H&E Equipment Services (NasdaqGS:HEES) - Share price, News & Analysis

HEES fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	5/6
Past Performance	2/6
Financial Health	2/6
Dividends	2/6

HEES Stock Overview

H&E Equipment Services, Inc. operates as an integrated equipment services company.

Rewards

Earnings are forecast to grow 20.55% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 3.19% is not well covered by earnings

H&E Equipment Services Competitors

Fastenal

NasdaqGS:FAST

US$29.7b

United Rentals

NYSE:URI

US$19.8b

Watsco

NYSE:WSO

US$8.8b

Beacon Roofing Supply

NasdaqGS:BECN

US$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for H&E Equipment Services
Historical stock prices
Current Share Price	US$34.44
52 Week High	US$50.69
52 Week Low	US$28.28
Beta	2.08
1 Month Change	-3.91%
3 Month Change	-12.66%
1 Year Change	-5.98%
3 Year Change	35.32%
5 Year Change	73.15%
Change since IPO	49.09%

Shareholder Returns

	HEES	US Trade Distributors	US Market
7D	1.7%	0.4%	1.0%
1Y	-6.0%	-6.0%	-15.1%

Return vs Industry: HEES matched the US Trade Distributors industry which returned -6.1% over the past year.

Return vs Market: HEES exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is HEES's price volatile compared to industry and market?
HEES volatility
HEES Average Weekly Movement	7.4%
Trade Distributors Industry Average Movement	7.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: HEES is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HEES's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1961	2,157	Brad Barber	https://www.he-equipment.com

H&E Equipment Services, Inc. operates as an integrated equipment services company. The company operates in five segments: Equipment Rentals, Used Equipment Sales, New Equipment Sales, Parts Sales, and Repair and Maintenance Services. The Equipment Rentals segment provides construction and industrial equipment for rent on a daily, weekly, and monthly basis through a fleet of approximately 42,725 pieces of equipment.

H&E Equipment Services Fundamentals Summary

How do H&E Equipment Services's earnings and revenue compare to its market cap?
HEES fundamental statistics
Market Cap	US$1.23b
Earnings (TTM)	US$75.01m
Revenue (TTM)	US$1.09b

16.4x

P/E Ratio

1.1x

P/S Ratio

Is HEES overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HEES income statement (TTM)
Revenue	US$1.09b
Cost of Revenue	US$651.28m
Gross Profit	US$443.53m
Other Expenses	US$368.53m
Earnings	US$75.01m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.10
Gross Margin	40.51%
Net Profit Margin	6.85%
Debt/Equity Ratio	404.9%

How did HEES perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

53%

Payout Ratio

Does HEES pay a reliable dividends?

See HEES dividend history and benchmarks

When do you need to buy HEES by to receive an upcoming dividend?
H&E Equipment Services dividend dates
Ex Dividend Date	May 26 2022
Dividend Pay Date	Jun 10 2022
Days until Ex dividend	1 day
Days until Dividend pay date	14 days

Does HEES pay a reliable dividends?

See HEES dividend history and benchmarks

Valuation

Is H&E Equipment Services undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

16.41x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: HEES ($34.44) is trading above our estimate of fair value ($18.08)

Significantly Below Fair Value: HEES is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: HEES is poor value based on its Price-To-Earnings Ratio (16.4x) compared to the US Trade Distributors industry average (12.6x).

PE vs Market: HEES is poor value based on its Price-To-Earnings Ratio (16.4x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: HEES is good value based on its PEG Ratio (0.8x)

Price to Book Ratio

PB vs Industry: HEES is overvalued based on its Price-To-Book Ratio (4x) compared to the US Trade Distributors industry average (2x).

Future Growth

How is H&E Equipment Services forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEES's forecast earnings growth (20.5% per year) is above the savings rate (1.9%).

Earnings vs Market: HEES's earnings (20.5% per year) are forecast to grow faster than the US market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HEES's revenue (9.8% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: HEES's revenue (9.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: HEES's Return on Equity is forecast to be high in 3 years time (28.7%)

Past Performance

How has H&E Equipment Services performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-21.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HEES has high quality earnings.

Growing Profit Margin: HEES became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: HEES's earnings have declined by 21.7% per year over the past 5 years.

Accelerating Growth: HEES has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HEES has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (80.4%).

Return on Equity

High ROE: Whilst HEES's Return on Equity (24.1%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is H&E Equipment Services's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HEES's short term assets ($642.7M) exceed its short term liabilities ($187.5M).

Long Term Liabilities: HEES's short term assets ($642.7M) do not cover its long term liabilities ($1.6B).

Debt to Equity History and Analysis

Debt Level: HEES's net debt to equity ratio (291.8%) is considered high.

Reducing Debt: HEES's debt to equity ratio has reduced from 581.9% to 404.9% over the past 5 years.

Debt Coverage: HEES's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: HEES's interest payments on its debt are not well covered by EBIT (2.7x coverage).

Balance Sheet

Dividend

What is H&E Equipment Services's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HEES's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: HEES's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (4.06%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HEES has been paying a dividend for less than 10 years.

Growing Dividend: HEES's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (53.2%), HEES's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: HEES is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure

CEO

Brad Barber (48 yo)

3.33yrs

Tenure

US$2,854,893

Compensation

Mr. Bradley W. Barber, also known as Brad, served as President of H&E Equipment Services, Inc. since November 2, 2012 until January 1, 2021 and serves as its Chief Executive Officer & Director since Januar...

CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD2.85M) is below average for companies of similar size in the US market ($USD5.44M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: HEES's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: HEES's board of directors are seasoned and experienced ( 15.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: HEES insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31