HELIOS TECHNOLOGIES INC (HLIO)
US42328H1095 - Common Stock
HLIO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HLIO had positive earnings in the past year.
HLIO had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.36%, HLIO is in line with its industry, outperforming 43.41% of the companies in the same industry.
The Return On Equity of HLIO (4.40%) is comparable to the rest of the industry.
HLIO has a Return On Invested Capital of 4.34%. This is in the lower half of the industry: HLIO underperforms 62.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLIO is below the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 4.4% | ||
| ROIC | 4.34% |
ROA(3y)5.49%
ROA(5y)4.69%
ROE(3y)10.51%
ROE(5y)8.86%
ROIC(3y)7.46%
ROIC(5y)7.04%
1.3 Margins
HLIO has a Profit Margin (4.50%) which is comparable to the rest of the industry.
HLIO's Profit Margin has declined in the last couple of years.
The Operating Margin of HLIO (9.57%) is comparable to the rest of the industry.
HLIO's Operating Margin has declined in the last couple of years.
The Gross Margin of HLIO (31.32%) 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 | 9.57% | ||
| PM (TTM) | 4.5% | ||
| GM | 31.32% |
OM growth 3Y-12.21%
OM growth 5Y-8.47%
PM growth 3Y18.24%
PM growth 5Y-13.36%
GM growth 3Y-5.84%
GM growth 5Y-3.76%
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
The number of shares outstanding for HLIO has been increased compared to 5 years ago.
HLIO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.60 indicates that HLIO is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLIO has a Altman-Z score (2.60) which is comparable to the rest of the industry.
The Debt to FCF ratio of HLIO is 11.98, which is on the high side as it means it would take HLIO, 11.98 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.98, HLIO perfoms like the industry average, outperforming 44.96% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that HLIO is somewhat dependend on debt financing.
The Debt to Equity ratio of HLIO (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 11.98 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.48
WACC9.03%
2.3 Liquidity
A Current Ratio of 2.74 indicates that HLIO has no problem at all paying its short term obligations.
HLIO has a better Current ratio (2.74) than 70.54% of its industry peers.
A Quick Ratio of 1.25 indicates that HLIO should not have too much problems paying its short term obligations.
The Quick ratio of HLIO (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for HLIO have decreased strongly by -41.83% in the last year.
Measured over the past 5 years, HLIO shows a small growth in Earnings Per Share. The EPS has been growing by 6.19% on average per year.
HLIO shows a decrease in Revenue. In the last year, the revenue decreased by -5.62%.
HLIO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.47% yearly.
EPS 1Y (TTM)-41.83%
EPS 3Y1.61%
EPS 5Y6.19%
EPS growth Q2Q-51.28%
Revenue 1Y (TTM)-5.62%
Revenue growth 3Y16.9%
Revenue growth 5Y10.47%
Revenue growth Q2Q-1.33%
3.2 Future
The Earnings Per Share is expected to grow by 17.62% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.00% on average over the next years.
EPS Next Y6.95%
EPS Next 2Y17.58%
EPS Next 3Y18.87%
EPS Next 5Y17.62%
Revenue Next Year2.71%
Revenue Next 2Y4.75%
Revenue Next 3Y5.74%
Revenue Next 5Y6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
HLIO is valuated rather expensively with a Price/Earnings ratio of 20.45.
Compared to the rest of the industry, the Price/Earnings ratio of HLIO indicates a somewhat cheap valuation: HLIO is cheaper than 63.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, HLIO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.12, 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.
HLIO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 19.12 |
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.
HLIO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.63 | ||
| EV/EBITDA | 14.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HLIO's earnings are expected to grow with 18.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.94
PEG (5Y)3.3
EPS Next 2Y17.58%
EPS Next 3Y18.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, HLIO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.73, HLIO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, HLIO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of HLIO decreases each year by -24.34%.
HLIO has been paying a dividend for at least 10 years, so it has a reliable track record.
As HLIO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-24.34%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
31.38% of the earnings are spent on dividend by HLIO. This is a low number and sustainable payout ratio.
DP31.38%
EPS Next 2Y17.58%
EPS Next 3Y18.87%
HELIOS TECHNOLOGIES INC
NYSE:HLIO (5/3/2024, 7:04:00 PM)
After market: 48.05 0 (0%)48.05
+1.68 (+3.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 19.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.94
PEG (5Y)3.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 4.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.57% | ||
| PM (TTM) | 4.5% | ||
| GM | 31.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-41.83%
EPS 3Y1.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.62%
Revenue growth 3Y16.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y