Helios Technologies Inc. Common Stock (HLIO)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Generates $94 million in annual free cash flow (4.1% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.41, providing financial flexibility
• Revenue growth of 17.4% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($30) with negative 128% margin of safety—limited downside protection

AI Analysis

Helios Technologies Inc. Common Stock is a small-cap industrials company valued at $2.3 billion. The business generates $839 million in annual revenue with a 2.3% net margin and $94 million in free cash flow. From a quality standpoint, Helios shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.3. On valuation, the stock is commanding a steep 47.1x multiple, with trades far above its Graham Number ($30) with no margin of safety. Growth dynamics show revenue growing at 17.4% and profit growth of 306.3%. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Helios's 17% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $94 million in annual free cash flow (4.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 47x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer