H&E EQUIPMENT SERVICES INC (HEES) Fundamental Analysis & Valuation

NASDAQ:HEES • US4040301081

Current stock price

94.64 USD
-0.6 (-0.63%)
At close:
94.64 USD
0 (0%)
After Hours:

This HEES fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. HEES Profitability Analysis

1.1 Basic Checks

  • HEES had positive earnings in the past year.
  • HEES had a positive operating cash flow in the past year.
  • Of the past 5 years HEES 4 years were profitable.
  • In the past 5 years HEES always reported a positive cash flow from operatings.
HEES Yearly Net Income VS EBIT VS OCF VS FCFHEES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

  • HEES has a Return On Assets of 3.39%. This is comparable to the rest of the industry: HEES outperforms 51.02% of its industry peers.
  • With a decent Return On Equity value of 15.05%, HEES is doing good in the industry, outperforming 63.27% of the companies in the same industry.
  • With a Return On Invested Capital value of 5.96%, HEES perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for HEES is in line with the industry average of 9.00%.
Industry RankSector Rank
ROA 3.39%
ROE 15.05%
ROIC 5.96%
ROA(3y)5.53%
ROA(5y)3.97%
ROE(3y)28.14%
ROE(5y)20.89%
ROIC(3y)8.17%
ROIC(5y)6.83%
HEES Yearly ROA, ROE, ROICHEES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

1.3 Margins

  • The Profit Margin of HEES (6.21%) is better than 71.43% of its industry peers.
  • In the last couple of years the Profit Margin of HEES has remained more or less at the same level.
  • HEES has a Operating Margin of 12.36%. This is in the better half of the industry: HEES outperforms 75.51% of its industry peers.
  • HEES's Operating Margin has been stable in the last couple of years.
  • HEES has a Gross Margin of 43.28%. This is in the better half of the industry: HEES outperforms 77.55% of its industry peers.
  • In the last couple of years the Gross Margin of HEES has grown nicely.
Industry RankSector Rank
OM 12.36%
PM (TTM) 6.21%
GM 43.28%
OM growth 3Y7.13%
OM growth 5Y0.88%
PM growth 3Y-5.62%
PM growth 5Y0.89%
GM growth 3Y4.44%
GM growth 5Y2.47%
HEES Yearly Profit, Operating, Gross MarginsHEES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

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1

2. HEES Health Analysis

2.1 Basic Checks

  • HEES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, HEES has more shares outstanding
  • HEES has more shares outstanding than it did 5 years ago.
  • HEES has a better debt/assets ratio than last year.
HEES Yearly Shares OutstandingHEES Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
HEES Yearly Total Debt VS Total AssetsHEES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • An Altman-Z score of 1.93 indicates that HEES is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • HEES has a Altman-Z score of 1.93. This is in the lower half of the industry: HEES underperforms 71.43% of its industry peers.
  • The Debt to FCF ratio of HEES is 13.77, which is on the high side as it means it would take HEES, 13.77 years of fcf income to pay off all of its debts.
  • HEES's Debt to FCF ratio of 13.77 is in line compared to the rest of the industry. HEES outperforms 53.06% of its industry peers.
  • A Debt/Equity ratio of 2.26 is on the high side and indicates that HEES has dependencies on debt financing.
  • The Debt to Equity ratio of HEES (2.26) is worse than 79.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.26
Debt/FCF 13.77
Altman-Z 1.93
ROIC/WACC0.62
WACC9.54%
HEES Yearly LT Debt VS Equity VS FCFHEES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

  • A Current Ratio of 0.63 indicates that HEES may have some problems paying its short term obligations.
  • The Current ratio of HEES (0.63) is worse than 95.92% of its industry peers.
  • A Quick Ratio of 0.59 indicates that HEES may have some problems paying its short term obligations.
  • The Quick ratio of HEES (0.59) is worse than 81.63% of its industry peers.
Industry RankSector Rank
Current Ratio 0.63
Quick Ratio 0.59
HEES Yearly Current Assets VS Current LiabilitesHEES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. HEES Growth Analysis

