HELIOS TECHNOLOGIES INC (HLIO) Stock Fundamental Analysis
NYSE:HLIO - New York Stock Exchange, Inc. - US42328H1095 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HLIO. HLIO was compared to 128 industry peers in the Machinery industry. The financial health of HLIO is average, but there are quite some concerns on its profitability. HLIO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
HLIO had positive earnings in the past year.
HLIO had a positive operating cash flow in the past year.
In the past 5 years HLIO has always been profitable.
Each year in the past 5 years HLIO had a positive operating cash flow.
1.2 Ratios
HLIO has a Return On Assets (2.59%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.51%, HLIO is doing worse than 60.16% of the companies in the same industry.
The Return On Invested Capital of HLIO (4.59%) is worse than 60.94% of its industry peers.
HLIO had an Average Return On Invested Capital over the past 3 years of 5.62%. This is significantly below the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 4.51% | ||
| ROIC | 4.59% |
ROA(3y)3.89%
ROA(5y)4.03%
ROE(3y)7.09%
ROE(5y)7.67%
ROIC(3y)5.62%
ROIC(5y)6.26%
1.3 Margins
HLIO has a Profit Margin of 4.84%. This is comparable to the rest of the industry: HLIO outperforms 49.22% of its industry peers.
In the last couple of years the Profit Margin of HLIO has declined.
HLIO has a Operating Margin (10.15%) which is in line with its industry peers.
HLIO's Operating Margin has declined in the last couple of years.
HLIO's Gross Margin of 31.31% is in line compared to the rest of the industry. HLIO outperforms 50.78% of its industry peers.
In the last couple of years the Gross Margin of HLIO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 4.84% | ||
| GM | 31.31% |
OM growth 3Y-17.29%
OM growth 5Y-9.84%
PM growth 3Y-26.19%
PM growth 5Y-14.94%
GM growth 3Y-4.54%
GM growth 5Y-3.94%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HLIO is destroying value.
Compared to 1 year ago, HLIO has more shares outstanding
HLIO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HLIO has been reduced compared to a year ago.
2.2 Solvency
HLIO has an Altman-Z score of 2.21. This is not the best score and indicates that HLIO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.21, HLIO is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
The Debt to FCF ratio of HLIO is 4.87, which is a neutral value as it means it would take HLIO, 4.87 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.87, HLIO perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
HLIO has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.50, HLIO is in line with its industry, outperforming 45.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.47
WACC9.86%
2.3 Liquidity
HLIO has a Current Ratio of 2.77. This indicates that HLIO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HLIO (2.77) is better than 72.66% of its industry peers.
HLIO has a Quick Ratio of 1.40. This is a normal value and indicates that HLIO is financially healthy and should not expect problems in meeting its short term obligations.
HLIO's Quick ratio of 1.40 is in line compared to the rest of the industry. HLIO outperforms 58.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
HLIO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.06%.
HLIO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.97% yearly.
Looking at the last year, HLIO shows a decrease in Revenue. The Revenue has decreased by -3.55% in the last year.
The Revenue has been growing slightly by 7.76% on average over the past years.
EPS 1Y (TTM)-11.06%
EPS 3Y-21.19%
EPS 5Y-2.97%
EPS Q2Q%-13.16%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y-2.49%
Revenue growth 5Y7.76%
Sales Q2Q%-7.19%
3.2 Future
HLIO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.83% yearly.
HLIO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
EPS Next Y0.34%
EPS Next 2Y10.95%
EPS Next 3Y2.4%
EPS Next 5Y13.83%
Revenue Next Year-0.72%
Revenue Next 2Y2.57%
Revenue Next 3Y3.21%
Revenue Next 5Y3.91%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.85, HLIO is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HLIO indicates a rather cheap valuation: HLIO is cheaper than 80.47% of the companies listed in the same industry.
HLIO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.64.
The Price/Forward Earnings ratio is 12.80, which indicates a correct valuation of HLIO.
Based on the Price/Forward Earnings ratio, HLIO is valued cheaper than 82.03% of the companies in the same industry.
HLIO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
72.66% of the companies in the same industry are more expensive than HLIO, based on the Enterprise Value to EBITDA ratio.
89.06% of the companies in the same industry are more expensive than HLIO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.75 | ||
| EV/EBITDA | 8.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLIO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)37.71
PEG (5Y)N/A
EPS Next 2Y10.95%
EPS Next 3Y2.4%
5. Dividend
5.1 Amount
HLIO has a Yearly Dividend Yield of 1.36%.
In the last 3 months the price of HLIO has falen by -38.89%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HLIO's Dividend Yield is a higher than the industry average which is at 2.12.
