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%)
We assign a fundamental rating of 4 out of 10 to HEP. HEP was compared to 208 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 is not valued too expensively and it also shows a decent growth rate.
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.
1.2 Ratios
The Return On Assets of HEP (8.82%) is comparable to the rest of the industry.
The Return On Equity of HEP (26.66%) is better than 65.90% of its industry peers.
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 21.28%.
| 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
HEP has a Profit Margin of 40.91%. This is amongst the best in the industry. HEP outperforms 80.18% of its industry peers.
HEP's Profit Margin has improved in the last couple of years.
HEP has a better Operating Margin (42.93%) than 74.65% of its industry peers.
HEP's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 62.77%, HEP is doing good in 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEP is still 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 has a Debt to FCF ratio (4.77) which is in line with its industry peers.
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.
The Current ratio of HEP (1.15) is comparable to the rest of the industry.
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.
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
HEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.09% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 10.82, the valuation of HEP can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HEP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HEP to the average of the S&P500 Index (27.17), we can say HEP is valued rather cheaply.
The Price/Forward Earnings ratio is 9.29, which indicates a very decent valuation of HEP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEP is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.79. 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.
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
HEP has a Yearly Dividend Yield of 6.85%, which is a nice return.
HEP's Dividend Yield is a higher than the industry average which is at 3.96.
HEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| 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
HEP pays out 74.17% of its income as dividend. 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 of Holly Energy Partners LP (HEP) stock?
ChartMill assigns a valuation rating of 5 / 10 to Holly Energy Partners LP (HEP). This can be considered as Fairly Valued.
How profitable is Holly Energy Partners LP (HEP) stock?
Holly Energy Partners LP (HEP) has a profitability rating of 5 / 10.
What is the valuation of Holly Energy Partners LP based on its PE and PB ratios?
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 financial health of Holly Energy Partners LP (HEP) stock?
The financial health rating of Holly Energy Partners LP (HEP) is 3 / 10.