Helix Energy (HLX) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.01
• Revenue Growth: 0.34%
• EPS Growth: N/A
• Country: US
• Employees: 2,313
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.02
• Shares Outstanding: 151,530,330
• 10 Day Avg. Volume: 961,486
• 30 Day Avg. Volume: 1,516,944
• PEG Ratio: -0.31
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 63.42
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 6.15
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: $11.50
• Price Target Upside: 62.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $7.50 ▲(5.78%Upside)

Helix Energy's overall stock score reflects a balanced view of its strengths and challenges. Strong financial performance and cash flow stability are offset by technical weaknesses and geopolitical uncertainties impacting future earnings. The company's strategic focus on liquidity and contract renewals offers resilience in a volatile market.

Positive Factors

Financial Performance

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

Growth Potential

The company is positioned for future growth with potential upside from the UK North Sea, strong offshore wind demand growth, and pricing in Subsea Robotics.

Operational Strength

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

Negative Factors

Earnings Outlook

A strong 1Q result was overshadowed by a surprisingly weak 2025 outlook.

Market Challenges

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.

Revenue Reduction

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. (HLX) is a leading international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations. The company operates primarily in the Gulf of Mexico, Brazil, the North Sea, and West Africa, offering innovative solutions to meet the evolving needs of its clients in the oil and gas sector.

How the Company Makes Money

Helix Energy Solutions generates revenue through its two main segments: Well Intervention and Robotics. The Well Intervention segment provides services such as subsea intervention, well decommissioning, and well abandonment, which are essential for maintaining and enhancing the production of oil and gas wells. This segment's revenues are primarily driven by contracts with oil and gas operators for these specialized services. The Robotics segment offers remotely operated vehicles (ROVs), trenching, and cable laying services, which support subsea construction and maintenance activities. Helix's revenue streams are significantly influenced by its long-term contracts with major energy companies, market demand for offshore well services, and the company's technological advancements, which enhance operational efficiency and effectiveness.

Helix Energy Financial Statement Overview

Summary

Helix Energy demonstrates a strong recovery with improved profitability and robust revenue growth. The income statement shows significant improvements in margins and revenue, while the balance sheet remains stable with manageable leverage. Strong cash flow generation supports financial flexibility, although increasing liabilities require monitoring.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.34B	1.36B	1.29B	873.10M	674.73M	733.55M
	Gross Profit
227.55M	219.56M	200.36M	50.62M	15.39M	79.91M
	EBIT
136.88M	127.44M	105.93M	-26.14M	-48.06M	-107.23M
	EBITDA
271.03M	253.17M	192.99M	87.68M	94.36M	164.45M
	Net Income Common Stockholders
85.00M	55.64M	-10.84M	-87.78M	-61.68M	22.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
369.99M	368.03M	332.19M	186.60M	253.51M	291.32M
	Total Assets
2.64B	2.60B	2.56B	2.39B	2.33B	2.50B
	Total Debt
655.80M	661.12M	540.57M	469.68M	410.95M	502.17M
	Net Debt
285.81M	293.09M	208.38M	283.07M	157.43M	210.85M
	Total Liabilities
1.09B	1.08B	1.06B	872.63M	678.56M	757.78M
	Stockholders Equity
1.55B	1.52B	1.50B	1.52B	1.65B	1.74B
Cash Flow		Free Cash Flow
113.69M	162.72M	132.87M	17.60M	131.79M	78.56M
	Operating Cash Flow
137.88M	186.03M	152.46M	51.11M	140.12M	98.80M
	Investing Cash Flow
-24.09M	-22.84M	-18.66M	-138.29M	-8.27M	-19.28M
	Financing Cash Flow
-66.97M	-125.31M	25.11M	-44.84M	-96.00M	-52.58M

Helix Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 7.09 is above the 20-day moving average (MA) of 6.49, above the 50-day MA of 6.59, and below the 200-day MA of 8.74, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 83.55 is Negative, 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	75 Outperform	$1.09B	14.06	7.06%	3.23%	-9.78%	-49.45%
XPRO	74 Outperform	$1.09B	16.70	4.91%	―	10.48%	―
HLX	71 Outperform	$1.05B	12.91	5.64%	―	0.34%	―
OII	71 Outperform	$2.08B	11.84	26.17%	―	10.04%	68.14%
WTTR	69 Neutral	$1.08B	26.00	4.51%	3.13%	-4.91%	-46.51%
MRC	68 Neutral	$1.11B	41.18	8.29%	―	-9.84%	-111.71%
Sector *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%

Helix Energy Corporate Events

Helix Energy Holds Annual Shareholders Meeting

On May 14, 2025, Helix Energy Solutions Group, Inc. held its Annual Meeting of Shareholders, where three proposals were voted upon. T. Mitch Little and John V. Lovoi were elected as Class I directors, KPMG LLP was ratified as the independent accounting firm for 2025, and the 2024 executive compensation was approved. Additionally, the company completed a $30 million share repurchase during the second quarter of 2025 as part of its ongoing repurchase program initiated in February 2023.

The most recent analyst rating on (HLX) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Helix Energy stock, see the HLX Stock Forecast page.

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.