HC2 Holdings, Inc. Fundamental Analysis
HC2 Holdings, Inc. (HCHC) shows weak financial fundamentals with a PE ratio of -0.87, profit margin of -4.21%, and ROE of 1.07%. The company generates $7.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HCHC's fundamental strength across five key dimensions:
Efficiency Score
WeakHCHC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHCHC trades at attractive valuation levels.
Growth Score
WeakHCHC faces weak or negative growth trends.
Financial Health Score
ModerateHCHC shows balanced financial health with some risks.
Profitability Score
ModerateHCHC maintains healthy but balanced margins.
Key Financial Metrics
Is HCHC Expensive or Cheap?
P/E Ratio
HCHC trades at -0.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HCHC's PEG of -0.10 indicates potential undervaluation.
Price to Book
The market values HC2 Holdings, Inc. at -0.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.77 times EBITDA. This is generally considered low.
How Well Does HCHC Make Money?
Net Profit Margin
For every $100 in sales, HC2 Holdings, Inc. keeps $-4.21 as profit after all expenses.
Operating Margin
Core operations generate 0.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.07 in profit for every $100 of shareholder equity.
ROA
HC2 Holdings, Inc. generates $-6.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HC2 Holdings, Inc. generates limited operating cash flow of $326.46M, signaling weaker underlying cash strength.
Free Cash Flow
HC2 Holdings, Inc. produces free cash flow of $235.45M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.00 in free cash annually.
FCF Yield
HCHC converts 13.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.07
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
-0.14
vs 25 benchmark
How HCHC Stacks Against Its Sector Peers
| Metric | HCHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.87 | 21.04 | Better (Cheaper) |
| ROE | 106.93% | 557.00% | Weak |
| Net Margin | -4.21% | 139.00% | Weak |
| Debt/Equity | -2.47 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 0.40 | 1.89 | Weak Liquidity |
| ROA | -6.01% | 266.00% | Weak |
HCHC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HC2 Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming