HELIX ENERGY SOLUTIONS GROUP (HLX) Stock Fundamental Analysis
NYSE:HLX - New York Stock Exchange, Inc. - US42330P1075 - Common Stock - Currency: USD
Taking everything into account, HLX scores 5 out of 10 in our fundamental rating. HLX was compared to 63 industry peers in the Energy Equipment & Services industry. The financial health of HLX is average, but there are quite some concerns on its profitability. HLX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HLX had positive earnings in the past year.
HLX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HLX reported negative net income in multiple years.
HLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLX has a Return On Assets (3.22%) which is in line with its industry peers.
HLX has a Return On Equity (5.50%) which is comparable to the rest of the industry.
HLX's Return On Invested Capital of 4.69% is on the low side compared to the rest of the industry. HLX is outperformed by 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 5.5% | ||
| ROIC | 4.69% |
ROA(3y)-0.65%
ROA(5y)-0.77%
ROE(3y)-0.95%
ROE(5y)-1.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HLX's Profit Margin of 6.33% is in line compared to the rest of the industry. HLX outperforms 55.56% of its industry peers.
HLX's Profit Margin has declined in the last couple of years.
The Operating Margin of HLX (10.24%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HLX has remained more or less at the same level.
HLX has a worse Gross Margin (16.98%) than 79.37% of its industry peers.
HLX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.24% | ||
| PM (TTM) | 6.33% | ||
| GM | 16.98% |
OM growth 3YN/A
OM growth 5Y0.81%
PM growth 3YN/A
PM growth 5Y-11.7%
GM growth 3Y92.02%
GM growth 5Y-2.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HLX is destroying value.
The number of shares outstanding for HLX has been reduced compared to 1 year ago.
Compared to 5 years ago, HLX has more shares outstanding
Compared to 1 year ago, HLX has an improved debt to assets ratio.
2.2 Solvency
HLX has an Altman-Z score of 1.59. This is a bad value and indicates that HLX is not financially healthy and even has some risk of bankruptcy.
HLX has a Altman-Z score (1.59) which is in line with its industry peers.
HLX has a debt to FCF ratio of 2.73. This is a good value and a sign of high solvency as HLX would need 2.73 years to pay back of all of its debts.
HLX has a Debt to FCF ratio of 2.73. This is in the better half of the industry: HLX outperforms 71.43% of its industry peers.
HLX has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, HLX is doing good in the industry, outperforming 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.58
WACC8.15%
2.3 Liquidity
A Current Ratio of 2.28 indicates that HLX has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.28, HLX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
HLX has a Quick Ratio of 2.28. This indicates that HLX is financially healthy and has no problem in meeting its short term obligations.
HLX has a better Quick ratio (2.28) than 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
HLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1275.00%, which is quite impressive.
HLX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.55% yearly.
Looking at the last year, HLX shows a small growth in Revenue. The Revenue has grown by 0.34% in the last year.
HLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.56% yearly.
EPS 1Y (TTM)1275%
EPS 3YN/A
EPS 5Y-0.55%
EPS Q2Q%111.76%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y26.28%
Revenue growth 5Y12.56%
Sales Q2Q%-6.13%
3.2 Future
The Earnings Per Share is expected to grow by 26.62% on average over the next years. This is a very strong growth
HLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y1.34%
EPS Next 2Y36.49%
EPS Next 3Y39.61%
EPS Next 5Y26.62%
Revenue Next Year-0.15%
Revenue Next 2Y3.37%
Revenue Next 3Y4.33%
Revenue Next 5Y4.14%
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
HLX is valuated reasonably with a Price/Earnings ratio of 11.35.
71.43% of the companies in the same industry are more expensive than HLX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.15. HLX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.30 indicates a reasonable valuation of HLX.
Based on the Price/Forward Earnings ratio, HLX is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
HLX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLX is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HLX is valued a bit cheaper than 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.31 | ||
| EV/EBITDA | 3.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLX does not grow enough to justify the current Price/Earnings ratio.
