HE Equipment Story

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HEES -- USA Stock  

USD 28.08  0.52  1.82%

As many millenniums are trying to avoid industrials space, it makes sense to sum up HE Equipment Services a little further and try to understand its current market patterns. We will analyze why it could be a much better year for HE Equipment shareholders. Is current HE Equipment Services value sustainable? We will go over the entity valuation drivers to give you a better outlook on taking a position in it.
Published over three weeks ago
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The impact of latest bullish trends on HE Equipment (NASDAQ:HEES)
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

HE Equipment 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 HE Equipment

HE Equipment Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare HE Equipment 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 HE Equipment.

How HE Equipment utilizes its cash?

To perform a cash flow analysis of HE Equipment, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash HE Equipment is receiving and how much cash it distributes out in a given period. The HE Equipment cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. HE Equipment Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. HE Equipment reported last year Net Cash Flow from Operations of 319.22 Million

A Deeper Analysis

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)
Receivables175.08 M199.38 M190.8 M163.04 M
Inventories75 M104.6 M85.48 M81.99 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 Margin11.06
EBITDA Margin0.34
Gross Margin0.37
Profit Margin0.0549

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.

About Contributor

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 Terms of Use for any information regarding our disclosure principles.

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