Hess may be undervalued with poor growth indicators, but the 17 analysts following the company give it an rating of hold. Their target prices range from $140.0 to $210.0 per share, for an average of $167.94. At today's price of $142.7, Hess is trading -15.03% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Hess Corporation, an exploration and production company, explores, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. Based in New York, NY, the large-cap Energy company has 1,623 full time employees. Hess has provided a 1.2% dividend yield over the last 12 months.
Hess has a trailing twelve month P/E ratio of 30.0, compared to an average of 8.53 for the Energy sector. Considering its EPS guidance of $7.77, the company has a forward P/E ratio of 18.4.
Hess is also overpriced compared to its book value, since its P/B ratio of 5.06 is higher than the sector average of 1.78. The company's shares are currently 160.1% above their Graham number, which suggests that they are not trading at a fair value in terms of earnings and net assets.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $6,466 | $6,510 | $4,804 | $7,583 | $11,570 | $10,680 |
| Revenue Growth | n/a | 0.68% | -26.21% | 57.85% | 52.58% | -7.69% |
| Operating Margins | 3% | 3% | -59% | 20% | 31% | 25% |
| Net Margins | -4% | -6% | -64% | 7% | 18% | 14% |
| Net Income (MM) | -$282 | -$408 | -$3,093 | $559 | $2,096 | $1,466 |
| Net Interest Expense (MM) | $399 | $380 | $468 | $481 | $493 | $486 |
| Depreciation & Amort. (MM) | $1,883 | $2,122 | $2,074 | $1,528 | $1,703 | $1,991 |
| Earnings Per Share | -$1.1 | -$1.37 | -$10.15 | $1.81 | $6.77 | $4.77 |
| EPS Growth | n/a | -24.55% | -640.88% | 117.83% | 274.03% | -29.54% |
| Diluted Shares (MM) | 298 | 301 | 305 | 309 | 310 | 308 |
| Free Cash Flow (MM) | $1,696 | $1,246 | $1,032 | $2,727 | $3,706 | $3,629 |
| Capital Expenditures (MM) | $243 | $396 | $301 | $163 | $238 | $221 |
| Current Ratio | 2.02 | 1.26 | 1.9 | 1.42 | 1.64 | 1.31 |
| Total Debt (MM) | $6,672 | $7,142 | $8,306 | $8,975 | $8,284 | $8,548 |
| Net Debt / EBITDA | 1.89 | 2.39 | -8.46 | 2.07 | 1.1 | 1.4 |
