HESS CORP (HES) Stock Fundamental Analysis
NYSE:HES - New York Stock Exchange, Inc. - US42809H1077 - Common Stock - Currency: USD
Overall HES gets a fundamental rating of 6 out of 10. We evaluated HES against 211 industry peers in the Oil, Gas & Consumable Fuels industry. HES has an excellent profitability rating, but there are concerns on its financial health. HES is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year HES was profitable.
HES had a positive operating cash flow in the past year.
HES had positive earnings in 4 of the past 5 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 10.43%, HES is doing good in the industry, outperforming 77.94% of the companies in the same industry.
HES has a better Return On Equity (24.69%) than 82.84% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.37%, HES belongs to the top of the industry, outperforming 82.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HES is significantly below the industry average of 28.75%.
The 3 year average ROIC (12.85%) for HES is below the current ROIC(14.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 24.69% | ||
| ROIC | 14.37% |
ROA(3y)8.62%
ROA(5y)2.43%
ROE(3y)22.25%
ROE(5y)3.6%
ROIC(3y)12.85%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 21.47%, HES is doing good in the industry, outperforming 69.61% of the companies in the same industry.
HES's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 37.03%, HES is doing good in the industry, outperforming 74.02% of the companies in the same industry.
In the last couple of years the Operating Margin of HES has grown nicely.
Looking at the Gross Margin, with a value of 77.87%, HES belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Gross Margin of HES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.03% | ||
| PM (TTM) | 21.47% | ||
| GM | 77.87% |
OM growth 3Y11.29%
OM growth 5Y32.64%
PM growth 3Y42.12%
PM growth 5YN/A
GM growth 3Y3.38%
GM growth 5Y2.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HES is still creating some value.
HES has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HES has more shares outstanding
HES has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HES is 13.32, which is on the high side as it means it would take HES, 13.32 years of fcf income to pay off all of its debts.
HES has a Debt to FCF ratio (13.32) which is comparable to the rest of the industry.
HES has a Debt/Equity ratio of 0.77. This is a neutral value indicating HES is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, HES is not doing good in the industry: 69.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 13.32 | ||
| Altman-Z | N/A |
ROIC/WACC1.74
WACC8.26%
2.3 Liquidity
HES has a Current Ratio of 1.12. This is a normal value and indicates that HES is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, HES is in line with its industry, outperforming 42.65% of the companies in the same industry.
HES has a Quick Ratio of 1.12. 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 Quick ratio of 1.12 is in line compared to the rest of the industry. HES outperforms 54.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
HES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.68%, which is quite impressive.
HES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 64.11% yearly.
HES shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.69%.
The Revenue has been growing by 14.70% on average over the past years. This is quite good.
EPS 1Y (TTM)91.68%
EPS 3Y64.11%
EPS 5YN/A
EPS Q2Q%7.98%
Revenue 1Y (TTM)22.69%
Revenue growth 3Y19.95%
Revenue growth 5Y14.7%
Sales Q2Q%6.26%
3.2 Future
HES is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.11% yearly.
The Revenue is expected to grow by 7.08% on average over the next years.
EPS Next Y-18.37%
EPS Next 2Y5.92%
EPS Next 3Y12.4%
EPS Next 5Y21.11%
Revenue Next Year-2.09%
Revenue Next 2Y7.47%
Revenue Next 3Y6.58%
Revenue Next 5Y7.08%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.30, HES is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as HES.
HES is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.74, which indicates a rather expensive current valuation of HES.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HES is on the same level as its industry peers.
HES's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HES.
Based on the Price/Free Cash Flow ratio, HES is valued a bit more expensive than the industry average as 61.27% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.78 | ||
| EV/EBITDA | 7.44 |
4.3 Compensation for Growth
HES has an outstanding profitability rating, which may justify a higher PE ratio.
HES's earnings are expected to grow with 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.92%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, HES has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.75, HES is paying slightly less dividend.
With a Dividend Yield of 1.37, HES pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of HES is nicely growing with an annual growth rate of 12.16%!
HES has paid a dividend for at least 10 years, which is 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)12.16%
Div Incr Years2
Div Non Decr Years33
5.3 Sustainability
HES pays out 20.91% of its income as dividend. This is a sustainable payout ratio.
