Holly Energy Partners, L.P.
Holly Energy Partners, L.P. Fundamental Analysis
Holly Energy Partners, L.P. (HEP) shows strong financial fundamentals with a PE ratio of 9.95, profit margin of 39.60%, and ROE of 33.35%. The company generates $0.7B 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 57.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HEP's fundamental strength across five key dimensions:
Efficiency Score
WeakHEP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHEP trades at attractive valuation levels.
Growth Score
ModerateHEP shows steady but slowing expansion.
Financial Health Score
ModerateHEP shows balanced financial health with some risks.
Profitability Score
ExcellentHEP achieves industry-leading margins.
Key Financial Metrics
Is HEP Expensive or Cheap?
P/E Ratio
HEP trades at 9.95 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HEP's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Holly Energy Partners, L.P. at 2.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.40 times EBITDA. This is generally considered low.
How Well Does HEP Make Money?
Net Profit Margin
For every $100 in sales, Holly Energy Partners, L.P. keeps $39.60 as profit after all expenses.
Operating Margin
Core operations generate 40.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.35 in profit for every $100 of shareholder equity.
ROA
Holly Energy Partners, L.P. generates $7.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Holly Energy Partners, L.P. generates strong operating cash flow of $396.98M, reflecting robust business health.
Free Cash Flow
Holly Energy Partners, L.P. generates strong free cash flow of $350.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.77 in free cash annually.
FCF Yield
HEP converts 11.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HEP Stacks Against Its Sector Peers
| Metric | HEP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.95 | 20.19 | Better (Cheaper) |
| ROE | 33.35% | 1019.00% | Weak |
| Net Margin | 39.60% | -44017.00% (disorted) | Strong |
| Debt/Equity | 1.90 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.20 | 4.60 | Neutral |
| ROA | 7.89% | -11655350.00% (disorted) | Weak |
HEP outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Holly Energy Partners, L.P.'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: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity