NasdaqGS:HLIO

Stock Analysis Report

Executive Summary

Helios Technologies, Inc. develops, manufactures, and sells solutions for the hydraulics and electronics markets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Helios Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HLIO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.3%

HLIO

14.0%

US Machinery

10.5%

US Market


1 Year Return

-24.2%

HLIO

-22.6%

US Machinery

-11.5%

US Market

Return vs Industry: HLIO underperformed the US Machinery industry which returned -22.6% over the past year.

Return vs Market: HLIO underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

HLIOIndustryMarket
7 Day-10.3%14.0%10.5%
30 Day-11.3%-22.9%-15.4%
90 Day-22.5%-31.3%-21.4%
1 Year-23.6%-24.2%-20.5%-22.6%-9.6%-11.5%
3 Year-0.3%-2.4%-3.2%-10.2%12.6%5.4%
5 Year-9.0%-13.0%18.9%3.9%32.8%18.1%

Price Volatility Vs. Market

How volatile is Helios Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Helios Technologies undervalued compared to its fair value and its price relative to the market?

28.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLIO ($35.26) is trading below our estimate of fair value ($49.42)

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


Price To Earnings Ratio

PE vs Industry: HLIO is poor value based on its PE Ratio (18.7x) compared to the Machinery industry average (15x).

PE vs Market: HLIO is poor value based on its PE Ratio (18.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: HLIO is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: HLIO is overvalued based on its PB Ratio (2x) compared to the US Machinery industry average (1.5x).


Next Steps

Future Growth

How is Helios Technologies forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLIO's forecast earnings growth (7.9% per year) is above the savings rate (1.7%).

Earnings vs Market: HLIO's earnings (7.9% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: HLIO's earnings are forecast to grow, but not significantly.

Revenue vs Market: HLIO's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: HLIO's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLIO's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Helios Technologies performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLIO has high quality earnings.

Growing Profit Margin: HLIO's current net profit margins (10.9%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: HLIO's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: HLIO's earnings growth over the past year (29.4%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: HLIO earnings growth over the past year (29.4%) exceeded the Machinery industry -2%.


Return on Equity

High ROE: HLIO's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Helios Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: HLIO's short term assets ($192.6M) exceed its short term liabilities ($76.5M).

Long Term Liabilities: HLIO's short term assets ($192.6M) do not cover its long term liabilities ($367.7M).


Debt to Equity History and Analysis

Debt Level: HLIO's debt to equity ratio (53%) is considered high.

Reducing Debt: Insufficient data to determine if HLIO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HLIO's debt is well covered by operating cash flow (29.6%).

Interest Coverage: HLIO's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: HLIO has a high level of physical assets or inventory.

Debt Coverage by Assets: HLIO's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Helios Technologies's current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 29 2020Ex Dividend DateApr 02 2020Dividend Pay DateApr 20 202018 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HLIO's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: HLIO's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

Stable Dividend: HLIO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: HLIO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HLIO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLIO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Wolfgang Dangel (56yo)

3.92s

Tenure

US$1,539,107

Compensation

Mr. Wolfgang H. Dangel has been the Chief Executive Officer and President of Sun Hydraulics Corp since April 1, 2016. Mr. Dangel has been the President of Schaeffler Group Asia/Pacific and Member of the Ex ...


CEO Compensation Analysis

Compensation vs Market: Wolfgang's total compensation ($USD1.54M) is below average for companies of similar size in the US market ($USD3.12M).

Compensation vs Earnings: Wolfgang's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wolfgang Dangel
President3.92yrsUS$1.54m0.15% $1.7m
Tricia Fulton
Chief Financial Officer14yrsUS$1.07m0.18% $2.1m
Jinger McPeak
President of Electronic Controls0.92yrUS$482.25k0.013% $147.6k
Craig Roser
Global Lead of CVT Sales & Business Development3.58yrsUS$536.08k0.059% $666.3k
Gary Gotting
Global Lead of CVT Product Development & Marketing3yrsUS$427.16k0.043% $485.5k
Melanie Nealis
Chief Legal & Compliance Officer and Secretary1.67yrsno data0.023% $258.3k
Tim LaCrosse
Chief of Global Engineering - Hydraulics Segment3.25yrsno datano data
Rajasekhar Menon
President of CVT0.75yrno data0.0018% $20.3k
Matteo Arduini
President of QRC0.75yrno data0.0017% $19.2k
Gregory Yadley
Assistant Secretary0.75yrno datano data

2.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: HLIO's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wolfgang Dangel
President3.92yrsUS$1.54m0.15% $1.7m
Philippe Lemaitre
Independent Chairman6.75yrsUS$290.25k0.15% $1.7m
Christine Koski
Independent Director19.83yrsUS$149.54k4.28% $48.4m
Marc Bertoneche
Independent Director18.58yrsUS$188.47k0.062% $701.6k
Douglas Britt
Independent Director3.25yrsUS$217.80k0.033% $370.2k
Kennon Guglielmo
Director0.75yrUS$51.39k0.0094% $105.8k
Alexander Schuetz
Independent Director5.75yrsUS$227.10k0.044% $494.2k

6.8yrs

Average Tenure

56yo

Average Age

Experienced Board: HLIO's board of directors are considered experienced (6.8 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Helios Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Helios Technologies, Inc.
  • Ticker: HLIO
  • Exchange: NasdaqGS
  • Founded: 1970
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.130b
  • Shares outstanding: 32.06m
  • Website: https://www.heliostechnologies.com

Number of Employees


Location

  • Helios Technologies, Inc.
  • 1500 West University Parkway
  • Sarasota
  • Florida
  • 34243
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLIONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1997
SH7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1997

Biography

Helios Technologies, Inc. develops, manufactures, and sells solutions for the hydraulics and electronics markets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Hydraulics and Electronics. The Hydraulics segment offers cartridge valve technology products to control rates and direction of fluid flow, and to regulate and control pressures for industrial and mobile applications; quick release hydraulic coupling solutions for the agriculture, construction equipment, and industrial markets; and hydraulic system design that provides engineered solutions for machine users, manufacturers, or designers. This segment sells its products under the Sun Hydraulics, Faster, and Custom Fluidpower brands. The Electronics segment offers displays, controls, and instrumentation products for off-highway, recreational and commercial marine, power sports and specialty vehicles, agriculture and water pumping, power generation, and engine-driven industrial equipment markets. This segment sells its products under the Enovation Controls and Murphy brands. Helios Technologies, Inc. sells its hydraulic products primarily through value-add distributors and integrators, as well as directly to original equipment manufacturer customers; and electronic products to original equipment manufacturer customers. The company was formerly known as Sun Hydraulics Corporation and changed its name to Helios Technologies, Inc. in June 2019. Helios Technologies, Inc. was founded in 1970 and is headquartered in Sarasota, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 01:20
End of Day Share Price2020/03/27 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.