Holly Energy Partners LP (HEP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEP - US4357631070
20.45 USD
-0.16 (-0.78%)
20.55 USD
+0.1 (+0.49%)
HEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of HEP while its profitability can be described as average. HEP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HEP had positive earnings in the past year.
In the past year HEP had a positive cash flow from operations.
In the past 5 years HEP has always been profitable.
HEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEP has a Return On Assets (8.82%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 26.66%, HEP is in the better half of the industry, outperforming 65.90% of the companies in the same industry.
HEP has a Return On Invested Capital of 7.61%. This is in the lower half of the industry: HEP underperforms 60.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEP is significantly below the industry average of 21.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 26.66% | ||
| ROIC | 7.61% |
ROA(3y)8.55%
ROA(5y)8.88%
ROE(3y)39.57%
ROE(5y)43.91%
ROIC(3y)7.99%
ROIC(5y)8.68%
1.3 Margins
The Profit Margin of HEP (40.91%) is better than 80.18% of its industry peers.
HEP's Profit Margin has improved in the last couple of years.
HEP has a Operating Margin of 42.93%. This is in the better half of the industry: HEP outperforms 74.65% of its industry peers.
In the last couple of years the Operating Margin of HEP has declined.
The Gross Margin of HEP (62.77%) is better than 61.75% of its industry peers.
In the last couple of years the Gross Margin of HEP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.93% | ||
| PM (TTM) | 40.91% | ||
| GM | 62.77% |
OM growth 3Y-6.27%
OM growth 5Y-3.66%
PM growth 3Y-2.17%
PM growth 5Y2.34%
GM growth 3Y-4.02%
GM growth 5Y-2.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEP is creating some value.
The number of shares outstanding for HEP has been increased compared to 1 year ago.
HEP has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HEP is 4.77, which is a neutral value as it means it would take HEP, 4.77 years of fcf income to pay off all of its debts.
HEP's Debt to FCF ratio of 4.77 is in line compared to the rest of the industry. HEP outperforms 55.30% of its industry peers.
HEP has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
HEP's Debt to Equity ratio of 1.71 is on the low side compared to the rest of the industry. HEP is outperformed by 81.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 4.77 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC7.28%
2.3 Liquidity
HEP has a Current Ratio of 1.15. This is a normal value and indicates that HEP is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.15, HEP perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that HEP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, HEP perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.86% over the past year.
Measured over the past years, HEP shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.41% on average per year.
HEP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.56%.
Measured over the past years, HEP shows a small growth in Revenue. The Revenue has been growing by 3.80% on average per year.
EPS 1Y (TTM)13.86%
EPS 3Y-0.56%
EPS 5Y-1.41%
EPS Q2Q%51.52%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y0.91%
Revenue growth 5Y3.8%
Sales Q2Q%6.31%
3.2 Future
The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y7.71%
EPS Next 2Y11.49%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue Next Year9.05%
Revenue Next 2Y7.91%
Revenue Next 3Y5.53%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HEP is valuated reasonably with a Price/Earnings ratio of 10.82.
HEP's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of HEP to the average of the S&P500 Index (26.61), we can say HEP is valued rather cheaply.
HEP is valuated reasonably with a Price/Forward Earnings ratio of 9.29.
HEP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.01. HEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HEP is valued a bit more expensive than the industry average as 70.51% of the companies are valued more cheaply.
68.66% of the companies in the same industry are more expensive than HEP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
HEP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.4
PEG (5Y)N/A
EPS Next 2Y11.49%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.85%, HEP is a good candidate for dividend investing.
HEP's Dividend Yield is a higher than the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 1.87, HEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
5.2 History
The dividend of HEP decreases each year by -12.46%.
HEP has been paying a dividend for at least 10 years, so it has a reliable track record.
HEP has decreased its dividend recently.
Dividend Growth(5Y)-12.46%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
74.17% of the earnings are spent on dividend by HEP. This is not a sustainable payout ratio.
