Hess Corporation (HES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HES - US42809H1077 - Common Stock
148.97 USD
+1.42 (+0.96%)
160.31 USD
+11.34 (+7.61%)
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.
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.
HES had positive earnings in 4 of the past 5 years.
HES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HES (8.21%) is better than 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 21.41%.
| 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
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.
Looking at the Operating Margin, with a value of 33.02%, HES is in the better half of 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 has a Gross Margin of 77.56%. This is amongst the best in the industry. HES outperforms 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
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
The number of shares outstanding for HES has been increased compared to 5 years ago.
HES has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 2.99, HES belongs to the top of the industry, outperforming 81.90% of the companies in the same industry.
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.
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.
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
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 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%.
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
The Earnings Per Share is expected to grow by 11.19% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 17.88, the valuation of HES can be described as rather expensive.
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 26.15.
HES is valuated rather expensively with a Price/Forward Earnings ratio of 17.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HES is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, HES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HES is on the same level as its industry peers.
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
HES has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.88, 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 2.41.
| 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 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
5.3 Sustainability
HES pays out 26.90% of its income as dividend. This is a sustainable payout ratio.
The dividend of HES is growing, but the earnings are growing slower. 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-98.92%
Ins Owners8.84%
Ins Owner Change-323.05%
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.