HYSTER-YALE MATERIALS (HY)
US4491721050 - Common Stock
We assign a fundamental rating of 6 out of 10 to HY. HY was compared to 132 industry peers in the Machinery industry. Both the profitability and the financial health of HY get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on HY. HY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HY had positive earnings in the past year.
HY had a positive operating cash flow in the past year.
In multiple years HY reported negative net income over the last 5 years.
HY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HY has a Return On Assets of 7.12%. This is in the better half of the industry: HY outperforms 67.69% of its industry peers.
HY has a better Return On Equity (36.59%) than 93.85% of its industry peers.
HY's Return On Invested Capital of 18.28% is amongst the best of the industry. HY outperforms 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.12% | ||
| ROE | 36.59% | ||
| ROIC | 18.28% |
ROA(3y)-2.13%
ROA(5y)-0.49%
ROE(3y)-17.47%
ROE(5y)-7.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HY has a Profit Margin (3.61%) which is in line with its industry peers.
HY's Profit Margin has improved in the last couple of years.
The Operating Margin of HY (5.98%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HY has grown nicely.
The Gross Margin of HY (20.28%) is worse than 68.46% of its industry peers.
HY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.98% | ||
| PM (TTM) | 3.61% | ||
| GM | 20.28% |
OM growth 3Y37.94%
OM growth 5Y32.9%
PM growth 3Y32.33%
PM growth 5Y22.84%
GM growth 3Y4.85%
GM growth 5Y4.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HY is creating value.
The number of shares outstanding for HY has been increased compared to 1 year ago.
Compared to 5 years ago, HY has more shares outstanding
Compared to 1 year ago, HY has an improved debt to assets ratio.
2.2 Solvency
HY has an Altman-Z score of 3.20. This indicates that HY is financially healthy and has little risk of bankruptcy at the moment.
HY's Altman-Z score of 3.20 is in line compared to the rest of the industry. HY outperforms 53.85% of its industry peers.
HY has a debt to FCF ratio of 3.81. This is a good value and a sign of high solvency as HY would need 3.81 years to pay back of all of its debts.
HY has a Debt to FCF ratio of 3.81. This is in the better half of the industry: HY outperforms 62.31% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that HY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, HY is doing worse than 71.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 3.2 |
ROIC/WACC2.15
WACC8.49%
2.3 Liquidity
HY has a Current Ratio of 1.25. This is a normal value and indicates that HY is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, HY is not doing good in the industry: 83.85% of the companies in the same industry are doing better.
HY has a Quick Ratio of 1.25. This is a bad value and indicates that HY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.56, HY is not doing good in the industry: 86.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
HY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 734.56%, which is quite impressive.
Measured over the past years, HY shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.90% on average per year.
HY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.24%.
Measured over the past years, HY shows a small growth in Revenue. The Revenue has been growing by 5.34% on average per year.
EPS 1Y (TTM)734.56%
EPS 3Y48.53%
EPS 5Y29.9%
EPS growth Q2Q89.03%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y13.56%
Revenue growth 5Y5.34%
Revenue growth Q2Q5.72%
3.2 Future
The Earnings Per Share is expected to grow by 7.60% on average over the next years.
HY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.04% yearly.
EPS Next Y0.87%
EPS Next 2Y12.64%
EPS Next 3YN/A
EPS Next 5Y7.6%
Revenue Next Year2.05%
Revenue Next 2Y2.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 8.63, the valuation of HY can be described as very reasonable.
HY's Price/Earnings ratio is rather cheap when compared to the industry. HY is cheaper than 90.00% of the companies in the same industry.
HY is valuated cheaply when we compare the Price/Earnings ratio to 28.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.10 indicates a reasonable valuation of HY.
Based on the Price/Forward Earnings ratio, HY is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HY to the average of the S&P500 Index (20.51), we can say HY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
94.62% of the companies in the same industry are more expensive than HY, based on the Enterprise Value to EBITDA ratio.
HY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HY is cheaper than 93.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.47 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of HY may justify a higher PE ratio.
HY's earnings are expected to grow with 12.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.93
PEG (5Y)0.29
EPS Next 2Y12.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HY has a Yearly Dividend Yield of 1.84%.
Compared to an average industry Dividend Yield of 1.66, HY pays a better dividend. On top of this HY pays more dividend than 85.38% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, HY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of HY has a limited annual growth rate of 1.20%.
HY has paid a dividend for at least 10 years, which is a reliable track record.
HY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.2%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
HY pays out 14.85% of its income as dividend. This is a sustainable payout ratio.
HY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.85%
EPS Next 2Y12.64%
EPS Next 3YN/A
HYSTER-YALE MATERIALS
NYSE:HY (5/16/2024, 3:15:00 PM)
After market: 74.5 0 (0%)74.5
-1.7 (-2.23%)
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 Cap1.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 | 8.63 | ||
| Fwd PE | 8.1 | ||
| 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)9.93
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.12% | ||
| ROE | 36.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.98% | ||
| PM (TTM) | 3.61% | ||
| GM | 20.28% | ||
| 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 Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.56 | ||
| 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)734.56%
EPS 3Y48.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.24%
Revenue growth 3Y13.56%
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