Hess Corporation (HES) Fundamental Analysis & Valuation

NYSE:HES • US42809H1077

Current stock price

148.97 USD
+1.42 (+0.96%)
At close:
160.31 USD
+11.34 (+7.61%)
Pre-Market:

This HES fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. HES Profitability Analysis

1.1 Basic Checks

  • HES had positive earnings in the past year.
  • HES had a positive operating cash flow in the past year.
  • Of the past 5 years HES 4 years were profitable.
  • HES had a positive operating cash flow in each of the past 5 years.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B -6B

1.2 Ratios

  • HES's Return On Assets of 8.21% is fine compared to the rest of the industry. HES outperforms 78.10% of its industry peers.
  • With an excellent Return On Equity value of 19.33%, HES belongs to the best of the industry, outperforming 83.81% of the companies in the same industry.
  • HES's Return On Invested Capital of 12.13% is amongst the best of the industry. HES outperforms 86.67% 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 22.73%.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

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.
  • In the last couple of years the Operating Margin of HES has grown nicely.
  • HES's Gross Margin of 77.56% is amongst the best of the industry. HES outperforms 88.57% of its industry peers.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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3

2. HES Health Analysis

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.
  • HES has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, HES has more shares outstanding
  • HES has a better debt/assets ratio than last year.
HES Yearly Shares OutstandingHES Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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 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.
  • The Debt to FCF ratio of HES (7.90) is comparable to the rest of the industry.
  • HES has a Debt/Equity ratio of 0.76. This is a neutral value indicating HES is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.76, HES is not doing good in the industry: 63.81% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 7.9
Altman-Z 2.99
ROIC/WACC1.36
WACC8.89%
HES Yearly LT Debt VS Equity VS FCFHES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B

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.
  • HES has a Current ratio of 1.08. This is comparable to the rest of the industry: HES outperforms 46.19% of its industry peers.
  • HES has a Quick Ratio of 1.08. 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 0.91 is in line compared to the rest of the industry. HES outperforms 47.62% of its industry peers.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. HES Growth Analysis

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.
  • The Earnings Per Share has been growing by 64.11% on average over the past years. This is a very strong growth
  • Looking at the last year, HES shows a quite strong growth in Revenue. The Revenue has grown by 9.55% in the last year.
  • 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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
HES Yearly Revenue VS EstimatesHES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B 20B
HES Yearly EPS VS EstimatesHES Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 5 -5 10 15

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3

4. HES Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 17.88, HES is valued on the expensive side.
  • HES's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of HES to the average of the S&P500 Index (27.47), we can say HES is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 17.97, HES is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as HES.
  • HES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.62.
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 ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as HES.
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

  • The decent profitability rating of HES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.46%
EPS Next 3Y8.11%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. HES Dividend Analysis

5.1 Amount

  • HES has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
  • HES's Dividend Yield is slightly below the industry average, which is at 3.26.
  • HES's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 26.90% of the earnings are spent on dividend by HES. This is a low number and 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 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

More info and screens

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HES Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)07-30
Inst Owners78.07%
Inst Owner Change0%
Ins Owners8.84%
Ins Owner Change0%
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 RankSector Rank
Dividend Yield 1.34%
Yearly Dividend1.88
Dividend Growth(5Y)12.15%
DP26.9%
Div Incr Years3
Div Non Decr Years34
Ex-DateN/A
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 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
Graham Number0 (-100%)
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
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 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
WACC8.89%
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 Fundamental Analysis 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 of Hess Corporation (HES) stock?

ChartMill assigns a valuation rating of 3 / 10 to Hess Corporation (HES). This can be considered as Overvalued.


What is the profitability of HES stock?

Hess Corporation (HES) has a profitability rating of 7 / 10.


What are the PE and PB ratios of Hess Corporation (HES) stock?

The Price/Earnings (PE) ratio for Hess Corporation (HES) is 17.88 and the Price/Book (PB) ratio is 4.


What is the expected EPS growth for Hess Corporation (HES) stock?

The Earnings per Share (EPS) of Hess Corporation (HES) is expected to decline by -35.51% in the next year.