HESS CORP (HES)
US42809H1077 - Common Stock
We assign a fundamental rating of 5 out of 10 to HES. HES was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of HES while its profitability can be described as average. HES is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HES had positive earnings in the past year.
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.
HES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HES has a better Return On Assets (10.06%) than 73.40% of its industry peers.
The Return On Equity of HES (24.40%) is better than 79.80% of its industry peers.
HES's Return On Invested Capital of 13.65% is fine compared to the rest of the industry. HES outperforms 78.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HES is significantly below the industry average of 22.56%.
The 3 year average ROIC (10.55%) for HES is below the current ROIC(13.65%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 20.77%, HES is doing good in the industry, outperforming 67.00% of the companies in the same industry.
The Operating Margin of HES (35.89%) is better than 72.91% of its industry peers.
In the last couple of years the Operating Margin of HES has grown nicely.
HES has a better Gross Margin (75.65%) than 84.24% of its industry peers.
In the last couple of years the Gross Margin of HES has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HES is still creating some value.
The number of shares outstanding for HES has been increased compared to 1 year ago.
HES has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HES has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HES is 8.75, which is on the high side as it means it would take HES, 8.75 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.75, HES perfoms like the industry average, outperforming 45.81% of the companies in the same industry.
HES has a Debt/Equity ratio of 0.81. This is a neutral value indicating HES is somewhat dependend on debt financing.
HES has a Debt to Equity ratio of 0.81. This is in the lower half of the industry: HES underperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.75 | ||
| Altman-Z | N/A |
ROIC/WACC1.66
WACC8.23%
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 has a Current ratio (1.26) which is in line with its industry peers.
HES has a Quick 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 has a better Quick ratio (1.26) than 64.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
HES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.65%, which is quite impressive.
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
HES is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.22% yearly.
HES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.60% yearly.
EPS Next Y87.2%
EPS Next 2Y23.27%
EPS Next 3Y28.62%
EPS Next 5Y26.22%
Revenue Next Year29.06%
Revenue Next 2Y12.55%
Revenue Next 3Y13.05%
Revenue Next 5Y10.6%
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
Based on the Price/Earnings ratio of 15.57, the valuation of HES can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as HES.
The average S&P500 Price/Earnings ratio is at 29.20. HES is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.37, which indicates a rather expensive current valuation of HES.
HES's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.00. HES is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 19.37 |
4.2 Price Multiples
HES's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HES is valued a bit more expensive than 61.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.89 | ||
| EV/EBITDA | 7.59 |
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.
HES's earnings are expected to grow with 28.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y23.27%
EPS Next 3Y28.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, HES has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.45, HES is paying slightly less dividend.
HES's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of HES is nicely growing with an annual growth rate of 9.08%!
HES has paid a dividend for at least 10 years, which is a reliable track record.
HES has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.08%
Div Incr Years2
Div Non Decr Years33
5.3 Sustainability
21.17% of the earnings are spent on dividend by HES. This is a low number and sustainable payout ratio.
The dividend of HES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.17%
EPS Next 2Y23.27%
EPS Next 3Y28.62%
HESS CORP
NYSE:HES (11/22/2024, 7:00:00 PM)
After market: 148.65 0 (0%)148.65
+0.67 (+0.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 19.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.06% | ||
| ROE | 24.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.89% | ||
| PM (TTM) | 20.77% | ||
| GM | 75.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)83.65%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y87.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.84%
Revenue growth 3Y31.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y