Helix Energy (HLX) AI Stock Analysis

• Market Cap: $984.95M
• Dividend Yield: N/A
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.05
• Revenue Growth: 0.34%
• EPS Growth: N/A
• Country: US
• Employees: 2,313
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.02
• Shares Outstanding: 151,530,330
• 10 Day Avg. Volume: 3,065,812
• 30 Day Avg. Volume: 2,296,471
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.06
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.50
• Price Target Upside: 76.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Helix Energy's overall stock score reflects its strong financial recovery, with improved profitability and robust cash flow generation. However, technical indicators suggest bearish trends, and the earnings call highlights significant challenges from North Sea operations and geopolitical uncertainties. While the valuation is moderate, the absence of a dividend yield limits its appeal to income investors.

Positive Factors

Financial Position

The company has zero net debt and is expected to take advantage of the share price weakness.

Operational Strength

Strong contract coverage and rising earnings suggest continued operational strength despite recent stock performance.

Stock Valuation

The stock is trading at 3.5x 2025 EBITDA, which is considered undervalued for a company with significant EBITDA growth from $121MM in 2021 to $303MM in 2024.

Negative Factors

Guidance Reduction

Helix underperformed the OIH by ~340 bps after reporting a strong 1Q beat but slashed 2025 EBITDA guidance by 21% mainly owing to weakness in the UK North Sea well intervention market.

Market Conditions

An increasingly punitive tax regime in the UK, recent operator consolidation and the sharp drop in oil prices led to a perfect storm in the UK North Sea and it tanked Helix's guidance.

Market Uncertainty

Recent M&A activity and softer oil prices/market uncertainty appear to have piled on to cause activity to shift to the right - leading to a $70 million reduction in revenues.

Helix Energy Business Overview & Revenue Model

Company Description

Helix Energy Solutions Group, Inc., an offshore energy services company, provides specialty services to the offshore energy industry primarily in Brazil, the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. The company operates through three segments: Well Intervention, Robotics, and Production Facilities. It engages in the installation of flowlines, control umbilicals, and manifold assemblies and risers; trenching and burial of pipelines; installation and tie-in of riser and manifold assembly; commissioning, testing, and inspection activities; and provision of cable and umbilical lay, and connection services. The company also provides well intervention, intervention engineering, and production enhancement services; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and related support services. In addition, it offers reclamation and remediation services; well plug and abandonment services; pipeline abandonment services; and site inspections. Additionally, the company offers oil and natural gas processing facilities and services; and fast response system, as well as site clearance and subsea support services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, renewable energy companies, and offshore engineering and construction firms. The company was formerly known as Cal Dive International, Inc. and changed its name to Helix Energy Solutions Group, Inc. in March 2006. Helix Energy Solutions Group, Inc. was incorporated in 1979 and is headquartered in Houston, Texas.

How the Company Makes Money

Helix Energy makes money through its diverse range of services in the offshore energy sector. The company's primary revenue streams include well intervention services, which involve enhancing production and extending the life of existing wells, and robotics services, utilizing remotely operated vehicles for inspection, maintenance, and construction support. Additionally, Helix Energy generates income from its production facilities segment, which involves owning and operating offshore assets that support oil and gas production. Significant partnerships with major oil and gas companies also contribute to its revenue, as Helix's services are crucial for maintaining operational efficiency and safety in offshore environments.

Helix Energy Financial Statement Overview

Summary

Helix Energy is demonstrating a robust financial recovery with improved profitability, effective cost management, and strong cash flow generation. The company's balance sheet remains stable with manageable leverage, although an increase in liabilities warrants attention. Overall, Helix Energy is well-positioned for continued growth and financial stability within the Oil & Gas Equipment & Services industry.

Income Statement

Helix Energy's income statement shows a strong recovery trajectory with increasing revenue and profitability. The gross profit margin has improved significantly, reaching approximately 16.98% in TTM, up from 5.80% in 2022, indicating better cost management. Net profit margin improved markedly from negative figures in previous years to 6.34% in TTM, showcasing substantial profitability enhancement. The EBIT and EBITDA margins have also shown a positive trend, reflecting operational efficiency. Revenue growth has been robust, with a 54.33% increase from 2022 to 2023, and continued improvement into 2024 and 2025. Overall, the income statement reflects a positive growth trajectory and improved profitability.

Balance Sheet

The balance sheet of Helix Energy demonstrates a stable financial position with a solid equity base. The debt-to-equity ratio remains reasonable at approximately 0.42 in TTM, indicating manageable leverage levels. Although stockholders' equity has remained relatively stable, the equity ratio of about 58.64% in TTM reflects a solid capital structure. Return on equity (ROE) has improved significantly, from negative in prior years to around 5.50% in TTM, aligning with the company's profit recovery. However, the total liabilities have shown a gradual increase, which could be a potential risk if not managed carefully.

