Intrinsic value of Helix Energy Solutions Group - HLX

Previous Close

$5.91

  Intrinsic Value

$2.25

stock screener

  Rating & Target

str. sell

-62%

  Value-price divergence*

-51%

Previous close

$5.91

 
Intrinsic value

$2.25

 
Up/down potential

-62%

 
Rating

str. sell

 
Value-price divergence*

-51%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of HLX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -29.89
  15.40
  14.36
  13.42
  12.58
  11.82
  11.14
  10.53
  9.97
  9.48
  9.03
  8.63
  8.26
  7.94
  7.64
  7.38
  7.14
  6.93
  6.73
  6.56
  6.40
  6.26
  6.14
  6.02
  5.92
  5.83
  5.75
  5.67
  5.60
  5.54
  5.49
Revenue, $m
  488
  563
  644
  730
  822
  920
  1,022
  1,130
  1,242
  1,360
  1,483
  1,611
  1,744
  1,882
  2,026
  2,176
  2,331
  2,493
  2,660
  2,835
  3,017
  3,206
  3,402
  3,607
  3,821
  4,044
  4,276
  4,518
  4,772
  5,036
  5,313
Variable operating expenses, $m
 
  812
  928
  1,053
  1,185
  1,325
  1,473
  1,628
  1,790
  1,960
  2,137
  2,321
  2,513
  2,712
  2,920
  3,135
  3,359
  3,592
  3,834
  4,085
  4,347
  4,619
  4,903
  5,198
  5,506
  5,827
  6,162
  6,511
  6,876
  7,257
  7,656
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  554
  812
  928
  1,053
  1,185
  1,325
  1,473
  1,628
  1,790
  1,960
  2,137
  2,321
  2,513
  2,712
  2,920
  3,135
  3,359
  3,592
  3,834
  4,085
  4,347
  4,619
  4,903
  5,198
  5,506
  5,827
  6,162
  6,511
  6,876
  7,257
  7,656
Operating income, $m
  -67
  -248
  -284
  -322
  -363
  -406
  -451
  -498
  -548
  -600
  -654
  -710
  -769
  -830
  -894
  -959
  -1,028
  -1,099
  -1,173
  -1,250
  -1,330
  -1,414
  -1,500
  -1,591
  -1,685
  -1,783
  -1,886
  -1,993
  -2,104
  -2,221
  -2,343
EBITDA, $m
  47
  -119
  -136
  -154
  -174
  -194
  -216
  -238
  -262
  -287
  -313
  -340
  -368
  -397
  -428
  -459
  -492
  -526
  -561
  -598
  -636
  -676
  -718
  -761
  -806
  -853
  -902
  -953
  -1,007
  -1,063
  -1,121
Interest expense (income), $m
  19
  20
  24
  30
  35
  41
  47
  54
  61
  68
  76
  84
  92
  101
  109
  119
  128
  138
  149
  160
  171
  183
  195
  207
  221
  234
  249
  264
  279
  296
  313
Earnings before tax, $m
  -94
  -268
  -308
  -352
  -398
  -447
  -498
  -552
  -609
  -668
  -730
  -794
  -861
  -931
  -1,003
  -1,078
  -1,156
  -1,238
  -1,322
  -1,410
  -1,501
  -1,596
  -1,695
  -1,798
  -1,906
  -2,018
  -2,134
  -2,256
  -2,384
  -2,517
  -2,656
Tax expense, $m
  -13
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -81
  -268
  -308
  -352
  -398
  -447
  -498
  -552
  -609
  -668
  -730
  -794
  -861
  -931
  -1,003
  -1,078
  -1,156
  -1,238
  -1,322
  -1,410
  -1,501
  -1,596
  -1,695
  -1,798
  -1,906
  -2,018
  -2,134
  -2,256
  -2,384
  -2,517
  -2,656

