HELIX ENERGY SOLUTIONS GROUP (HLX) Stock Fundamental Analysis
NYSE:HLX - New York Stock Exchange, Inc. - US42330P1075 - Common Stock - Currency: USD
Taking everything into account, HLX scores 5 out of 10 in our fundamental rating. HLX was compared to 63 industry peers in the Energy Equipment & Services industry. The financial health of HLX is average, but there are quite some concerns on its profitability. HLX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HLX was profitable.
HLX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HLX reported negative net income in multiple years.
In the past 5 years HLX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HLX (3.22%) is comparable to the rest of the industry.
HLX has a Return On Equity of 5.50%. This is comparable to the rest of the industry: HLX outperforms 41.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.69%, HLX is doing worse than 65.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 5.5% | ||
| ROIC | 4.69% |
ROA(3y)-0.65%
ROA(5y)-0.77%
ROE(3y)-0.95%
ROE(5y)-1.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HLX (6.33%) is comparable to the rest of the industry.
HLX's Profit Margin has declined in the last couple of years.
The Operating Margin of HLX (10.24%) is comparable to the rest of the industry.
HLX's Operating Margin has been stable in the last couple of years.
The Gross Margin of HLX (16.98%) is worse than 79.37% of its industry peers.
In the last couple of years the Gross Margin of HLX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.24% | ||
| PM (TTM) | 6.33% | ||
| GM | 16.98% |
OM growth 3YN/A
OM growth 5Y0.81%
PM growth 3YN/A
PM growth 5Y-11.7%
GM growth 3Y92.02%
GM growth 5Y-2.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLX is destroying value.
HLX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HLX has been increased compared to 5 years ago.
Compared to 1 year ago, HLX has an improved debt to assets ratio.
2.2 Solvency
HLX has an Altman-Z score of 1.59. This is a bad value and indicates that HLX is not financially healthy and even has some risk of bankruptcy.
HLX has a Altman-Z score (1.59) which is comparable to the rest of the industry.
The Debt to FCF ratio of HLX is 2.73, which is a good value as it means it would take HLX, 2.73 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HLX (2.73) is better than 71.43% of its industry peers.
HLX has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
HLX's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. HLX outperforms 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.5
WACC9.3%
2.3 Liquidity
HLX has a Current Ratio of 2.28. This indicates that HLX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HLX (2.28) is better than 71.43% of its industry peers.
HLX has a Quick Ratio of 2.28. This indicates that HLX is financially healthy and has no problem in meeting its short term obligations.
HLX has a Quick ratio of 2.28. This is amongst the best in the industry. HLX outperforms 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
HLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1275.00%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.55% on average over the past years.
The Revenue has been growing slightly by 0.34% in the past year.
The Revenue has been growing by 12.56% on average over the past years. This is quite good.
EPS 1Y (TTM)1275%
EPS 3YN/A
EPS 5Y-0.55%
EPS Q2Q%111.76%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y26.28%
Revenue growth 5Y12.56%
Sales Q2Q%-6.13%
3.2 Future
HLX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.74% yearly.
Based on estimates for the next years, HLX will show a small growth in Revenue. The Revenue will grow by 4.88% on average per year.
EPS Next Y2.82%
EPS Next 2Y36.08%
EPS Next 3Y39.61%
EPS Next 5Y29.74%
Revenue Next Year-0.15%
Revenue Next 2Y3.37%
Revenue Next 3Y4.33%
Revenue Next 5Y4.88%
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.
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
With a Price/Earnings ratio of 12.20, HLX is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HLX indicates a somewhat cheap valuation: HLX is cheaper than 69.84% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.29. HLX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.07, which indicates a very decent valuation of HLX.
HLX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HLX is cheaper than 69.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.17. HLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLX indicates a rather cheap valuation: HLX is cheaper than 82.54% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLX indicates a somewhat cheap valuation: HLX is cheaper than 69.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| EV/EBITDA | 3.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLX does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as HLX's earnings are expected to grow with 39.61% in the coming years.
