We assign a fundamental rating of 4 out of 10 to HLX. HLX was compared to 61 industry peers in the Energy Equipment & Services industry. HLX scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HLX has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year HLX was profitable.
HLX had a positive operating cash flow in the past year.
In multiple years HLX reported negative net income over the last 5 years.
In the past 5 years HLX always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of 1.62%, HLX is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
The Return On Equity of HLX (2.71%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.87%, HLX is not doing good in the industry: 62.90% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
ROA	1.62%
ROE	2.71%
ROIC	2.87%

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

Looking at the Profit Margin, with a value of 3.25%, HLX is in line with its industry, outperforming 45.16% of the companies in the same industry.
In the last couple of years the Profit Margin of HLX has declined.
Looking at the Operating Margin, with a value of 6.41%, HLX is in line with its industry, outperforming 46.77% of the companies in the same industry.
In the last couple of years the Operating Margin of HLX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 12.75%, HLX is doing worse than 83.87% of the companies in the same industry.
In the last couple of years the Gross Margin of HLX has declined.

		Industry Rank	Sector Rank
OM	6.41%
PM (TTM)	3.25%
GM	12.75%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
HLX has more shares outstanding than it did 5 years ago.
HLX has a better debt/assets ratio than last year.

2.2 Solvency

HLX has an Altman-Z score of 1.66. 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 of 1.66. This is in the lower half of the industry: HLX underperforms 62.90% of its industry peers.
HLX has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as HLX would need 3.92 years to pay back of all of its debts.
HLX has a Debt to FCF ratio of 3.92. This is comparable to the rest of the industry: HLX outperforms 58.06% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that HLX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, HLX is doing good in the industry, outperforming 74.19% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.19
Debt/FCF	3.92
Altman-Z	1.66

ROIC/WACC0.33

WACC8.72%

2.3 Liquidity

HLX has a Current Ratio of 2.54. This indicates that HLX is financially healthy and has no problem in meeting its short term obligations.
HLX's Current ratio of 2.54 is fine compared to the rest of the industry. HLX outperforms 77.42% of its industry peers.
A Quick Ratio of 2.54 indicates that HLX has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.54, HLX belongs to the best of the industry, outperforming 85.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.54
Quick Ratio	2.54

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for HLX have decreased by -3.45% in the last year.
HLX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.55% yearly.
The Revenue has decreased by -1.95% in the past 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)-3.45%

EPS 3YN/A

EPS 5Y-0.55%

EPS Q2Q%-21.05%

Revenue 1Y (TTM)-1.95%

Revenue growth 3Y26.28%

Revenue growth 5Y12.56%

Sales Q2Q%10.09%

3.2 Future

The Earnings Per Share is expected to grow by 19.81% on average over the next years. This is quite good.
Based on estimates for the next years, HLX will show a small growth in Revenue. The Revenue will grow by 2.68% on average per year.

EPS Next Y-52.8%

EPS Next 2Y-1.69%

EPS Next 3Y20.94%

EPS Next 5Y19.81%

Revenue Next Year-4.37%

Revenue Next 2Y0.19%

Revenue Next 3Y2.33%

Revenue Next 5Y2.68%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 26.86, the valuation of HLX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as HLX.
When comparing the Price/Earnings ratio of HLX to the average of the S&P500 Index (27.21), we can say HLX is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.61, HLX is valued on the expensive side.
HLX's Price/Forward Earnings ratio is in line with the industry average.
HLX 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	26.86
Fwd PE	21.61

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HLX is valued cheaper than 82.26% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLX indicates a somewhat cheap valuation: HLX is cheaper than 72.58% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	14.11
EV/EBITDA	5.67

4.3 Compensation for Growth

A more expensive valuation may be justified as HLX's earnings are expected to grow with 20.94% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-1.69%

EPS Next 3Y20.94%

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5. Dividend

5.1 Amount

HLX does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	0%

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HELIX ENERGY SOLUTIONS GROUP / HLX FAQ

Can you provide the ChartMill fundamental rating for HELIX ENERGY SOLUTIONS GROUP?

ChartMill assigns a fundamental rating of 4 / 10 to HLX.

Can you provide the valuation status for HELIX ENERGY SOLUTIONS GROUP?

ChartMill assigns a valuation rating of 4 / 10 to HELIX ENERGY SOLUTIONS GROUP (HLX). This can be considered as Fairly Valued.

What is the profitability of HLX stock?

HELIX ENERGY SOLUTIONS GROUP (HLX) has a profitability rating of 3 / 10.

Can you provide the PE and PB ratios for HLX stock?

The Price/Earnings (PE) ratio for HELIX ENERGY SOLUTIONS GROUP (HLX) is 26.86 and the Price/Book (PB) ratio is 0.7.

Can you provide the expected EPS growth for HLX stock?

The Earnings per Share (EPS) of HELIX ENERGY SOLUTIONS GROUP (HLX) is expected to decline by -52.8% in the next year.