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  357
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,247
  2,183
  2,496
  2,831
  3,188
  3,564
  3,962
  4,379
  4,815
  5,272
  5,748
  6,243
  6,759
  7,296
  7,853
  8,433
  9,035
  9,661
  10,312
  10,988
  11,692
  12,424
  13,187
  13,982
  14,809
  15,673
  16,573
  17,513
  18,495
  19,520
  20,592
Adjusted assets (=assets-cash), $m
  1,890
  2,183
  2,496
  2,831
  3,188
  3,564
  3,962
  4,379
  4,815
  5,272
  5,748
  6,243
  6,759
  7,296
  7,853
  8,433
  9,035
  9,661
  10,312
  10,988
  11,692
  12,424
  13,187
  13,982
  14,809
  15,673
  16,573
  17,513
  18,495
  19,520
  20,592
Revenue / Adjusted assets
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
Average production assets, $m
  1,628
  1,878
  2,148
  2,436
  2,743
  3,067
  3,409
  3,767
  4,143
  4,536
  4,945
  5,372
  5,816
  6,278
  6,757
  7,256
  7,774
  8,313
  8,873
  9,455
  10,060
  10,690
  11,347
  12,030
  12,742
  13,485
  14,260
  15,069
  15,914
  16,796
  17,718
Working capital, $m
  337
  55
  63
  72
  81
  90
  100
  111
  122
  133
  145
  158
  171
  184
  199
  213
  228
  244
  261
  278
  296
  314
  333
  354
  374
  396
  419
  443
  468
  494
  521
Total debt, $m
  626
  698
  847
  1,006
  1,175
  1,354
  1,543
  1,741
  1,948
  2,165
  2,391
  2,627
  2,872
  3,127
  3,391
  3,667
  3,953
  4,250
  4,559
  4,880
  5,215
  5,563
  5,925
  6,302
  6,695
  7,106
  7,533
  7,980
  8,446
  8,933
  9,442
Total liabilities, $m
  965
  1,037
  1,186
  1,345
  1,514
  1,693
  1,882
  2,080
  2,287
  2,504
  2,730
  2,966
  3,211
  3,466
  3,730
  4,006
  4,292
  4,589
  4,898
  5,219
  5,554
  5,902
  6,264
  6,641
  7,034
  7,445
  7,872
  8,319
  8,785
  9,272
  9,781
Total equity, $m
  1,282
  1,146
  1,311
  1,486
  1,673
  1,871
  2,080
  2,299
  2,528
  2,768
  3,017
  3,278
  3,549
  3,830
  4,123
  4,427
  4,743
  5,072
  5,414
  5,769
  6,138
  6,523
  6,923
  7,340
  7,775
  8,228
  8,701
  9,195
  9,710
  10,248
  10,811
Total liabilities and equity, $m
  2,247
  2,183
  2,497
  2,831
  3,187
  3,564
  3,962
  4,379
  4,815
  5,272
  5,747
  6,244
  6,760
  7,296
  7,853
  8,433
  9,035
  9,661
  10,312
  10,988
  11,692
  12,425
  13,187
  13,981
  14,809
  15,673
  16,573
  17,514
  18,495
  19,520
  20,592
Debt-to-equity ratio
  0.488
  0.610
  0.650
  0.680
  0.700
  0.720
  0.740
  0.760
  0.770
  0.780
  0.790
  0.800
  0.810
  0.820
  0.820
  0.830
  0.830
  0.840
  0.840
  0.850
  0.850
  0.850
  0.860
  0.860
  0.860
  0.860
  0.870
  0.870
  0.870
  0.870
  0.870
Adjusted equity ratio
  0.489
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525
  0.525

