HC2 Holdings
Market Cap
US$184.7m
Last Updated
2020/02/17 00:41 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -130.7% per year for the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
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
0.8%
HCHC
4.2%
US Construction
1.5%
US Market
1 Year Return
21.1%
HCHC
17.5%
US Construction
20.1%
US Market
Return vs Industry: HCHC exceeded the US Construction industry which returned 17.5% over the past year.
Return vs Market: HCHC matched the US Market which returned 20.1% over the past year.
Shareholder returns
| HCHC | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 4.2% | 1.5% |
| 30 Day | 50.6% | 0.7% | 1.4% |
| 90 Day | 99.0% | 4.2% | 8.7% |
| 1 Year | 21.1%21.1% | 18.4%17.5% | 22.7%20.1% |
| 3 Year | -36.1%-36.1% | 9.4%7.0% | 50.1%40.5% |
| 5 Year | -46.8%-46.8% | 42.4%37.2% | 73.1%54.1% |
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
6 days ago | Simply Wall St
Could HC2 Holdings, Inc.'s (NYSE:HCHC) Investor Composition Influence The Stock Price?3 weeks ago | Simply Wall St
Is HC2 Holdings, Inc.'s (NYSE:HCHC) CEO Pay Justified?1 month ago | Simply Wall St
Have Insiders Been Buying HC2 Holdings, Inc. (NYSE:HCHC) Shares?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 ($4.02) 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 (0.5x) compared to the US Construction industry average (1.8x).
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 (2.4%).
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
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 ($USD1.11M).
Compensation vs Earnings: Phil's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.8yrs | US$11.54m | 1.67% $3.1m | |
| Chief Financial Officer | 4.7yrs | US$2.13m | 0.55% $1.0m | |
| Chief Administrative Officer | 4.9yrs | US$981.00k | 0.26% $480.7k | |
| Chief Legal Officer & Corporate Secretary | 2.4yrs | US$1.17m | 0.25% $462.3k |
4.8yrs
Average Tenure
44.5yo
Average Age
Experienced Management: HCHC's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.8yrs | US$11.54m | 1.67% $3.1m | |
| Independent Director | 3.7yrs | US$129.00k | 0.16% $287.3k | |
| Independent Director | 3.7yrs | US$146.50k | 0.17% $307.4k | |
| Lead Independent Director | 3.7yrs | US$132.50k | 0.14% $265.7k | |
| Independent Director | 6.1yrs | US$130.00k | 0.21% $381.6k |
3.7yrs
Average Tenure
64yo
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: 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 2.6%.
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$184.659m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HCHC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 2009 |
| PSTA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:41 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.