At the moment, the debt-to-equity of HC2 Holdings, Inc. (NYSE:HCHC) is high, standing at 596.35, a figure that is higher than the 79.23 average recorded by the industry. This means that the company is currently holding a debt level at 702.22 M.
Even though there was a rise of +23.52% in revenue, the company failed to succeed in outperforming the industry average of 1.95%. The 23.36% yoy growth of HCHC’s revenue has gone up that of the industry average by 6.14%. For the past 12 months, HC2 Holdings, Inc. revenue has gone up by 17.22%. The sustained growth in their revenue has helped boost their earnings per share.
HC2 Holdings, Inc. (HCHC) has seen their earnings per share increased to $2.97 during the last quarter in comparison to the same quarter last year. They have recorded a 175.60% growing earnings per share earnings. They have recorded a 175.60% growing earnings per share earnings. Analysts expect decrease in earnings is also on the cards next quarter with an average estimate at -$0.38.
The 12-month return on equity has significantly fallen to 148.29 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Technology sector, the industry average is 9.70 while 13.29 is of the sector.
Also, looking at the price to cash flow of the company and the industry average, the 0.57 ratio of the stock is lower than the industry’s 8.58.
HC2 Holdings, Inc. (NYSE:HCHC) has a price-to-earnings ratio of 0.81 which is lower than the 18.55 industry average at the moment. In addition to their unfavorable P/E ratio, HC2 Holdings, Inc. has maintained a gross margin of 19.15. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 4.28 when compared to 4.02 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, HC2 Holdings, Inc. ROE is above 13.29 that of both the sector average.
The operating profit margin for HC2 Holdings, Inc. (HCHC) is 9.14%, a figure which is considered to be weak. It has gone 5.78 from the -1.27 over the past 5 years. In addition to this, their operating margin is 3.36 higher than the industry average.
The net profit margin which stood at -3.77 on average in the past 5 years has jumped to 10.87 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at 4.75.
Still some above discussed indicators of the $151.01M company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the HCHC shares to either perform positively or negatively when compared to other stocks. The primary strengths of HC2 Holdings, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.