Hess Stock Analysis, Valuation (NYSE:HES)

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$64.66 $0.51 (0.78%) HES stock closing price May 18, 2018 (Closing)
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Hess
Updated on : May 18, 2018
previous close
HES 64.7 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil and Gas-US Integrated
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-29.8%
Operating Profit
Operating Margin:
-90.1%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
6.57B
Debt/Equity Ratio:
 8.63
Compared to the industry
Cash Flow
Operating cash flow:
$210M
Net Income:
-$106M
Dividend Yield
HES dividend yield:
1.55%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
HES PS :
3.6
Industry PS :
1.8
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-17.7%
Return on Equity:
-33.3%
Free Cash Flow Margin:
-13.2%
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Hess Stock Analysis

5 2

View the Hess stock analysis video on Amigobulls. Our HES analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Hess Corp. Stock Rating 2/5

Amigobulls HES stock analysis takes into account various financial ratios like relative valuation, Hess revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Hess dividend performance. We compare Hess valuation with its sector peers to gauge relative attractiveness of HES stock. Hess stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy HES stock?

Should you sell HES stock?

  • The company saw an average annual sales decline of -29.8% in sales over the last 5 years.
  • Over the last twelve months, Hess posted an average operating loss margin of -90.1%.
  • Hess posted an average Net loss of -69.1% in the last twelve months.
  • With a debt/equity ratio of  8.63, Hess is highly leveraged in comparison to Oils-Energy peers.
  • PE ratio is meaningless for HES stock as the company has losses.
  • HES stock is trading at a PS multiple of 3.6, which is a negative when compared to the Oil and Gas-US Integrated industry average multiple of 1.8.
  • Hess's negative ROIC of -17.7% indicates operational inefficiency.
  • Hess has a negative ROE (Return On Equity) of -33.3%, indicating the company is not profitable.
  • The company has a negative free cash flow margin of -13.2%.

Comments on this video and Hess stock

Amigobulls Hess stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of HES stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Hess revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about HES stock.