NYSE:HES

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HES has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

HES

-1.8%

US Oil and Gas

0.5%

US Market


1 Year Return

19.5%

HES

-13.9%

US Oil and Gas

16.1%

US Market

Return vs Industry: HES exceeded the US Oil and Gas industry which returned -13.9% over the past year.

Return vs Market: HES exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

HESIndustryMarket
7 Day-1.1%-1.8%0.5%
30 Day-0.6%0.04%3.9%
90 Day12.7%1.9%6.6%
1 Year21.6%19.5%-10.8%-13.9%18.7%16.1%
3 Year33.6%26.2%-10.2%-18.5%47.2%37.7%
5 Year-8.9%-16.9%-23.3%-34.4%61.5%43.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HES ($67.13) is trading above our estimate of fair value ($18.62)

Significantly Below Fair Value: HES is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HES is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

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


Price to Book Ratio

PB vs Industry: HES is overvalued based on its PB Ratio (2.3x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Hess forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

78.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HES is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: HES is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HES's is expected to become profitable in the next 3 years.

Revenue vs Market: HES's revenue (9.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HES's revenue (9.1% 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 (8.1%).


Next Steps

Past Performance

How has Hess performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HES has large one-off items impacting its financial results.

Growing Profit Margin: HES is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HES is unprofitable, and losses have increased over the past 5 years at a rate of -14.1% per year.

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

Earnings vs Industry: HES is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-9.9%).


Return on Equity

High ROE: HES has a negative Return on Equity (-0.23%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hess's financial position?


Financial Position Analysis

Short Term Liabilities: HES's short term assets ($3.4B) exceeds its short term liabilities ($2.3B)

Long Term Liabilities: HES's short term assets ($3.4B) do not cover its long term liabilities (9.1B)


Debt to Equity History and Analysis

Debt Level: HES's debt to equity ratio (64.3%) is considered high.

Reducing Debt: HES's debt to equity ratio has increased from 24.1% to 64.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HES's debt is not covered by short term assets (assets are 0.5x 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: HES has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HES has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

1.49%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: HES's dividend (1.49%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: HES's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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.


Current Payout to Shareholders

Dividend Coverage: HES is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: HES's dividends in 3 years are forecast to be well covered by earnings (33.7% payout ratio).


Next Steps

Management

What is the CEO of Hess's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average management tenure


CEO

John Hess (65yo)

24.5yrs

Tenure

US$12,572,440

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 Partners  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD12.57M) is about average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

