HELIOS TECHNOLOGIES INC (HLIO) Stock Fundamental Analysis
NYSE:HLIO - New York Stock Exchange, Inc. - US42328H1095 - Common Stock - Currency: USD
HLIO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. The financial health of HLIO is average, but there are quite some concerns on its profitability. HLIO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HLIO was profitable.
In the past year HLIO had a positive cash flow from operations.
In the past 5 years HLIO has always been profitable.
Each year in the past 5 years HLIO had a positive operating cash flow.
1.2 Ratios
HLIO has a Return On Assets of 2.43%. This is comparable to the rest of the industry: HLIO outperforms 41.41% of its industry peers.
With a Return On Equity value of 4.21%, HLIO is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
HLIO's Return On Invested Capital of 4.35% is on the low side compared to the rest of the industry. HLIO is outperformed by 60.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLIO is significantly below the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 4.21% | ||
| ROIC | 4.35% |
ROA(3y)3.89%
ROA(5y)4.03%
ROE(3y)7.09%
ROE(5y)7.67%
ROIC(3y)5.62%
ROIC(5y)6.26%
1.3 Margins
HLIO has a Profit Margin (4.70%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HLIO has declined.
The Operating Margin of HLIO (9.94%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HLIO has declined.
Looking at the Gross Margin, with a value of 31.04%, HLIO is in line with its industry, outperforming 50.00% of the companies in the same industry.
HLIO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | 4.7% | ||
| GM | 31.04% |
OM growth 3Y-17.29%
OM growth 5Y-9.84%
PM growth 3Y-26.19%
PM growth 5Y-14.94%
GM growth 3Y-4.54%
GM growth 5Y-3.94%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HLIO is destroying value.
HLIO has more shares outstanding than it did 1 year ago.
HLIO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HLIO has an improved debt to assets ratio.
2.2 Solvency
HLIO has an Altman-Z score of 2.84. This is not the best score and indicates that HLIO is in the grey zone with still only limited risk for bankruptcy at the moment.
HLIO has a Altman-Z score (2.84) which is comparable to the rest of the industry.
HLIO has a debt to FCF ratio of 4.79. This is a neutral value as HLIO would need 4.79 years to pay back of all of its debts.
The Debt to FCF ratio of HLIO (4.79) is comparable to the rest of the industry.
HLIO has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
HLIO has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: HLIO outperforms 45.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.46
WACC9.49%
2.3 Liquidity
A Current Ratio of 2.78 indicates that HLIO has no problem at all paying its short term obligations.
HLIO has a Current ratio of 2.78. This is in the better half of the industry: HLIO outperforms 71.88% of its industry peers.
HLIO has a Quick Ratio of 1.45. This is a normal value and indicates that HLIO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.45, HLIO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for HLIO have decreased by -2.01% in the last year.
The Earnings Per Share has been decreasing by -2.97% on average over the past years.
The Revenue has decreased by -3.55% in the past year.
The Revenue has been growing slightly by 7.76% on average over the past years.
EPS 1Y (TTM)-2.01%
EPS 3Y-21.19%
EPS 5Y-2.97%
EPS Q2Q%-7.81%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y-2.49%
Revenue growth 5Y7.76%
Sales Q2Q%-3.37%
3.2 Future
Based on estimates for the next years, HLIO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.82% on average per year.
The Revenue is expected to grow by 3.11% on average over the next years.
EPS Next Y-8.25%
EPS Next 2Y5.2%
EPS Next 3Y7.14%
EPS Next 5Y9.82%
Revenue Next Year-2.87%
Revenue Next 2Y0.87%
Revenue Next 3Y2.17%
Revenue Next 5Y3.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.82, HLIO is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as HLIO.
HLIO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
HLIO is valuated rather expensively with a Price/Forward Earnings ratio of 20.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIO is on the same level as its industry peers.
HLIO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 20.93 |
4.2 Price Multiples
HLIO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HLIO is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.2%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, HLIO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.90, HLIO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, HLIO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of HLIO decreases each year by -1.24%.
HLIO has been paying a dividend for at least 10 years, so it has a reliable track record.
HLIO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-1.24%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
32.08% of the earnings are spent on dividend by HLIO. This is a low number and sustainable payout ratio.