HLX's earnings are expected to grow with 39.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.49
PEG (5Y)N/A
EPS Next 2Y36.49%
EPS Next 3Y39.61%
5. Dividend
5.1 Amount
HLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.24
-0.04 (-0.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.41%
Inst Owner Change-3.41%
Ins Owners6.56%
Ins Owner Change9.63%
Market Cap945.55M
Analysts77.78
Price Target12.89 (106.57%)
Short Float %3.93%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)766.91%
Min EPS beat(2)49.67%
Max EPS beat(2)1484.16%
EPS beat(4)4
Avg EPS beat(4)400.42%
Min EPS beat(4)9.12%
Max EPS beat(4)1484.16%
EPS beat(8)5
Avg EPS beat(8)85.6%
EPS beat(12)8
Avg EPS beat(12)959.77%
EPS beat(16)9
Avg EPS beat(16)717.72%
Revenue beat(2)1
Avg Revenue beat(2)4.83%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)12.81%
Revenue beat(4)2
Avg Revenue beat(4)2.42%
Min Revenue beat(4)-6.45%
Max Revenue beat(4)12.81%
Revenue beat(8)5
Avg Revenue beat(8)4.81%
Revenue beat(12)8
Avg Revenue beat(12)5.77%
Revenue beat(16)11
Avg Revenue beat(16)5.89%
PT rev (1m)0%
PT rev (3m)-10.61%
EPS NQ rev (1m)8.33%
EPS NQ rev (3m)-87.67%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)-51.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 9.3 | ||
| P/S | 0.71 | ||
| P/FCF | 8.31 | ||
| P/OCF | 6.85 | ||
| P/B | 0.61 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 3.42 |
EPS(TTM)0.55
EY8.81%
EPS(NY)0.67
Fwd EY10.75%
FCF(TTM)0.75
FCFY12.04%
OCF(TTM)0.91
OCFY14.59%
SpS8.85
BVpS10.2
TBVpS10.17
PEG (NY)8.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 5.5% | ||
| ROCE | 5.94% | ||
| ROIC | 4.69% | ||
| ROICexc | 5.58% | ||
| ROICexgc | 5.59% | ||
| OM | 10.24% | ||
| PM (TTM) | 6.33% | ||
| GM | 16.98% | ||
| FCFM | 8.49% |
ROA(3y)-0.65%
ROA(5y)-0.77%
ROE(3y)-0.95%
ROE(5y)-1.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.43%
ROICexc growth 3YN/A
ROICexc growth 5Y15.5%
OM growth 3YN/A
OM growth 5Y0.81%
PM growth 3YN/A
PM growth 5Y-11.7%
GM growth 3Y92.02%
GM growth 5Y-2.48%
F-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 19.49% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 52.81% | ||
| Profit Quality | 134.02% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 1.59 |
F-Score8
WACC8.15%
ROIC/WACC0.58
Cap/Depr(3y)17.47%
Cap/Depr(5y)14.67%
Cap/Sales(3y)2.36%
Cap/Sales(5y)2.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1275%
EPS 3YN/A
EPS 5Y-0.55%
EPS Q2Q%111.76%
EPS Next Y1.34%
EPS Next 2Y36.49%
EPS Next 3Y39.61%
EPS Next 5Y26.62%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y26.28%
Revenue growth 5Y12.56%
Sales Q2Q%-6.13%
Revenue Next Year-0.15%
Revenue Next 2Y3.37%
Revenue Next 3Y4.33%
Revenue Next 5Y4.14%
EBIT growth 1Y93.38%
EBIT growth 3YN/A
EBIT growth 5Y13.47%
EBIT Next Year138.64%
EBIT Next 3Y46.98%
EBIT Next 5Y28.5%
FCF growth 1Y384.26%
FCF growth 3Y7.28%
FCF growth 5Y41.39%
OCF growth 1Y118.68%
OCF growth 3Y9.91%
OCF growth 5Y1.85%