Helios Technologies (HLIO) AI Stock Analysis

• Market Cap: $2.34B
• Dividend Yield: 0.64%
• Average Volume (3M): 252.56K
• Price to Earnings (P/E): 69.8
• Beta (1Y): 1.55
• Revenue Growth: -1.46%
• EPS Growth: -10.03%
• Country: US
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.72
• Shares Outstanding: 33,128,494
• 10 Day Avg. Volume: 329,456
• 30 Day Avg. Volume: 252,555
• PEG Ratio: 14.55
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 15.70
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 3.35
• Enterprise Value/Gross Profit: 10.62
• Enterprise Value/Ebitda: 19.61
• 1Y Price Target: $76.00
• Price Target Upside: 8.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $70.00 ▼(-0.03% Downside)

Helios Technologies' overall stock score is driven by strong earnings call results and positive technical indicators. However, high valuation metrics and financial performance challenges temper the score. Corporate events further support a positive outlook, but the high P/E ratio suggests caution.

Positive Factors

Low leverage / strong balance sheet

A debt-to-equity ratio of 0.17 indicates a conservatively capitalized balance sheet. Low leverage preserves financial flexibility, reduces interest expense sensitivity, and supports funding for R&D, bolt-on M&A, or dividends through industry cycles without risking solvency.

Electronics segment momentum

Sustained high growth and a 420bp margin expansion in Electronics (Enovation Controls) point to scalable, higher-margin revenues. Structural mix shift toward electronics improves overall profitability potential and diversification away from lower-margin hydraulics over the medium term.

Active deleveraging

Nine consecutive quarters of debt paydown and a move toward ~2x net debt/EBITDA demonstrate disciplined capital allocation. Lower leverage enhances resilience to demand cycles, reduces refinancing risk, and increases capacity to fund strategic investments or return capital to shareholders.

Negative Factors

Margin compression

Declining net margins reflect pressure on operating efficiency and profitability. Persistent margin erosion reduces free cash generation and ROIC, limiting the company’s ability to reinvest in growth or absorb cost inflation without structural changes to pricing, product mix, or cost base.

Weakening free cash flow

A near 10% decline in free cash flow growth signals weakening cash conversion. Reduced FCF constrains capital spending, debt repayment, and dividends over the medium term, and limits strategic optionality during downturns, especially in a capital-intensive industrial business.

Impairment and cost pressures in Hydraulics

A $25.9M goodwill impairment highlights past overinvestment risks and potential for further write-downs. Concurrently, a 30% SG&A spike in Hydraulics (wages/benefits) erodes operating income. Together these issues can depress sustainable earnings and complicate margin recovery efforts.

Helios Technologies Business Overview & Revenue Model

Company Description

Helios Technologies, Inc., together with its subsidiaries, develops, manufactures, and sells solutions for the hydraulics and electronics markets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Hydraulics and Electronics. The Hydraulics segment offers cartridge valve technology products to control rates and direction of fluid flow, and to regulate and control pressures for industrial and mobile applications; quick release coupling solutions for the agriculture, construction equipment, and industrial markets; and hydraulic system design that provides engineered solutions for machine users, manufacturers, or designers. This segment sells its products under the Sun Hydraulics, Faster, and Custom Fluidpower brands. The Electronics segment offers displays, controls, and instrumentation products for off-highway, recreational and commercial marine, power sports and specialty vehicles, agriculture and water pumping, power generation, health and wellness, and engine-driven industrial equipment markets. This segment sells its products under the Enovation Controls, Murphy, and Balboa Water Group brands. It sells its hydraulic products primarily through value-add distributors, as well as directly to original equipment manufacturers; and electronic products to original equipment manufacturer customers. The company was formerly known as Sun Hydraulics Corporation and changed its name to Helios Technologies, Inc. in June 2019. Helios Technologies, Inc. was founded in 1970 and is headquartered in Sarasota, Florida.

How the Company Makes Money

Helios Technologies generates revenue primarily through the sale of its hydraulic and electronic control products. The company has established a robust revenue model that includes direct sales to original equipment manufacturers (OEMs) and distributors, as well as aftermarket sales for maintenance and replacement parts. Key revenue streams consist of product sales, engineering services, and customized solutions tailored to specific customer needs. Additionally, Helios Technologies benefits from strategic partnerships with major industry players, which enhance its market presence and distribution capabilities. The company's focus on innovation and technology development also contributes to its earnings by allowing it to command premium pricing for its advanced products.

Helios Technologies Financial Statement Overview

Summary

Helios Technologies shows moderate revenue growth but faces declining profit margins and cash flow challenges. The balance sheet is strong with low leverage, but profitability metrics like ROE have weakened.

