Holly Energy Partners LP (HEP) Stock Fundamental Analysis
USA - NYSE:HEP - US4357631070
20.45 USD
-0.16 (-0.78%)
20.55 USD
+0.1 (+0.49%)
Overall HEP gets a fundamental rating of 4 out of 10. We evaluated HEP 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.
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
HEP has a Return On Assets (8.82%) which is in line with its industry peers.
HEP's Return On Equity of 26.66% is fine compared to the rest of the industry. HEP outperforms 65.90% of its industry peers.
HEP's Return On Invested Capital of 7.61% is on the low side compared to the rest of the industry. HEP is outperformed by 60.83% of its industry peers.
HEP had an Average Return On Invested Capital over the past 3 years of 7.99%. This is significantly below the industry average of 21.78%.
| 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
Looking at the Profit Margin, with a value of 40.91%, HEP belongs to the top of the industry, outperforming 80.18% of the companies in the same industry.
In the last couple of years the Profit Margin of HEP has grown nicely.
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.
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.
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
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
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.
A Debt/Equity ratio of 1.71 is on the high side and indicates that HEP has dependencies on debt financing.
HEP has a worse Debt to Equity ratio (1.71) than 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
A Current Ratio of 1.15 indicates that HEP should not have too much problems paying 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.
HEP has a Quick 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 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
The Earnings Per Share has grown by an nice 13.86% over the past year.
The Earnings Per Share has been decreasing by -1.41% on average over the past years.
The Revenue has grown by 11.56% in the past year. This is quite good.
HEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
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.
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
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 (26.03), 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.
HEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
70.51% of the companies in the same industry are cheaper than HEP, based on the Enterprise Value to EBITDA ratio.
HEP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HEP is 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
The 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 6.82.
Compared to an average S&P500 Dividend Yield of 2.38, 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
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 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.