H&E EQUIPMENT SERVICES INC (HEES)
US4040301081 - Common Stock
Taking everything into account, HEES scores 3 out of 10 in our fundamental rating. HEES was compared to 49 industry peers in the Trading Companies & Distributors industry. While HEES is still in line with the averages on profitability rating, there are concerns on its financial health. HEES has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years HEES had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.97%, HEES perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.07%, HEES belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.56%, HEES is in line with its industry, outperforming 47.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HEES is below the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 24.07% | ||
| ROIC | 7.56% |
ROA(3y)5.7%
ROA(5y)3.97%
ROE(3y)32.81%
ROE(5y)22.61%
ROIC(3y)7.61%
ROIC(5y)6.81%
1.3 Margins
HEES has a better Profit Margin (9.47%) than 79.17% of its industry peers.
HEES's Profit Margin has improved in the last couple of years.
HEES's Operating Margin of 16.38% is fine compared to the rest of the industry. HEES outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of HEES has grown nicely.
HEES's Gross Margin of 45.70% is fine compared to the rest of the industry. HEES outperforms 77.08% of its industry peers.
HEES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.38% | ||
| PM (TTM) | 9.47% | ||
| GM | 45.7% |
OM growth 3Y28%
OM growth 5Y7.99%
PM growth 3YN/A
PM growth 5Y13.26%
GM growth 3Y9.52%
GM growth 5Y5.65%
2. Health
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.
The number of shares outstanding for HEES has been increased compared to 1 year ago.
HEES has more shares outstanding than it did 5 years ago.
HEES has a better debt/assets ratio than last year.
2.2 Solvency
HEES has an Altman-Z score of 1.37. This is a bad value and indicates that HEES is not financially healthy and even has some risk of bankruptcy.
HEES has a Altman-Z score of 1.37. This is in the lower half of the industry: HEES underperforms 77.08% of its industry peers.
A Debt/Equity ratio of 2.55 is on the high side and indicates that HEES has dependencies on debt financing.
With a Debt to Equity ratio value of 2.55, HEES is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC0.74
WACC10.24%
2.3 Liquidity
HEES has a Current Ratio of 0.70. 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 (0.70) than 95.83% of its industry peers.
HEES has a Quick Ratio of 0.70. 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 Quick ratio of 0.65. This is amonst the worse of the industry: HEES underperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
HEES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.53%.
HEES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.55% yearly.
HEES shows a small growth in Revenue. In the last year, the Revenue has grown by 5.69%.
HEES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.47% yearly.
EPS 1Y (TTM)-16.53%
EPS 3Y53.56%
EPS 5Y17.55%
EPS Q2Q%-41.78%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y13.42%
Revenue growth 5Y3.47%
Sales Q2Q%-3.95%
3.2 Future
HEES is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.51% yearly.
Based on estimates for the next years, HEES will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y-30.26%
EPS Next 2Y-10.72%
EPS Next 3Y-4.51%
EPS Next 5YN/A
Revenue Next Year2.74%
Revenue Next 2Y3.32%
Revenue Next 3Y4.23%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HEES is valuated rather expensively with a Price/Earnings ratio of 22.92.
HEES's Price/Earnings ratio is rather cheap when compared to the industry. HEES is cheaper than 81.25% of the companies in the same industry.
HEES is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.71 indicates a rather expensive valuation of HEES.
Based on the Price/Forward Earnings ratio, HEES is valued cheaper than 81.25% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.41. HEES is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 23.71 |
4.2 Price Multiples
HEES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HEES is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
HEES has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HEES's earnings are expected to decrease with -4.51% in the coming years.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y-10.72%
EPS Next 3Y-4.51%
5. Dividend
5.1 Amount
HEES has a Yearly Dividend Yield of 2.41%.
Compared to an average industry Dividend Yield of 1.87, HEES pays a better dividend. On top of this HEES pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, HEES has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of HEES decreases each year by -0.03%.
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)-0.03%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
27.95% of the earnings are spent on dividend by HEES. This is a low number and sustainable payout ratio.
