HESS CORP (HES)
US42809H1077 - Common Stock
HES gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 205 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.
HES had a positive operating cash flow in the past year.
In multiple years HES reported negative net income over the last 5 years.
Each year in the past 5 years HES had a positive operating cash flow.
1.2 Ratios
HES's Return On Assets of 10.06% is fine compared to the rest of the industry. HES outperforms 74.51% of its industry peers.
Looking at the Return On Equity, with a value of 24.40%, HES belongs to the top of the industry, outperforming 81.86% of the companies in the same industry.
HES has a Return On Invested Capital of 13.65%. This is amongst the best in the industry. HES outperforms 80.88% 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 29.03%.
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
HES has a better Profit Margin (20.77%) than 67.16% of its industry peers.
HES's Operating Margin of 35.89% is fine compared to the rest of the industry. HES outperforms 73.04% of its industry peers.
HES's Operating Margin has improved in the last couple of years.
HES has a Gross Margin of 75.65%. This is amongst the best in the industry. HES outperforms 84.31% 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
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.
The number of shares outstanding for HES has been increased compared to 5 years ago.
Compared to 1 year ago, HES has an improved debt to assets ratio.
2.2 Solvency
HES has an Altman-Z score of 2.85. This is not the best score and indicates that HES is in the grey zone with still only limited risk for bankruptcy at the moment.
HES's Altman-Z score of 2.85 is fine compared to the rest of the industry. HES outperforms 75.00% 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 48.53% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that HES is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, HES is doing worse than 70.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 8.75 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.66
WACC8.2%
2.3 Liquidity
A Current Ratio of 1.26 indicates that HES should not have too much problems paying its short term obligations.
HES's Current ratio of 1.26 is in line compared to the rest of the industry. HES outperforms 53.43% of its industry peers.
A Quick Ratio of 1.13 indicates that HES should not have too much problems paying its short term obligations.
The Quick ratio of HES (1.13) is comparable to the rest of the 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%.
HES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.70% yearly.
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 29.59% yearly.
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 Year27.44%
Revenue Next 2Y12.74%
Revenue Next 3Y13.71%
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
Based on the Price/Earnings ratio of 13.42, the valuation of HES can be described as correct.
HES's Price/Earnings ratio is in line with the industry average.
HES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 16.13 indicates a correct 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HES is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as HES.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.58 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
HES's 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 30.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y25.44%
EPS Next 3Y30.38%
5. Dividend
5.1 Amount
HES has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.14, HES is paying slightly less dividend.
HES's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 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.
HES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.17%
EPS Next 2Y25.44%
EPS Next 3Y30.38%
HESS CORP
NYSE:HES (12/20/2024, 8:16:28 PM)
After market: 147.15 +18.96 (+14.79%)128.19
+0.53 (+0.42%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.79%
Inst Owner Change-0.58%
Ins Owners9.49%
Ins Owner Change-4.13%
Market Cap39.50B
Analysts72.38
Price Target165.82 (29.35%)
Short Float %2.06%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Dividend Growth(5Y)9.08%
DP21.17%
Div Incr Years2
Div Non Decr Years33
Ex-Date
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)0.75%
PT rev (3m)-2.96%
EPS NQ rev (1m)5.11%
EPS NQ rev (3m)-37.81%
EPS NY rev (1m)0.63%
EPS NY rev (3m)-11.46%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)-7.8%
Revenue NY rev (1m)-1.25%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 16.13 | ||
| P/S | 3.11 | ||
| P/FCF | 39.58 | ||
| P/OCF | 7.01 | ||
| P/B | 3.65 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)9.55
EY7.45%
EPS(NY)7.95
Fwd EY6.2%
FCF(TTM)3.24
FCFY2.53%
OCF(TTM)18.28
OCFY14.26%
SpS41.26
BVpS35.12
TBVpS33.95
PEG (NY)0.15
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 | 2.85 |
F-Score7
WACC8.2%
ROIC/WACC1.66
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 Year27.44%
Revenue Next 2Y12.74%
Revenue Next 3Y13.71%
Revenue Next 5Y10.31%
EBIT growth 1Y52.2%
EBIT growth 3YN/A
EBIT growth 5Y40.51%
EBIT Next Year136.65%
EBIT Next 3Y38.83%
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%