| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| 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.
Hess Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$113.34 |
| 52 Week High | US$119.43 |
| 52 Week Low | US$61.93 |
| Beta | 1.68 |
| 1 Month Change | -1.34% |
| 3 Month Change | 20.74% |
| 1 Year Change | 38.32% |
| 3 Year Change | 90.58% |
| 5 Year Change | 135.44% |
| Change since IPO | 601.07% |
Recent News & Updates
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.
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.
Zoom Goes Hess Corporation's FCF
Hess Corporation has achieved the unique feat of completing a massive growth phase with a strong financial position. A 4th Guyana development has been sanctioned, the largest yet, and there's much more with low breakevens on the way. Hess Corporation has the ability to generate substantial shareholder rewards at a variety of prices. Putting this together, we recommend investing in Hess Corporation for the long run.
Shareholder Returns
| HES | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | -0.8% | 1.3% | -2.7% |
| 1Y | 38.3% | 52.5% | -12.9% |
Return vs Industry: HES underperformed the US Oil and Gas industry which returned 51.9% over the past year.
Return vs Market: HES exceeded the US Market which returned -12.7% over the past year.
Price Volatility
| HES volatility | |
|---|---|
| HES Average Weekly Movement | 6.2% |
| Oil and Gas Industry Average Movement | 8.5% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.0% |
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
| HES fundamental statistics | |
|---|---|
| Market Cap | US$35.10b |
| Earnings (TTM) | US$724.00m |
| Revenue (TTM) | US$7.69b |
48.5x
P/E Ratio4.6x
P/S RatioIs HES overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 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 comparisonDividends
1.3%
Current Dividend Yield48%
Payout RatioValuation
Is Hess undervalued compared to its fair value and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HES ($113.34) is trading below our estimate of fair value ($251.94)
Significantly Below Fair Value: HES is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HES is poor value based on its PE Ratio (48.5x) compared to the US Oil and Gas industry average (13.4x).
PE vs Market: HES is poor value based on its PE Ratio (48.5x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: HES is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: HES is overvalued based on its PB Ratio (5.6x) 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
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
14.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HES's forecast earnings growth (14.4% per year) is above the savings rate (1.9%).
Earnings vs Market: HES's earnings (14.4% per year) are forecast to grow faster than the US market (12.5% per year).
High Growth Earnings: HES's earnings are forecast to grow, but not significantly.
Revenue vs Market: HES's revenue (8.5% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: HES's revenue (8.5% 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 high in 3 years time (22.4%)
Past Performance
How has Hess performed over the past 5 years?
Past Performance Score
3/6Past 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
3/6Financial 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
4/6Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.32%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HES's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: HES's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (4.09%).
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 ($USD13.27M).
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$35.095b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/21 00:00 |
| End of Day Share Price | 2022/05/20 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.