HYSTER-YALE INC (HY) Stock Fundamental Analysis
NYSE:HY - New York Stock Exchange, Inc. - US4491721050 - Common Stock - Currency: USD
Overall HY gets a fundamental rating of 5 out of 10. We evaluated HY against 129 industry peers in the Machinery industry. There are concerns on the financial health of HY while its profitability can be described as average. HY may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year HY was profitable.
HY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HY reported negative net income in multiple years.
Of the past 5 years HY 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.24%, HY is in the better half of the industry, outperforming 67.20% of the companies in the same industry.
HY's Return On Equity of 29.67% is amongst the best of the industry. HY outperforms 92.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.77%, HY belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 29.67% | ||
| ROIC | 16.77% |
ROA(3y)-2.13%
ROA(5y)-0.49%
ROE(3y)-17.47%
ROE(5y)-7.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HY's Profit Margin of 3.68% is in line compared to the rest of the industry. HY outperforms 44.80% of its industry peers.
In the last couple of years the Profit Margin of HY has grown nicely.
Looking at the Operating Margin, with a value of 6.12%, HY is in line with its industry, outperforming 42.40% of the companies in the same industry.
HY's Operating Margin has improved in the last couple of years.
HY has a Gross Margin of 21.03%. This is in the lower half of the industry: HY underperforms 71.20% of its industry peers.
In the last couple of years the Gross Margin of HY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.12% | ||
| PM (TTM) | 3.68% | ||
| GM | 21.03% |
OM growth 3Y37.94%
OM growth 5Y32.9%
PM growth 3Y32.33%
PM growth 5Y22.84%
GM growth 3Y4.85%
GM growth 5Y4.03%
2. Health
2.1 Basic Checks
HY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HY has been increased compared to 1 year ago.
Compared to 5 years ago, HY has more shares outstanding
The debt/assets ratio for HY has been reduced compared to a year ago.
2.2 Solvency
HY has an Altman-Z score of 3.16. This indicates that HY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, HY is in line with its industry, outperforming 52.80% of the companies in the same industry.
HY has a debt to FCF ratio of 5.25. This is a neutral value as HY would need 5.25 years to pay back of all of its debts.
HY has a Debt to FCF ratio (5.25) which is comparable to the rest of the industry.
HY has a Debt/Equity ratio of 0.62. This is a neutral value indicating HY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, HY is doing worse than 66.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.68
WACC10.01%
2.3 Liquidity
HY has a Current Ratio of 1.36. This is a normal value and indicates that HY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.36, HY is doing worse than 80.00% of the companies in the same industry.
HY has a Quick Ratio of 1.36. This is a bad value and indicates that HY is not financially healthy enough and could expect problems in meeting its short term obligations.
HY has a Quick ratio of 0.61. This is amonst the worse of the industry: HY underperforms 90.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.33% over the past year.
HY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.90% yearly.
HY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
Measured over the past years, HY shows a small growth in Revenue. The Revenue has been growing by 5.34% on average per year.
EPS 1Y (TTM)42.33%
EPS 3Y48.53%
EPS 5Y29.9%
EPS Q2Q%-52.91%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y13.56%
Revenue growth 5Y5.34%
Sales Q2Q%1.49%
3.2 Future
The Earnings Per Share is expected to decrease by -0.69% on average over the next years.
HY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.45% yearly.
EPS Next Y25.66%
EPS Next 2Y-12.49%
EPS Next 3Y-5.5%
EPS Next 5Y-0.69%
Revenue Next Year3.63%
Revenue Next 2Y-0.49%
Revenue Next 3Y-0.33%
Revenue Next 5Y0.45%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
HY is valuated cheaply with a Price/Earnings ratio of 5.84.
Compared to the rest of the industry, the Price/Earnings ratio of HY indicates a rather cheap valuation: HY is cheaper than 99.20% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. HY is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.38, which indicates a very decent valuation of HY.
95.20% of the companies in the same industry are more expensive than HY, based on the Price/Forward Earnings ratio.
HY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
HY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HY is cheaper than 97.60% of the companies in the same industry.
92.80% of the companies in the same industry are more expensive than HY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.22 | ||
| EV/EBITDA | 3.98 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HY has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HY's earnings are expected to decrease with -5.50% in the coming years.