8.1yrs

Average Tenure

60yo

Average Age

Experienced Management: HES's management team is seasoned and experienced (8.1 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: HES's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: HES insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$755,89518 Sep 19
Michael Turner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Production
Shares10,955
Max PriceUS$69.00
SellUS$1,259,18518 Sep 19
Gregory Hill
EntityIndividual
Role
Chief Operating Officer
COO, Executive VP and President of Worldwide Exploration & Production
Shares17,750
Max PriceUS$70.94
SellUS$1,355,70318 Sep 19
Barbara Lowery-Yilmaz
EntityIndividual
Shares19,189
Max PriceUS$70.65
SellUS$694,73115 Aug 19
Michael Turner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Production
Shares11,258
Max PriceUS$61.71
SellUS$417,70008 Aug 19
Barbara Lowery-Yilmaz
EntityIndividual
Shares7,305
Max PriceUS$57.18
SellUS$417,70008 Aug 19
Michael Turner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Production
Shares7,305
Max PriceUS$57.18
SellUS$130,10408 May 19
Andrew Slentz
EntityIndividual
Role
Head of Human Resources
Senior VP of Human Resources & Office Management
Shares2,081
Max PriceUS$62.52
SellUS$503,99115 Mar 19
Gregory Hill
EntityIndividual
Role
Chief Operating Officer
COO, Executive VP and President of Worldwide Exploration & Production
Shares8,700
Max PriceUS$57.93
SellUS$282,91308 Mar 19
Gregory Hill
EntityIndividual
Role
Chief Operating Officer
COO, Executive VP and President of Worldwide Exploration & Production
Shares4,987
Max PriceUS$56.73
SellUS$348,02008 Mar 19
Timothy Goodell
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares6,208
Max PriceUS$56.06
SellUS$355,11508 Mar 19
Andrew Slentz
EntityIndividual
Role
Head of Human Resources
Senior VP of Human Resources & Office Management
Shares6,217
Max PriceUS$57.12
SellUS$439,56208 Mar 19
Michael Turner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Production
Shares7,784
Max PriceUS$56.47
SellUS$68,70008 Mar 19
Richard Lynch
EntityIndividual
Role
Chief Technology Officer
Senior VP of Technology & Services
Shares1,211
Max PriceUS$56.73
SellUS$86,91008 Mar 19
Barbara Lowery-Yilmaz
EntityIndividual
Shares1,532
Max PriceUS$56.73
SellUS$149,03008 Mar 19
John Rielly
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,627
Max PriceUS$56.73
BuyUS$25,07908 Mar 19
Edith Holiday
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
William Schrader
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
James Quigley
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
Leonard Coleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
Kevin Meyers
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
David McManus
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
Terrence Checki
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
Marc Lipschultz
EntityIndividual
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
Rodney Chase
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares442
Max PriceUS$56.74
BuyUS$25,07908 Mar 19
Risa Lavizzo-Mourey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares442
Max PriceUS$56.74
SellUS$68,79505 Mar 19
Barbara Lowery-Yilmaz
EntityIndividual
Shares1,168
Max PriceUS$58.90
SellUS$420,19305 Mar 19
Gregory Hill
EntityIndividual
Role
Chief Operating Officer
COO, Executive VP and President of Worldwide Exploration & Production
Shares7,134
Max PriceUS$58.90
SellUS$68,79505 Mar 19
Richard Lynch
EntityIndividual
Role
Chief Technology Officer
Senior VP of Technology & Services
Shares1,168
Max PriceUS$58.90
SellUS$232,41905 Mar 19
Timothy Goodell
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares3,946
Max PriceUS$58.90
SellUS$68,79505 Mar 19
Michael Turner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Production
Shares1,168
Max PriceUS$58.90
SellUS$221,34605 Mar 19
John Rielly
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares3,758
Max PriceUS$58.90
SellUS$394,01214 Feb 19
Michael Turner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Production
Shares7,107
Max PriceUS$55.44
SellUS$276,18508 Feb 19
John Rielly
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares5,172
Max PriceUS$53.40
SellUS$125,59708 Feb 19
Michael Turner
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Production
Shares2,352
Max PriceUS$53.40
SellUS$296,15608 Feb 19
Timothy Goodell
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,546
Max PriceUS$53.40
SellUS$622,59108 Feb 19
Gregory Hill
EntityIndividual
Role
Chief Operating Officer
COO, Executive VP and President of Worldwide Exploration & Production
Shares11,659
Max PriceUS$53.40
SellUS$125,65008 Feb 19
Barbara Lowery-Yilmaz
EntityIndividual
Shares2,353
Max PriceUS$53.40
SellUS$143,32608 Feb 19
Andrew Slentz
EntityIndividual
Role
Head of Human Resources
Senior VP of Human Resources & Office Management
Shares2,684
Max PriceUS$53.40
SellUS$964,27808 Feb 19
Richard Lynch
EntityIndividual
Role
Chief Technology Officer
Senior VP of Technology & Services
Shares17,843
Max PriceUS$54.14

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Hess (65yo)

    CEO & Director

    • Tenure: 24.5yrs
    • Compensation: US$12.57m
  • Tim Goodell (62yo)

    Senior VP

    • Tenure: 10.8yrs
    • Compensation: US$4.13m
  • John Rielly (57yo)

    Senior VP & CFO

    • Tenure: 15.6yrs
    • Compensation: US$3.98m
  • Jay Wilson (73yo)

    Vice President of Investor Relations

    • Tenure: 16.3yrs
  • Jonathan Stein

    VP, CFO of Midstream & Chief Risk Officer

    • Tenure: 2.8yrs
  • Greg Hill (58yo)

    COO, Executive VP and President of Worldwide Exploration & Production

    • Tenure: 5.8yrs
    • Compensation: US$8.72m
  • Mike Turner (60yo)

    Senior Vice President of Global Production

    • Tenure: 10.4yrs
    • Compensation: US$3.15m
  • Andy Slentz (57yo)

    Senior VP of Human Resources & Office Management

    • Tenure: 3.5yrs
  • Richard Lynch (60yo)

    Senior VP of Technology & Services

    • Tenure: 1.8yrs
  • Lorrie Hecker

    VP of Communications

    • Tenure: 2.3yrs

Board Members

  • John Hess (65yo)

    CEO & Director

    • Tenure: 24.5yrs
    • Compensation: US$12.57m
  • Rodney Chase (76yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$339.79k
  • Ede Holiday (67yo)

    Independent Director

    • Tenure: 26.8yrs
    • Compensation: US$305.15k
  • Risa Lavizzo-Mourey (64yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$305.15k
  • Leonard Coleman (70yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$300.66k
  • Kevin Meyers (65yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$342.96k
  • David McManus (66yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$300.15k
  • Terry Checki (73yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$305.15k
  • Bill Schrader (61yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$316.17k
  • Jim Quigley (67yo)

    Independent Chairman

    • Tenure: 3.7yrs
    • Compensation: US$507.96k

Company Information

Hess Corporation's company bio, 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
  • Market Cap: US$20.455b
  • Shares outstanding: 304.70m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HESNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1964
AHCDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1964
0J50LSE (London Stock Exchange)YesCommon StockGBUSDMar 1964

Biography

Hess Corporation, an exploration and production company, explores for, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. It operates through two s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:01
End of Day Share Price2019/11/20 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.