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Helios Technologies (HLIO)
NYSE:HLIO
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Helios Technologies
(NYSE:HLIO)
Rating:62Neutral
Price Target:
$34.00
▲(7.05%Upside)
Positive Factors
Corporate Governance
The initiation of a $100 million share repurchase plan signals confidence in cash flow.
Financial Performance
Helios Technologies reported $179.5 million in revenue, exceeding expectations from both Stifel and the market.
Leadership
The Board has unanimously determined that Sean Bagan is the right choice to lead Helios Technologies into the future.
Negative Factors
Market Demand
Helios added a significant amount of capacity to satisfy volume it doesn't have, through weak markets and a lack of large system orders.
Marketing and Promotion
Helios has been overly promotional under recent management and has failed to live up to the advertising.
Strategic Direction
The strategy to grow from components to sub-systems and diversify into other markets has destroyed rather than created shareholder value.
Helios Technologies (HLIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$961.29M
Dividend Yield1.25%
Average Volume (3M)377.62K
Price to Earnings (P/E)25.9
Beta (1Y)1.01
Revenue Growth-5.39%
EPS Growth12.14%
CountryUS
Employees2,500
SectorIndustrials
Sector Strength92
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.44
Shares Outstanding33,331,814
10 Day Avg. Volume377,544
30 Day Avg. Volume377,620
Financial Highlights & Ratios
PEG Ratio7.57
Price to Book (P/B)1.21
Price to Sales (P/S)0.00
P/FCF Ratio11.45
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit4.94
Enterprise Value/Ebitda1.91
Forecast
1Y Price Target
$44.00Price Target Upside38.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Helios Technologies Business Overview & Revenue Model
Company DescriptionHelios Technologies, Inc., together with its subsidiaries, develops, manufactures, and sells solutions for the hydraulics and electronics markets 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; 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, and Custom Fluidpower brands. The Electronics segment offers displays, controls, and instrumentation products for off-highway, recreational and commercial marine, power sports and specialty vehicles, agriculture and water pumping, power generation, health and wellness, and engine-driven industrial equipment markets. This segment sells its products under the Enovation Controls, Murphy, and Balboa Water Group brands. It sells its hydraulic products primarily through value-add distributors, as well as directly to original equipment manufacturers; and electronic products to original equipment manufacturer customers. 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.
How the Company Makes MoneyHelios Technologies generates revenue through the sale of its motion control and electronic control solutions. The company's key revenue streams are derived from its Hydraulics segment, which includes hydraulic valves and quick release couplings, and its Electronics segment, which provides electronic controls and displays. Helios Technologies benefits from a diverse customer base across different industries, which reduces dependency on any single market. Significant partnerships and continued innovation contribute to the company's earnings by expanding its product offerings and reaching new markets. The company also emphasizes strategic acquisitions to enhance its product portfolio and market reach.
Helios Technologies Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 17.07%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. While the company exceeded first-quarter sales estimates and improved its cash flow and debt position, it faced sales declines compared to the previous year and gross margin contraction. The company is actively addressing tariff impacts and focusing on growth through new product launches and go-to-market initiatives. Despite the challenges, positive order trends and strategic actions provide a cautiously optimistic outlook.Q1-2025 Updates
Positive Updates
Exceeded First Quarter Sales Estimates
Sales of $195 million exceeded the top end of the guidance range, despite being below prior year levels. Early wins from go-to-market focus contributed to this result.
Improved Cash Flow and Debt Reduction
Generated $19 million in cash from operations, a 7% increase over last year. Paid down $4 million in debt, marking seven consecutive quarters of debt reduction, with a 15% decrease over the previous year.
Successful Cost Management
Managed cost of goods sold to align with lower sales and realized savings in SEA expenses year-over-year. Achieved an 11% inventory reduction compared to the prior year.
Positive Trends in Order Intake
Orders exceeded sales for five consecutive months, indicating positive demand trends. Notable wins in health and wellness and recreational markets, as well as new business wins in construction and aerial work platform end markets.
New Product Launches and Innovations
Several new product launches across flagship brands, including Enovation Controls' S35 display, Sun Hydraulics' electro-proportional cartridge valves, and Balboa's PureZone water chemistry management solution.
Negative Updates
Sales Decline Compared to Prior Year
Sales declined in all regions compared to last year, with significant weakness in the agriculture, mobile, and industrial end markets. Hydraulics segment saw an 11% decline over the prior year period.
Gross Margin Contraction
Gross margin contracted by 110 basis points year-over-year due to lower volume and higher material costs, despite some offset from lower labor and overhead costs.
Impact of Tariffs on Future Costs
Potential cost impact from tariffs estimated at $15 million for the second half of 2025 if no mitigation actions are taken. Concerns about downstream effects on demand and pricing pressures.
Lower Earnings Per Share
Diluted EPS was $0.22, down 21% over the previous year, primarily due to an 8% decline in sales. Non-GAAP EPS was also down 17% compared to last year.
