company background image
HES

Hess NYSE:HES Stock Report

Last Price

US$119.27

Market Cap

US$36.9b

7D

4.4%

1Y

42.0%

Updated

25 May, 2022

Data

Company Financials +
HES fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends3/6

HES Stock Overview

Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas.

Hess Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hess
Historical stock prices
Current Share PriceUS$119.27
52 Week HighUS$119.69
52 Week LowUS$61.93
Beta1.68
1 Month Change16.23%
3 Month Change25.21%
1 Year Change41.99%
3 Year Change103.74%
5 Year Change159.90%
Change since IPO637.75%

Recent News & Updates

May 19

Hess Corporation: A Pause Before A Lot Of Growth

Yellowtail is now sanctioned. There will be a one-year gap before FPSOs arrive annually. Production and cash flow will soar over the next five years. Corporate breakeven will drop "like a brick". Hess will become that rare long-term growth stock in a very cyclical industry. That will likely change the market valuation of the stock.

Apr 20

Hess Corporation: Fake News

Hess and Exxon Mobil have millions of acres to explore. Current discoveries alone will grow earnings for at least a decade. Very little, if any exploration has been done on 3 additional blocks that Hess has an interest in. Guyana appears to have a lot of oil that will take a lot of cash to develop. The cash needs "up front" may be too much for one partnership. The second FPSO has begun production. The first FPSO has increased production capability.

Shareholder Returns

HESUS Oil and GasUS Market
7D4.4%5.5%1.0%
1Y42.0%60.5%-15.1%

Return vs Industry: HES underperformed the US Oil and Gas industry which returned 58.6% over the past year.

Return vs Market: HES exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is HES's price volatile compared to industry and market?
HES volatility
HES Average Weekly Movement6.2%
Oil and Gas Industry Average Movement8.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: HES is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HES's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19201,545John Hesshttps://www.hess.com

Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. The company operates in two segments, Exploration and Production, and Midstream. It conducts production operations primarily in the United States, Guyana, the Malaysia/Thailand Joint Development Area, and Malaysia; and exploration activities principally offshore Guyana, the U.S.

Hess Fundamentals Summary

How do Hess's earnings and revenue compare to its market cap?
HES fundamental statistics
Market CapUS$36.93b
Earnings (TTM)US$724.00m
Revenue (TTM)US$7.69b

51.0x

P/E Ratio

4.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HES income statement (TTM)
RevenueUS$7.69b
Cost of RevenueUS$2.20b
Gross ProfitUS$5.49b
Other ExpensesUS$4.77b
EarningsUS$724.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.34
Gross Margin71.42%
Net Profit Margin9.41%
Debt/Equity Ratio112.9%

How did HES perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

48%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


0.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HES ($119.27) is trading below our estimate of fair value ($119.58)

Significantly Below Fair Value: HES is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HES is poor value based on its Price-To-Earnings Ratio (51x) compared to the US Oil and Gas industry average (13.6x).

PE vs Market: HES is poor value based on its Price-To-Earnings Ratio (51x) compared to the US market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: HES is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: HES is overvalued based on its Price-To-Book Ratio (5.9x) compared to the US Oil and Gas industry average (2x).


Future Growth

How is Hess forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HES's forecast earnings growth (9.9% per year) is above the savings rate (1.9%).

Earnings vs Market: HES's earnings (9.9% per year) are forecast to grow slower than the US market (12.1% per year).

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

Revenue vs Market: HES's revenue (7.2% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: HES's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HES's Return on Equity is forecast to be low in 3 years time (18.6%).


Past Performance

How has Hess performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


48.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HES has high quality earnings.

Growing Profit Margin: HES became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HES has become profitable over the past 5 years, growing earnings by 48.2% per year.

Accelerating Growth: HES has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HES has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (88.4%).


Return on Equity

High ROE: HES's Return on Equity (15%) is considered low.


Financial Health

How is Hess's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HES's short term assets ($3.3B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: HES's short term assets ($3.3B) do not cover its long term liabilities ($10.4B).


Debt to Equity History and Analysis

Debt Level: HES's net debt to equity ratio (93.4%) is considered high.

Reducing Debt: HES's debt to equity ratio has increased from 44.5% to 112.9% over the past 5 years.

Debt Coverage: HES's debt is well covered by operating cash flow (26.9%).

Interest Coverage: HES's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HES's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: HES's dividend (1.26%) is low compared to the top 25% of dividend payers in the US market (4.06%).


Stability and Growth of Payments

Stable Dividend: HES's dividends per share have been stable in the past 10 years.

Growing Dividend: HES's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47.9%), HES's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (197.6%), HES's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.7yrs

Average management tenure


CEO

John Hess (67 yo)

27yrs

Tenure

US$12,408,198

Compensation

Mr. John B. Hess has been the Chief Executive Officer at Hess Corporation since May 3, 1995. Mr. Hess has been the Chairman of the Board of Directors and Chief Executive Officer of Hess Midstream GP LLC, t...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD12.41M) is about average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HES's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: HES's board of directors are considered experienced (8.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HES insiders have only sold shares 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

Hess Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Hess Corporation
  • Ticker: HES
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$36.932b
  • Shares outstanding: 309.65m
  • Website: https://www.hess.com

Number of Employees


Location

  • Hess Corporation
  • 1185 Avenue of the Americas
  • 40th Floor
  • New York
  • New York
  • 10036
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.