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Hess Corporation (HES) Stock Fundamental Analysis

NYSE:HES - New York Stock Exchange, Inc. - US42809H1077 - Common Stock - Currency: USD

148.97  +1.42 (+0.96%)

Premarket: 160.31 +11.34 (+7.61%)

Fundamental Rating

5

HES gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 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 is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

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.
Of the past 5 years HES 4 years were profitable.
Each year in the past 5 years HES had a positive operating cash flow.
HES Yearly Net Income VS EBIT VS OCF VS FCFHES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B -6B

1.2 Ratios

Looking at the Return On Assets, with a value of 8.21%, HES is in the better half of the industry, outperforming 78.10% of the companies in the same industry.
HES has a better Return On Equity (19.33%) than 83.81% of its industry peers.
With an excellent Return On Invested Capital value of 12.13%, HES belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HES is significantly below the industry average of 23.80%.
Industry RankSector 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
HES Yearly ROA, ROE, ROICHES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

With a decent Profit Margin value of 17.82%, HES is doing good in the industry, outperforming 69.05% of the companies in the same industry.
In the last couple of years the Profit Margin of HES has grown nicely.
HES has a better Operating Margin (33.02%) than 74.76% of its industry peers.
In the last couple of years the Operating Margin of HES has grown nicely.
With an excellent Gross Margin value of 77.56%, HES belongs to the best 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 RankSector 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%
HES Yearly Profit, Operating, Gross MarginsHES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HES is still creating some value.
Compared to 1 year ago, HES has more shares outstanding
Compared to 5 years ago, HES has more shares outstanding
The debt/assets ratio for HES has been reduced compared to a year ago.
HES Yearly Shares OutstandingHES Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
HES Yearly Total Debt VS Total AssetsHES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

HES has an Altman-Z score of 2.99. This is not the best score and indicates that HES is in the grey zone with still only limited risk for bankruptcy at the moment.
HES's Altman-Z score of 2.99 is amongst the best of the industry. HES outperforms 82.38% of its industry peers.
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.
HES has a Debt to FCF ratio (7.90) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.76 indicates that HES is somewhat dependend on debt financing.
The Debt to Equity ratio of HES (0.76) is worse than 63.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 7.9
Altman-Z 2.99
ROIC/WACC1.37
WACC8.86%
HES Yearly LT Debt VS Equity VS FCFHES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

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.
Looking at the Current ratio, with a value of 1.08, HES is in line with its industry, outperforming 46.19% of the companies in the same 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 RankSector Rank
Current Ratio 1.08
Quick Ratio 0.91
HES Yearly Current Assets VS Current LiabilitesHES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

6

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.
HES shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.55%.
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.
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.
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.
HES Yearly Revenue VS EstimatesHES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
HES Yearly EPS VS EstimatesHES Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 -5 10 15

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.88, which indicates a rather expensive current valuation of HES.
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 27.69.
HES is valuated rather expensively with a Price/Forward Earnings ratio of 17.97.
HES's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 37.36. HES is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 17.88
Fwd PE 17.97
HES Price Earnings VS Forward Price EarningsHES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

HES's Enterprise Value to EBITDA is on the same level as the industry average.
HES's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 41.32
EV/EBITDA 8.02
HES Per share dataHES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.34%, HES has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.49, HES is paying slightly less dividend.
With a Dividend Yield of 1.34, HES pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector 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
HES Yearly Dividends per shareHES Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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%
HES Yearly Income VS Free CF VS DividendHES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B -4B -6B
HES Dividend Payout.HES Dividend Payout, showing the Payout Ratio.HES Dividend Payout.PayoutRetained Earnings

Hess Corporation

NYSE:HES (7/17/2025, 8:04:00 PM)

Premarket: 160.31 +11.34 (+7.61%)

148.97

+1.42 (+0.96%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)07-30 2025-07-30/amc
Inst Owners78.07%
Inst Owner Change-0.55%
Ins Owners8.84%
Ins Owner Change-251.45%
Market Cap46.07B
Analysts74
Price Target164.07 (10.14%)
Short Float %2.69%
Short Ratio3.67
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
Yearly Dividend1.88
Dividend Growth(5Y)12.15%
DP26.9%
Div Incr Years3
Div Non Decr Years34
Ex-Date06-16 2025-06-16 (0.5)
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)1.28%
PT rev (3m)-5.3%
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)-6.47%
Valuation
Industry RankSector 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
Profitability
Industry RankSector 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
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 RankSector 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
WACC8.86%
ROIC/WACC1.37
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%