Helios Technologies (HLIO) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: 0.67%
• Average Volume (3M): 360.47K
• Price to Earnings (P/E): 52.3
• Beta (1Y): 1.24
• Revenue Growth: -5.41%
• EPS Growth: 17.47%
• Country: US
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.59
• Shares Outstanding: 33,153,840
• 10 Day Avg. Volume: 239,943
• 30 Day Avg. Volume: 360,467
• 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: 0.82
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 6.27
• Enterprise Value/Ebitda: 13.93
• 1Y Price Target: $63.25
• Price Target Upside: 13.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $61.00 ▲(9.14% Upside)

Helios Technologies' overall stock score is driven by strong technical analysis and positive corporate events. Financial performance and earnings call sentiment are moderate, with challenges in revenue and profitability. The valuation suggests potential overvaluation, which slightly offsets the positive momentum and strategic initiatives.

Positive Factors

Cash Flow Management

Strong cash flow generation indicates effective cash management, providing the company with the liquidity needed for strategic investments and debt reduction.

Debt Reduction

Improved leverage through debt reduction enhances financial stability and flexibility, allowing for better capital allocation and reduced interest burdens.

Strategic Divestiture

Divesting non-core assets aligns with strategic goals to focus on core operations, potentially improving margins and operational efficiency.

Negative Factors

Declining Revenue

A decline in revenue indicates challenges in market demand or competitive positioning, which could impact long-term growth prospects if not addressed.

Tariff Impacts

Tariff-related costs can erode profit margins and competitiveness, necessitating strategic adjustments to mitigate long-term financial impacts.

Electronics Segment Challenges

Declines in the electronics segment suggest potential market saturation or competitive pressures, which could hinder future revenue growth in this area.

Helios Technologies Business Overview & Revenue Model

Company Description

Helios Technologies (HLIO) is a global leader in engineered motion control technologies and solutions, primarily serving the mobile equipment and industrial markets. The company operates through two main segments: Hydraulics and Electronics. Helios Technologies develops and manufactures a range of products including hydraulic pumps, valves, cylinders, and electronic control systems that enhance the performance and efficiency of machinery used in diverse applications such as construction, agriculture, and manufacturing.

How the Company Makes Money

Helios Technologies generates revenue through the sale of its hydraulic and electronic products, which are utilized in various industries. The company's revenue model is primarily based on direct sales to original equipment manufacturers (OEMs) and aftermarket sales, which include replacement parts and service solutions. Key revenue streams include sales of hydraulic components, electronic control systems, and integrated solutions that combine both hydraulics and electronics. Additionally, Helios Technologies benefits from strategic partnerships with other industry players, enabling them to expand their market reach and enhance product offerings. The company's focus on innovation and investment in research and development also positions it favorably to capture emerging market opportunities, contributing significantly to its overall earnings.

Helios Technologies Financial Statement Overview

Summary

Helios Technologies demonstrates 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	782.00M	805.90M	835.60M	885.40M	869.18M	523.04M
Gross Profit	241.90M	252.30M	261.70M	298.50M	312.81M	196.23M
EBITDA	108.90M	148.10M	144.20M	189.30M	198.00M	73.31M
Net Income	34.90M	39.00M	37.50M	98.40M	104.60M	14.20M
Balance Sheet
Total Assets	1.58B	1.51B	1.59B	1.46B	1.42B	1.30B
Cash, Cash Equivalents and Short-Term Investments	53.00M	44.10M	32.40M	43.70M	28.54M	25.22M
Total Debt	165.90M	471.20M	548.50M	444.50M	444.33M	462.07M
Total Liabilities	670.00M	641.00M	735.80M	668.80M	706.38M	689.19M
Stockholders Equity	911.70M	864.40M	854.60M	794.90M	708.96M	607.79M
Cash Flow
Free Cash Flow	98.10M	95.10M	43.50M	74.90M	83.91M	93.11M
Operating Cash Flow	126.50M	122.10M	83.90M	109.90M	113.20M	108.56M
Investing Cash Flow	-28.10M	-30.30M	-153.90M	-90.80M	-90.27M	-235.90M
Financing Cash Flow	-94.30M	-78.40M	57.90M	-6.90M	-22.60M	137.74M

Helios Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.89
• 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 55.89 is above the 20-day moving average (MA) of 53.57, above the 50-day MA of 44.69, and above the 200-day MA of 39.47, indicating a bullish trend. The MACD of 2.81 indicates Positive momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 64.91 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
HLIO	73 Outperform	$1.85B	52.32	3.93%	0.67%	-5.41%	17.47%
SXI	69 Neutral	$2.52B	43.55	8.37%	0.61%	9.64%	-24.68%
GRC	69 Neutral	$1.12B	21.58	13.70%	1.69%	2.60%	51.33%
THR	69 Neutral	$862.34M	16.52	10.88%	―	-2.16%	9.41%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
RRX	62 Neutral	$9.62B	37.60	3.84%	0.97%	-7.88%	―
HI	55 Neutral	$1.81B	―	-1.50%	3.49%	-7.93%	91.44%

Helios Technologies Corporate Events

Helios Technologies Announces New CFO and CAO Appointments

On August 28, 2025, Helios Technologies announced the appointment of Michael Connaway as Executive Vice President and Chief Financial Officer, effective in October 2025, and the promotion of Jeremy Evans to Senior Vice President, Chief Accounting Officer, effective September 1, 2025. These leadership changes are part of Helios’ strategy to strengthen its financial foundation and drive sustainable growth, as Connaway brings over two decades of financial expertise from leading companies like Aviat Networks and Honeywell, while Evans has already made significant contributions since joining Helios in 2024.

Helios Technologies Sells Custom Fluidpower to Questas

On August 1, 2025, Helios Technologies entered into a definitive agreement to sell its Custom Fluidpower (CFP) business to Questas Group for approximately $83 million AUD. The sale, expected to close within 60 to 90 days, aligns with Helios’ strategy to refine its operating model and improve margin rates. The transaction will allow Helios to focus on its core manufacturing capabilities while maintaining a long-term distribution relationship with CFP. Questas Group, with its extensive experience in the Australian hydraulics market, will integrate CFP to enhance its service offerings and customer value proposition.

Helios Technologies Appoints Ian Walsh to Board

On June 11, 2025, Helios Technologies announced the appointment of Ian Walsh to its Board of Directors, effective June 5, 2025. Walsh, who brings extensive leadership experience from the aerospace and defense industry, will serve on the Audit and Governance Committees. This appointment is expected to strengthen the Board as Helios aims to return to growth and improve profitability.

Helios Technologies Approves Key Proposals at Annual Meeting

On June 4, 2025, Helios Technologies held its Annual Meeting of Shareholders where three key proposals were approved. Doug Britt, Diana Sacchi, and Sean Bagan were elected as directors with terms expiring in 2028 and 2027, respectively. Additionally, Grant Thornton LLP was ratified as the independent registered public accounting firm for the upcoming fiscal year, and the executive compensation package was approved on an advisory basis.