Compared to an average S&P500 Dividend Yield of 2.52, HLIO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of HLIO decreases each year by -1.24%.
HLIO has been paying a dividend for at least 10 years, so it has a reliable track record.
As HLIO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-1.24%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
30.51% of the earnings are spent on dividend by HLIO. This is a low number and sustainable payout ratio.
DP30.51%
EPS Next 2Y10.95%
EPS Next 3Y2.4%
26.85
+0.23 (+0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.14%
Inst Owner Change0.17%
Ins Owners0.55%
Ins Owner Change2.11%
Market Cap894.10M
Analysts85.45
Price Target60.52 (125.4%)
Short Float %1.75%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend0.36
Dividend Growth(5Y)-1.24%
DP30.51%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.4%
Min EPS beat(2)-5.54%
Max EPS beat(2)6.33%
EPS beat(4)3
Avg EPS beat(4)4.96%
Min EPS beat(4)-5.54%
Max EPS beat(4)17.03%
EPS beat(8)4
Avg EPS beat(8)0.85%
EPS beat(12)6
Avg EPS beat(12)1.45%
EPS beat(16)10
Avg EPS beat(16)8.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-3%
Max Revenue beat(2)-0.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-3%
Max Revenue beat(4)1.09%
Revenue beat(8)5
Avg Revenue beat(8)-0.8%
Revenue beat(12)6
Avg Revenue beat(12)-1.33%
Revenue beat(16)10
Avg Revenue beat(16)2.05%
PT rev (1m)0.56%
PT rev (3m)-1.52%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-27.2%
EPS NY rev (1m)-11.09%
EPS NY rev (3m)-12.14%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-5.32%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 12.8 | ||
| P/S | 1.11 | ||
| P/FCF | 9.75 | ||
| P/OCF | 7.32 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.85 |
EPS(TTM)2.09
EY7.78%
EPS(NY)2.1
Fwd EY7.81%
FCF(TTM)2.75
FCFY10.26%
OCF(TTM)3.67
OCFY13.66%
SpS24.2
BVpS25.96
TBVpS-0.56
PEG (NY)37.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 4.51% | ||
| ROCE | 5.98% | ||
| ROIC | 4.59% | ||
| ROICexc | 4.74% | ||
| ROICexgc | 14.27% | ||
| OM | 10.15% | ||
| PM (TTM) | 4.84% | ||
| GM | 31.31% | ||
| FCFM | 11.38% |
ROA(3y)3.89%
ROA(5y)4.03%
ROE(3y)7.09%
ROE(5y)7.67%
ROIC(3y)5.62%
ROIC(5y)6.26%
ROICexc(3y)5.8%
ROICexc(5y)6.44%
ROICexgc(3y)18%
ROICexgc(5y)21.78%
ROCE(3y)7.33%
ROCE(5y)8.16%
ROICexcg growth 3Y-25.64%
ROICexcg growth 5Y-13.16%
ROICexc growth 3Y-21.55%
ROICexc growth 5Y-9.59%
OM growth 3Y-17.29%
OM growth 5Y-9.84%
PM growth 3Y-26.19%
PM growth 5Y-14.94%
GM growth 3Y-4.54%
GM growth 5Y-3.94%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 47.65% | ||
| Cap/Sales | 3.77% | ||
| Interest Coverage | 2.52 | ||
| Cash Conversion | 83.86% | ||
| Profit Quality | 235.13% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.21 |
F-Score7
WACC9.86%
ROIC/WACC0.47
Cap/Depr(3y)59.6%
Cap/Depr(5y)55.17%
Cap/Sales(3y)4.19%
Cap/Sales(5y)3.83%
Profit Quality(3y)142.42%
Profit Quality(5y)232.3%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.06%
EPS 3Y-21.19%
EPS 5Y-2.97%
EPS Q2Q%-13.16%
EPS Next Y0.34%
EPS Next 2Y10.95%
EPS Next 3Y2.4%
EPS Next 5Y13.83%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y-2.49%
Revenue growth 5Y7.76%
Sales Q2Q%-7.19%
Revenue Next Year-0.72%
Revenue Next 2Y2.57%
Revenue Next 3Y3.21%
Revenue Next 5Y3.91%
EBIT growth 1Y2.25%
EBIT growth 3Y-19.34%
EBIT growth 5Y-2.85%
EBIT Next Year36.59%
EBIT Next 3Y18.37%
EBIT Next 5Y16.48%
FCF growth 1Y110.81%
FCF growth 3Y4.01%
FCF growth 5Y6.96%
OCF growth 1Y45.53%
OCF growth 3Y2.55%
OCF growth 5Y6.17%