NYSE:HCHC

Stock Analysis Report

Executive Summary

HC2 Holdings, Inc. provides construction, marine services, energy, telecommunications, insurance, life sciences, broadcasting, and other services in the United States, the United Kingdom, and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has HC2 Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.9%

HCHC

-13.2%

US Construction

-11.2%

US Market


1 Year Return

20.1%

HCHC

-1.4%

US Construction

4.1%

US Market

Return vs Industry: HCHC exceeded the US Construction industry which returned -1.4% over the past year.

Return vs Market: HCHC exceeded the US Market which returned 4.1% over the past year.


Shareholder returns

HCHCIndustryMarket
7 Day-9.9%-13.2%-11.2%
30 Day29.5%-10.2%-9.5%
90 Day78.5%-9.0%-5.4%
1 Year20.1%20.1%-0.6%-1.4%6.2%4.1%
3 Year-31.5%-31.5%-6.6%-8.7%30.3%21.9%
5 Year-53.4%-53.4%25.6%20.9%55.0%38.0%

Price Volatility Vs. Market

How volatile is HC2 Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HC2 Holdings 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: HCHC ($3.82) is trading below our estimate of fair value ($248.62)

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


Price To Earnings Ratio

PE vs Industry: HCHC is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: HCHC 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 HCHC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HCHC is good value based on its PB Ratio (0.4x) compared to the US Construction industry average (1.7x).


Next Steps

Future Growth

How is HC2 Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-130.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCHC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HCHC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HCHC is forecast to remain unprofitable over the next 3 years.

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

High Growth Revenue: HCHC'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: Insufficient data to determine if HCHC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has HC2 Holdings performed over the past 5 years?

39.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCHC is currently unprofitable.

Growing Profit Margin: HCHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HCHC is unprofitable, but has reduced losses over the past 5 years at a rate of 39.8% per year.

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

Earnings vs Industry: HCHC is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (4.6%).


Return on Equity

High ROE: HCHC has a negative Return on Equity (-3.42%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HC2 Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HCHC's short term assets ($1.6B) exceed its short term liabilities ($329.1M).

Long Term Liabilities: HCHC's short term assets ($1.6B) do not cover its long term liabilities ($6.1B).


Debt to Equity History and Analysis

Debt Level: HCHC's debt to equity ratio (150.4%) is considered high.

Reducing Debt: HCHC's debt to equity ratio has reduced from 153% to 150.4% over the past 5 years.


Balance Sheet

Inventory Level: HCHC has a low level of unsold assets or inventory.

Debt Coverage by Assets: HCHC's debt is covered by short term assets (assets are 2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable HCHC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HCHC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.5% per year.


Next Steps

Dividend

What is HC2 Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HCHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HCHC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HCHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HCHC'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?

4.8yrs

Average management tenure


CEO

Phil Falcone (57yo)

5.8yrs

Tenure

US$11,535,545

Compensation

Mr. Philip Alan Falcone, also known as Phil, has been the President, Chief Executive Officer, and Chairman of HC2 Holdings, Inc. since May 21, 2014. Mr. Falcone is also the Chief Executive Officer, Preside ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD11.54M) is above average for companies of similar size in the US market ($USD1.22M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Philip Falcone
Chairman5.8yrsUS$11.54m2.78% $4.9m
Michael Sena
Chief Financial Officer4.7yrsUS$2.13m0.55% $961.7k
Suzi Herbst
Chief Administrative Officer4.9yrsUS$981.00k0.26% $456.8k
Joseph Ferraro
Chief Legal Officer & Corporate Secretary2.4yrsUS$1.17m0.25% $439.3k

4.8yrs

Average Tenure

44.5yo

Average Age

Experienced Management: HCHC's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Falcone
Chairman5.8yrsUS$11.54m2.78% $4.9m
Lee Hillman
Independent Director3.7yrsUS$129.00k0.16% $273.1k
Warren Gfeller
Independent Director3.7yrsUS$146.50k0.17% $292.1k
Robert Leffler
Lead Independent Director3.7yrsUS$132.50k0.14% $252.5k
Wayne Barr
Independent Director6.1yrsUS$130.00k0.21% $362.6k
Julie Springer
Independent Director0yrsno datano data

3.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: HCHC's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HCHC 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 2.6%.


Top Shareholders

Company Information

HC2 Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HC2 Holdings, Inc.
  • Ticker: HCHC
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$175.472m
  • Shares outstanding: 45.94m
  • Website: https://www.hc2.com

Number of Employees


Location

  • HC2 Holdings, Inc.
  • 450 Park Avenue
  • 30th Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCHCNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2009
PSTADB (Deutsche Boerse AG)YesCommon StockDEEURJul 2009

Biography

HC2 Holdings, Inc. provides construction, marine services, energy, telecommunications, insurance, life sciences, broadcasting, and other services in the United States, the United Kingdom, and internationally. The company models, details, fabricates, and erects structural steel for commercial and industrial, and infrastructure construction projects, including building and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, and power plants. It also fabricates trusses and girders; and fabricates and erects water pipes, water storage tanks, pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators, and various customized products. In addition, the company offers subsea cable installation and maintenance services for the telecommunications sector; installation, maintenance, and repair services for fiber optic communication and power infrastructure to offshore oil and gas platforms; and installation services for inter-array power cables for use in offshore wind farms. Further, it distributes natural gas motor fuels; designs, builds, owns, acquires, operates, and maintains compressed natural gas fueling stations for transportation vehicles; and provides voice communication services for national telecommunications, mobile, prepaid, and voice over Internet protocol service operators, as well as wholesale carriers and Internet service providers. Additionally, the company offers long-term care, life, annuity, and other accident and health coverage; focuses on developing products for early osteoarthritis of the knee, as well as skin lightening technology; and acquires and operates Over-The-Air broadcasting stations and Azteca America, a Spanish-language broadcast network. The company was formerly known as PTGi Holding Inc. and changed its name to HC2 Holdings, Inc. in April 2014. HC2 Holdings, Inc. was founded in 1994 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 02:07
End of Day Share Price2020/02/28 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.