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -81
  -268
  -308
  -352
  -398
  -447
  -498
  -552
  -609
  -668
  -730
  -794
  -861
  -931
  -1,003
  -1,078
  -1,156
  -1,238
  -1,322
  -1,410
  -1,501
  -1,596
  -1,695
  -1,798
  -1,906
  -2,018
  -2,134
  -2,256
  -2,384
  -2,517
  -2,656
Depreciation, amort., depletion, $m
  114
  130
  148
  168
  189
  212
  235
  260
  286
  313
  341
  370
  401
  433
  466
  500
  536
  573
  612
  652
  694
  737
  783
  830
  879
  930
  983
  1,039
  1,097
  1,158
  1,222
Funds from operations, $m
  -27
  -138
  -160
  -184
  -209
  -235
  -263
  -292
  -323
  -355
  -389
  -424
  -460
  -498
  -537
  -578
  -620
  -664
  -710
  -758
  -807
  -859
  -913
  -968
  -1,027
  -1,088
  -1,151
  -1,217
  -1,286
  -1,358
  -1,434
Change in working capital, $m
  -66
  7
  8
  8
  9
  10
  10
  11
  11
  12
  12
  13
  13
  14
  14
  15
  15
  16
  16
  17
  18
  19
  19
  20
  21
  22
  23
  24
  25
  26
  27
Cash from operations, $m
  39
  -146
  -168
  -192
  -218
  -245
  -273
  -303
  -334
  -367
  -401
  -436
  -473
  -511
  -551
  -592
  -635
  -680
  -727
  -775
  -825
  -877
  -932
  -989
  -1,048
  -1,109
  -1,174
  -1,241
  -1,311
  -1,384
  -1,461
Maintenance CAPEX, $m
  0
  -112
  -130
  -148
  -168
  -189
  -212
  -235
  -260
  -286
  -313
  -341
  -370
  -401
  -433
  -466
  -500
  -536
  -573
  -612
  -652
  -694
  -737
  -783
  -830
  -879
  -930
  -983
  -1,039
  -1,097
  -1,158
New CAPEX, $m
  -186
  -251
  -270
  -288
  -307
  -324
  -342
  -359
  -376
  -393
  -410
  -427
  -444
  -462
  -480
  -499
  -518
  -539
  -560
  -582
  -606
  -630
  -656
  -684
  -712
  -743
  -775
  -809
  -845
  -882
  -922
Cash from investing activities, $m
  -147
  -363
  -400
  -436
  -475
  -513
  -554
  -594
  -636
  -679
  -723
  -768
  -814
  -863
  -913
  -965
  -1,018
  -1,075
  -1,133
  -1,194
  -1,258
  -1,324
  -1,393
  -1,467
  -1,542
  -1,622
  -1,705
  -1,792
  -1,884
  -1,979
  -2,080
Free cash flow, $m
  -108
  -509
  -567
  -629
  -692
  -758
  -826
  -897
  -970
  -1,045
  -1,123
  -1,204
  -1,287
  -1,374
  -1,464
  -1,557
  -1,654
  -1,755
  -1,860
  -1,969
  -2,083
  -2,201
  -2,325
  -2,455
  -2,590
  -2,731
  -2,879
  -3,033
  -3,195
  -3,364
  -3,541
Issuance/(repayment) of debt, $m
  -118
  140
  149
  159
  169
  179
  189
  198
  207
  217
  226
  236
  245
  255
  265
  275
  286
  297
  309
  321
  334
  348
  362
  377
  393
  410
  428
  447
  466
  487
  509
Issuance/(repurchase) of shares, $m
  97
  421
  473
  528
  585
  645
  707
  771
  838
  908
  980
  1,054
  1,132
  1,212
  1,296
  1,382
  1,473
  1,566
  1,664
  1,765
  1,871
  1,981
  2,095
  2,215
  2,340
  2,471
  2,607
  2,750
  2,899
  3,055
  3,218
Cash from financing (excl. dividends), $m  
  -26
  561
  622
  687
  754
  824
  896
  969
  1,045
  1,125
  1,206
  1,290
  1,377
  1,467
  1,561
  1,657
  1,759
  1,863
  1,973
  2,086
  2,205
  2,329
  2,457
  2,592
  2,733
  2,881
  3,035
  3,197
  3,365
  3,542
  3,727
Total cash flow (excl. dividends), $m
  -138
  52
  54
  58
  62
  65
  69
  72
  76
  79
  83
  86
  90
  93
  97
  101
  105
  109
  113
  117
  122
  127
  132
  138
  144
  150
  156
  163
  170
  178
  186
Retained Cash Flow (-), $m
  -3
  -421
  -473
  -528
  -585
  -645
  -707
  -771
  -838
  -908
  -980
  -1,054
  -1,132
  -1,212
  -1,296
  -1,382
  -1,473
  -1,566
  -1,664
  -1,765
  -1,871
  -1,981
  -2,095
  -2,215
  -2,340
  -2,471
  -2,607
  -2,750
  -2,899
  -3,055
  -3,218
Prev. year cash balance distribution, $m
 
