HELIOS TECHNOLOGIES INC (HLIO) Stock Fundamental Analysis
NYSE:HLIO - New York Stock Exchange, Inc. - US42328H1095 - Common Stock - Currency: USD
Taking everything into account, HLIO scores 4 out of 10 in our fundamental rating. HLIO was compared to 129 industry peers in the Machinery industry. While HLIO seems to be doing ok healthwise, there are quite some concerns on its profitability. HLIO is not valued too expensively and it also shows a decent growth rate.
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.
HLIO had positive earnings in each of the past 5 years.
HLIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLIO has a Return On Assets (2.39%) which is comparable to the rest of the industry.
With a Return On Equity value of 4.25%, HLIO perfoms like the industry average, outperforming 41.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.39%, HLIO is doing worse than 65.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HLIO is below the industry average of 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 4.25% | ||
| ROIC | 4.39% |
ROA(3y)5.49%
ROA(5y)4.69%
ROE(3y)10.51%
ROE(5y)8.86%
ROIC(3y)7.46%
ROIC(5y)7.04%
1.3 Margins
HLIO has a Profit Margin (4.59%) which is comparable to the rest of the industry.
HLIO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.81%, HLIO is in line with its industry, outperforming 50.40% of the companies in the same industry.
In the last couple of years the Operating Margin of HLIO has declined.
With a Gross Margin value of 30.92%, HLIO perfoms like the industry average, outperforming 48.80% of the companies in the same industry.
HLIO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| PM (TTM) | 4.59% | ||
| GM | 30.92% |
OM growth 3Y-12.21%
OM growth 5Y-8.47%
PM growth 3Y18.24%
PM growth 5Y-13.36%
GM growth 3Y-5.84%
GM growth 5Y-3.76%
2. Health
2.1 Basic Checks
HLIO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HLIO has more shares outstanding
Compared to 5 years ago, HLIO has more shares outstanding
The debt/assets ratio for HLIO is higher compared to a year ago.
2.2 Solvency
HLIO has an Altman-Z score of 2.47. 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.
Looking at the Altman-Z score, with a value of 2.47, HLIO is in line with its industry, outperforming 43.20% of the companies in the same industry.
HLIO has a debt to FCF ratio of 5.45. This is a neutral value as HLIO would need 5.45 years to pay back of all of its debts.
HLIO has a Debt to FCF ratio (5.45) which is in line with its industry peers.
A Debt/Equity ratio of 0.52 indicates that HLIO is somewhat dependend on debt financing.
HLIO's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. HLIO is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.42
WACC10.34%
2.3 Liquidity
HLIO has a Current Ratio of 3.03. This indicates that HLIO is financially healthy and has no problem in meeting its short term obligations.
HLIO has a Current ratio of 3.03. This is in the better half of the industry: HLIO outperforms 75.20% of its industry peers.
HLIO has a Quick Ratio of 1.54. This is a normal value and indicates that HLIO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.54, HLIO is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
HLIO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.18%.
HLIO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.19% yearly.
Looking at the last year, HLIO shows a decrease in Revenue. The Revenue has decreased by -2.20% in the last year.
HLIO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.47% yearly.
EPS 1Y (TTM)-22.18%
EPS 3Y1.61%
EPS 5Y6.19%
EPS Q2Q%34.09%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y16.9%
Revenue growth 5Y10.47%
Sales Q2Q%-3.43%
3.2 Future
The Earnings Per Share is expected to grow by 10.53% on average over the next years. This is quite good.
HLIO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.36% yearly.
EPS Next Y-8.42%
EPS Next 2Y0.19%
EPS Next 3Y6.72%
EPS Next 5Y10.53%
Revenue Next Year-2.82%
Revenue Next 2Y-0.76%
Revenue Next 3Y1.57%
Revenue Next 5Y3.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 18.11, HLIO is valued on the expensive side.
HLIO's Price/Earnings ratio is a bit cheaper when compared to the industry. HLIO is cheaper than 72.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, HLIO is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.43, which indicates a correct valuation of HLIO.
HLIO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HLIO is cheaper than 75.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, HLIO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLIO is valued a bit cheaper than the industry average as 67.20% of the companies are valued more expensively.
HLIO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLIO is cheaper than 87.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.62 | ||
| EV/EBITDA | 11.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.92
EPS Next 2Y0.19%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
HLIO has a yearly dividend return of 0.90%, which is pretty low.
In the last 3 months the price of HLIO has falen by -26.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.65, HLIO has a dividend in line with its industry peers.
