HARSCO CORP (HSC)

US4158641070 - Common Stock

9.15  +0.21 (+2.35%)

After market: 9.27 +0.12 (+1.31%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to HSC. HSC was compared to 84 industry peers in the Commercial Services & Supplies industry. HSC has a bad profitability rating. Also its financial health evaluation is rather negative. HSC is valied quite expensively at the moment, while it does show a decent growth rate.



2

1. Profitability

1.1 Basic Checks

In the past year HSC was profitable.
In the past year HSC had a positive cash flow from operations.
In multiple years HSC reported negative net income over the last 5 years.
Of the past 5 years HSC 4 years had a positive operating cash flow.

1.2 Ratios

HSC has negative profitability rations, so we won't be analyzing them here.
Looking at the Return On Invested Capital, with a value of 2.84%, HSC is in line with its industry, outperforming 44.87% of the companies in the same industry.
HSC had an Average Return On Invested Capital over the past 3 years of 2.47%. This is significantly below the industry average of 9.30%.
The last Return On Invested Capital (2.84%) for HSC is above the 3 year average (2.47%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC 2.84%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.47%
ROIC(5y)3.89%

1.3 Margins

HSC has a Operating Margin (4.29%) which is comparable to the rest of the industry.
HSC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 18.37%, HSC is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
HSC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.29%
PM (TTM) N/A
GM 18.37%
OM growth 3Y-19.83%
OM growth 5Y-16.46%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.41%
GM growth 5Y-5.58%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSC is destroying value.
HSC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HSC has been reduced compared to 5 years ago.
HSC has a worse debt/assets ratio than last year.

2.2 Solvency

HSC has an Altman-Z score of 1.84. This is not the best score and indicates that HSC is in the grey zone with still only limited risk for bankruptcy at the moment.
HSC has a Altman-Z score (1.84) which is comparable to the rest of the industry.
HSC has a debt to FCF ratio of 14.30. This is a negative value and a sign of low solvency as HSC would need 14.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.30, HSC is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
A Debt/Equity ratio of 2.36 is on the high side and indicates that HSC has dependencies on debt financing.
HSC has a worse Debt to Equity ratio (2.36) than 85.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.36
Debt/FCF 14.3
Altman-Z 1.84
ROIC/WACC0.41
WACC6.98%

2.3 Liquidity

HSC has a Current Ratio of 1.28. This is a normal value and indicates that HSC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.28, HSC perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that HSC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, HSC is in line with its industry, outperforming 47.44% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 1.15

4

3. Growth

3.1 Past

The earnings per share for HSC have decreased strongly by -98.55% in the last year.
Measured over the past years, HSC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.51% on average per year.
The Revenue has grown by 20.95% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.64% on average over the past years.
EPS 1Y (TTM)-98.55%
EPS 3Y-54.13%
EPS 5Y-31.51%
EPS growth Q2Q-1000%
Revenue 1Y (TTM)20.95%
Revenue growth 3Y7.9%
Revenue growth 5Y7.64%
Revenue growth Q2Q9.46%

3.2 Future

HSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.57% yearly.
The Revenue is expected to grow by 4.59% on average over the next years.
EPS Next Y-429.63%
EPS Next 2Y30.33%
EPS Next 3Y47.57%
EPS Next 5YN/A
Revenue Next Year2.58%
Revenue Next 2Y3.39%
Revenue Next 3Y3.57%
Revenue Next 5Y4.59%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 915.00 indicates a quite expensive valuation of HSC.
Based on the Price/Earnings ratio, HSC is valued a bit more expensive than the industry average as 64.10% of the companies are valued more cheaply.
HSC is valuated expensively when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 48.97, the valuation of HSC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of HSC to the average of the S&P500 Index (22.74), we can say HSC is valued expensively.
Industry RankSector Rank
PE 915
Fwd PE 48.97

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HSC is valued a bit cheaper than the industry average as 75.64% of the companies are valued more expensively.
HSC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HSC is cheaper than 92.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.66
EV/EBITDA 8.14

4.3 Compensation for Growth

A more expensive valuation may be justified as HSC's earnings are expected to grow with 47.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.33%
EPS Next 3Y47.57%

0

5. Dividend

5.1 Amount

No dividends for HSC!.
Industry RankSector Rank
Dividend Yield N/A

HARSCO CORP

NYSE:HSC (6/16/2023, 7:04:00 PM)

After market: 9.27 +0.12 (+1.31%)

9.15

+0.21 (+2.35%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap729.61M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)
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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)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 RankSector Rank
PE 915
Fwd PE 48.97
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)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 4.29%
PM (TTM) N/A
GM 18.37%
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 Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 2.36
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.28
Quick Ratio 1.15
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)-98.55%
EPS 3Y-54.13%
EPS 5Y
EPS growth Q2Q
EPS Next Y-429.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.95%
Revenue growth 3Y7.9%
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