HEES's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP27.95%
EPS Next 2Y-10.72%
EPS Next 3Y-4.51%
H&E EQUIPMENT SERVICES INC
NASDAQ:HEES (1/14/2025, 2:17:05 PM)
90.32
+46.38 (+105.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners78.02%
Inst Owner Change0.01%
Ins Owners12.42%
Ins Owner Change0.57%
Market Cap3.31B
Analysts80
Price Target65.79 (-27.16%)
Short Float %4.14%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Dividend Growth(5Y)-0.03%
DP27.95%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.09%
Min EPS beat(2)-17.08%
Max EPS beat(2)-13.1%
EPS beat(4)1
Avg EPS beat(4)-5.61%
Min EPS beat(4)-17.08%
Max EPS beat(4)18.49%
EPS beat(8)5
Avg EPS beat(8)4.21%
EPS beat(12)9
Avg EPS beat(12)13.32%
EPS beat(16)12
Avg EPS beat(16)13.05%
Revenue beat(2)0
Avg Revenue beat(2)-3.12%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-2.8%
Revenue beat(4)1
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)3.28%
Revenue beat(8)5
Avg Revenue beat(8)0.73%
Revenue beat(12)8
Avg Revenue beat(12)1.24%
Revenue beat(16)8
Avg Revenue beat(16)-4.62%
PT rev (1m)0%
PT rev (3m)2.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-44.29%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-8.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 23.71 | ||
| P/S | 2.18 | ||
| P/FCF | N/A | ||
| P/OCF | 6.68 | ||
| P/B | 5.54 | ||
| P/tB | 8.35 | ||
| EV/EBITDA | 4.66 |
EPS(TTM)3.94
EY4.36%
EPS(NY)3.81
Fwd EY4.22%
FCF(TTM)-1.5
FCFYN/A
OCF(TTM)13.52
OCFY14.97%
SpS41.47
BVpS16.31
TBVpS10.82
PEG (NY)N/A
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 24.07% | ||
| ROCE | 10.09% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 8.27% | ||
| OM | 16.38% | ||
| PM (TTM) | 9.47% | ||
| GM | 45.7% | ||
| FCFM | N/A |
ROA(3y)5.7%
ROA(5y)3.97%
ROE(3y)32.81%
ROE(5y)22.61%
ROIC(3y)7.61%
ROIC(5y)6.81%
ROICexc(3y)8.2%
ROICexc(5y)7.37%
ROICexgc(3y)8.79%
ROICexgc(5y)7.96%
ROCE(3y)10.15%
ROCE(5y)9.09%
ROICexcg growth 3Y21.19%
ROICexcg growth 5Y2.37%
ROICexc growth 3Y21.68%
ROICexc growth 5Y2.97%
OM growth 3Y28%
OM growth 5Y7.99%
PM growth 3YN/A
PM growth 5Y13.26%
GM growth 3Y9.52%
GM growth 5Y5.65%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 130.51% | ||
| Cap/Sales | 36.23% | ||
| Interest Coverage | 3.61 | ||
| Cash Conversion | 73.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.37 |
F-Score5
WACC10.24%
ROIC/WACC0.74
Cap/Depr(3y)178.52%
Cap/Depr(5y)142.73%
Cap/Sales(3y)44.94%
Cap/Sales(5y)35.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.53%
EPS 3Y53.56%
EPS 5Y17.55%
EPS Q2Q%-41.78%
EPS Next Y-30.26%
EPS Next 2Y-10.72%
EPS Next 3Y-4.51%
EPS Next 5YN/A
Revenue 1Y (TTM)5.69%
Revenue growth 3Y13.42%
Revenue growth 5Y3.47%
Sales Q2Q%-3.95%
Revenue Next Year2.74%
Revenue Next 2Y3.32%
Revenue Next 3Y4.23%
Revenue Next 5YN/A
EBIT growth 1Y-5.63%
EBIT growth 3Y45.17%
EBIT growth 5Y11.74%
EBIT Next Year141.33%
EBIT Next 3Y39.49%
EBIT Next 5YN/A
FCF growth 1Y71.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y84.27%
OCF growth 3Y12.34%
OCF growth 5Y10.4%