HES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.91%
EPS Next 2Y5.92%
EPS Next 3Y12.4%
148.11
-2.85 (-1.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.79%
Inst Owner Change2.28%
Ins Owners9.49%
Ins Owner Change3.17%
Market Cap45.64B
Analysts74
Price Target172.38 (16.39%)
Short Float %2.33%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend1.88
Dividend Growth(5Y)12.16%
DP20.91%
Div Incr Years2
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.95%
Min EPS beat(2)18.14%
Max EPS beat(2)19.75%
EPS beat(4)4
Avg EPS beat(4)32.38%
Min EPS beat(4)4.48%
Max EPS beat(4)87.13%
EPS beat(8)8
Avg EPS beat(8)27.56%
EPS beat(12)11
Avg EPS beat(12)20.1%
EPS beat(16)15
Avg EPS beat(16)27.65%
Revenue beat(2)2
Avg Revenue beat(2)11.65%
Min Revenue beat(2)11.13%
Max Revenue beat(2)12.18%
Revenue beat(4)4
Avg Revenue beat(4)12.5%
Min Revenue beat(4)5.82%
Max Revenue beat(4)20.88%
Revenue beat(8)8
Avg Revenue beat(8)13.46%
Revenue beat(12)12
Avg Revenue beat(12)15.34%
Revenue beat(16)16
Avg Revenue beat(16)16.77%
PT rev (1m)0.94%
PT rev (3m)4.74%
EPS NQ rev (1m)4.14%
EPS NQ rev (3m)-33.13%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)2.98%
Revenue NQ rev (1m)-5.61%
Revenue NQ rev (3m)-12.23%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 18.74 | ||
| P/S | 3.54 | ||
| P/FCF | 69.78 | ||
| P/OCF | 8.15 | ||
| P/B | 4.07 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 7.44 |
EPS(TTM)9.68
EY6.54%
EPS(NY)7.9
Fwd EY5.33%
FCF(TTM)2.12
FCFY1.43%
OCF(TTM)18.17
OCFY12.27%
SpS41.85
BVpS36.4
TBVpS36.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.43% | ||
| ROE | 24.69% | ||
| ROCE | 20.13% | ||
| ROIC | 14.37% | ||
| ROICexc | 15.11% | ||
| ROICexgc | 15.11% | ||
| OM | 37.03% | ||
| PM (TTM) | 21.47% | ||
| GM | 77.87% | ||
| FCFM | 5.07% |
ROA(3y)8.62%
ROA(5y)2.43%
ROE(3y)22.25%
ROE(5y)3.6%
ROIC(3y)12.85%
ROIC(5y)N/A
ROICexc(3y)14.1%
ROICexc(5y)N/A
ROICexgc(3y)14.29%
ROICexgc(5y)N/A
ROCE(3y)18.01%
ROCE(5y)N/A
ROICexcg growth 3Y14.88%
ROICexcg growth 5Y44.39%
ROICexc growth 3Y15.83%
ROICexc growth 5Y44.98%
OM growth 3Y11.29%
OM growth 5Y32.64%
PM growth 3Y42.12%
PM growth 5YN/A
GM growth 3Y3.38%
GM growth 5Y2.03%
F-Score8
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 13.32 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 198.87% | ||
| Cap/Sales | 38.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.1% | ||
| Profit Quality | 23.62% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | N/A |
F-Score8
WACC8.26%
ROIC/WACC1.74
Cap/Depr(3y)186.56%
Cap/Depr(5y)155.99%
Cap/Sales(3y)33.83%
Cap/Sales(5y)34.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.68%
EPS 3Y64.11%
EPS 5YN/A
EPS Q2Q%7.98%
EPS Next Y-18.37%
EPS Next 2Y5.92%
EPS Next 3Y12.4%
EPS Next 5Y21.11%
Revenue 1Y (TTM)22.69%
Revenue growth 3Y19.95%
Revenue growth 5Y14.7%
Sales Q2Q%6.26%
Revenue Next Year-2.09%
Revenue Next 2Y7.47%
Revenue Next 3Y6.58%
Revenue Next 5Y7.08%
EBIT growth 1Y64.86%
EBIT growth 3Y33.49%
EBIT growth 5Y52.14%
EBIT Next Year41.94%
EBIT Next 3Y23.31%
EBIT Next 5Y27.46%
FCF growth 1Y493.98%
FCF growth 3Y-16.98%
FCF growth 5YN/A
OCF growth 1Y42.06%
OCF growth 3Y24.67%
OCF growth 5Y27.81%