This firm currently holds 1.2
B in liabilities with Debt to Equity (D/E) ratio of 4.58, indicating the firm may have difficulties to generate enough cash to satisfy its financial obligations. The company has a current ratio of 1.72, which is within standard range for the sector. Our advice module complements current
analysts and expert consensus on HE Equipment Services. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at this moment.
We determine the current worth of HE Equipment Services using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of HE Equipment Services based exclusively on its
fundamental and basic
technical indicators. By analyzing HE Equipment's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
HE Equipment's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of HE Equipment. We calculate exposure to HE Equipment's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to HE Equipment's related companies.
HE Equipment Services Investment Alerts
HEES investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring HE Equipment Services performance across your portfolios.Please check all
investment alerts for HEES
HE Equipment Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare HEES value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across HE Equipment competition to find
correlations between indicators driving the intrinsic value of HEES.
HE Equipment Gross Profit
HE Equipment Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing HE Equipment previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show HE Equipment Gross Profit growth over the last 10 years. Please check HE Equipment's
gross profit and other
fundamental indicators for more details.
What is driving HE Equipment Investor Appetite?
HE Equipment Services reported the previous year's revenue of 1.27
B. Net Income was 22.2
M with profit before overhead, payroll, taxes, and interest of 499.17
M.
| 2017 | 2018 | 2019 | 2020 (projected) |
Receivables | 175.08 M | 199.38 M | 190.8 M | 163.04 M | Inventories | 75 M | 104.6 M | 85.48 M | 81.99 M |
Margins Breakdown
HE Equipment profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or HE Equipment itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of HE Equipment profit margins.
| Operating Margin | 11.06 |
| EBITDA Margin | 0.34 |
| Gross Margin | 0.37 |
| Profit Margin | 0.0549 |
HE Equipment Average Assets is increasing over the last 8 years. HE Equipment Revenue Per Employee is relatively stable at the moment. Furthermore, HE Equipment Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. HE Equipment Average Assets is relatively stable at the moment. HE Equipment Revenue Per Employee is increasing over the last 8 years. Furthermore, HE Equipment Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment.
Will HE Equipment continue to go crazy?
Latest total risk alpha is at 0.19. HE Equipment Services shows above-average downside volatility for the selected time horizon. We advise investors to inspect HE Equipment Services further and ensure that all market timing and asset allocation strategies are consistent with the estimation of HE Equipment future alpha.
Our Bottom Line On HE Equipment Services
While many of the other players within the rental & leasing services industry are still a little expensive, even after the recent corrections, HE Equipment may offer a potential longer-term growth to retail investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither pick up new shares of HE Equipment nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to HE Equipment.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of HE Equipment Services. Please refer to our
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