3.1 Past

  • HEES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.84%.
  • The Earnings Per Share has been growing slightly by 5.09% on average over the past years.
  • HEES shows a decrease in Revenue. In the last year, the revenue decreased by -3.52%.
  • The Revenue has been growing slightly by 6.18% on average over the past years.
EPS 1Y (TTM)-41.84%
EPS 3Y24.34%
EPS 5Y5.09%
EPS Q2Q%-95.77%
Revenue 1Y (TTM)-3.52%
Revenue growth 3Y12.58%
Revenue growth 5Y6.18%
Sales Q2Q%-13.98%

3.2 Future

  • Based on estimates for the next years, HEES will show a decrease in Earnings Per Share. The EPS will decrease by -0.18% on average per year.
  • The Revenue is expected to grow by 3.68% on average over the next years.
EPS Next Y-31.61%
EPS Next 2Y-0.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.39%
Revenue Next 2Y3.68%
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.
HEES Yearly Revenue VS EstimatesHEES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
HEES Yearly EPS VS EstimatesHEES Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

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2

4. HEES Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 34.04, the valuation of HEES can be described as expensive.
  • Based on the Price/Earnings ratio, HEES is valued a bit more expensive than 61.22% of the companies in the same industry.
  • HEES is valuated rather expensively when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 27.45, HEES can be considered very expensive at the moment.
  • HEES's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HEES is more expensive than 65.31% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of HEES to the average of the S&P500 Index (23.13), we can say HEES is valued inline with the index average.
Industry RankSector Rank
PE 34.04
Fwd PE 27.45
HEES Price Earnings VS Forward Price EarningsHEES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 85.71% of the companies in the same industry are more expensive than HEES, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as HEES.
Industry RankSector Rank
P/FCF 35.07
EV/EBITDA 7.76
HEES Per share dataHEES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • HEES has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.69
EPS Next 2Y-0.18%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. HEES Dividend Analysis

5.1 Amount

  • HEES has a Yearly Dividend Yield of 1.16%.
  • HEES's Dividend Yield is a higher than the industry average which is at 0.84.
  • HEES's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.16%

5.2 History

  • The dividend of HEES decreases each year by -0.02%.
  • HEES has been paying a dividend for at least 10 years, so it has a reliable track record.
  • HEES has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.02%
Div Incr Years0
Div Non Decr Years10
HEES Yearly Dividends per shareHEES Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • HEES pays out 44.29% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • HEES's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP44.29%
EPS Next 2Y-0.18%
EPS Next 3YN/A
HEES Yearly Income VS Free CF VS DividendHEES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M -300M
HEES Dividend Payout.HEES Dividend Payout, showing the Payout Ratio.HEES Dividend Payout.PayoutRetained Earnings

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HEES Fundamentals: All Metrics, Ratios and Statistics

H&E EQUIPMENT SERVICES INC

NASDAQ:HEES (5/30/2025, 8:01:00 PM)

After market: 94.64 0 (0%)

