr Years33
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)-5.65%
PT rev (3m)-5.17%
EPS NQ rev (1m)-22.32%
EPS NQ rev (3m)-28.66%
EPS NY rev (1m)-4.9%
EPS NY rev (3m)-19.84%
Revenue NQ rev (1m)-5.6%
Revenue NQ rev (3m)-5.73%
Revenue NY rev (1m)-6.39%
Revenue NY rev (3m)-10.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 15.11 | ||
| P/S | 3.21 | ||
| P/FCF | 35.94 | ||
| P/OCF | 6.55 | ||
| P/B | 3.48 | ||
| P/tB | 3.48 | ||
| EV/EBITDA | 7.15 |
EPS(TTM)8.33
EY6.43%
EPS(NY)8.57
Fwd EY6.62%
FCF(TTM)3.6
FCFY2.78%
OCF(TTM)19.77
OCFY15.26%
SpS40.41
BVpS37.25
TBVpS37.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 19.33% | ||
| ROCE | 16.99% | ||
| ROIC | 12.13% | ||
| ROICexc | 12.83% | ||
| ROICexgc | 12.83% | ||
| 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
ROICexcg growth 3Y15.5%
ROICexcg 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 | 1.08 | ||
| Altman-Z | N/A |
F-Score6
WACC9.85%
ROIC/WACC1.23
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-34.57%
EPS Next 2Y-5.89%
EPS Next 3Y9.43%
EPS Next 5Y10.07%
Revenue 1Y (TTM)9.55%
Revenue growth 3Y19.95%
Revenue growth 5Y14.7%
Sales Q2Q%-12.06%
Revenue Next Year-12.28%
Revenue Next 2Y1.31%
Revenue Next 3Y6.85%
Revenue Next 5Y7.22%
EBIT growth 1Y11.3%
EBIT growth 3Y33.49%
EBIT growth 5Y52.14%
EBIT Next Year40.56%
EBIT Next 3Y24.79%
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%