HESS CORP (HES)

US42809H1077 - Common Stock

152.64  +2.09 (+1.39%)

After market: 152.49 -0.15 (-0.1%)

Fundamental Rating

4

HES gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 214 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 is valied quite expensively at the moment, while it does show a decent growth rate.



4

1. Profitability

1.1 Basic Checks

In the past year HES was profitable.
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.
HES had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

HES has a Return On Assets of 5.76%. This is comparable to the rest of the industry: HES outperforms 43.66% of its industry peers.
HES has a Return On Equity (15.38%) which is comparable to the rest of the industry.
HES has a Return On Invested Capital of 9.73%. This is comparable to the rest of the industry: HES outperforms 54.93% 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 48.71%.
Industry RankSector Rank
ROA 5.76%
ROE 15.38%
ROIC 9.73%
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

Looking at the Profit Margin, with a value of 13.15%, HES is in line with its industry, outperforming 44.60% of the companies in the same industry.
HES has a Operating Margin of 27.56%. This is comparable to the rest of the industry: HES outperforms 53.05% of its industry peers.
In the last couple of years the Operating Margin of HES has grown nicely.
HES's Gross Margin of 71.95% is fine compared to the rest of the industry. HES outperforms 76.53% of its industry peers.
In the last couple of years the Gross Margin of HES has remained more or less at the same level.
Industry RankSector Rank
OM 27.56%
PM (TTM) 13.15%
GM 71.95%
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%

3

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.
Compared to 1 year ago, HES has more shares outstanding
Compared to 5 years ago, HES has more shares outstanding
Compared to 1 year ago, HES has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.83 indicates that HES is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.83, HES is doing good in the industry, outperforming 72.77% of the companies in the same industry.
HES has a Debt/Equity ratio of 0.94. This is a neutral value indicating HES is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, HES is doing worse than 69.48% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF N/A
Altman-Z 2.83
ROIC/WACC1.21
WACC8.05%

2.3 Liquidity

HES has a Current Ratio of 1.05. This is a normal value and indicates that HES is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.05, HES is in line with its industry, outperforming 42.25% of the companies in the same industry.
HES has a Quick Ratio of 1.05. This is a bad value and indicates that HES is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HES (0.96) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.05
Quick Ratio 0.96

4

3. Growth

3.1 Past

The earnings per share for HES have decreased strongly by -29.07% in the last year.
The Revenue has decreased by -7.18% in the past year.
HES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.70% yearly.
EPS 1Y (TTM)-29.07%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-8.43%
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y31.08%
Revenue growth 5Y10.7%
Revenue growth Q2Q2.62%

3.2 Future

The Earnings Per Share is expected to grow by 29.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, HES will show a quite strong growth in Revenue. The Revenue will grow by 10.74% on average per year.
EPS Next Y41.55%
EPS Next 2Y36.33%
EPS Next 3Y24.25%
EPS Next 5Y29.13%
Revenue Next Year22.78%
Revenue Next 2Y17.46%
Revenue Next 3Y6.56%
Revenue Next 5Y10.74%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 30.23, HES can be considered very expensive at the moment.
Based on the Price/Earnings ratio, HES is valued a bit more expensive than the industry average as 76.53% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.48. HES is around the same levels.
Based on the Price/Forward Earnings ratio of 21.35, the valuation of HES can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HES is valued a bit more expensive than the industry average as 65.26% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, HES is valued at the same level.
Industry RankSector Rank
PE 30.23
Fwd PE 21.35

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HES indicates a slightly more expensive valuation: HES is more expensive than 70.89% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.79

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HES's earnings are expected to grow with 24.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y36.33%
EPS Next 3Y24.25%

6

5. Dividend

5.1 Amount

HES has a Yearly Dividend Yield of 1.17%.
HES's Dividend Yield is slightly below the industry average, which is at 5.82.
Compared to an average S&P500 Dividend Yield of 2.34, HES's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.17%

5.2 History

On average, the dividend of HES grows each year by 9.08%, which is quite nice.
HES has been paying a dividend for at least 10 years, so it has 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 Years16

5.3 Sustainability

HES pays out 39.00% of its income as dividend. This is a sustainable payout ratio.
The dividend of HES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39%
EPS Next 2Y36.33%
EPS Next 3Y24.25%

HESS CORP

NYSE:HES (3/28/2024, 7:54:04 PM)

After market: 152.49 -0.15 (-0.1%)

152.64

+2.09 (+1.39%)

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 Cap46.88B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.17%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector Rank
PE 30.23
Fwd PE 21.35
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)0.73
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.76%
ROE 15.38%
ROCE
ROIC
ROICexc
ROICexgc
OM 27.56%
PM (TTM) 13.15%
GM 71.95%
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 Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.05
Quick Ratio 0.96
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)
Growth
EPS 1Y (TTM)-29.07%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y41.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.18%
Revenue growth 3Y31.08%
Revenue growth 5Y
Revenue growth 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