H&E Equipment Services, Inc.
H&E Equipment Services, Inc. Fundamental Analysis
H&E Equipment Services, Inc. (HEES) shows weak financial fundamentals with a PE ratio of 129.59, profit margin of 3.77%, and ROE of 3.82%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 3.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HEES's fundamental strength across five key dimensions:
Efficiency Score
WeakHEES struggles to generate sufficient returns from assets.
Valuation Score
ModerateHEES shows balanced valuation metrics.
Growth Score
WeakHEES faces weak or negative growth trends.
Financial Health Score
ExcellentHEES maintains a strong and stable balance sheet.
Profitability Score
WeakHEES struggles to sustain strong margins.
Key Financial Metrics
Is HEES Expensive or Cheap?
P/E Ratio
HEES trades at 129.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HEES's PEG of -4.95 indicates potential undervaluation.
Price to Book
The market values H&E Equipment Services, Inc. at 5.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.15 times EBITDA. This signals the market has high growth expectations.
How Well Does HEES Make Money?
Net Profit Margin
For every $100 in sales, H&E Equipment Services, Inc. keeps $3.77 as profit after all expenses.
Operating Margin
Core operations generate 8.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.82 in profit for every $100 of shareholder equity.
ROA
H&E Equipment Services, Inc. generates $0.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
H&E Equipment Services, Inc. generates strong operating cash flow of $229.15M, reflecting robust business health.
Free Cash Flow
H&E Equipment Services, Inc. generates strong free cash flow of $142.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.90 in free cash annually.
FCF Yield
HEES converts 4.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
129.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How HEES Stacks Against Its Sector Peers
| Metric | HEES Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 129.59 | 25.96 | Worse (Expensive) |
| ROE | 3.82% | 1263.00% | Weak |
| Net Margin | 3.77% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 10.05 | Neutral |
| ROA | 0.99% | -1497918.00% (disorted) | Weak |
HEES outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews H&E Equipment Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.11%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
39.30%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
54.21%
Industry Style: Cyclical, Value, Infrastructure
High Growth