HESS CORP (HES) Stock Fundamental Analysis
NYSE:HES - New York Stock Exchange, Inc. - US42809H1077 - Common Stock
Overall HES gets a fundamental rating of 6 out of 10. We evaluated HES against 210 industry peers in the Oil, Gas & Consumable Fuels industry. HES scores excellent on profitability, but there are some minor concerns on its financial health. HES has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HES was profitable.
In the past year HES had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HES reported negative net income in multiple years.
In the past 5 years HES always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 10.06%, HES is doing good in the industry, outperforming 75.24% of the companies in the same industry.
With an excellent Return On Equity value of 24.40%, HES belongs to the best of the industry, outperforming 81.55% of the companies in the same industry.
HES's Return On Invested Capital of 13.65% is amongst the best of the industry. HES outperforms 80.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HES is significantly below the industry average of 28.71%.
The last Return On Invested Capital (13.65%) for HES is above the 3 year average (10.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.06% | ||
| ROE | 24.4% | ||
| ROIC | 13.65% |
ROA(3y)6.05%
ROA(5y)-0.04%
ROE(3y)16.98%
ROE(5y)-2.28%
ROIC(3y)10.55%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HES (20.77%) is better than 67.96% of its industry peers.
The Operating Margin of HES (35.89%) is better than 73.79% of its industry peers.
In the last couple of years the Operating Margin of HES has grown nicely.
The Gross Margin of HES (75.65%) is better than 83.50% of its industry peers.
HES's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.89% | ||
| PM (TTM) | 20.77% | ||
| GM | 75.65% |
OM growth 3YN/A
OM growth 5Y26.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.36%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HES is creating some value.
HES has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HES has been increased compared to 5 years ago.
The debt/assets ratio for HES has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.10 indicates that HES is not in any danger for bankruptcy at the moment.
The Altman-Z score of HES (3.10) is better than 77.67% of its industry peers.
HES has a debt to FCF ratio of 8.75. This is a slightly negative value and a sign of low solvency as HES would need 8.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.75, HES is in line with its industry, outperforming 48.06% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that HES is somewhat dependend on debt financing.
HES has a worse Debt to Equity ratio (0.81) than 69.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.75 | ||
| Altman-Z | 3.1 |
ROIC/WACC1.63
WACC8.38%
2.3 Liquidity
HES has a Current Ratio of 1.26. This is a normal value and indicates that HES is financially healthy and should not expect problems in meeting its short term obligations.
HES's Current ratio of 1.26 is in line compared to the rest of the industry. HES outperforms 51.94% of its industry peers.
HES has a Quick Ratio of 1.13. This is a normal value and indicates that HES is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.13, HES perfoms like the industry average, outperforming 55.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.65% over the past year.
Looking at the last year, HES shows a very strong growth in Revenue. The Revenue has grown by 21.84%.
The Revenue has been growing by 10.70% on average over the past years. This is quite good.
EPS 1Y (TTM)83.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%30.49%
Revenue 1Y (TTM)21.84%
Revenue growth 3Y31.08%
Revenue growth 5Y10.7%
Sales Q2Q%12.69%
3.2 Future
Based on estimates for the next years, HES will show a very strong growth in Earnings Per Share. The EPS will grow by 29.59% on average per year.
HES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.31% yearly.
EPS Next Y88.37%
EPS Next 2Y25.44%
EPS Next 3Y30.38%
EPS Next 5Y29.59%
Revenue Next Year27.55%
Revenue Next 2Y11.95%
Revenue Next 3Y13.6%
Revenue Next 5Y10.31%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.57, which indicates a correct valuation of HES.
HES's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of HES to the average of the S&P500 Index (28.29), we can say HES is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.71, the valuation of HES can be described as rather expensive.
HES's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, HES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 18.71 |
4.2 Price Multiples
HES's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as HES.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.9 | ||
| EV/EBITDA | 7.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HES may justify a higher PE ratio.
A more expensive valuation may be justified as HES's earnings are expected to grow with 30.38% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y25.44%
EPS Next 3Y30.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, HES has a reasonable but not impressive dividend return.
HES's Dividend Yield is slightly below the industry average, which is at 6.39.
Compared to an average S&P500 Dividend Yield of 2.28, HES's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of HES is nicely growing with an annual growth rate of 9.08%!
HES has been paying a dividend for at least 10 years, so it has a reliable track record.
