NasdaqGS:HEES

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has H&E Equipment Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

8.5%

HEES

1.3%

US Trade Distributors

-0.4%

US Market


1 Year Return

64.3%

HEES

56.6%

US Trade Distributors

36.2%

US Market

Return vs Industry: HEES exceeded the US Trade Distributors industry which returned 56.6% over the past year.

Return vs Market: HEES exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

HEESIndustryMarket
7 Day8.5%1.3%-0.4%
30 Day13.0%6.3%-2.3%
90 Day11.5%12.8%5.0%
1 Year72.4%64.3%60.2%56.6%39.1%36.2%
3 Year-11.4%-22.0%33.6%26.9%48.4%39.0%
5 Year167.3%113.1%117.5%98.7%116.6%92.4%

Long-Term Price Volatility Vs. Market

How volatile is H&E Equipment Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

5.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HEES ($33.56) is trading above our estimate of fair value ($30.18)

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


Price To Earnings Ratio

PE vs Industry: HEES is unprofitable, so we can't compare its PE Ratio to the US Trade Distributors industry average.

PE vs Market: HEES is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HEES's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HEES is overvalued based on its PB Ratio (5x) compared to the US Trade Distributors industry average (2.2x).


Next Steps

Future Growth

How is H&E Equipment Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

98.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEES is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: HEES is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HEES's is expected to become profitable in the next 3 years.

Revenue vs Market: HEES's revenue (4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: HEES's revenue (4% 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 (31.2%)


Next Steps

Past Performance

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

-3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEES is currently unprofitable.

Growing Profit Margin: HEES is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HEES is unprofitable, and losses have increased over the past 5 years at a rate of 3.7% per year.

Accelerating Growth: Unable to compare HEES's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HEES is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-13.5%).


Return on Equity

High ROE: HEES has a negative Return on Equity (-13.71%), as it is currently unprofitable.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: HEES's short term assets ($572.6M) exceed its short term liabilities ($172.3M).

Long Term Liabilities: HEES's short term assets ($572.6M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: HEES's debt to equity ratio (524%) is considered high.

Reducing Debt: HEES's debt to equity ratio has reduced from 613.5% to 524% over the past 5 years.

Debt Coverage: HEES's debt is well covered by operating cash flow (22.9%).

Interest Coverage: HEES is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEES's dividend (3.28%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: HEES's dividend (3.28%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: HEES is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: HEES's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Brad Barber (47 yo)

2.17yrs

Tenure

US$2,419,711

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 ($USD2.42M) is about average for companies of similar size in the US market ($USD2.21M).

Compensation vs Earnings: Brad's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John Engquist
Executive Chairman2.17yrsUS$3.12m0.93%
$ 11.1m
Bradley Barber
CEO & Director2.17yrsUS$2.42m0.36%
$ 4.3m
Leslie Magee
CFO & Secretary15.5yrsUS$1.41m0.26%
$ 3.2m
John Engquist
President & COOno datano datano data
Kevin Inda
Vice President of Investor Relations4.83yrsno datano data
Dale Roesener
Vice President of Aerial Work Platformsno dataUS$304.04kno data

3.5yrs

Average Tenure

57yo

Average Age

Experienced Management: HEES's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Engquist
Executive Chairman2.17yrsUS$3.12m0.93%
$ 11.1m
Bradley Barber
CEO & Director2.17yrsUS$2.42m0.36%
$ 4.3m
Bruce Bruckmann
Independent Director15.5yrsUS$190.02k2.93%
$ 35.0m
Lawrence Karlson
Independent Director15.5yrsUS$190.02k0.15%
$ 1.8m
Patrick Edsell
Independent Director9.83yrsUS$195.02k0.087%
$ 1.0m
Gary Bagley
Independent Director15.5yrsUS$180.02k0.40%
$ 4.8m
John Sawyer
Independent Director15.5yrsUS$180.02k0.19%
$ 2.3m
Paul Arnold
Independent Director14.33yrsUS$195.02k0.18%
$ 2.1m
Thomas Galligan
Independent Director9.83yrsUS$180.02k0.085%
$ 1.0m
Mary Patricia Thompson
Independent Director1.58yrsUS$33.97k0.016%
$ 196.7k

12.1yrs

Average Tenure

72yo

Average Age

Experienced Board: HEES's board of directors are seasoned and experienced ( 12.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.


Top Shareholders

Company Information

H&E Equipment Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H&E Equipment Services, Inc.
  • Ticker: HEES
  • Exchange: NasdaqGS
  • Founded: 1961
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$1.194b
  • Shares outstanding: 35.59m
  • Website: https://www.he-equipment.com

Number of Employees


Location

  • H&E Equipment Services, Inc.
  • 7500 Pecue Lane
  • Baton Rouge
  • Louisiana
  • 70809
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEESNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2006
H6PDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2006

Biography

H&E Equipment Services, Inc. operates as an integrated equipment services company. The company operates in five segments: Equipment Rentals, New Equipment Sales, Used Equipment Sales, Parts Sales, and Repa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 23:51
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.