PEG (NY)0.23
PEG (5Y)0.2
EPS Next 2Y-12.49%
EPS Next 3Y-5.5%
5. Dividend
5.1 Amount
HY has a Yearly Dividend Yield of 2.62%.
HY's Dividend Yield is rather good when compared to the industry average which is at 1.66. HY pays more dividend than 92.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, HY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
The dividend of HY has a limited annual growth rate of 1.20%.
HY has paid a dividend for at least 10 years, which is a reliable track record.
HY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.2%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
HY pays out 14.95% of its income as dividend. This is a sustainable payout ratio.
DP14.95%
EPS Next 2Y-12.49%
EPS Next 3Y-5.5%
52.07
-1.37 (-2.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners62.64%
Inst Owner Change-93.59%
Ins Owners17.42%
Ins Owner Change6.44%
Market Cap911.75M
Analysts82
Price Target73.95 (42.02%)
Short Float %4.96%
Short Ratio7.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend1.31
Dividend Growth(5Y)1.2%
DP14.95%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.27%
Min EPS beat(2)-52.2%
Max EPS beat(2)64.73%
EPS beat(4)2
Avg EPS beat(4)6.43%
Min EPS beat(4)-52.2%
Max EPS beat(4)64.73%
EPS beat(8)6
Avg EPS beat(8)126.27%
EPS beat(12)8
Avg EPS beat(12)54.37%
EPS beat(16)9
Avg EPS beat(16)9.9%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-6.61%
Max Revenue beat(2)4.95%
Revenue beat(4)1
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)4.95%
Revenue beat(8)5
Avg Revenue beat(8)2.52%
Revenue beat(12)7
Avg Revenue beat(12)2.07%
Revenue beat(16)8
Avg Revenue beat(16)0.55%
PT rev (1m)0%
PT rev (3m)-8.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 9.38 | ||
| P/S | 0.21 | ||
| P/FCF | 10.22 | ||
| P/OCF | 6.72 | ||
| P/B | 1.72 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 3.98 |
EPS(TTM)8.91
EY17.11%
EPS(NY)5.55
Fwd EY10.66%
FCF(TTM)5.09
FCFY9.78%
OCF(TTM)7.74
OCFY14.87%
SpS243.74
BVpS30.26
TBVpS24.87
PEG (NY)0.23
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 29.67% | ||
| ROCE | 25.52% | ||
| ROIC | 16.77% | ||
| ROICexc | 18.01% | ||
| ROICexgc | 19.83% | ||
| OM | 6.12% | ||
| PM (TTM) | 3.68% | ||
| GM | 21.03% | ||
| FCFM | 2.09% |
ROA(3y)-2.13%
ROA(5y)-0.49%
ROE(3y)-17.47%
ROE(5y)-7.96%
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 3Y57.13%
ROICexcg growth 5Y38.03%
ROICexc growth 3Y61.78%
ROICexc growth 5Y40.98%
OM growth 3Y37.94%
OM growth 5Y32.9%
PM growth 3Y32.33%
PM growth 5Y22.84%
GM growth 3Y4.85%
GM growth 5Y4.03%
F-Score6
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.25 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 98.51% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.98% | ||
| Profit Quality | 56.74% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 3.16 |
F-Score6
WACC10.01%
ROIC/WACC1.68
Cap/Depr(3y)80.25%
Cap/Depr(5y)95.21%
Cap/Sales(3y)1.04%
Cap/Sales(5y)1.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.33%
EPS 3Y48.53%
EPS 5Y29.9%
EPS Q2Q%-52.91%
EPS Next Y25.66%
EPS Next 2Y-12.49%
EPS Next 3Y-5.5%
EPS Next 5Y-0.69%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y13.56%
Revenue growth 5Y5.34%
Sales Q2Q%1.49%
Revenue Next Year3.63%
Revenue Next 2Y-0.49%
Revenue Next 3Y-0.33%
Revenue Next 5Y0.45%
EBIT growth 1Y45.27%
EBIT growth 3Y56.64%
EBIT growth 5Y40%
EBIT Next Year50.6%
EBIT Next 3Y6.95%
EBIT Next 5Y6.29%
FCF growth 1Y244.1%
FCF growth 3Y0.03%
FCF growth 5Y31.97%
OCF growth 1Y594.89%
OCF growth 3Y-3.35%
OCF growth 5Y17.39%