NYSE:HLX

Stock Analysis Report

Helix Energy Solutions Group

Executive Summary

Helix Energy Solutions Group, Inc., an offshore energy services company, provides specialty services to the offshore energy industry primarily in Brazil, the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Helix Energy Solutions Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.7%

HLX

-3.4%

US Energy Services

-1.1%

US Market


1 Year Return

12.1%

HLX

-31.8%

US Energy Services

17.9%

US Market

Return vs Industry: HLX exceeded the US Energy Services industry which returned -31.8% over the past year.

Return vs Market: HLX underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

HLXIndustryMarket
7 Day-6.7%-3.4%-1.1%
30 Day-4.4%-7.2%1.4%
90 Day-6.8%-7.6%6.9%
1 Year12.1%12.1%-29.6%-31.8%20.3%17.9%
3 Year2.0%2.0%-55.2%-60.9%47.8%38.3%
5 Year-46.6%-46.6%-57.5%-64.7%71.9%53.0%

Price Volatility Vs. Market

How volatile is Helix Energy Solutions Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Helix Energy Solutions Group undervalued compared to its fair value and its price relative to the market?

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLX ($8.25) is trading below our estimate of fair value ($11.46)

Significantly Below Fair Value: HLX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HLX is poor value based on its PE Ratio (34x) compared to the Energy Services industry average (14.2x).

PE vs Market: HLX is poor value based on its PE Ratio (34x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HLX is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: HLX is overvalued based on its PB Ratio (0.7x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Helix Energy Solutions Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLX's forecast earnings growth (15.5% per year) is above the savings rate (1.7%).

Earnings vs Market: HLX's earnings (15.5% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: HLX's revenue (4.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HLX's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HLX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Helix Energy Solutions Group performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLX has high quality earnings.

Growing Profit Margin: HLX's current net profit margins (4.8%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: HLX has become profitable over the past 5 years, growing earnings by 6.1% per year.

Accelerating Growth: HLX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HLX had negative earnings growth (-61.2%) over the past year, making it difficult to compare to the Energy Services industry average (-32.9%).


Return on Equity

High ROE: HLX's Return on Equity (2.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Helix Energy Solutions Group's financial position?


Financial Position Analysis

Short Term Liabilities: HLX's short term assets ($512.3M) exceed its short term liabilities ($312.4M).

Long Term Liabilities: HLX's short term assets ($512.3M) do not cover its long term liabilities ($618.8M).


Debt to Equity History and Analysis

Debt Level: HLX's debt to equity ratio (24.6%) is considered satisfactory.

Reducing Debt: HLX's debt to equity ratio has reduced from 33.1% to 24.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HLX's debt is covered by short term assets (assets are 1.2x 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: HLX is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: HLX is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Helix Energy Solutions Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HLX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HLX'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 HLX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HLX'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 HLX'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?

3.7yrs

Average management tenure


CEO

Owen Kratz (64yo)

12yrs

Tenure

US$5,804,792

Compensation

Mr. Owen E. Kratz has been the Chief Executive Officer and President of Helix Energy Solutions Group Inc. Since February 4, 2008. Mr. Kratz served as the Executive Chairman of Helix Energy Solutions Group ...


CEO Compensation Analysis

Compensation vs Market: Owen's total compensation ($USD5.80M) is above average for companies of similar size in the US market ($USD3.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Owen Kratz
President12yrsUS$5.80m4.61% $56.6m
Erik Staffeldt
Executive VP & CFO2.7yrsUS$1.73m0.14% $1.7m
Scott Sparks
Executive VP & COO0yrsUS$2.12m0.24% $3.0m
Kenneth Neikirk
Senior VP0.8yrsno data0.056% $685.9k
Terrence Jamerson
Vice President of Production Facilities4.7yrsno datano data
Erik Heymann
Deputy General Counsel & Assistant Secretary0yrsno datano data

3.7yrs

Average Tenure

46yo

Average Age

Experienced Management: HLX's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Owen Kratz
President12yrsUS$5.80m4.61% $56.6m
Jan Ake Rask
Independent Director7.5yrsUS$305.63k0.16% $1.9m
James Watt
Independent Director13.6yrsUS$280.75k0.12% $1.5m
William Transier
Chairman of the Board2.6yrsUS$490.15k0.075% $916.1k
Nancy Quinn
Independent Director11yrsUS$281.00k0.075% $921.1k
Amy Nelson
Director0.5yrsno data0.016% $194.6k
John Lovoi
Independent Director17yrsUS$299.69k0.18% $2.2m
Amerino Gatti
Independent Director1.5yrsUS$92.59k0.023% $277.2k

9.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: HLX's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HLX 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

Helix Energy Solutions Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Helix Energy Solutions Group, Inc.
  • Ticker: HLX
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$1.228b
  • Shares outstanding: 148.81m
  • Website: https://www.helixesg.com

Number of Employees


Location

  • Helix Energy Solutions Group, Inc.
  • 3505 West Sam Houston Parkway North
  • Suite 400
  • Houston
  • Texas
  • 77043
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLXNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1997
CTVDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1997
CTVBRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 1997

Biography

Helix Energy Solutions Group, Inc., an offshore energy services company, provides specialty services to the offshore energy industry primarily in Brazil, the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. The company operates through three segments: Well Intervention, Robotics, and Production Facilities. The company engineers, manages, and conducts well construction, intervention, and abandonment operations in water depths ranging from 200 to 10,000 feet; and operates remotely operated vehicles (ROVs), trenchers, and ROVDrills for offshore construction and well intervention services. It also offers intervention engineering; production enhancement; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and life of field support services. In addition, the company provides reclamation and remediation services; well plugging and abandonment services; pipeline abandonment services; and site inspections. Further, it engages in the installation of flowlines, control umbilicals, and manifold assemblies and risers; trenching and burial of pipelines; installation and tie-in of riser and manifold assembly; commissioning, testing, and inspection activities; and provision of cable and umbilical lay, and connection services. Additionally, the company offers oil and natural gas processing facilities and services to oil and gas companies; and fast response system services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, alternative energy companies, and offshore engineering and construction firms. The company was formerly known as Cal Dive International, Inc. and changed its name to Helix Energy Solutions Group, Inc. in March 2006. Helix Energy Solutions Group, Inc. was incorporated in 1979 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:16
End of Day Share Price2020/02/21 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.