Income Statement

Helios Technologies shows moderate revenue growth with a TTM increase of 3.3%. However, the company faces declining margins, with the TTM net profit margin at 4.18%, down from 4.84% in the previous year. The EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency. Despite these challenges, the company maintains a stable gross profit margin.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.17 in the TTM, significantly improved from previous years. However, the return on equity has decreased to 3.78%, indicating lower profitability on shareholder investments. The equity ratio remains healthy, suggesting a stable financial structure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 9.47% in the TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.76, indicating adequate cash flow relative to net income, but the free cash flow to net income ratio has slightly decreased, suggesting potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	807.80M	805.90M	835.60M	885.40M	869.20M	523.00M
Gross Profit	254.40M	252.30M	261.70M	298.50M	312.80M	196.20M
EBITDA	137.80M	148.10M	144.20M	190.10M	202.50M	77.00M
Net Income	33.80M	39.00M	37.50M	98.40M	104.60M	14.20M
Balance Sheet
Total Assets	1.56B	1.51B	1.59B	1.46B	1.42B	1.30B
Cash, Cash Equivalents and Short-Term Investments	54.90M	44.10M	32.40M	43.70M	28.50M	25.22M
Total Debt	437.40M	471.20M	548.50M	464.80M	471.30M	487.21M
Total Liabilities	637.90M	641.00M	735.80M	668.80M	706.30M	689.19M
Stockholders Equity	917.90M	864.40M	854.60M	794.90M	709.00M	607.79M
Cash Flow
Free Cash Flow	89.90M	95.10M	43.50M	78.00M	86.30M	93.10M
Operating Cash Flow	117.00M	122.10M	83.90M	109.90M	113.10M	108.60M
Investing Cash Flow	-29.80M	-30.30M	-153.90M	-90.80M	-90.30M	-235.90M
Financing Cash Flow	-80.10M	-78.40M	57.90M	-6.90M	-22.60M	137.70M

Helios Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLIO, the sentiment is Positive. The current price of 70.02 is above the 20-day moving average (MA) of 65.03, above the 50-day MA of 58.99, and above the 200-day MA of 47.13, indicating a bullish trend. The MACD of 3.05 indicates Negative momentum. The RSI at 69.92 is Neutral, neither overbought nor oversold. The STOCH value of 88.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLIO.

Helios Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRC	76 Outperform	$1.54B	30.65	13.01%	1.49%	3.19%	31.51%
HLIO	67 Neutral	$2.34B	69.76	3.75%	0.64%	-1.46%	-10.03%
HI	65 Neutral	$2.25B	52.37	3.07%	2.85%	-16.00%	―
PSIX	65 Neutral	$1.62B	12.92	118.50%	―	54.78%	122.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CYD	60 Neutral	$1.82B	29.62	4.73%	1.48%	18.01%	39.01%
TNC	59 Neutral	$1.47B	27.78	8.51%	1.59%	-2.24%	-48.77%

Helios Technologies Corporate Events

Helios Technologies Extends Long-Running Quarterly Dividend Streak

On December 18, 2025, Helios Technologies announced that its board of directors declared a quarterly cash dividend of $0.09 per common share, marking the company’s 116th consecutive cash dividend and extending a track record of more than 28 years of uninterrupted quarterly payouts since the first quarter of 1997. The dividend, payable on January 21, 2026 to shareholders of record as of January 7, 2026, underscores Helios’s continued emphasis on shareholder returns and signals ongoing financial stability, with approximately 33.1 million common shares outstanding at the time of the announcement.

The most recent analyst rating on (HLIO) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Helios Technologies stock, see the HLIO Stock Forecast page.

Helios Technologies Appoints New Electronics Segment President

On December 8, 2025, Helios Technologies announced the appointment of Billy Aldridge as President of its Electronics Segment, effective January 4, 2026. This strategic move comes as the company seeks to capitalize on a successful go-to-market strategy and record performance at Enovation Controls. Aldridge’s leadership is expected to enhance customer engagement and drive strategic growth, supporting Helios’ long-term objectives.

The most recent analyst rating on (HLIO) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Helios Technologies stock, see the HLIO Stock Forecast page.

Helios Technologies Appoints New CFO Jeremy Evans

On November 16, 2025, Helios Technologies announced the separation of Michael Connaway from his position as Executive Vice President and Chief Financial Officer, with Jeremy Evans being promoted to fill the role. Evans, who joined the company in January 2024, has been instrumental in process improvement and financial reporting, and his appointment is expected to support Helios’ strategic goals and enhance shareholder value as the company returns to growth.

The most recent analyst rating on (HLIO) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Helios Technologies stock, see the HLIO Stock Forecast page.