94.64

-0.6 (-0.63%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)04-29
Earnings (Next)07-28
Inst Owners78.62%
Inst Owner Change0%
Ins Owners0.67%
Ins Owner Change0%
Market Cap3.47B
Revenue(TTM)1.46B
Net Income(TTM)90.89M
Analysts47.5
Price Target86.7 (-8.39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.16%
Yearly Dividend1.1
Dividend Growth(5Y)-0.02%
DP44.29%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-37.57%
Min EPS beat(2)-95.33%
Max EPS beat(2)20.2%
EPS beat(4)1
Avg EPS beat(4)-26.33%
Min EPS beat(4)-95.33%
Max EPS beat(4)20.2%
EPS beat(8)4
Avg EPS beat(8)-10.27%
EPS beat(12)8
Avg EPS beat(12)1.39%
EPS beat(16)12
Avg EPS beat(16)7.88%
Revenue beat(2)1
Avg Revenue beat(2)-6.27%
Min Revenue beat(2)-13.63%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-4.69%
Min Revenue beat(4)-13.63%
Max Revenue beat(4)1.09%
Revenue beat(8)4
Avg Revenue beat(8)-1.43%
Revenue beat(12)7
Avg Revenue beat(12)-0.3%
Revenue beat(16)9
Avg Revenue beat(16)-1.57%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)35.45%
EPS NQ rev (3m)-19.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-38.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.18%
Revenue NY rev (1m)3.15%
Revenue NY rev (3m)-3.57%
Valuation
Industry RankSector Rank
PE 34.04
Fwd PE 27.45
P/S 2.37
P/FCF 35.07
P/OCF 6.8
P/B 5.75
P/tB 8.51
EV/EBITDA 7.76
EPS(TTM)2.78
EY2.94%
EPS(NY)3.45
Fwd EY3.64%
FCF(TTM)2.7
FCFY2.85%
OCF(TTM)13.91
OCFY14.7%
SpS39.94
BVpS16.47
TBVpS11.12
PEG (NY)N/A
PEG (5Y)6.69
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 3.39%
ROE 15.05%
ROCE 7.87%
ROIC 5.96%
ROICexc 5.99%
ROICexgc 6.54%
OM 12.36%
PM (TTM) 6.21%
GM 43.28%
FCFM 6.76%
ROA(3y)5.53%
ROA(5y)3.97%
ROE(3y)28.14%
ROE(5y)20.89%
ROIC(3y)8.17%
ROIC(5y)6.83%
ROICexc(3y)8.33%
ROICexc(5y)7.4%
ROICexgc(3y)8.97%
ROICexgc(5y)7.96%
ROCE(3y)10.79%
ROCE(5y)9.02%
ROICexgc growth 3Y1.18%
ROICexgc growth 5Y-1.16%
ROICexc growth 3Y0.48%
ROICexc growth 5Y-0.78%
OM growth 3Y7.13%
OM growth 5Y0.88%
PM growth 3Y-5.62%
PM growth 5Y0.89%
GM growth 3Y4.44%
GM growth 5Y2.47%
F-Score5
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 2.26
Debt/FCF 13.77
Debt/EBITDA 2.19
Cap/Depr 93.34%
Cap/Sales 28.07%
Interest Coverage 2.59
Cash Conversion 82.07%
Profit Quality 108.88%
Current Ratio 0.63
Quick Ratio 0.59
Altman-Z 1.93
F-Score5
WACC9.54%
ROIC/WACC0.62
Cap/Depr(3y)155.79%
Cap/Depr(5y)138%
Cap/Sales(3y)40.66%
Cap/Sales(5y)35.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.84%
EPS 3Y24.34%
EPS 5Y5.09%
EPS Q2Q%-95.77%
EPS Next Y-31.61%
EPS Next 2Y-0.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.52%
Revenue growth 3Y12.58%
Revenue growth 5Y6.18%
Sales Q2Q%-13.98%
Revenue Next Year0.39%
Revenue Next 2Y3.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-36.15%
EBIT growth 3Y20.61%
EBIT growth 5Y7.11%
EBIT Next Year175.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y142.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.44%
OCF growth 3Y24.05%
OCF growth 5Y9.2%

H&E EQUIPMENT SERVICES INC / HEES Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for H&E EQUIPMENT SERVICES INC?

ChartMill assigns a fundamental rating of 3 / 10 to HEES.


What is the valuation status for HEES stock?

ChartMill assigns a valuation rating of 2 / 10 to H&E EQUIPMENT SERVICES INC (HEES). This can be considered as Overvalued.


Can you provide the profitability details for H&E EQUIPMENT SERVICES INC?

H&E EQUIPMENT SERVICES INC (HEES) has a profitability rating of 6 / 10.


What are the PE and PB ratios of H&E EQUIPMENT SERVICES INC (HEES) stock?

The Price/Earnings (PE) ratio for H&E EQUIPMENT SERVICES INC (HEES) is 34.04 and the Price/Book (PB) ratio is 5.75.


Can you provide the expected EPS growth for HEES stock?

The Earnings per Share (EPS) of H&E EQUIPMENT SERVICES INC (HEES) is expected to decline by -31.61% in the next year.