Cash Flow

Helix Energy's cash flow statements highlight strong cash generation capabilities. The operating cash flow to net income ratio stands at approximately 1.62 in TTM, indicating efficient conversion of income into cash. The free cash flow to net income ratio of about 1.34 suggests solid free cash flow generation, supporting financial flexibility. Notably, the free cash flow growth rate from 2023 to 2024 was 22.48%, reflecting successful cash management. The company has maintained positive free cash flow, which supports strategic investments and debt servicing. Overall, the cash flow position is strong, underpinning financial stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.36B	1.29B	873.10M	674.73M	733.55M
	Gross Profit
219.56M	200.36M	50.62M	15.39M	79.91M
	EBIT
127.44M	105.93M	-26.14M	-48.06M	-107.23M
	EBITDA
253.17M	192.99M	87.68M	94.36M	164.45M
	Net Income Common Stockholders
55.64M	-10.84M	-87.78M	-61.68M	22.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
368.03M	332.19M	186.60M	253.51M	291.32M
	Total Assets
2.60B	2.56B	2.39B	2.33B	2.50B
	Total Debt
661.12M	540.57M	469.68M	410.95M	502.17M
	Net Debt
293.09M	208.38M	283.07M	157.43M	210.85M
	Total Liabilities
1.08B	1.06B	872.63M	678.56M	757.78M
	Stockholders Equity
1.52B	1.50B	1.52B	1.65B	1.74B
Cash Flow		Free Cash Flow
162.72M	132.87M	17.60M	131.79M	78.56M
	Operating Cash Flow
186.03M	152.46M	51.11M	140.12M	98.80M
	Investing Cash Flow
-22.84M	-18.66M	-138.29M	-8.27M	-19.28M
	Financing Cash Flow
-125.31M	25.11M	-44.84M	-96.00M	-52.58M

Helix Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLX, the sentiment is Neutral. The current price of 6.5 is above the 20-day moving average (MA) of 6.43, below the 50-day MA of 7.47, and below the 200-day MA of 9.31, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 76.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HLX.

Helix Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RES	73 Outperform	$1.05B	13.75	7.06%	3.31%	-9.78%	-49.45%
OII	69 Neutral	$1.87B	10.39	26.17%	―	10.04%	68.14%
XPRO	68 Neutral	$887.36M	13.15	4.91%	―	10.48%	―
HLX	66 Neutral	$984.95M	11.84	5.64%	―	0.34%	―
MRC	65 Neutral	$1.04B	40.81	10.01%	―	-9.17%	-71.36%
WTTR	63 Neutral	$987.42M	27.72	3.91%	3.11%	-8.41%	-58.49%
Sector *	56 Neutral	$6.93B	3.42	-4.86%	5.94%	-0.08%	-48.18%

Helix Energy Corporate Events

Helix Energy Reports Q1 2025 Financial Results

On April 23, 2025, Helix Energy Solutions Group reported its financial results for the first quarter of 2025, showing a net income of $3.1 million, a decrease from the previous quarter’s $20.1 million. The company faced challenges from a seasonal slowdown in the North Sea and Gulf of America, as well as market disruptions from OPEC+ production increases and U.S. tariffs. Despite these challenges, Helix maintained a strong balance sheet and expects to generate meaningful free cash flow in 2025.

Spark’s Take on HLX Stock

According to Spark, TipRanks’ AI Analyst, HLX is a Outperform.

Helix Energy’s stock score reflects its strong financial recovery and positive guidance for 2025. Key strengths include improved profitability and strong contract coverage. However, technical indicators suggest bearish trends, and macroeconomic risks pose potential challenges. The valuation is moderate, with no immediate appeal from dividends.

To see Spark’s full report on HLX stock, click here.

Helix Energy Reports Strong 2024 Financial Turnaround

Helix Energy Solutions Group reported its financial results for the fourth quarter and full year 2024, showing a net income of $20.1 million for the fourth quarter and $55.6 million for the full year, marking a turnaround from a net loss in 2023. The company achieved its highest EBITDA since 2014 and reported strong free cash flow, despite challenges in its Shallow Water Abandonment segment. Helix completed the restructuring of its balance sheet by retiring convertible notes, ending the year with significant cash levels and negative net debt. The company also secured new contracts for its well intervention fleet, ensuring strong contract coverage as it enters 2025.