94.64 USD
-0.6 (-0.63%)
94.64 USD
0 (0%)
Taking everything into account, HEES scores 3 out of 10 in our fundamental rating. HEES was compared to 50 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of HEES while its profitability can be described as average. HEES does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
HEES had positive earnings in the past year.
In the past year HEES had a positive cash flow from operations.
Of the past 5 years HEES 4 years were profitable.
HEES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.39%, HEES is in line with its industry, outperforming 51.02% of the companies in the same industry.
The Return On Equity of HEES (15.05%) is better than 63.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.96%, HEES is in line with its industry, outperforming 48.98% of the companies in the same industry.
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 9.63%.
| Industry Rank | Sector 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%
1.3 Margins
HEES has a better Profit Margin (6.21%) 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's Operating Margin of 12.36% is fine compared to the rest of the industry. HEES outperforms 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.
HEES has a better Gross Margin (43.28%) than 77.55% of its industry peers.
In the last couple of years the Gross Margin of HEES has grown nicely.
| Industry Rank | Sector 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%
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
HEES has a better debt/assets ratio than last year.
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's Altman-Z score of 1.93 is on the low side compared to the rest of the industry. HEES is outperformed by 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 has a Debt to FCF ratio (13.77) which is in line with its industry peers.
A Debt/Equity ratio of 2.26 is on the high side and indicates that HEES has dependencies on debt 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 13.77 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.62
WACC9.54%
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.
HEES's Quick ratio of 0.59 is on the low side compared to the rest of the industry. HEES is outperformed by 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for HEES have decreased strongly by -41.84% in the last year.
Measured over the past 5 years, HEES shows a small growth in Earnings Per Share. The EPS has been growing by 5.09% on average per year.
Looking at the last year, HEES shows a decrease in Revenue. The Revenue has decreased by -3.52% in the last year.
HEES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.18% yearly.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.04, which means the current valuation is very expensive for HEES.
Compared to the rest of the industry, the Price/Earnings ratio of HEES indicates a slightly more expensive valuation: HEES is more expensive than 61.22% of the companies listed in the same industry.
HEES's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.50.
HEES is valuated quite expensively with a Price/Forward Earnings ratio of 27.45.
Based on the Price/Forward Earnings ratio, HEES is valued a bit more expensive than 65.31% 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 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.04 | ||
| Fwd PE | 27.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HEES is valued cheaper than 85.71% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.07 | ||
| EV/EBITDA | 7.76 |
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
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, HEES has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.98, HEES pays a bit more dividend than its industry peers.
HEES's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector 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
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
94.64
-0.6 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners78.62%
Inst Owner Change-36.02%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.1
Dividend Growth(5Y)-0.02%
DP44.29%
Div Incr Years0
Div Non Decr Years10
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 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 of H&E EQUIPMENT SERVICES INC (HEES) stock?
ChartMill assigns a valuation rating of 2 / 10 to H&E EQUIPMENT SERVICES INC (HEES). This can be considered as Overvalued.
How profitable is H&E EQUIPMENT SERVICES INC (HEES) stock?
H&E EQUIPMENT SERVICES INC (HEES) has a profitability rating of 6 / 10.
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.
How sustainable is the dividend of H&E EQUIPMENT SERVICES INC (HEES) stock?
The dividend rating of H&E EQUIPMENT SERVICES INC (HEES) is 5 / 10 and the dividend payout ratio is 44.29%.