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

  • The Return On Assets of HEES (3.39%) is comparable to the rest of the industry.
  • HEES has a Return On Equity of 15.05%. This is in the better half of the industry: HEES outperforms 63.27% of its industry peers.
  • HEES has a Return On Invested Capital of 5.96%. This is comparable to the rest of the industry: HEES outperforms 48.98% of 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 9.22%.
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

  • Looking at the Profit Margin, with a value of 6.21%, HEES is in the better half of 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.
  • HEES has a better Operating Margin (12.36%) than 75.51% of its industry peers.
  • In the last couple of years the Operating Margin of HEES has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 43.28%, HEES is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
  • 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

  • HEES has an Altman-Z score of 1.93. This is not the best score and indicates that HEES is in the grey zone with still only limited risk for bankruptcy at the moment.
  • HEES has a worse Altman-Z score (1.93) than 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.
  • Looking at the Debt to FCF ratio, with a value of 13.77, HEES is in line with its industry, outperforming 53.06% of the companies in the same industry.
  • HEES has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 2.26, HEES is doing worse than 79.59% of the companies in the same industry.
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.
  • HEES has a Current ratio of 0.63. This is amonst the worse of the industry: HEES underperforms 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.
  • 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

  • The earnings per share for HEES have decreased strongly by -41.84% in the last year.
  • HEES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.09% yearly.
  • HEES shows a decrease in Revenue. In the last year, the revenue decreased by -3.52%.
  • Measured over the past years, HEES shows a small growth in Revenue. The Revenue has been growing by 6.18% on average per year.
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.
  • 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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

  • With a Price/Earnings ratio of 34.04, HEES can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, HEES is valued a bit more expensive than 61.22% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.71. HEES is valued slightly more expensive when compared to this.
  • 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.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, HEES is valued at the same level.
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.
  • 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

  • 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%. 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 0.94.
  • Compared to the average S&P500 Dividend Yield of 1.91, 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

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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 Change-95.89%
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.


What is the profitability of HEES stock?

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


Can you provide the financial health for HEES stock?

The financial health rating of H&E EQUIPMENT SERVICES INC (HEES) is 1 / 10.


Is the dividend of H&E EQUIPMENT SERVICES INC sustainable?

The dividend rating of H&E EQUIPMENT SERVICES INC (HEES) is 5 / 10 and the dividend payout ratio is 44.29%.