  289
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -80
  -419
  -470
  -523
  -579
  -638
  -699
  -762
  -828
  -897
  -968
  -1,042
  -1,119
  -1,199
  -1,282
  -1,368
  -1,457
  -1,551
  -1,648
  -1,748
  -1,854
  -1,963
  -2,077
  -2,196
  -2,321
  -2,451
  -2,587
  -2,729
  -2,877
  -3,032
Discount rate, %
 
  4.70
  4.94
  5.18
  5.44
  5.71
  6.00
  6.30
  6.61
  6.94
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.77
  11.31
  11.88
  12.47
  13.09
  13.75
  14.44
  15.16
  15.92
  16.71
  17.55
  18.42
  19.35
PV of cash for distribution, $m
 
  -76
  -380
  -403
  -423
  -439
  -450
  -456
  -457
  -453
  -444
  -430
  -412
  -390
  -365
  -337
  -308
  -277
  -246
  -215
  -185
  -157
  -131
  -107
  -86
  -68
  -53
  -40
  -30
  -21
  -15
Current shareholders' claim on cash, %
  100
  62.3
  39.2
  24.9
  15.9
  10.3
  6.7
  4.4
  2.9
  1.9
  1.3
  0.8
  0.6
  0.4
  0.3
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Helix Energy Solutions Group, Inc., together with its subsidiaries, provides specialty services to the offshore energy industry primarily in the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. It operates through three segments: Well Intervention, Robotics, and Production Facilities. The company engineers, manages, and conducts well construction, intervention, and abandonment operations in water depths ranging from 200 to 10,000 feet; and operates remotely operated vehicles (ROVs), trenchers, and ROVDrills for offshore construction, maintenance, and well intervention services. It also offers well intervention; intervention engineering; production enhancement; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and life of field support. In addition, the company provides reclamation and remediation services; well plugging and abandonment services; pipeline abandonment services; and site inspections. Further, it engages in the installation of subsea pipelines, flowlines, control umbilicals, manifold assemblies, and risers; 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. Additionally, the company offers oil and natural gas processing services to oil and natural gas companies; and fast response system services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, alternative 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.

FINANCIAL RATIOS  of  Helix Energy Solutions Group (HLX)

Valuation Ratios
P/E Ratio -8.8
Price to Sales 1.5
Price to Book 0.6
Price to Tangible Book
Price to Cash Flow 18.3
Price to Free Cash Flow -4.8
Growth Rates
Sales Growth Rate -29.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -41.9%
Cap. Spend. - 3 Yr. Gr. Rate -10.5%
Financial Strength
Quick Ratio 5
Current Ratio 0.1
LT Debt to Equity 43.5%
Total Debt to Equity 48.8%
Interest Coverage -4
Management Effectiveness
Return On Assets -2.8%
Ret/ On Assets - 3 Yr. Avg. -3.1%
Return On Total Capital -4.1%
Ret/ On T. Cap. - 3 Yr. Avg. -4.3%
Return On Equity -6.3%
Return On Equity - 3 Yr. Avg. -6.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 9.6%
Gross Margin - 3 Yr. Avg. 18.9%
EBITDA Margin 8%
EBITDA Margin - 3 Yr. Avg. -2.2%
Operating Margin -13.5%
Oper. Margin - 3 Yr. Avg. -11.3%
Pre-Tax Margin -19.3%
Pre-Tax Margin - 3 Yr. Avg. -21.4%
Net Profit Margin -16.6%
Net Profit Margin - 3 Yr. Avg. -17.7%
Effective Tax Rate 13.8%
Eff/ Tax Rate - 3 Yr. Avg. 20.1%
Payout Ratio 0%

