Helios Technologies, Inc.

HLIO

Miscellaneous Fabricated Metal Products

Mkt Cap

$1.614B

PE

49.21

Debt

$545M

Cash

$37.3M

EV

$2.122B

FCF

$58.7M

Market Cap

$1.614B

P/E Ratio

49.21

Debt

$545M

Cash

$37.3M

EV

$2.122B

FCF

$58.7M

Charts data: {"Earnings":[{"time":"2014-12-26","value":43775000},{"time":"2016-01-01","value":33138000},{"time":"2016-12-30","value":23304000},{"time":"2017-12-29","value":31558000},{"time":"2018-12-28","value":46730000},{"time":"2019-12-27","value":60268000},{"time":"2021-01-01","value":14218000},{"time":"2021-12-31","value":104596000},{"time":"2022-12-30","value":98400000},{"time":"2023-12-29","value":37500000}],"Sales":[{"time":"2014-12-26","value":227673000},{"time":"2016-01-01","value":200727000},{"time":"2016-12-30","value":196934000},{"time":"2017-12-29","value":342839000},{"time":"2018-12-28","value":508045000},{"time":"2019-12-27","value":554665000},{"time":"2021-01-01","value":523040000},{"time":"2021-12-31","value":869185000},{"time":"2022-12-30","value":885400000},{"time":"2023-12-29","value":835600000}],"Net Margins":[{"time":"2014-12-26","value":0.192271371660232},{"time":"2016-01-01","value":0.16508989821997042},{"time":"2016-12-30","value":0.11833406115754516},{"time":"2017-12-29","value":0.09204903759490607},{"time":"2018-12-28","value":0.09198004113808816},{"time":"2019-12-27","value":0.10865657649211687},{"time":"2021-01-01","value":0.02718338941572346},{"time":"2021-12-31","value":0.12033801779828229},{"time":"2022-12-30","value":0.11113620962276936},{"time":"2023-12-29","value":0.04487793202489229}],"Assets":[{"time":"2014-12-26","value":222764000},{"time":"2016-01-01","value":241540000},{"time":"2016-12-30","value":444777000},{"time":"2017-12-29","value":459766000},{"time":"2018-12-28","value":1042165000},{"time":"2019-12-27","value":1021751000},{"time":"2021-01-01","value":1296979000},{"time":"2021-12-31","value":1415346000},{"time":"2022-12-30","value":1463700000},{"time":"2023-12-29","value":1590400000}],"Stockholders Equity":[{"time":"2014-12-26","value":198259000},{"time":"2016-01-01","value":222187000},{"time":"2016-12-30","value":236397000},{"time":"2017-12-29","value":272673000},{"time":"2018-12-28","value":530768000},{"time":"2019-12-27","value":577636000},{"time":"2021-01-01","value":607790000},{"time":"2021-12-31","value":708963000},{"time":"2022-12-30","value":794900000},{"time":"2023-12-29","value":854600000}],"ROE":[{"time":"2014-12-26","value":0.22079703821768495},{"time":"2016-01-01","value":0.14914463942534892},{"time":"2016-12-30","value":0.09857993121740123},{"time":"2017-12-29","value":0.11573569807058272},{"time":"2018-12-28","value":0.08804223314141019},{"time":"2019-12-27","value":0.10433560235165398},{"time":"2021-01-01","value":0.023392948222247818},{"time":"2021-12-31","value":0.1475337923135622},{"time":"2022-12-30","value":0.12378915586866272},{"time":"2023-12-29","value":0.04388017786098759}],"ROA":[{"time":"2014-12-26","value":0.2876182866172272},{"time":"2016-01-01","value":0.20970439678728162},{"time":"2016-12-30","value":0.07955447336530441},{"time":"2017-12-29","value":0.133744122009892},{"time":"2018-12-28","value":0.07249715735991902},{"time":"2019-12-27","value":0.08819663499228285},{"time":"2021-01-01","value":0.027303449014980195},{"time":"2021-12-31","value":0.10549293247022283},{"time":"2022-12-30","value":0.09380337500854},{"time":"2023-12-29","value":0.05023893360160966}]}

Helios Technologies, Inc., together with its subsidiaries, provides engineered motion control and electronic control technology solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Hydraulics and Electronics. The Hydraulics segment offers cartridge valve technology products to control rates and direction of fluid flow, and to regulate and control pressures for industrial and mobile applications; hydraulic quick release coupling solutions for the agriculture, construction equipment, and industrial markets; and hydraulic system design that provides engineered solutions for machine users, manufacturers, or designers. This segment sells its products under the Sun Hydraulics, Faster, Custom Fluidpower, Seungwon, NEM, Taimi, Daman, and Schultes brands. The Electronics segment offers displays, controls, and instrumentation products for off-highway, recreational marine, powersports and specialty vehicles, agriculture and water pumping, power generation, engine-driven industrial equipment, and health and wellness markets. This segment sells its products under the Enovation Controls, Zero Off, Murphy, HCT, Balboa Water Group, and Joyonway brands. It sells its hydraulic products primarily through value-add distributors, as well as directly to original equipment manufacturers (OEMs); and electronic products to OEMs, distributors, and system integrators. The company was formerly known as Sun Hydraulics Corporation and changed its name to Helios Technologies, Inc. in June 2019. Helios Technologies, Inc. was founded in 1970 and is headquartered in Sarasota, Florida.

Sector

10-Q
9/30/23
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10-K
12/31/22
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3/30/19
10-K
12/29/18
10-Q
9/29/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/30/17

DCF

Discounted Cash Flow Valuation of Helios Technologies, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$58.7M	$64.19M	$69.88M	$75.74M	$81.73M	$87.79M	$93.88M	$99.93M	$105.9M	$111.7M	$117.3M	$1.173B
DCF		$55.82M	$52.84M	$49.8M	$46.73M	$43.65M	$40.59M	$37.57M	$34.62M	$31.75M	$28.99M	$289.9M
Value	$712.3M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 15%

Earnings Stability 19%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	01-2016	12-2016	12-2017	12-2018	12-2019	01-2021	12-2021	12-2022	12-2023	TTM
Net Margin	17%	12%	9.2%	9.2%	11%	2.7%	12%	11%	4.5%	3.9%
ROA	21%	8%	13%	7.2%	8.8%	2.7%	11%	9.4%	5%	4.8%
ROE	15%	9.9%	12%	8.8%	10%	2.3%	15%	12%	4.4%	3.8%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.4%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.39%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.29%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.05%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +8.85%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.11%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	01-2016	12-2016	12-2017	12-2018	12-2019	01-2021	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	-	-	4.72	5.10	5.37	5.97	11.06	9.28
Debt Equity	-	-	-	0.68	0.53	0.79	0.65	0.59	0.64	0.64
MIN
Graham Stability	-	-	94%	100%	100%	31%	100%	100%	52%	31%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 9.28.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.36.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.31.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	01-2021	12-2022	Trend
Revenue	23%	10%	17%	-5.6%	-0.56%
Net Income	7%	-4.3%	38%	-62%	17%
Stockholders Equity	20%	10%	12%	7.5%	-1.5%
FCF	6.3%	0.22%	-19%	-36%	-0.89%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +10.46%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.56%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -4.31%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +16.61%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +9.99%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -1.46%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +0.22%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.89%.