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 210 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years HES had a positive operating cash flow.
1.2 Ratios
HES has a better Return On Assets (8.21%) than 78.10% of its industry peers.
HES's Return On Equity of 19.33% is amongst the best of the industry. HES outperforms 83.81% of its industry peers.
HES's Return On Invested Capital of 12.13% is amongst the best of the industry. HES outperforms 86.67% of its industry peers.
HES had an Average Return On Invested Capital over the past 3 years of 12.85%. This 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
The Profit Margin of HES (17.82%) is better than 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.
Looking at the Gross Margin, with a value of 77.56%, HES belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
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.
Compared to 1 year ago, HES has more shares outstanding
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 2.99 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 (2.99) than 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.
Looking at the Debt to FCF ratio, with a value of 7.90, HES is in line with its industry, outperforming 53.81% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that HES is somewhat dependend on debt financing.
HES has a worse Debt to Equity ratio (0.76) than 63.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 7.9 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.36
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.08 indicates that HES should not have too much problems paying its short term obligations.
The Current ratio of HES (1.08) is comparable to the rest of the industry.
A Quick Ratio of 0.91 indicates that HES may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, HES is in line with its industry, outperforming 47.62% of the companies in the same industry.
| 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.
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.
Measured over the past years, HES shows a quite strong growth in Revenue. The Revenue has been growing by 14.70% on average per year.
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.
HES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.19% yearly.
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
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
The Price/Earnings ratio is 17.88, which indicates a rather expensive current valuation of HES.
The rest of the industry has a similar Price/Earnings ratio as HES.
HES is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.97 indicates a rather expensive 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
HES's Enterprise Value to EBITDA ratio is in line with 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 | 41.32 | ||
| EV/EBITDA | 8.02 |
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-7.46%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
HES has a Yearly Dividend Yield of 1.34%.
Compared to an average industry Dividend Yield of 5.87, HES is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, HES's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of HES grows each year by 12.15%, 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 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 Years3
Div Non Decr Years34
5.3 Sustainability
HES pays out 26.90% of its income as dividend. This is a sustainable payout ratio.
HES's earnings are growing slower than its dividend. 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-98.25%
Ins Owners8.84%
Ins Owner ChangeN/A
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.