Hess Corporation
Hess Corporation Fundamental Analysis
Hess Corporation (HES) shows moderate financial fundamentals with a PE ratio of 47.30, profit margin of 15.99%, and ROE of 8.55%. The company generates $6.1B in annual revenue with strong year-over-year growth of 22.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.4/100 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 HES's fundamental strength across five key dimensions:
Efficiency Score
WeakHES struggles to generate sufficient returns from assets.
Valuation Score
ModerateHES shows balanced valuation metrics.
Growth Score
ExcellentHES delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHES maintains a strong and stable balance sheet.
Profitability Score
WeakHES struggles to sustain strong margins.
Key Financial Metrics
Is HES Expensive or Cheap?
P/E Ratio
HES trades at 47.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HES's PEG of -3.14 indicates potential undervaluation.
Price to Book
The market values Hess Corporation at 3.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.08 times EBITDA. This signals the market has high growth expectations.
How Well Does HES Make Money?
Net Profit Margin
For every $100 in sales, Hess Corporation keeps $15.99 as profit after all expenses.
Operating Margin
Core operations generate 40.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.55 in profit for every $100 of shareholder equity.
ROA
Hess Corporation generates $3.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hess Corporation generates strong operating cash flow of $2.72B, reflecting robust business health.
Free Cash Flow
Hess Corporation generates weak or negative free cash flow of $-55.12M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.18 in free cash annually.
FCF Yield
HES converts -0.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How HES Stacks Against Its Sector Peers
| Metric | HES Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.30 | 21.17 | Worse (Expensive) |
| ROE | 8.55% | 943.00% | Weak |
| Net Margin | 15.99% | -75302.00% (disorted) | Strong |
| Debt/Equity | 0.82 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.08 | 6.33 | Neutral |
| ROA | 3.58% | -10948340.00% (disorted) | Weak |
HES outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hess Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
94.87%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
1232.32%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
234.71%
Industry Style: Cyclical, Value, Commodity
High Growth