HES has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.08%
Div Incr Years2
Div Non Decr Years33
5.3 Sustainability
HES pays out 21.17% of its income as dividend. This is a sustainable payout ratio.
The dividend of HES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.17%
EPS Next 2Y25.44%
EPS Next 3Y30.38%
HESS CORP
NYSE:HES (1/21/2025, 8:05:18 PM)
Premarket: 147.65 -1.01 (-0.68%)148.66
-2.69 (-1.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.79%
Inst Owner Change-0.08%
Ins Owners9.49%
Ins Owner Change-4.13%
Market Cap45.81B
Analysts73.33
Price Target170.78 (14.88%)
Short Float %2.3%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend1.76
Dividend Growth(5Y)9.08%
DP21.17%
Div Incr Years2
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.12%
Min EPS beat(2)4.48%
Max EPS beat(2)19.75%
EPS beat(4)4
Avg EPS beat(4)30.82%
Min EPS beat(4)4.48%
Max EPS beat(4)87.13%
EPS beat(8)8
Avg EPS beat(8)26.23%
EPS beat(12)11
Avg EPS beat(12)19.97%
EPS beat(16)15
Avg EPS beat(16)27.33%
Revenue beat(2)2
Avg Revenue beat(2)9%
Min Revenue beat(2)5.82%
Max Revenue beat(2)12.18%
Revenue beat(4)4
Avg Revenue beat(4)13.82%
Min Revenue beat(4)5.82%
Max Revenue beat(4)20.88%
Revenue beat(8)8
Avg Revenue beat(8)13.69%
Revenue beat(12)12
Avg Revenue beat(12)16.74%
Revenue beat(16)16
Avg Revenue beat(16)16.69%
PT rev (1m)2.99%
PT rev (3m)3.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.8%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 18.71 | ||
| P/S | 3.6 | ||
| P/FCF | 45.9 | ||
| P/OCF | 8.13 | ||
| P/B | 4.23 | ||
| P/tB | 4.38 | ||
| EV/EBITDA | 7.62 |
EPS(TTM)9.55
EY6.42%
EPS(NY)7.95
Fwd EY5.35%
FCF(TTM)3.24
FCFY2.18%
OCF(TTM)18.28
OCFY12.3%
SpS41.26
BVpS35.12
TBVpS33.95
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.06% | ||
| ROE | 24.4% | ||
| ROCE | 19.59% | ||
| ROIC | 13.65% | ||
| ROICexc | 14.84% | ||
| ROICexgc | 15.09% | ||
| OM | 35.89% | ||
| PM (TTM) | 20.77% | ||
| GM | 75.65% | ||
| FCFM | 7.85% |
ROA(3y)6.05%
ROA(5y)-0.04%
ROE(3y)16.98%
ROE(5y)-2.28%
ROIC(3y)10.55%
ROIC(5y)N/A
ROICexc(3y)12.01%
ROICexc(5y)N/A
ROICexgc(3y)12.27%
ROICexgc(5y)N/A
ROCE(3y)15.14%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y36.51%
ROICexc growth 3YN/A
ROICexc growth 5Y36.59%
OM growth 3YN/A
OM growth 5Y26.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.36%
GM growth 5Y0.76%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.75 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 196.86% | ||
| Cap/Sales | 36.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.42% | ||
| Profit Quality | 37.8% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.1 |
F-Score7
WACC8.38%
ROIC/WACC1.63
Cap/Depr(3y)158.38%
Cap/Depr(5y)142.88%
Cap/Sales(3y)28.84%
Cap/Sales(5y)35.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)83.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%30.49%
EPS Next Y88.37%
EPS Next 2Y25.44%
EPS Next 3Y30.38%
EPS Next 5Y29.59%
Revenue 1Y (TTM)21.84%
Revenue growth 3Y31.08%
Revenue growth 5Y10.7%
Sales Q2Q%12.69%
Revenue Next Year27.55%
Revenue Next 2Y11.95%
Revenue Next 3Y13.6%
Revenue Next 5Y10.31%
EBIT growth 1Y52.2%
EBIT growth 3YN/A
EBIT growth 5Y40.51%
EBIT Next Year140.52%
EBIT Next 3Y41.1%
EBIT Next 5Y33.06%
FCF growth 1Y-13.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.84%
OCF growth 3Y43.54%
OCF growth 5Y15.25%