HELIOS TECHNOLOGIES INC (HLIO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLIO - US42328H1095 - Common Stock
66 USD
+0.05 (+0.08%)
66 USD
0 (0%)
Overall HLIO gets a fundamental rating of 4 out of 10. We evaluated HLIO against 132 industry peers in the Machinery industry. While HLIO seems to be doing ok healthwise, there are quite some concerns on its profitability. HLIO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year HLIO was profitable.
- HLIO had a positive operating cash flow in the past year.
- Each year in the past 5 years HLIO has been profitable.
- Each year in the past 5 years HLIO had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of HLIO (2.17%) is comparable to the rest of the industry.
- HLIO has a Return On Equity (3.68%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 4.34%, HLIO is doing worse than 62.88% 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 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
- Looking at the Profit Margin, with a value of 4.18%, HLIO is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of HLIO has declined.
- HLIO has a Operating Margin (9.83%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of HLIO has declined.
- HLIO has a Gross Margin (31.49%) which is comparable to the rest of the industry.
- 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.
- HLIO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HLIO has an improved debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 3.44, HLIO is in line with its industry, outperforming 58.33% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of HLIO (4.73) is comparable to the rest of the industry.
- HLIO has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
- HLIO's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. HLIO outperforms 53.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.45
WACC9.57%
2.3 Liquidity
- A Current Ratio of 2.93 indicates that HLIO has no problem at all paying its short term obligations.
- HLIO has a Current ratio of 2.93. This is in the better half of the industry: HLIO outperforms 75.76% of its industry peers.
- HLIO has a Quick Ratio of 1.72. 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 1.72 is fine compared to the rest of the industry. HLIO outperforms 71.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
- HLIO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.80%.
- The Earnings Per Share has been decreasing by -2.97% on average over the past years.
- The Revenue has decreased by -1.46% in the past year.
- HLIO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.76% yearly.
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
- HLIO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.80% yearly.
- HLIO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.94% yearly.
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.
- 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
- Based on the Price/Earnings ratio of 31.73, the valuation of HLIO can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of HLIO is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. HLIO is around the same levels.
- Based on the Price/Forward Earnings ratio of 23.56, the valuation of HLIO can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIO is on the same level as its industry peers.
- HLIO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.73 | ||
| Fwd PE | 23.56 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HLIO.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HLIO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.68 | ||
| EV/EBITDA | 17.8 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as HLIO's earnings are expected to grow with 15.05% in the coming years.
PEG (NY)1.56
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.
- Compared to an average S&P500 Dividend Yield of 1.81, HLIO's dividend is way lower than the S&P500 average.
| 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.