H&E EQUIPMENT SERVICES INC (HEES) Stock Fundamental Analysis
NASDAQ:HEES - Nasdaq - US4040301081 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HEES. HEES was compared to 48 industry peers in the Trading Companies & Distributors industry. HEES has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, HEES is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year HEES was profitable.
HEES had a positive operating cash flow in the past year.
HEES had positive earnings in 4 of the past 5 years.
In the past 5 years HEES always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.40%, HEES perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
With a decent Return On Equity value of 19.76%, HEES is doing good in the industry, outperforming 79.17% of the companies in the same industry.
HEES has a Return On Invested Capital of 6.89%. This is comparable to the rest of the industry: HEES outperforms 52.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HEES is in line with the industry average of 9.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 19.76% | ||
| ROIC | 6.89% |
ROA(3y)5.53%
ROA(5y)3.97%
ROE(3y)28.14%
ROE(5y)20.89%
ROIC(3y)8.17%
ROIC(5y)6.83%
1.3 Margins
Looking at the Profit Margin, with a value of 8.11%, HEES is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
HEES's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 14.48%, HEES is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of HEES has remained more or less at the same level.
HEES has a better Gross Margin (44.52%) than 75.00% of its industry peers.
HEES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 8.11% | ||
| GM | 44.52% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HEES is destroying value.
The number of shares outstanding for HEES has been increased compared to 1 year ago.
Compared to 5 years ago, HEES has more shares outstanding
Compared to 1 year ago, HEES has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.88 indicates that HEES is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.88, HEES is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
HEES has a debt to FCF ratio of 32.65. This is a negative value and a sign of low solvency as HEES would need 32.65 years to pay back of all of its debts.
HEES has a Debt to FCF ratio (32.65) which is in line with its industry peers.
HEES has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.33, HEES is doing worse than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 32.65 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.74
WACC9.25%
2.3 Liquidity
HEES has a Current Ratio of 0.73. This is a bad value and indicates that HEES is not financially healthy enough and could expect problems in meeting its short term obligations.
HEES has a worse Current ratio (0.73) than 91.67% of its industry peers.
A Quick Ratio of 0.70 indicates that HEES may have some problems paying its short term obligations.
HEES's Quick ratio of 0.70 is on the low side compared to the rest of the industry. HEES is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
HEES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.62%.
The Earnings Per Share has been growing slightly by 5.09% on average over the past years.
Looking at the last year, HEES shows a small growth in Revenue. The Revenue has grown by 3.22% in the last year.
The Revenue has been growing slightly by 6.18% on average over the past years.
EPS 1Y (TTM)-27.62%
EPS 3Y24.34%
EPS 5Y5.09%
EPS Q2Q%-32.65%
Revenue 1Y (TTM)3.22%
Revenue growth 3Y12.58%
Revenue growth 5Y6.18%
Sales Q2Q%-0.45%
3.2 Future
The Earnings Per Share is expected to grow by 9.67% on average over the next years. This is quite good.
HEES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y9.96%
EPS Next 2Y9.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.32%
Revenue Next 2Y4.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
HEES is valuated quite expensively with a Price/Earnings ratio of 25.92.
Compared to the rest of the industry, the Price/Earnings ratio of HEES is on the same level as its industry peers.
HEES is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.58, which indicates a rather expensive current valuation of HEES.
Based on the Price/Forward Earnings ratio, HEES is valued a bit more expensive than 60.42% of the companies in the same industry.
HEES is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 23.58 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than HEES, based on the Enterprise Value to EBITDA ratio.
HEES's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.06 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEES does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of HEES may justify a higher PE ratio.
PEG (NY)2.6
PEG (5Y)5.1
EPS Next 2Y9.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HEES has a Yearly Dividend Yield of 1.21%.
HEES's Dividend Yield is a higher than the industry average which is at 2.26.
With a Dividend Yield of 1.21, HEES pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of HEES decreases each year by -0.02%.
HEES has paid a dividend for at least 10 years, which is a reliable track record.
HEES has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.02%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
HEES pays out 32.70% of its income as dividend. This is a sustainable payout ratio.
DP32.7%
EPS Next 2Y9.67%
EPS Next 3YN/A
NASDAQ:HEES (4/22/2025, 3:37:13 PM)
89.7
-0.18 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners85.48%
Inst Owner Change-2.23%
Ins Owners12.41%
Ins Owner Change1.83%
Market Cap3.28B
Analysts47.5
Price Target86.7 (-3.34%)
Short Float %5.99%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.1
Dividend Growth(5Y)-0.02%
DP32.7%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.56%
Min EPS beat(2)-17.08%
Max EPS beat(2)20.2%
EPS beat(4)1
Avg EPS beat(4)-5.19%
Min EPS beat(4)-17.08%
Max EPS beat(4)20.2%
EPS beat(8)5
Avg EPS beat(8)1.89%
EPS beat(12)9
Avg EPS beat(12)12.86%
EPS beat(16)12
Avg EPS beat(16)12.09%
Revenue beat(2)1
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)1.09%
Revenue beat(4)2
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)3.28%
Revenue beat(8)5
Avg Revenue beat(8)0.62%
Revenue beat(12)8
Avg Revenue beat(12)1%
Revenue beat(16)9
Avg Revenue beat(16)-1.47%
PT rev (1m)0%
PT rev (3m)31.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.9%
EPS NY rev (1m)-0.8%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 23.58 | ||
| P/S | 2.17 | ||
| P/FCF | 74.06 | ||
| P/OCF | 6.63 | ||
| P/B | 5.28 | ||
| P/tB | 7.75 | ||
| EV/EBITDA | 7.22 |
EPS(TTM)3.46
EY3.86%
EPS(NY)3.8
Fwd EY4.24%
FCF(TTM)1.21
FCFY1.35%
OCF(TTM)13.54
OCFY15.09%
SpS41.43
BVpS17
TBVpS11.58
PEG (NY)2.6
PEG (5Y)5.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 19.76% | ||
| ROCE | 9.09% | ||
| ROIC | 6.89% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 7.56% | ||
| OM | 14.48% | ||
| PM (TTM) | 8.11% | ||
| GM | 44.52% | ||
| FCFM | 2.92% |
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%
ROICexcg growth 3Y1.18%
ROICexcg 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 32.65 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 103.97% | ||
| Cap/Sales | 29.75% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 75.82% | ||
| Profit Quality | 36.06% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.88 |
F-Score5
WACC9.25%
ROIC/WACC0.74
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)-27.62%
EPS 3Y24.34%
EPS 5Y5.09%
EPS Q2Q%-32.65%
EPS Next Y9.96%
EPS Next 2Y9.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.22%
Revenue growth 3Y12.58%
Revenue growth 5Y6.18%
Sales Q2Q%-0.45%
Revenue Next Year3.32%
Revenue Next 2Y4.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.28%
EBIT growth 3Y20.61%
EBIT growth 5Y7.11%
EBIT Next Year196.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y113.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.22%
OCF growth 3Y24.05%
OCF growth 5Y9.2%