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.
  • In the past year HEES had a positive cash flow from operations.
  • HEES had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years HEES had a positive operating cash flow.
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 (3.39%) which is in line with its industry peers.
  • The Return On Equity of HEES (15.05%) is better than 63.27% of its industry peers.
  • HEES has a Return On Invested Capital (5.96%) which is in line with its industry peers.
  • HEES had an Average Return On Invested Capital over the past 3 years of 8.17%. This is in line with the industry average of 9.05%.
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

  • With a decent Profit Margin value of 6.21%, HEES is doing good in the industry, outperforming 71.43% 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 12.36%, HEES is doing good in the industry, outperforming 75.51% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HEES is destroying value.
  • HEES has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for HEES has been increased compared to 5 years ago.
  • Compared to 1 year ago, HEES has an improved debt to assets ratio.
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.
  • The Altman-Z score of HEES (1.93) is worse than 71.43% of its industry peers.
  • HEES has a debt to FCF ratio of 13.77. This is a negative value and a sign of low solvency as HEES would need 13.77 years to pay back of 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.
  • With a Debt to Equity ratio value of 2.26, HEES is not doing good in the industry: 79.59% of the companies in the same industry are doing better.
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

  • HEES has a Current Ratio of 0.63. This is a bad value and indicates that HEES is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of HEES (0.63) is worse than 95.92% of its industry peers.
  • HEES has a Quick Ratio of 0.63. This is a bad value and indicates that HEES is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.59, HEES is not doing good in the industry: 81.63% of the companies in the same industry are doing better.
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.
  • Looking at the last year, HEES shows a decrease in Revenue. The Revenue has decreased by -3.52% in the last year.
  • 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

  • HEES is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.18% yearly.
  • Based on estimates for the next years, HEES will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
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

  • The Price/Earnings ratio is 34.04, which means the current valuation is very expensive for HEES.
  • 61.22% of the companies in the same industry are cheaper than HEES, based on the Price/Earnings ratio.
  • HEES's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.87.
  • Based on the Price/Forward Earnings ratio of 27.45, the valuation of HEES can be described as expensive.
  • Based on the Price/Forward Earnings ratio, HEES is valued a bit more expensive than the industry average as 65.31% of the companies are valued more cheaply.
  • HEES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 38.51.
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 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HEES is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEES is on the same level as its industry peers.
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

  • The decent profitability rating of HEES 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%. Purely for dividend investing, there may be better candidates out there.
  • HEES's Dividend Yield is a higher than the industry average which is at 0.79.
  • Compared to the average S&P500 Dividend Yield of 1.82, HEES is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.16%

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
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

  • 44.29% of the earnings are spent on dividend by HEES. This is a bit on the high side, but may be sustainable.
  • The Dividend Rate of HEES has been decling, while earnings will also be 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

More info and screens

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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 Number0 (-100%)
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.