With a Dividend Yield of 0.90, HLIO pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of HLIO decreases each year by -24.34%.
HLIO has paid a dividend for at least 10 years, which is a reliable track record.
HLIO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-24.34%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
HLIO pays out 31.65% of its income as dividend. This is a sustainable payout ratio.
DP31.65%
EPS Next 2Y0.19%
EPS Next 3Y6.72%
38.76
-1.23 (-3.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.14%
Inst Owner Change-87.3%
Ins Owners0.55%
Ins Owner Change2.21%
Market Cap1.29B
Analysts85.45
Price Target60.69 (56.58%)
Short Float %1.87%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.36
Dividend Growth(5Y)-24.34%
DP31.65%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.18%
Min EPS beat(2)2.02%
Max EPS beat(2)6.33%
EPS beat(4)4
Avg EPS beat(4)16.16%
Min EPS beat(4)2.02%
Max EPS beat(4)39.27%
EPS beat(8)5
Avg EPS beat(8)1.79%
EPS beat(12)7
Avg EPS beat(12)3.52%
EPS beat(16)11
Avg EPS beat(16)11.89%
Revenue beat(2)1
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-3%
Max Revenue beat(2)0.08%
Revenue beat(4)3
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-3%
Max Revenue beat(4)3.41%
Revenue beat(8)5
Avg Revenue beat(8)-1.79%
Revenue beat(12)7
Avg Revenue beat(12)-0.97%
Revenue beat(16)11
Avg Revenue beat(16)2.45%
PT rev (1m)-1.24%
PT rev (3m)1.71%
EPS NQ rev (1m)-19.88%
EPS NQ rev (3m)-19.88%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)-4.61%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 16.43 | ||
| P/S | 1.57 | ||
| P/FCF | 14.62 | ||
| P/OCF | 10.73 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.93 |
EPS(TTM)2.14
EY5.52%
EPS(NY)2.36
Fwd EY6.09%
FCF(TTM)2.65
FCFY6.84%
OCF(TTM)3.61
OCFY9.32%
SpS24.66
BVpS26.64
TBVpS-1.08
PEG (NY)N/A
PEG (5Y)2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 4.25% | ||
| ROCE | 5.59% | ||
| ROIC | 4.39% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 13.44% | ||
| OM | 9.81% | ||
| PM (TTM) | 4.59% | ||
| GM | 30.92% | ||
| FCFM | 10.75% |
ROA(3y)5.49%
ROA(5y)4.69%
ROE(3y)10.51%
ROE(5y)8.86%
ROIC(3y)7.46%
ROIC(5y)7.04%
ROICexc(3y)7.67%
ROICexc(5y)7.22%
ROICexgc(3y)25.39%
ROICexgc(5y)25.28%
ROCE(3y)9.5%
ROCE(5y)8.97%
ROICexcg growth 3Y-13.71%
ROICexcg growth 5Y-13.06%
ROICexc growth 3Y-4.35%
ROICexc growth 5Y-7.09%
OM growth 3Y-12.21%
OM growth 5Y-8.47%
PM growth 3Y18.24%
PM growth 5Y-13.36%
GM growth 3Y-5.84%
GM growth 5Y-3.76%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.45 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 50.08% | ||
| Cap/Sales | 3.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.23% | ||
| Profit Quality | 234.31% | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 2.47 |
F-Score5
WACC10.34%
ROIC/WACC0.42
Cap/Depr(3y)63.14%
Cap/Depr(5y)59.85%
Cap/Sales(3y)4.14%
Cap/Sales(5y)3.98%
Profit Quality(3y)90.01%
Profit Quality(5y)207%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.18%
EPS 3Y1.61%
EPS 5Y6.19%
EPS Q2Q%34.09%
EPS Next Y-8.42%
EPS Next 2Y0.19%
EPS Next 3Y6.72%
EPS Next 5Y10.53%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y16.9%
Revenue growth 5Y10.47%
Sales Q2Q%-3.43%
Revenue Next Year-2.82%
Revenue Next 2Y-0.76%
Revenue Next 3Y1.57%
Revenue Next 5Y3.36%
EBIT growth 1Y-9.46%
EBIT growth 3Y2.64%
EBIT growth 5Y1.11%
EBIT Next Year102.77%
EBIT Next 3Y33.45%
EBIT Next 5Y24.07%
FCF growth 1Y24.79%
FCF growth 3Y-22.43%
FCF growth 5Y-2.39%
OCF growth 1Y13.95%
OCF growth 3Y-8.24%
OCF growth 5Y1.6%