HELIOS TECHNOLOGIES INC (HLIO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLIO - US42328H1095 - Common Stock
65.95 USD
-1.1 (-1.64%)
65.95 USD
0 (0%)
HLIO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. The financial health of HLIO is average, but there are quite some concerns on its profitability. HLIO does not seem to be growing, but still is valued expensively.
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.
- In the past 5 years HLIO always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.17%, HLIO is in line with its industry, outperforming 43.94% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 3.68%, HLIO is in line with its industry, outperforming 40.91% of the companies in the same 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.
- 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
- 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.
- HLIO's Profit Margin has declined in the last couple of years.
- 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 of 31.49%. This is comparable 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
- HLIO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for HLIO has been reduced compared to a year ago.
2.2 Solvency
- HLIO has an Altman-Z score of 3.48. 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 3.48, 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.
- With a Debt to FCF ratio value of 4.73, HLIO perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
- HLIO has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
- HLIO has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 3.48 |
ROIC/WACC0.45
WACC9.72%
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.
- 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.
- With a decent Quick ratio value of 1.72, HLIO is doing good in 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
- 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.
- Looking at the last year, HLIO shows a decrease in Revenue. The Revenue has decreased by -1.46% in the last year.
- 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.
- The Revenue is expected to grow by 3.94% on average over the next years.
EPS Next Y20.35%
EPS Next 2Y15.38%
EPS Next 3Y14.74%
EPS Next 5Y13.8%
Revenue Next Year2.82%
Revenue Next 2Y1.92%
Revenue Next 3Y3%
Revenue Next 5Y3.94%
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.
- 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 31.71, HLIO can be considered very expensive at the moment.
- 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.
- HLIO is valuated rather expensively with a Price/Forward Earnings ratio of 23.70.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIO is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. HLIO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.71 | ||
| Fwd PE | 23.7 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HLIO.
- HLIO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.66 | ||
| EV/EBITDA | 18.06 |
4.3 Compensation for Growth
- HLIO's 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 14.74% in the coming years.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y15.38%
EPS Next 3Y14.74%
5. Dividend
5.1 Amount
- HLIO has a yearly dividend return of 0.57%, which is pretty low.
- HLIO's Dividend Yield is comparable with the industry average which is at 0.98.
- With a Dividend Yield of 0.57, HLIO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
- The dividend of HLIO decreases each year by -1.24%.
- 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)-1.24%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
- HLIO pays out 35.50% of its income as dividend. This is a sustainable payout ratio.
DP35.5%
EPS Next 2Y15.38%
EPS Next 3Y14.74%
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 20.35% in the next year.