DP74.17%
EPS Next 2Y11.49%
EPS Next 3Y9.09%
20.45
-0.16 (-0.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners1.48%
Ins Owner Change0%
Market Cap2.59B
Revenue(TTM)584.00M
Net Income(TTM)238.90M
Analysts46
Price Target21.93 (7.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
Yearly Dividend1.47
Dividend Growth(5Y)-12.46%
DP74.17%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.42%
Min EPS beat(2)-10.9%
Max EPS beat(2)-3.94%
EPS beat(4)2
Avg EPS beat(4)-1.66%
Min EPS beat(4)-10.9%
Max EPS beat(4)4.89%
EPS beat(8)3
Avg EPS beat(8)-5.14%
EPS beat(12)7
Avg EPS beat(12)1.36%
EPS beat(16)10
Avg EPS beat(16)10.6%
Revenue beat(2)1
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-5.17%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)15.53%
Revenue beat(8)5
Avg Revenue beat(8)2.44%
Revenue beat(12)7
Avg Revenue beat(12)1.28%
Revenue beat(16)9
Avg Revenue beat(16)1.05%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.29 | ||
| P/S | 4.43 | ||
| P/FCF | 8.05 | ||
| P/OCF | 7.37 | ||
| P/B | 2.89 | ||
| P/tB | 5.16 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)1.89
EY9.24%
EPS(NY)2.2
Fwd EY10.76%
FCF(TTM)2.54
FCFY12.42%
OCF(TTM)2.78
OCFY13.57%
SpS4.62
BVpS7.09
TBVpS3.97
PEG (NY)1.4
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 26.66% | ||
| ROCE | 9.64% | ||
| ROIC | 7.61% | ||
| ROICexc | 7.65% | ||
| ROICexgc | 9.02% | ||
| OM | 42.93% | ||
| PM (TTM) | 40.91% | ||
| GM | 62.77% | ||
| FCFM | 55% |
ROA(3y)8.55%
ROA(5y)8.88%
ROE(3y)39.57%
ROE(5y)43.91%
ROIC(3y)7.99%
ROIC(5y)8.68%
ROICexc(3y)8.05%
ROICexc(5y)8.73%
ROICexgc(3y)9.47%
ROICexgc(5y)10.46%
ROCE(3y)10.11%
ROCE(5y)10.99%
ROICexgc growth 3Y-13.07%
ROICexgc growth 5Y-5.5%
ROICexc growth 3Y-12.24%
ROICexc growth 5Y-4.64%
OM growth 3Y-6.27%
OM growth 5Y-3.66%
PM growth 3Y-2.17%
PM growth 5Y2.34%
GM growth 3Y-4.02%
GM growth 5Y-2.47%
F-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 4.77 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 29.92% | ||
| Cap/Sales | 5.1% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 100.2% | ||
| Profit Quality | 134.45% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | N/A |
F-Score8
WACC7.28%
ROIC/WACC1.05
Cap/Depr(3y)64.95%
Cap/Depr(5y)54.8%
Cap/Sales(3y)12.41%
Cap/Sales(5y)10.45%
Profit Quality(3y)126.74%
Profit Quality(5y)127.52%
High Growth Momentum
Growth
EPS 1Y (TTM)13.86%
EPS 3Y-0.56%
EPS 5Y-1.41%
EPS Q2Q%51.52%
EPS Next Y7.71%
EPS Next 2Y11.49%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue 1Y (TTM)11.56%
Revenue growth 3Y0.91%
Revenue growth 5Y3.8%
Sales Q2Q%6.31%
Revenue Next Year9.05%
Revenue Next 2Y7.91%
Revenue Next 3Y5.53%
Revenue Next 5YN/A
EBIT growth 1Y18.14%
EBIT growth 3Y-5.42%
EBIT growth 5Y0%
EBIT Next Year83.08%
EBIT Next 3Y24.67%
EBIT Next 5YN/A
FCF growth 1Y38.39%
FCF growth 3Y3.03%
FCF growth 5Y8.56%
OCF growth 1Y5.91%
OCF growth 3Y3.67%
OCF growth 5Y6.77%
Holly Energy Partners LP / HEP FAQ
What is the fundamental rating for HEP stock?
ChartMill assigns a fundamental rating of 4 / 10 to HEP.
What is the valuation status for HEP stock?
ChartMill assigns a valuation rating of 5 / 10 to Holly Energy Partners LP (HEP). This can be considered as Fairly Valued.
Can you provide the profitability details for Holly Energy Partners LP?
Holly Energy Partners LP (HEP) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for HEP stock?
The Price/Earnings (PE) ratio for Holly Energy Partners LP (HEP) is 10.82 and the Price/Book (PB) ratio is 2.89.
What is the earnings growth outlook for Holly Energy Partners LP?
The Earnings per Share (EPS) of Holly Energy Partners LP (HEP) is expected to grow by 7.71% in the next year.