Hess (NYSE:HES) - Share price, News & Analysis

HES fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	3/6
Financial Health	3/6
Dividends	3/6

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.

Rewards

Trading at 0.3% below our estimate of its fair value

Earnings are forecast to grow 9.88% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months

Hess Competitors

EOG Resources

NYSE:EOG

US$77.9b

Pioneer Natural Resources

NYSE:PXD

US$67.2b

Coterra Energy

NYSE:CTRA

US$27.3b

Continental Resources

NYSE:CLR

US$22.9b

Price History & Performance

Summary of all time highs, changes and price drops for Hess
Historical stock prices
Current Share Price	US$119.27
52 Week High	US$119.69
52 Week Low	US$61.93
Beta	1.68
1 Month Change	16.23%
3 Month Change	25.21%
1 Year Change	41.99%
3 Year Change	103.74%
5 Year Change	159.90%
Change since IPO	637.75%

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

	HES	US Oil and Gas	US Market
7D	4.4%	5.5%	1.0%
1Y	42.0%	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 Movement	6.2%
Oil and Gas Industry Average Movement	8.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

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

Founded	Employees	CEO	Website
1920	1,545	John Hess	https://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 Cap	US$36.93b
Earnings (TTM)	US$724.00m
Revenue (TTM)	US$7.69b

51.0x

P/E Ratio

4.8x

P/S Ratio

Is HES overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HES income statement (TTM)
Revenue	US$7.69b
Cost of Revenue	US$2.20b
Gross Profit	US$5.49b
Other Expenses	US$4.77b
Earnings	US$724.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.34
Gross Margin	71.42%
Net Profit Margin	9.41%
Debt/Equity Ratio	112.9%

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31