HLX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HLX stock intrinsic value calculation we used $488 million for the last fiscal year's total revenue generated by Helix Energy Solutions Group. The default revenue input number comes from 2016 income statement of Helix Energy Solutions Group. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our HLX stock valuation model: a) initial revenue growth rate of 15.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.7%, whose default value for HLX is calculated based on our internal credit rating of Helix Energy Solutions Group, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Helix Energy Solutions Group.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of HLX stock the variable cost ratio is equal to 144.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for HLX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Helix Energy Solutions Group.

Corporate tax rate of 27% is the nominal tax rate for Helix Energy Solutions Group. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the HLX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for HLX are equal to 333.5%.

Life of production assets of 14.5 years is the average useful life of capital assets used in Helix Energy Solutions Group operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for HLX is equal to 9.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1282 million for Helix Energy Solutions Group - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 142.191 million for Helix Energy Solutions Group is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Helix Energy Solutions Group at the current share price and the inputted number of shares is $0.8 billion.

RELATED COMPANIES Price Int.Val. Rating
OII Oceaneering In 24.64 13.50  sell
MDR McDermott Inte 7.09 2.47  str.sell
SLB Schlumberger 66.42 34.01  sell
WG Willbros Group 2.07 0.54  str.sell
GEL Genesis Energy 30.30 3.78  str.sell
AEGN Aegion 23.64 12.92  sell
SPN Superior Energ 10.44 0.83  str.sell

COMPANY NEWS

▶ Helix Energy reports 2Q loss   [Jul-24-17 09:57PM  Associated Press]
▶ Helix Reports Second Quarter 2017 Results   [Jul-23-17 06:00PM  Business Wire]
▶ Helix Announces $250 Million Credit Facility   [Jun-30-17 04:05PM  Business Wire]
▶ Bearish News Mounts For Oil Markets   [Jun-06-17 02:30PM  Oilprice.com]
▶ Helix Announces Executive Management Team Succession   [Jun-05-17 06:00PM  Business Wire]
▶ Helix Energy reports 1Q loss   [05:01AM  Associated Press]
▶ Helix Reports First Quarter 2017 Results   [Apr-23-17 06:00PM  Business Wire]
▶ Siem Helix 1 Commences Operations in Brazil   [Apr-19-17 05:00PM  Business Wire]
▶ 5 Earnings Short-Squeeze Plays: Yahoo!, IMAX Included   [Apr-18-17 01:24PM  TheStreet.com]
▶ Helix Energy reports 4Q loss   [08:53AM  Associated Press]
▶ Helix Reports Fourth Quarter and Full Year 2016 Results   [Feb-20-17 06:06PM  Business Wire]
▶ These 5 Stocks Are Poised to Get Smoking Hot   [Jan-20-17 02:23PM  TheStreet.com]
▶ Helix Prices Upsized Public Offering of Common Stock   [Jan-04-17 08:54PM  Business Wire]
▶ 2 Offshore Drillers Ripe For a Takeout   [Dec-13-16 10:48AM  at Barrons.com]
▶ Helix to Present at Upcoming Conference   [04:06PM  Business Wire]
Stock chart of HLX Financial statements of HLX Annual reports of HLX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.