Helios Technologies (HLIO) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: 0.64%
• Average Volume (3M): 252.56K
• Price to Earnings (P/E): 54.6
• Beta (1Y): 1.54
• 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: 0.83
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 5.96
• Enterprise Value/Ebitda: 11.01
• 1Y Price Target: $65.00
• Price Target Upside: 17.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $58.00 ▲(4.75% Upside)

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

Strong Electronics Segment Growth

The significant growth in the Electronics segment, driven by record performance at Enovation Controls, indicates strong market demand and effective strategy execution, supporting long-term revenue expansion.

Debt Reduction and Financial Discipline

Consistent debt reduction efforts improve financial flexibility and reduce risk, positioning Helios for sustainable growth and investment in strategic initiatives.

Strategic Leadership Appointment

The appointment of a new leader for the Electronics segment aims to enhance customer engagement and drive strategic growth, aligning with Helios' long-term objectives.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate pressure on operational efficiency, which could impact long-term profitability and competitiveness if not addressed.

Goodwill Impairment

The significant goodwill impairment suggests challenges in realizing expected synergies from past acquisitions, potentially affecting future earnings and strategic flexibility.

Cash Flow Challenges

Declining free cash flow growth raises concerns about cash generation capabilities, which are crucial for funding operations and strategic investments.

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 financial health with strengths in cash flow management and leverage improvement. However, declining revenue and profitability margins pose challenges. The company needs to focus on reversing revenue declines and enhancing profitability to sustain long-term growth.

Income Statement

Helios Technologies shows a declining revenue trend with a negative growth rate in the TTM period. Gross profit margins have slightly decreased over the years, indicating some pressure on cost management. Net profit margins have also declined, reflecting challenges in maintaining profitability. However, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. Return on equity has decreased, suggesting reduced profitability on shareholders' investments. The equity ratio remains stable, showing a balanced asset structure. Overall, the balance sheet reflects moderate financial stability with improved leverage but declining returns.

Cash Flow

Helios Technologies has shown positive free cash flow growth in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio has decreased, suggesting a need for better cash conversion. The free cash flow to net income ratio remains strong, highlighting effective cash management despite profitability challenges.

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: 55.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 55.37 is above the 20-day moving average (MA) of 54.87, above the 50-day MA of 54.43, and above the 200-day MA of 42.68, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 is Neutral, 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	$1.31B	26.11	13.01%	1.49%	3.19%	31.51%
HI	68 Neutral	$2.23B	52.04	3.07%	2.85%	-16.00%	―
HLIO	67 Neutral	$1.83B	54.61	3.75%	0.64%	-1.46%	-10.03%
PSIX	65 Neutral	$1.54B	12.75	118.50%	―	54.78%	122.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CYD	60 Neutral	$1.34B	21.86	4.73%	1.48%	18.01%	39.01%
TNC	59 Neutral	$1.37B	25.78	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.

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.

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.

Helios Technologies Sells Custom Fluid Power Business

On September 27, 2025, Helios Technologies completed the sale of its Custom Fluid Power business to Questas Group. The proceeds from this transaction will be used for debt repayment, organic investment, and shareholder returns. Additionally, Helios has entered a long-term exclusive distribution agreement with Questas, ensuring Sun Hydraulics’ strategic position in the Australian market through CFP’s network.

Helios Technologies Announces Quarterly Dividend Payment

On September 22, 2025, Helios Technologies announced a quarterly cash dividend of $0.09 per share, marking its 115th consecutive dividend since 1997. This dividend will be paid on October 21, 2025, to shareholders recorded by October 7, 2025, reflecting the company’s commitment to returning value to its investors.