Helios Technologies, Inc. (HLIO) stock analysis

P/E below its 5-year median

Helios Technologies's P/E of 20.3 is below its own 5-year median of 31.9.

P/E below the industry

Helios Technologies's P/E of 20.3 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 22.3.

EV/EBITDA below its 5-year median

Helios Technologies's EV/EBITDA of 10.4 is below its 5-year median of 12.6.

P/B below the industry

Helios Technologies's price-to-book of 1.68 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.80.

Trading below fair value

The share price of $48.06 is below our fair value estimate of $57.36.

Margin of safety under 20%

The price is 16.2% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -21.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 133% over the last twelve months, against a 5-year average of 27.8% a year.

Growing slower than the industry

Revenue grew 11.5% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 11.5%.

Guidance raised

Helios Technologies raised its New FY26 Outlook Sales outlook on May 11, 2026.

Gross margin improving

Gross margin was 33.5% over the last twelve months, against 31.5% a year earlier.

Return on equity under 15%

Return on equity was 8.5% over the last twelve months and averaged 8.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.6%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Helios Technologies's return on equity of 8.5% is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings grew over 5 years

Net income grew 27.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 8.7% over the last twelve months, against a 5-year average of 7.6%.

Net margin above the industry

Helios Technologies's net margin of 8.7% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 7.8%.

Low debt

Debt is 34.8% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 33.9% five years ago to 34.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 46.3% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.62 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.27; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Helios Technologies paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Helios Technologies yields 0.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 17.7% of net income.

Covered by free cash flow

Dividends take 11.5% of free cash flow.