HELIOS TECHNOLOGIES INC (HLIO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLIO - US42328H1095 - Common Stock
66.02 USD
+0.2 (+0.3%)
Taking everything into account, HLIO scores 4 out of 10 in our fundamental rating. HLIO was compared to 132 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.
- HLIO had a positive operating cash flow in the past year.
- In the past 5 years HLIO has always been profitable.
- HLIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HLIO's Return On Assets of 2.17% is in line compared to the rest of the industry. HLIO outperforms 43.94% of its industry peers.
- HLIO's Return On Equity of 3.68% is in line compared to the rest of the industry. HLIO outperforms 40.91% of its industry peers.
- HLIO has a Return On Invested Capital of 4.34%. This is in the lower half of the industry: HLIO underperforms 62.88% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HLIO is below the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 3.68% | ||
| ROIC | 4.34% |
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
- With a Profit Margin value of 4.18%, HLIO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- HLIO's Profit Margin has declined in the last couple of years.
- HLIO's Operating Margin of 9.83% is in line compared to the rest of the industry. HLIO outperforms 54.55% of its industry peers.
- In the last couple of years the Operating Margin of HLIO has declined.
- The Gross Margin of HLIO (31.49%) is comparable to the rest of the industry.
- HLIO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.83% | ||
| PM (TTM) | 4.18% | ||
| GM | 31.49% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLIO is destroying value.
- Compared to 1 year ago, HLIO has more shares outstanding
- HLIO has more shares outstanding than it did 5 years ago.
- HLIO has a better debt/assets ratio than last year.
2.2 Solvency
- HLIO has an Altman-Z score of 3.44. This indicates that HLIO is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of HLIO (3.44) is comparable to the rest of the industry.
- HLIO has a debt to FCF ratio of 4.73. This is a neutral value as HLIO would need 4.73 years to pay back of all of its debts.
- HLIO has a Debt to FCF ratio (4.73) which is in line with its industry peers.
- A Debt/Equity ratio of 0.44 indicates that HLIO is not too dependend on debt financing.
- HLIO's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. HLIO outperforms 53.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.45
WACC9.55%
2.3 Liquidity
- A Current Ratio of 2.93 indicates that HLIO has no problem at all paying its short term obligations.
- HLIO's Current ratio of 2.93 is fine compared to the rest of the industry. HLIO outperforms 75.76% of its industry peers.
- A Quick Ratio of 1.72 indicates that HLIO should not have too much problems paying its short term obligations.
- HLIO has a Quick ratio of 1.72. This is in the better half of the industry: HLIO outperforms 71.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
- HLIO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.80%.
- Measured over the past years, HLIO shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.97% on average per year.
- The Revenue has decreased by -1.46% in the past year.
- Measured over the past years, HLIO shows a small growth in Revenue. The Revenue has been growing by 7.76% on average per year.
EPS 1Y (TTM)-2.8%
EPS 3Y-21.19%
EPS 5Y-2.97%
EPS Q2Q%22.03%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-2.49%
Revenue growth 5Y7.76%
Sales Q2Q%13.26%
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 13.80% on average per year.
- Based on estimates for the next years, HLIO will show a small growth in Revenue. The Revenue will grow by 3.94% on average per year.
EPS Next Y20.38%
EPS Next 2Y15.78%
EPS Next 3Y15.05%
EPS Next 5Y13.8%
Revenue Next Year2.82%
Revenue Next 2Y2.1%
Revenue Next 3Y3.14%
Revenue Next 5Y3.94%
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
- The Price/Earnings ratio is 31.74, which means the current valuation is very expensive for HLIO.
- HLIO's Price/Earnings ratio is in line with the industry average.
- HLIO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 23.57, the valuation of HLIO can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIO is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of HLIO to the average of the S&P500 Index (25.95), we can say HLIO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.74 | ||
| Fwd PE | 23.57 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLIO is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HLIO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.69 | ||
| EV/EBITDA | 17.77 |
4.3 Compensation for Growth
- HLIO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as HLIO's earnings are expected to grow with 15.05% in the coming years.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y15.78%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
- HLIO has a yearly dividend return of 0.54%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.01, HLIO has a dividend in line with its industry peers.
- With a Dividend Yield of 0.54, HLIO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
- The dividend of HLIO decreases each year by -1.24%.
- HLIO has paid a dividend for at least 10 years, which is 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
- 35.50% of the earnings are spent on dividend by HLIO. This is a low number and sustainable payout ratio.
DP35.5%
EPS Next 2Y15.78%
EPS Next 3Y15.05%
HELIOS TECHNOLOGIES INC / HLIO FAQ
Can you provide the ChartMill fundamental rating for HELIOS TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 4 / 10 to HLIO.
What is the valuation status for HLIO stock?
ChartMill assigns a valuation rating of 2 / 10 to HELIOS TECHNOLOGIES INC (HLIO). This can be considered as Overvalued.
How profitable is HELIOS TECHNOLOGIES INC (HLIO) stock?
HELIOS TECHNOLOGIES INC (HLIO) has a profitability rating of 3 / 10.
What is the financial health of HELIOS TECHNOLOGIES INC (HLIO) stock?
The financial health rating of HELIOS TECHNOLOGIES INC (HLIO) is 5 / 10.
What is the earnings growth outlook for HELIOS TECHNOLOGIES INC?
The Earnings per Share (EPS) of HELIOS TECHNOLOGIES INC (HLIO) is expected to grow by 20.38% in the next year.