Helios Technologies, Inc. (HLIO)
Valuation Overview•Is Helios Technologies, Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 59/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
HLIO struggles with subpar profitability and pressured margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is facing top-line contraction (-1.8% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 9.0%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $228.4M | +4.1% | -1.8% | +9.9% | +15.4% | |
| EBITDA | $45.0M | — | -11.9% | — | — | |
| Net Income | $19.7M | +24.1% | -21.1% | — | +3.9% | |
| EPS (Diluted) | $0.59 | +23.9% | -21.7% | +26.9% | +1.6% | |
| Free Cash Flow | $17.2M | +8.9% | +9.9% | +2.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 32.0% | 31.6% | 32.9% | 35.4% |
| Operating Margin | 9.0% | 9.2% | 12.1% | 13.4% |
| Net Margin | 7.0% | 5.0% | 7.6% | 8.2% |
| FCF Margin | 12.4% | 9.8% | 9.6% | 11.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.68 | $0.80 | +17.6% | ||
| Q1'26 | $0.71 | $0.81 | +14.1% | ||
| Q4'25 | $0.65 | $0.72 | +10.8% | ||
| Q3'25 | $0.49 | $0.59 | +20.4% | ||
| Q2'25 | $0.36 | $0.44 | +22.2% | ||
| Q1'25 | $0.46 | $0.33 | -28.3% | ||
| Q4'24 | $0.56 | $0.59 | +5.4% | ||
| Q3'24 | $0.61 | $0.64 | +4.9% |
Total return is +185.4% (1Y), outperforming the benchmark by +160.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +65.8% | +56.5% | — |
| 1Y | +185.4% | +160.4% | +1.2% |
| 3YCAGR | +13.2% | -8.9% | +1.8% |
| 5YCAGR | +4.6% | -9.0% | +2.5% |
| 10YCAGR | +12.0% | -2.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Helios Technologies, Inc. (HLIO) valuation, health, and returns.
Helios Technologies, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -49.6% downside from DCF intrinsic value of $45.64)
Helios Technologies, Inc. has multiple valuation anchors: DCF Intrinsic Value: $45.64 | Peer Relative Fair Value: $70.50 | Wall Street Analyst Target: $82.67 (implying -8.6% upside). A convergence of these signals offers higher conviction.
Helios Technologies, Inc. displays fair financial health with a composite quality score of 59/100, supported by a Altman Z-Score of 4.2 (safe zone), Piotroski F-Score of 9/9, Return on Invested Capital (ROIC) of 4.4%.
Helios Technologies, Inc. pays a 0.4% dividend yield, covered by a 25% payout ratio with 0 years of growth, supplemented by a 0.5% buyback yield.
Helios Technologies, Inc.'s current growth trajectory is Accelerating. The company achieved +4.1% 1Y revenue growth and +23.9% 1Y EPS growth, compared to its 3Y revenue CAGR of -1.8%.
Wall Street consensus is Buy based on 13 analysts, beating EPS expectations in 75% of recent quarters with a 5-quarter streak. The consensus price target represents a -8.6% change from current levels.
Investment risks for Helios Technologies, Inc. include: -17.1% 1-year max drawdown, high beta (1.47x market volatility). Volatility risk is characterized by a beta of 1.47x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.