HESS CORP (HES)

US42809H1077 - Common Stock

154.24  +3.71 (+2.46%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to HES. HES was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. HES has only an average score on both its financial health and profitability. HES has a decent growth rate and is not valued too expensively.



6

1. Profitability

1.1 Basic Checks

In the past year HES was profitable.
HES had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HES reported negative net income in multiple years.
Each year in the past 5 years HES had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 8.12%, HES is in the better half of the industry, outperforming 63.03% of the companies in the same industry.
HES has a Return On Equity of 20.35%. This is in the better half of the industry: HES outperforms 69.19% of its industry peers.
The Return On Invested Capital of HES (11.87%) is better than 68.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HES is significantly below the industry average of 30.73%.
The last Return On Invested Capital (11.87%) for HES is above the 3 year average (10.55%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.12%
ROE 20.35%
ROIC 11.87%
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 17.60%, HES is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
With a decent Operating Margin value of 32.50%, HES is doing good in the industry, outperforming 63.98% of the companies in the same industry.
HES's Operating Margin has improved in the last couple of years.
HES's Gross Margin of 73.92% is amongst the best of the industry. HES outperforms 81.52% 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 32.5%
PM (TTM) 17.6%
GM 73.92%
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%

4

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.
Compared to 1 year ago, HES has more shares outstanding
Compared to 5 years ago, HES has more shares outstanding
HES has a better debt/assets ratio than last year.

2.2 Solvency

HES has an Altman-Z score of 3.04. This indicates that HES is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HES (3.04) is better than 74.41% of its industry peers.
HES has a Debt/Equity ratio of 0.87. This is a neutral value indicating HES is somewhat dependend on debt financing.
The Debt to Equity ratio of HES (0.87) is worse than 69.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF N/A
Altman-Z 3.04
ROIC/WACC1.47
WACC8.07%

2.3 Liquidity

HES has a Current Ratio of 1.23. 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 1.23, HES is in line with its industry, outperforming 49.76% of the companies in the same industry.
HES has a Quick Ratio of 1.10. This is a normal value and indicates that HES is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HES (1.10) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.1

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.87% over the past year.
The Revenue has decreased by -0.11% in the past year.
The Revenue has been growing by 10.70% on average over the past years. This is quite good.
EPS 1Y (TTM)1.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%179.65%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y31.08%
Revenue growth 5Y10.7%
Sales Q2Q%36.2%

3.2 Future

HES is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.22% yearly.
The Revenue is expected to grow by 10.60% on average over the next years. This is quite good.
EPS Next Y93.63%
EPS Next 2Y50.98%
EPS Next 3Y36.58%
EPS Next 5Y26.22%
Revenue Next Year26.98%
Revenue Next 2Y17.66%
Revenue Next 3Y11.82%
Revenue Next 5Y10.6%

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.

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.79, HES is valued on the expensive side.
69.67% of the companies in the same industry are cheaper than HES, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.53. HES is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.40, the valuation of HES can be described as correct.
HES's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.94. HES is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.79
Fwd PE 13.4

4.2 Price Multiples

HES's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HES is more expensive than 62.09% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.25

4.3 Compensation for Growth

HES's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HES may justify a higher PE ratio.
A more expensive valuation may be justified as HES's earnings are expected to grow with 36.58% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y50.98%
EPS Next 3Y36.58%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.18%, HES has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.27, HES is paying slightly less dividend.
With a Dividend Yield of 1.18, HES pays less dividend than the S&P500 average, which is at 2.33.
Industry RankSector Rank
Dividend Yield 1.18%

5.2 History

The dividend of HES is nicely growing with an annual growth rate of 9.08%!
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)9.08%
Div Incr Years2
Div Non Decr Years33

5.3 Sustainability

HES pays out 26.84% 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.
DP26.84%
EPS Next 2Y50.98%
EPS Next 3Y36.58%

HESS CORP

NYSE:HES (7/17/2024, 2:30:10 PM)

154.24

+3.71 (+2.46%)

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 Cap47.52B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.18%
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)
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Revenue beat(2)
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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 21.79
Fwd PE 13.4
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)0.23
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 8.12%
ROE 20.35%
ROCE
ROIC
ROICexc
ROICexgc
OM 32.5%
PM (TTM) 17.6%
GM 73.92%
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 Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.23
Quick Ratio 1.1
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)
High Growth Momentum
Growth
EPS 1Y (TTM)1.87%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y93.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y31.08%
Revenue growth 5Y
Sales 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