Fact based stock research
Hess (NYSE:HES)

US42809H1077

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Hess stock research in summary

hess.com

ANALYSIS: With an Obermatt Combined Rank of 8 (worse than 92% compared with investment alternatives), Hess (Oil & Gas Production, USA) shares have lower financial characteristics compared with similar stocks. Shares of Hess are low in value (priced high) with a consolidated Value Rank of 6 (worse than 94% of alternatives), and are riskily financed (Safety Rank of 42, which means above-average debt burdens) but show above-average growth (Growth Rank of 58). ...read more

RECOMMENDATION: A Combined Rank of 8, is a sell recommendation based on Hess's financial characteristics. As the company Hess shows low value with an Obermatt Value Rank of 6 (94% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 58% of comparable companies (Obermatt Growth Rank is 58). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 42 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Hess, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	6
Growth Rank	58
Safety Rank	42
Combined Rank	8

Country	USA
Industry	Oil & Gas Production
Index	Low Emissions, Employee Focus US, Human Rights, Oil & Gas, S&P 500
Size class	X-Large

This stock has achievements: Top 10 Stock.

20-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Hess

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	3	4	6	6
GROWTH
GROWTH	59	93	58	58
SAFETY
SAFETY	51	32	42	42
SENTIMENT
SENTIMENT	49	63	30	^new
360° VIEW
360° VIEW	27	35	15	^new

Most recent update of the stock research: 20-Feb-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Hess is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	3	4	6	6
GROWTH
GROWTH	59	93	58	58
SAFETY
SAFETY	51	32	42	42
COMBINED
COMBINED	19	35	8	8

Last update of combined financial performance: 20-Feb-2025. Stock analysis on combined financial performance: The higher the rank of Hess the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 6 (worse than 94% compared with alternatives), Hess shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Hess. Price-to-Sales is 19 which means that the stock price compared with what market professionals expect for future profits is higher than 81% of comparable companies, indicating a low value concerning Hess's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 4, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Hess. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 19 and Dividend Yield, which is lower than 72% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 6, is a sell recommendation based on Hess's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Hess? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Hess? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Hess may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	8	7	19	19
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	3	7	19	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	7	12	4	4
DIVIDEND YIELD
DIVIDEND YIELD	33	31	28	28
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	3	4	6	6

Last update of Value Rank: 20-Feb-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hess; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 58 (better than 58% compared with alternatives), Hess shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Hess. Sales Growth has a rank of 76 which means that currently, professionals expect the company to grow more than 76% of its competitors. Capital Growth is also above 37% of competitors with a rank of 67. But Profit Growth only has a rank of 37, which means that currently professionals expect the company to grow its profits less than 63% of its competitors. And Stock Returns have also been below average with a rank of only 42. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 58, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	63	79	76	76
PROFIT GROWTH
PROFIT GROWTH	47	75	37	37
CAPITAL GROWTH
CAPITAL GROWTH	96	73	67	67
STOCK RETURNS
STOCK RETURNS	19	69	42	42
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	59	93	58	58

Last update of Growth Rank: 20-Feb-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Hess.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 42 (better than 42% compared with alternatives), the company Hess has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Hess is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Hess. Refinancing is at 64, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 64% of its competitors. Liquidity is also good at 64, meaning the company generates more profit to service its debt than 64% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 16, which means the company has an above-average debt-to-equity ratio. It has more debt than 84% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 42 (worse than 58% compared with alternatives), Hess has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Hess could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Hess and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	29	14	16	16
REFINANCING
REFINANCING	87	82	64	64
LIQUIDITY
LIQUIDITY	31	15	64	64
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	51	32	42	42

Last update of Safety Rank: 20-Feb-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hess and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	11	40	^new
OPINIONS CHANGE
OPINIONS CHANGE	18	50	43	^new
PRO HOLDINGS
PRO HOLDINGS	20	64	22	^new
MARKET PULSE
MARKET PULSE	82	100	73	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	49	63	30	^new

Last update of Sentiment Rank: 20-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hess.
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