NasdaqGS:HEES

Stock Analysis Report

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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 +/- 9% a week.

Volatility Over Time: HEES's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

HEES

-1.2%

US Trade Distributors

0.7%

US Market


1 Year Return

-12.1%

HEES

20.4%

US Trade Distributors

22.2%

US Market

Return vs Industry: HEES underperformed the US Trade Distributors industry which returned 22.4% over the past year.

Return vs Market: HEES underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

HEESIndustryMarket
7 Day-0.5%-1.2%0.7%
30 Day25.3%15.2%11.8%
90 Day34.8%16.3%8.6%
1 Year-7.5%-12.1%23.0%20.4%25.0%22.2%
3 Year-11.6%-22.1%35.0%28.3%49.4%39.5%
5 Year114.4%68.7%97.6%82.7%100.2%78.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEES ($27.95) is trading below our estimate of fair value ($62.03)

Significantly Below Fair Value: HEES is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HEES is poor value based on its PE Ratio (259.9x) compared to the US Trade Distributors industry average (21.9x).

PE vs Market: HEES is poor value based on its PE Ratio (259.9x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: HEES is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: HEES is overvalued based on its PB Ratio (3.8x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

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

115.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEES's forecast earnings growth (115.4% per year) is above the savings rate (2.2%).

Earnings vs Market: HEES's earnings (115.4% per year) are forecast to grow faster than the US market (21.8% per year).

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

Revenue vs Market: HEES's revenue (2.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: HEES's revenue (2.2% 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%)


Next Steps

Past Performance

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

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEES has a large one-off loss of $59.1M impacting its September 30 2020 financial results.

Growing Profit Margin: HEES's current net profit margins (0.3%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: HEES's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: HEES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HEES had negative earnings growth (-95.7%) over the past year, making it difficult to compare to the Trade Distributors industry average (-6.9%).


Return on Equity

High ROE: HEES's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: HEES's short term assets ($264.1M) exceed its short term liabilities ($143.7M).

Long Term Liabilities: HEES's short term assets ($264.1M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: HEES's debt to equity ratio (364.4%) is considered high.

Reducing Debt: HEES's debt to equity ratio has reduced from 670.1% to 364.4% over the past 5 years.

Debt Coverage: HEES's debt is well covered by operating cash flow (34.5%).

Interest Coverage: HEES's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEES's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: HEES's dividend (3.94%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1022.7%), HEES's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HEES's dividends in 3 years are forecast to be covered by earnings (54% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Brad Barber (47 yo)

1.92yrs

Tenure

US$2,419,711

Compensation

Mr. Bradley W. Barber, also known as Brad, has been President of H&E Equipment Services, Inc. since November 2, 2012 and its Chief Executive Officer & Director since January 1, 2019. He was Chief Operating...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD2.42M) is about average for companies of similar size in the US market ($USD2.60M).

Compensation vs Earnings: Brad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Engquist
Executive Chairman1.92yrsUS$3.12m7.26%
$ 72.2m
Bradley Barber
CEO, President & Director1.92yrsUS$2.42m0.36%
$ 3.5m
Leslie Magee
CFO & Secretary15.25yrsUS$1.41m0.27%
$ 2.6m
Kevin Inda
Vice President of Investor Relations4.58yrsno datano data
Dale Roesener
Vice President of Aerial Work Platformsno dataUS$304.04kno data

3.3yrs

Average Tenure

57yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
John Engquist
Executive Chairman1.92yrsUS$3.12m7.26%
$ 72.2m
Bradley Barber
CEO, President & Director1.92yrsUS$2.42m0.36%
$ 3.5m
Bruce Bruckmann
Independent Director15.25yrsUS$190.02k2.97%
$ 29.6m
Lawrence Karlson
Independent Director15.25yrsUS$190.02k0.14%
$ 1.4m
Patrick Edsell
Independent Director9.58yrsUS$195.02k0.078%
$ 776.8k
Gary Bagley
Independent Director15.25yrsUS$180.02k0.40%
$ 3.9m
John Sawyer
Independent Director15.25yrsUS$180.02k0.19%
$ 1.9m
Paul Arnold
Independent Director14.08yrsUS$195.02k0.17%
$ 1.7m
Thomas Galligan
Independent Director9.58yrsUS$180.02k0.077%
$ 768.5k
Mary Patricia Thompson
Independent Director1.33yrsUS$33.97k0.0083%
$ 82.5k

11.8yrs

Average Tenure

72yo

Average Age

Experienced Board: HEES's board of directors are seasoned and experienced ( 11.8 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$994.008m
  • Shares outstanding: 35.56m
  • 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 Analysis2020/12/02 23:19
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.