HESS CORP (HES) Stock Fundamental Analysis
NYSE:HES - New York Stock Exchange, Inc. - US42809H1077 - Common Stock - Currency: USD
Taking everything into account, HES scores 5 out of 10 in our fundamental rating. HES was compared to 212 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HES had positive earnings in the past year.
HES had a positive operating cash flow in the past year.
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 an excellent Return On Assets value of 10.43%, HES belongs to the best of the industry, outperforming 82.08% of the companies in the same industry.
HES's Return On Equity of 24.69% is amongst the best of the industry. HES outperforms 86.79% of its industry peers.
The Return On Invested Capital of HES (14.37%) is better than 87.74% 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 25.75%.
The 3 year average ROIC (12.85%) for HES is below the current ROIC(14.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 24.69% | ||
| ROIC | 14.37% |
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
Looking at the Profit Margin, with a value of 21.47%, HES is in the better half of the industry, outperforming 74.06% of the companies in the same industry.
In the last couple of years the Profit Margin of HES has grown nicely.
Looking at the Operating Margin, with a value of 37.03%, HES is in the better half of the industry, outperforming 78.77% of the companies in the same industry.
In the last couple of years the Operating Margin of HES has grown nicely.
With an excellent Gross Margin value of 77.87%, HES belongs to the best of the industry, outperforming 87.74% of the companies in the same industry.
HES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.03% | ||
| PM (TTM) | 21.47% | ||
| GM | 77.87% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HES is creating some value.
The number of shares outstanding for HES has been increased compared to 1 year ago.
HES has more shares outstanding than it did 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 2.89 indicates that HES is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HES (2.89) is better than 81.13% of its industry peers.
HES has a debt to FCF ratio of 13.32. This is a negative value and a sign of low solvency as HES would need 13.32 years to pay back of all of its debts.
HES has a Debt to FCF ratio (13.32) which is in line with its industry peers.
A Debt/Equity ratio of 0.77 indicates that HES is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, HES is doing worse than 66.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 13.32 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.47
WACC9.78%
2.3 Liquidity
A Current Ratio of 1.12 indicates that HES should not have too much problems paying its short term obligations.
HES has a Current ratio (1.12) which is in line with its industry peers.
HES has a Quick Ratio of 1.12. 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's Quick ratio of 0.97 is in line compared to the rest of the industry. HES outperforms 53.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.66% over the past year.
The Earnings Per Share has been growing by 64.11% on average over the past years. This is a very strong growth
The Revenue has grown by 22.69% in the past year. This is a very strong growth!
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)22.69%
Revenue growth 3Y19.95%
Revenue growth 5Y14.7%
Sales Q2Q%-12.06%
3.2 Future
HES is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
The Revenue is expected to grow by 7.22% on average over the next years.
EPS Next Y-31.2%
EPS Next 2Y-2.01%
EPS Next 3Y10.33%
EPS Next 5Y10.07%
Revenue Next Year-8.82%
Revenue Next 2Y3.2%
Revenue Next 3Y6.69%
Revenue Next 5Y7.22%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
HES is valuated correctly with a Price/Earnings ratio of 15.51.
The rest of the industry has a similar Price/Earnings ratio as HES.
When comparing the Price/Earnings ratio of HES to the average of the S&P500 Index (28.88), we can say HES is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.90, HES is valued correctly.
HES's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, HES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
HES's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 61.12 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
HES has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.01%
EPS Next 3Y10.33%
5. Dividend
5.1 Amount
HES has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
HES's Dividend Yield is slightly below the industry average, which is at 7.31.
HES's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
The dividend of HES is nicely growing with an annual growth rate of 12.15%!
HES has been paying a dividend for at least 10 years, so it has 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
20.91% 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.
DP20.91%
EPS Next 2Y-2.01%
EPS Next 3Y10.33%
NYSE:HES (5/1/2025, 12:48:06 PM)
129.23
+0.18 (+0.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners81.52%
Inst Owner Change0.4%
Ins Owners8.8%
Ins Owner Change13.22%
Market Cap39.97B
Analysts74
Price Target164.41 (27.22%)
Short Float %2.7%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend1.88
Dividend Growth(5Y)12.15%
DP20.91%
Div Incr Years2
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.95%
Min EPS beat(2)18.14%
Max EPS beat(2)19.75%
EPS beat(4)4
Avg EPS beat(4)32.38%
Min EPS beat(4)4.48%
Max EPS beat(4)87.13%
EPS beat(8)8
Avg EPS beat(8)27.56%
EPS beat(12)11
Avg EPS beat(12)20.1%
EPS beat(16)15
Avg EPS beat(16)27.65%
Revenue beat(2)2
Avg Revenue beat(2)11.65%
Min Revenue beat(2)11.13%
Max Revenue beat(2)12.18%
Revenue beat(4)4
Avg Revenue beat(4)12.5%
Min Revenue beat(4)5.82%
Max Revenue beat(4)20.88%
Revenue beat(8)8
Avg Revenue beat(8)13.46%
Revenue beat(12)12
Avg Revenue beat(12)15.34%
Revenue beat(16)16
Avg Revenue beat(16)16.77%
PT rev (1m)-4.3%
PT rev (3m)-3.73%
EPS NQ rev (1m)-1.65%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)-12.82%
EPS NY rev (3m)-16.19%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)-4.17%
Revenue NY rev (1m)-3%
Revenue NY rev (3m)-5.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.51 | ||
| Fwd PE | 13.9 | ||
| P/S | 3.1 | ||
| P/FCF | 61.12 | ||
| P/OCF | 7.14 | ||
| P/B | 3.56 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)8.33
EY6.45%
EPS(NY)9.29
Fwd EY7.19%
FCF(TTM)2.11
FCFY1.64%
OCF(TTM)18.1
OCFY14.01%
SpS41.69
BVpS36.26
TBVpS35.1
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 24.69% | ||
| ROCE | 20.13% | ||
| ROIC | 14.37% | ||
| ROICexc | 15.11% | ||
| ROICexgc | 15.36% | ||
| OM | 37.03% | ||
| PM (TTM) | 21.47% | ||
| GM | 77.87% | ||
| FCFM | 5.07% |
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-Score8
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 13.32 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 198.87% | ||
| Cap/Sales | 38.35% | ||
| Interest Coverage | 11.71 | ||
| Cash Conversion | 77.1% | ||
| Profit Quality | 23.62% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 2.89 |
F-Score8
WACC9.78%
ROIC/WACC1.47
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-31.2%
EPS Next 2Y-2.01%
EPS Next 3Y10.33%
EPS Next 5Y10.07%
Revenue 1Y (TTM)22.69%
Revenue growth 3Y19.95%
Revenue growth 5Y14.7%
Sales Q2Q%-12.06%
Revenue Next Year-8.82%
Revenue Next 2Y3.2%
Revenue Next 3Y6.69%
Revenue Next 5Y7.22%
EBIT growth 1Y64.86%
EBIT growth 3Y33.49%
EBIT growth 5Y52.14%
EBIT Next Year40.56%
EBIT Next 3Y24.79%
EBIT Next 5Y27.46%
FCF growth 1Y493.98%
FCF growth 3Y-16.98%
FCF growth 5YN/A
OCF growth 1Y42.06%
OCF growth 3Y24.67%
OCF growth 5Y27.81%