Helix Energy Solutions Group Inc

HLX

Oil & Gas Field Services, NEC

Mkt Cap

$1.74B

PE

-54.44

Debt

$337.2M

Cash

$323.8M

EV

$1.753B

FCF

$205.8M

Market Cap

$1.74B

P/E Ratio

-54.44

Debt

$337.2M

Cash

$323.8M

EV

$1.753B

FCF

$205.8M

Charts data: {"Earnings":[{"time":"2014-12-30","value":195047000},{"time":"2015-12-30","value":-376980000},{"time":"2016-12-30","value":-81445000},{"time":"2017-12-30","value":30052000},{"time":"2018-12-30","value":28325000},{"time":"2019-12-30","value":57289000},{"time":"2020-12-30","value":19634000},{"time":"2021-12-30","value":-61779000},{"time":"2022-12-30","value":-87784000},{"time":"2023-12-30","value":-10838000}],"Sales":[{"time":"2014-12-30","value":1107156000},{"time":"2015-12-30","value":695802000},{"time":"2016-12-30","value":487582000},{"time":"2017-12-30","value":581383000},{"time":"2018-12-30","value":739818000},{"time":"2019-12-30","value":751909000},{"time":"2020-12-30","value":733555000},{"time":"2021-12-30","value":674728000},{"time":"2022-12-30","value":873100000},{"time":"2023-12-30","value":1289728000}],"Net Margins":[{"time":"2014-12-30","value":0.17616939256979142},{"time":"2015-12-30","value":-0.5417920615347469},{"time":"2016-12-30","value":-0.16703856992259764},{"time":"2017-12-30","value":0.051690537907025144},{"time":"2018-12-30","value":0.038286443422571495},{"time":"2019-12-30","value":0.07619140082111},{"time":"2020-12-30","value":0.02676554586908957},{"time":"2021-12-30","value":-0.09156134027341388},{"time":"2022-12-30","value":-0.10054289313938838},{"time":"2023-12-30","value":-0.008403322250893212}],"Assets":[{"time":"2014-12-30","value":2700698000},{"time":"2015-12-30","value":2411952000},{"time":"2016-12-30","value":2246941000},{"time":"2017-12-30","value":2362837000},{"time":"2018-12-30","value":2347730000},{"time":"2019-12-30","value":2596731000},{"time":"2020-12-30","value":2498278000},{"time":"2021-12-30","value":2326028000},{"time":"2022-12-30","value":2389338000},{"time":"2023-12-30","value":2556036000}],"Stockholders Equity":[{"time":"2014-12-30","value":1653474000},{"time":"2015-12-30","value":1278963000},{"time":"2016-12-30","value":1281814000},{"time":"2017-12-30","value":1567393000},{"time":"2018-12-30","value":1617779000},{"time":"2019-12-30","value":1699591000},{"time":"2020-12-30","value":1740496000},{"time":"2021-12-30","value":1647469000},{"time":"2022-12-30","value":1516709000},{"time":"2023-12-30","value":1501000000}],"ROE":[{"time":"2014-12-30","value":0.11796193952853205},{"time":"2015-12-30","value":-0.2947544221373097},{"time":"2016-12-30","value":-0.06353885977216664},{"time":"2017-12-30","value":0.019173238619797334},{"time":"2018-12-30","value":0.01750857193720527},{"time":"2019-12-30","value":0.033707521397795114},{"time":"2020-12-30","value":0.011280692400327263},{"time":"2021-12-30","value":-0.037499339896532195},{"time":"2022-12-30","value":-0.05787794494527296},{"time":"2023-12-30","value":-0.00722051965356429}],"ROA":[{"time":"2014-12-30","value":0.0972048707408233},{"time":"2015-12-30","value":-0.1274320550326043},{"time":"2016-12-30","value":-0.028142706016757894},{"time":"2017-12-30","value":-0.0004782386597128791},{"time":"2018-12-30","value":0.021954398504086925},{"time":"2019-12-30","value":0.02618561568371926},{"time":"2020-12-30","value":0.005213591121564534},{"time":"2021-12-30","value":-0.020931390335799913},{"time":"2022-12-30","value":-0.01877298230723322},{"time":"2023-12-30","value":0.024847067881673027}]}

Helix Energy Solutions Group, Inc., together with its subsidiaries, an offshore energy services company, provides specialty services to the offshore energy industry in Brazil, the Gulf of Mexico, the East Coast of the United States, North Sea, the Asia Pacific, and West Africa regions. The company operates through Well Intervention, Robotics, Production Facilities, and Shallow Water Abandonment segments. 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. The company also provides well intervention, intervention engineering, and production enhancement services; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and related support services. In addition, it offers reclamation and remediation services; well plug and abandonment services; pipeline, cable and umbilical abandonment services; and site inspections. Additionally, the company offers oil and natural gas processing facilities and services; and fast response system, as well as site clearance and subsea support services. Further, it provides offshore oilfield decommissioning and reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy lift, and commercial diving services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, renewable 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.

Sector

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

DCF

Discounted Cash Flow Valuation of Helix Energy Solutions Group 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	$205.8M	$259.2M	$320.4M	$388.7M	$462.4M	$539.3M	$616.4M	$690.3M	$757M	$812.4M	$853M	$8.53B
DCF		$225.4M	$242.3M	$255.5M	$264.4M	$268.1M	$266.5M	$259.5M	$247.5M	$230.9M	$210.9M	$2.109B
Value	$4.58B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -16%

Earnings Stability -25%

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	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-54%	-17%	5.2%	3.8%	7.6%	2.7%	-9.2%	-10%	-0.84%	-2.4%
ROA	-13%	-2.8%	-0.048%	2.2%	2.6%	0.52%	-2.1%	-1.9%	2.5%	2.7%
ROE	-29%	-6.4%	1.9%	1.8%	3.4%	1.1%	-3.7%	-5.8%	-0.72%	-2.2%

What is the average Net Margin?

The average Net Margin over the past 5 years is -0.99%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -2.52%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +0.64%.

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

The trend of ROA over the past 5 years is -0.42%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -0.67%.

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

The trend of ROE over the past 5 years is -1.28%.

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

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

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-4.05	-4.90	-3.51	8.82	18.60	6.31	2.71	17.56	3.17	1.64
Debt Equity	0.66	0.57	0.40	0.33	0.32	0.28	0.22	0.20	0.28	0.23
MIN
Graham Stability	-	-	-	-	-	51%	-180%	-1.7K%	-	-1.7K%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.64.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.00.

What is the Graham’s Stability?

Graham’s Stability measure stands at -17.39.

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 not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	15%	12%	21%	48%	7.2%
Net Income	-	-	-	-	-30%
Stockholders Equity	2.3%	-1.5%	-4.8%	-1%	0.099%
FCF	-	17%	19%	650%	120%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +11.76%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +7.22%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -29.99%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -1.49%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.1%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +17.37%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +115.37%.