DP32.08%
EPS Next 2Y5.2%
EPS Next 3Y7.14%
48.4
+0.38 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.11%
Inst Owner Change0.96%
Ins Owners0.35%
Ins Owner Change1.29%
Market Cap1.61B
Analysts87.27
Price Target47.43 (-2%)
Short Float %2.54%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.36
Dividend Growth(5Y)-1.24%
DP32.08%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.49%
Min EPS beat(2)-5.54%
Max EPS beat(2)18.51%
EPS beat(4)3
Avg EPS beat(4)5.33%
Min EPS beat(4)-5.54%
Max EPS beat(4)18.51%
EPS beat(8)5
Avg EPS beat(8)4.18%
EPS beat(12)6
Avg EPS beat(12)1.32%
EPS beat(16)10
Avg EPS beat(16)7.69%
Revenue beat(2)1
Avg Revenue beat(2)1.06%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)2.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-3%
Max Revenue beat(4)2.19%
Revenue beat(8)5
Avg Revenue beat(8)-0.73%
Revenue beat(12)6
Avg Revenue beat(12)-1.7%
Revenue beat(16)10
Avg Revenue beat(16)1.2%
PT rev (1m)-0.93%
PT rev (3m)-14.35%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)-14.48%
EPS NY rev (1m)-2.21%
EPS NY rev (3m)-8.56%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 20.93 | ||
| P/S | 2.04 | ||
| P/FCF | 17.46 | ||
| P/OCF | 13.08 | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.01 |
EPS(TTM)1.95
EY4.03%
EPS(NY)2.31
Fwd EY4.78%
FCF(TTM)2.77
FCFY5.73%
OCF(TTM)3.7
OCFY7.64%
SpS23.68
BVpS26.44
TBVpS-0.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 4.21% | ||
| ROCE | 5.67% | ||
| ROIC | 4.35% | ||
| ROICexc | 4.5% | ||
| ROICexgc | 13.46% | ||
| OM | 9.94% | ||
| PM (TTM) | 4.7% | ||
| GM | 31.04% | ||
| FCFM | 11.71% |
ROA(3y)3.89%
ROA(5y)4.03%
ROE(3y)7.09%
ROE(5y)7.67%
ROIC(3y)5.62%
ROIC(5y)6.26%
ROICexc(3y)5.8%
ROICexc(5y)6.44%
ROICexgc(3y)18%
ROICexgc(5y)21.78%
ROCE(3y)7.33%
ROCE(5y)8.16%
ROICexcg growth 3Y-25.64%
ROICexcg growth 5Y-13.16%
ROICexc growth 3Y-21.55%
ROICexc growth 5Y-9.59%
OM growth 3Y-17.29%
OM growth 5Y-9.84%
PM growth 3Y-26.19%
PM growth 5Y-14.94%
GM growth 3Y-4.54%
GM growth 5Y-3.94%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.79 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 48.21% | ||
| Cap/Sales | 3.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.47% | ||
| Profit Quality | 249.06% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 2.84 |
F-Score6
WACC9.49%
ROIC/WACC0.46
Cap/Depr(3y)59.6%
Cap/Depr(5y)55.17%
Cap/Sales(3y)4.19%
Cap/Sales(5y)3.83%
Profit Quality(3y)142.42%
Profit Quality(5y)232.3%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.01%
EPS 3Y-21.19%
EPS 5Y-2.97%
EPS Q2Q%-7.81%
EPS Next Y-8.25%
EPS Next 2Y5.2%
EPS Next 3Y7.14%
EPS Next 5Y9.82%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y-2.49%
Revenue growth 5Y7.76%
Sales Q2Q%-3.37%
Revenue Next Year-2.87%
Revenue Next 2Y0.87%
Revenue Next 3Y2.17%
Revenue Next 5Y3.11%
EBIT growth 1Y3.97%
EBIT growth 3Y-19.34%
EBIT growth 5Y-2.85%
EBIT Next Year30.34%
EBIT Next 3Y15.02%
EBIT Next 5Y13.56%
FCF growth 1Y34.3%
FCF growth 3Y4.01%
FCF growth 5Y6.96%
OCF growth 1Y14.7%
OCF growth 3Y2.55%
OCF growth 5Y6.17%