Company Guidance
During the Helios Technologies First Quarter 2025 Financial Results Conference Call, the company provided guidance for the upcoming quarter amid a challenging macroeconomic environment influenced by tariffs and market demand uncertainties. The company reported first-quarter sales of $195 million, which exceeded expectations, and adjusted EBITDA margin of 17.3%. For the second quarter of 2025, Helios projected sales to range from $198 million to $206 million and an adjusted EBITDA margin between 17.5% and 18.5%. Despite potential $15 million tariff impacts in the second half of 2025, the company is implementing mitigation strategies such as price adjustments and leveraging its global manufacturing footprint. Helios remains focused on growth, driven by its go-to-market initiatives, with a continued emphasis on strengthening its financial profile, as evidenced by a 7% increase in cash from operations and a reduction in debt by $4 million during the first quarter.Helios Technologies Financial Statement Overview
Summary
Helios Technologies demonstrates strong cash flow generation and a solid balance sheet with low leverage. However, the company faces challenges with declining revenue and net profit margins, indicating a need for improved operational efficiency.Income Statement
Helios Technologies has experienced fluctuating revenue with a notable decline from $885.4M in 2022 to $805.9M in 2024. The Gross Profit Margin stood at approximately 31.3% in 2024, reflecting stable profitability. Despite this, the Net Profit Margin for 2024 was lower at 4.8%, indicating room for improvement in cost management or operational efficiency.72
Positive
Balance Sheet
The company maintains a solid equity position with a Debt-to-Equity Ratio of 0.19 in 2024, indicating low leverage. However, the Return on Equity (ROE) has decreased to 4.5% in 2024, suggesting reduced profitability relative to equity. The Equity Ratio is robust at 57.4%, showcasing financial stability and a strong asset base.65
Positive
Cash Flow
Helios Technologies has shown strong Free Cash Flow growth with an increase from $43.5M in 2023 to $95.1M in 2024. The Operating Cash Flow to Net Income Ratio is 3.13, indicating effective cash generation from operations. This robust cash flow performance underpins the company's ability to invest and manage its financial obligations.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 805.90M | 835.60M | 885.40M | 869.18M | 523.04M | Gross Profit |
| 252.30M | 261.70M | 298.50M | 312.81M | 196.23M | EBIT |
| 81.80M | 79.90M | 137.30M | 149.31M | 97.60M | EBITDA |
| 81.80M | 144.20M | 189.30M | 198.00M | 73.31M | Net Income Common Stockholders |
| 39.00M | 37.50M | 98.40M | 104.60M | 14.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 44.10M | 32.40M | 43.70M | 28.54M | 25.22M | Total Assets |
| 1.51B | 1.59B | 1.46B | 1.42B | 1.30B | Total Debt |
| 163.30M | 548.50M | 444.50M | 444.33M | 462.07M | Net Debt |
| 119.20M | 516.10M | 400.80M | 415.79M | 436.85M | Total Liabilities |
| 641.00M | 735.80M | 668.80M | 706.38M | 689.19M | Stockholders Equity |
| 864.40M | 854.60M | 794.90M | 708.96M | 607.79M |
| Cash Flow | Free Cash Flow | |||
| 95.10M | 43.50M | 74.90M | 83.91M | 93.11M | Operating Cash Flow |
| 122.10M | 83.90M | 109.90M | 113.20M | 108.56M | Investing Cash Flow |
| -30.30M | -153.90M | -90.80M | -90.27M | -235.90M | Financing Cash Flow |
| -78.40M | 57.90M | -6.90M | -22.60M | 137.74M |
Helios Technologies Technical Analysis
Positive
31.76
Price Trends
29.67
Positive
35.14
Negative
41.08
Negative
Market Momentum
0.14
Positive
54.99
Neutral
34.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLIO, the sentiment is Positive. The current price of 31.76 is above the 20-day moving average (MA) of 31.18, above the 50-day MA of 29.67, and below the 200-day MA of 41.08, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 34.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLIO.
Helios Technologies Risk Analysis
Helios Technologies disclosed 33 risk factors in its most recent earnings report. Helios Technologies reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Helios Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $961.85M | 21.63 | 12.06% | 2.01% | 0.92% | 21.96% | |
75 Outperform | $856.01M | 16.93 | 11.03% | ― | 0.48% | -5.52% | |
72 Outperform | $8.74B | 37.54 | 3.69% | 1.06% | -10.19% | ― | |
68 Neutral | $1.79B | 29.32 | 9.29% | 0.85% | 2.67% | -18.41% | |
65 Neutral | $4.44B | 12.22 | 5.28% | 248.14% | 4.08% | -12.12% | |
62 Neutral | $961.29M | 25.89 | 4.27% | 1.25% | -5.39% | 12.14% | |
48 Neutral | $1.31B | ― | -18.22% | 4.58% | 0.31% | -423.59% |
* Industrials Sector Average
Performance Comparison
HLIO
Helios Technologies
31.76
-15.69
-33.07%
GRC
Gorman-Rupp Company
37.20
0.92
2.54%
HI
Hillenbrand
19.66
-23.57
-54.52%
RRX
Regal Rexnord
136.03
-5.27
-3.73%
SXI
Standex International
150.72
-12.78
-7.82%
THR
Thermon Group Holdings
26.60
-4.01
-13.10%
Helios Technologies Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Helios Technologies Announces Leadership Change in Electronics Segment
Positive
Mar 31, 2025
On March 31, 2025, Helios Technologies announced a leadership change in its Electronics Segment, with Billy Aldridge appointed as Senior Vice President, Managing Director, replacing Lee Wichlacz. This realignment is expected to enhance customer engagement and streamline operations, positioning the Electronics Segment to better achieve its strategic initiatives and 2025 objectives.
Executive/Board ChangesBusiness Operations and Strategy
Helios Technologies Appoints Laura Brown as New Chair
Positive
Mar 17, 2025
On March 13, 2025, Philippe Lemaitre announced his retirement as Chair of Helios Technologies’ Board of Directors, having served since 2007 and as Chair since 2013. Laura Dempsey Brown, a board member since 2020, has been elected as the new Chair, effective immediately. This leadership transition is part of Helios’ succession planning, aiming to continue its growth and diversification strategy. The company acknowledges Lemaitre’s contributions over the years and looks forward to leveraging Brown’s experience to enhance shareholder returns and operational performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.