HELIX ENERGY SOLUTIONS GROUP (HLX) Stock Fundamental Analysis
NYSE:HLX - New York Stock Exchange, Inc. - US42330P1075 - Common Stock - Currency: USD
Overall HLX gets a fundamental rating of 5 out of 10. We evaluated HLX against 63 industry peers in the Energy Equipment & Services industry. HLX scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HLX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HLX had positive earnings in the past year.
HLX had a positive operating cash flow in the past year.
In multiple years HLX reported negative net income over the last 5 years.
In the past 5 years HLX always reported a positive cash flow from operatings.
1.2 Ratios
HLX has a Return On Assets of 3.22%. This is comparable to the rest of the industry: HLX outperforms 47.62% of its industry peers.
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.
In the last couple of years the Profit Margin of HLX has declined.
HLX has a Operating Margin (10.24%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HLX has remained more or less at the same level.
HLX's Gross Margin of 16.98% is on the low side compared to the rest of the industry. HLX is outperformed by 79.37% of its industry peers.
HLX's Gross Margin has declined in the last couple of years.
| 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
HLX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HLX has been reduced compared to 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 1.61. This is a bad value and indicates that HLX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.61, HLX perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
HLX has a debt to FCF ratio of 2.73. This is a good value and a sign of high solvency as HLX would need 2.73 years to pay back of all of its debts.
HLX has a Debt to FCF ratio of 2.73. This is in the better half of the industry: HLX outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that HLX is not too dependend on debt financing.
The Debt to Equity ratio of HLX (0.20) is better than 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.58
WACC8.15%
2.3 Liquidity
A Current Ratio of 2.28 indicates that HLX has no problem at all paying its short term obligations.
HLX has a better Current ratio (2.28) 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.
The Quick ratio of HLX (2.28) is better than 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.
Measured over the past years, HLX shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.55% on average per year.
The Revenue has been growing slightly by 0.34% in the past year.
HLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.56% yearly.
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 26.62% yearly.
HLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y1.34%
EPS Next 2Y36.49%
EPS Next 3Y39.61%
EPS Next 5Y26.62%
Revenue Next Year-0.15%
Revenue Next 2Y3.37%
Revenue Next 3Y4.33%
Revenue Next 5Y4.14%
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
Based on the Price/Earnings ratio of 11.76, the valuation of HLX can be described as reasonable.
71.43% of the companies in the same industry are more expensive than HLX, based on the Price/Earnings ratio.
HLX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.28.
The Price/Forward Earnings ratio is 9.65, 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 79.37% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. HLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLX is valued cheaply inside the industry as 84.13% of the companies are valued more expensively.
73.02% of the companies in the same industry are more expensive than HLX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.62 | ||
| EV/EBITDA | 3.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HLX's earnings are expected to grow with 39.61% in the coming years.
PEG (NY)8.8
PEG (5Y)N/A
EPS Next 2Y36.49%
EPS Next 3Y39.61%
5. Dividend
5.1 Amount
HLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.47
-0.1 (-1.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.41%
Inst Owner Change-3.41%
Ins Owners6.56%
Ins Owner Change9.63%
Market Cap980.40M
Analysts77.78
Price Target12.89 (99.23%)
Short Float %4.3%
Short Ratio3.44
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)0%
PT rev (3m)-10.61%
EPS NQ rev (1m)8.33%
EPS NQ rev (3m)-87.67%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)-51.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 9.65 | ||
| P/S | 0.73 | ||
| P/FCF | 8.62 | ||
| P/OCF | 7.11 | ||
| P/B | 0.63 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 3.58 |
EPS(TTM)0.55
EY8.5%
EPS(NY)0.67
Fwd EY10.37%
FCF(TTM)0.75
FCFY11.61%
OCF(TTM)0.91
OCFY14.07%
SpS8.85
BVpS10.2
TBVpS10.17
PEG (NY)8.8
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 | 1.61 |
F-Score8
WACC8.15%
ROIC/WACC0.58
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 Y1.34%
EPS Next 2Y36.49%
EPS Next 3Y39.61%
EPS Next 5Y26.62%
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 5Y4.14%
EBIT growth 1Y93.38%
EBIT growth 3YN/A
EBIT growth 5Y13.47%
EBIT Next Year138.64%
EBIT Next 3Y46.98%
EBIT Next 5Y28.5%
FCF growth 1Y384.26%
FCF growth 3Y7.28%
FCF growth 5Y41.39%
OCF growth 1Y118.68%
OCF growth 3Y9.91%
OCF growth 5Y1.85%