HELIX ENERGY SOLUTIONS GROUP (HLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLX - US42330P1075 - Common Stock
7.52 USD
-0.11 (-1.44%)
7.52 USD
0 (0%)
Taking everything into account, HLX scores 4 out of 10 in our fundamental rating. HLX was compared to 62 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 correct valuation and a medium growth rate.
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.
- 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
- HLX has a Return On Assets of 1.62%. This is in the lower half of the industry: HLX underperforms 61.29% of its industry peers.
- Looking at the Return On Equity, with a value of 2.71%, HLX is in line with its industry, outperforming 41.94% of the companies in the same 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
- HLX's Profit Margin of 3.25% is in line compared to the rest of the industry. HLX outperforms 45.16% of its industry peers.
- 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.
- HLX's Operating Margin has been stable in the last couple of years.
- 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.
- HLX's Gross Margin has declined in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLX is destroying value.
- HLX has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HLX has more shares outstanding
- HLX has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.67, we must say that HLX is in the distress zone and has some risk of bankruptcy.
- HLX has a Altman-Z score of 1.67. This is in the lower half of the industry: HLX underperforms 62.90% of its industry peers.
- The Debt to FCF ratio of HLX is 3.92, which is a good value as it means it would take HLX, 3.92 years of fcf income to pay off all of its debts.
- HLX has a Debt to FCF ratio (3.92) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.19 indicates that HLX is not too dependend on debt financing.
- HLX's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. HLX outperforms 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.33
WACC8.73%
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.
- Looking at the Current ratio, with a value of 2.54, HLX is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
- HLX has a Quick Ratio of 2.54. This indicates that HLX is financially healthy and has no problem in meeting 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 |
3. Growth
3.1 Past
- HLX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.45%.
- 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 decrease in Revenue. The Revenue has decreased by -1.95% in the last year.
- The Revenue has been growing by 12.56% on average over the past years. This is quite good.
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
- HLX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.81% yearly.
- HLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.68% yearly.
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
- 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 26.86, HLX can be considered very expensive at the moment.
- HLX's Price/Earnings ratio is in line with the industry average.
- HLX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 21.61 indicates a rather expensive valuation of HLX.
- HLX's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, HLX is valued at the same level.
| 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.
- Based on the Price/Free Cash Flow ratio, HLX is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.11 | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
- HLX's earnings are expected to grow with 20.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.69%
EPS Next 3Y20.94%
5. Dividend
5.1 Amount
- HLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.