Holly Energy Partners LP (HEP) Stock Fundamental Analysis
NYSE:HEP - New York Stock Exchange, Inc. - US4357631070 - Currency: USD
HEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While HEP is still in line with the averages on profitability rating, there are concerns on its financial health. HEP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HEP was profitable.
In the past year HEP had a positive cash flow from operations.
Each year in the past 5 years HEP has been profitable.
Each year in the past 5 years HEP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.82%, HEP is in line with its industry, outperforming 54.38% of the companies in the same 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.
Looking at the Return On Invested Capital, with a value of 7.61%, HEP is doing worse than 60.83% of the companies in the same industry.
HEP had an Average Return On Invested Capital over the past 3 years of 7.99%. This is significantly below the industry average of 23.79%.
| 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.
In the last couple of years the Profit Margin of HEP has grown nicely.
With a decent Operating Margin value of 42.93%, HEP is doing good in the industry, outperforming 74.65% of the companies in the same industry.
HEP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 62.77%, HEP is in the better half of the industry, outperforming 61.75% of the companies in the same industry.
HEP's Gross Margin has declined in the last couple of years.
| 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
HEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HEP has been increased compared to 1 year ago.
The debt/assets ratio for HEP has been reduced compared to a year ago.
2.2 Solvency
HEP has a debt to FCF ratio of 4.77. This is a neutral value as HEP would need 4.77 years to pay back of all of its debts.
The Debt to FCF ratio of HEP (4.77) is comparable to the rest of the industry.
HEP has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.71, HEP is not doing good in the industry: 81.11% of the companies in the same industry are doing better.
| 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.
HEP has a Current ratio of 1.15. This is comparable to the rest of the industry: HEP outperforms 48.39% of its industry peers.
A Quick Ratio of 1.15 indicates that HEP should not have too much problems paying its short term obligations.
HEP has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
HEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.86%, which is quite good.
HEP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.41% yearly.
The Revenue has grown by 11.56% in the past year. This is quite good.
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.
HEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
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
A Price/Earnings ratio of 10.82 indicates a reasonable valuation of HEP.
HEP's Price/Earnings is on the same level as the industry average.
HEP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
HEP is valuated reasonably with a Price/Forward Earnings ratio of 9.29.
HEP's Price/Forward Earnings is on the same level as the industry average.
HEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
HEP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HEP is more expensive than 70.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HEP is valued a bit cheaper than 68.66% of the companies in the same industry.
| 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 6.48.
Compared to an average S&P500 Dividend Yield of 2.35, 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 paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HEP decreased 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
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
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%
ROICexcg growth 3Y-13.07%
ROICexcg 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%