PEG (NY)4.32
PEG (5Y)N/A
EPS Next 2Y36.08%
EPS Next 3Y39.61%
5. Dividend
5.1 Amount
HLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.71
+0.45 (+7.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.14%
Inst Owner Change-3.41%
Ins Owners6.14%
Ins Owner Change8.6%
Market Cap1.02B
Analysts78
Price Target12.89 (92.1%)
Short Float %3.83%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)766.91%
Min EPS beat(2)49.67%
Max EPS beat(2)1484.16%
EPS beat(4)4
Avg EPS beat(4)400.42%
Min EPS beat(4)9.12%
Max EPS beat(4)1484.16%
EPS beat(8)5
Avg EPS beat(8)85.6%
EPS beat(12)8
Avg EPS beat(12)959.77%
EPS beat(16)9
Avg EPS beat(16)717.72%
Revenue beat(2)1
Avg Revenue beat(2)4.83%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)12.81%
Revenue beat(4)2
Avg Revenue beat(4)2.42%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)12.81%
Revenue beat(8)5
Avg Revenue beat(8)4.81%
Revenue beat(12)8
Avg Revenue beat(12)5.77%
Revenue beat(16)11
Avg Revenue beat(16)5.89%
PT rev (1m)-10.61%
PT rev (3m)-12.67%
EPS NQ rev (1m)-74.68%
EPS NQ rev (3m)-88.47%
EPS NY rev (1m)-50.64%
EPS NY rev (3m)-48.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.79%
Revenue NY rev (1m)-7.66%
Revenue NY rev (3m)-3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 10.07 | ||
| P/S | 0.76 | ||
| P/FCF | 8.93 | ||
| P/OCF | 7.37 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 3.4 |
EPS(TTM)0.55
EY8.2%
EPS(NY)0.67
Fwd EY9.93%
FCF(TTM)0.75
FCFY11.19%
OCF(TTM)0.91
OCFY13.57%
SpS8.85
BVpS10.2
TBVpS10.17
PEG (NY)4.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 5.5% | ||
| ROCE | 5.94% | ||
| ROIC | 4.69% | ||
| ROICexc | 5.58% | ||
| ROICexgc | 5.59% | ||
| OM | 10.24% | ||
| PM (TTM) | 6.33% | ||
| GM | 16.98% | ||
| FCFM | 8.49% |
ROA(3y)-0.65%
ROA(5y)-0.77%
ROE(3y)-0.95%
ROE(5y)-1.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.43%
ROICexc growth 3YN/A
ROICexc growth 5Y15.5%
OM growth 3YN/A
OM growth 5Y0.81%
PM growth 3YN/A
PM growth 5Y-11.7%
GM growth 3Y92.02%
GM growth 5Y-2.48%
F-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 19.49% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 52.81% | ||
| Profit Quality | 134.02% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 1.59 |
F-Score8
WACC9.3%
ROIC/WACC0.5
Cap/Depr(3y)17.47%
Cap/Depr(5y)14.67%
Cap/Sales(3y)2.36%
Cap/Sales(5y)2.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1275%
EPS 3YN/A
EPS 5Y-0.55%
EPS Q2Q%111.76%
EPS Next Y2.82%
EPS Next 2Y36.08%
EPS Next 3Y39.61%
EPS Next 5Y29.74%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y26.28%
Revenue growth 5Y12.56%
Sales Q2Q%-6.13%
Revenue Next Year-0.15%
Revenue Next 2Y3.37%
Revenue Next 3Y4.33%
Revenue Next 5Y4.88%
EBIT growth 1Y93.38%
EBIT growth 3YN/A
EBIT growth 5Y13.47%
EBIT Next Year138.64%
EBIT Next 3Y46.98%
EBIT Next 5Y30.56%
FCF growth 1Y384.26%
FCF growth 3Y7.28%
FCF growth 5Y41.39%
OCF growth 1Y118.68%
OCF growth 3Y9.91%
OCF growth 5Y1.85%