HELIOS TECHNOLOGIES INC (HLIO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLIO - US42328H1095 - Common Stock
65.78 USD
-0.22 (-0.33%)
Overall HLIO gets a fundamental rating of 4 out of 10. We evaluated HLIO against 132 industry peers in the Machinery industry. HLIO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HLIO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- HLIO had positive earnings in the past year.
- In the past year HLIO had a positive cash flow from operations.
- In the past 5 years HLIO has always been profitable.
- HLIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HLIO has a Return On Assets of 2.17%. This is comparable to the rest of the industry: HLIO outperforms 43.94% of its industry peers.
- HLIO has a Return On Equity (3.68%) which is comparable to the rest of the industry.
- HLIO has a Return On Invested Capital of 4.34%. This is in the lower half of the industry: HLIO underperforms 62.88% of its industry peers.
- HLIO had an Average Return On Invested Capital over the past 3 years of 5.62%. This is below the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 3.68% | ||
| ROIC | 4.34% |
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 4.18%. This is comparable to the rest of the industry: HLIO outperforms 50.00% of its industry peers.
- In the last couple of years the Profit Margin of HLIO has declined.
- With a Operating Margin value of 9.83%, HLIO perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- In the last couple of years the Operating Margin of HLIO has declined.
- HLIO's Gross Margin of 31.49% is in line compared to the rest of the industry. HLIO outperforms 52.27% of its industry peers.
- HLIO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.83% | ||
| PM (TTM) | 4.18% | ||
| GM | 31.49% |
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.
- HLIO has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HLIO has more shares outstanding
- The debt/assets ratio for HLIO has been reduced compared to a year ago.
2.2 Solvency
- HLIO has an Altman-Z score of 3.44. This indicates that HLIO is financially healthy and has little risk of bankruptcy at the moment.
- HLIO has a Altman-Z score (3.44) which is in line with its industry peers.
- The Debt to FCF ratio of HLIO is 4.73, which is a neutral value as it means it would take HLIO, 4.73 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.73, HLIO is in line with its industry, outperforming 56.06% of the companies in the same industry.
- A Debt/Equity ratio of 0.44 indicates that HLIO is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.44, HLIO perfoms like the industry average, outperforming 53.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.45
WACC9.57%
2.3 Liquidity
- HLIO has a Current Ratio of 2.93. This indicates that HLIO is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.93, HLIO is doing good in the industry, outperforming 75.76% of the companies in the same industry.
- A Quick Ratio of 1.72 indicates that HLIO should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.72, HLIO is in the better half of the industry, outperforming 71.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
- The earnings per share for HLIO have decreased by -2.80% in the last year.
- The Earnings Per Share has been decreasing by -2.97% on average over the past years.
- HLIO shows a decrease in Revenue. In the last year, the revenue decreased by -1.46%.
- Measured over the past years, HLIO shows a small growth in Revenue. The Revenue has been growing by 7.76% on average per year.
EPS 1Y (TTM)-2.8%
EPS 3Y-21.19%
EPS 5Y-2.97%
EPS Q2Q%22.03%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-2.49%
Revenue growth 5Y7.76%
Sales Q2Q%13.26%
3.2 Future
- Based on estimates for the next years, HLIO will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.80% on average per year.
- Based on estimates for the next years, HLIO will show a small growth in Revenue. The Revenue will grow by 3.94% on average per year.
EPS Next Y20.38%
EPS Next 2Y15.78%
EPS Next 3Y15.05%
EPS Next 5Y13.8%
Revenue Next Year2.82%
Revenue Next 2Y2.1%
Revenue Next 3Y3.14%
Revenue Next 5Y3.94%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 31.63, the valuation of HLIO can be described as expensive.
- HLIO's Price/Earnings is on the same level as the industry average.
- HLIO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 23.48, HLIO is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIO is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HLIO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 23.48 |
4.2 Price Multiples
- HLIO's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLIO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.6 | ||
| EV/EBITDA | 17.81 |
4.3 Compensation for Growth
- HLIO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- HLIO's earnings are expected to grow with 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y15.78%
EPS Next 3Y15.05%
5. Dividend
5.1 Amount
- HLIO has a yearly dividend return of 0.54%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.01, HLIO has a dividend in line with its industry peers.
- With a Dividend Yield of 0.54, HLIO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
- 35.50% of the earnings are spent on dividend by HLIO. This is a low number and sustainable payout ratio.
DP35.5%
EPS Next 2Y15.78%
EPS Next 3Y15.05%
HELIOS TECHNOLOGIES INC / HLIO FAQ
Can you provide the ChartMill fundamental rating for HELIOS TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 4 / 10 to HLIO.
What is the valuation status for HLIO stock?
ChartMill assigns a valuation rating of 2 / 10 to HELIOS TECHNOLOGIES INC (HLIO). This can be considered as Overvalued.
How profitable is HELIOS TECHNOLOGIES INC (HLIO) stock?
HELIOS TECHNOLOGIES INC (HLIO) has a profitability rating of 3 / 10.
What is the financial health of HELIOS TECHNOLOGIES INC (HLIO) stock?
The financial health rating of HELIOS TECHNOLOGIES INC (HLIO) is 5 / 10.
What is the earnings growth outlook for HELIOS TECHNOLOGIES INC?
The Earnings per Share (EPS) of HELIOS TECHNOLOGIES INC (HLIO) is expected to grow by 20.38% in the next year.