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 scores excellent on profitability, but there are concerns on its financial health. HES is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HES was profitable.
HES had a positive operating cash flow in the past year.
Of the past 5 years HES 4 years were profitable.
Each year in the past 5 years HES had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.21%, HES is doing good in the industry, outperforming 78.10% of the companies in the same industry.
HES's Return On Equity of 19.33% is amongst the best of the industry. HES outperforms 83.81% of its industry peers.
HES has a Return On Invested Capital of 12.13%. This is amongst the best in 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 21.71%.
| 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.
HES's Profit Margin has improved in the last couple of years.
The Operating Margin of HES (33.02%) is better than 74.29% of its industry peers.
In the last couple of years the Operating Margin of HES has grown nicely.
HES has a better Gross Margin (77.56%) than 88.57% of its industry peers.
In the last couple of years the Gross Margin of HES has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HES is still 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.
Compared to 1 year ago, HES has an improved debt to assets ratio.
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 has a better Altman-Z score (2.99) than 81.90% 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 in line with its industry peers.
A Debt/Equity ratio of 0.76 indicates that 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 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.
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.
The Quick ratio of HES (0.91) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 64.11% on average over the past years. This is a very strong growth
HES shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.55%.
The Revenue has been growing by 14.70% on average over the past years. This is quite good.
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
HES is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.19% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
HES is valuated rather expensively with a Price/Earnings ratio of 17.88.
The rest of the industry has a similar Price/Earnings ratio as HES.
Compared to an average S&P500 Price/Earnings ratio of 27.32, HES is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.97, HES is valued on the expensive side.
HES's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HES to the average of the S&P500 Index (22.89), we can say HES is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 17.97 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.32 | ||
| EV/EBITDA | 8.02 |
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%
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 6.00, HES is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, 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 paid a dividend for at least 10 years, which is 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
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%
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 Change3.94%
Ins Owners8.84%
Ins Owner Change-323.05%
Market Cap46.07B
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
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
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 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%