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Helios Technologies

HLIO
50
Industrial - Machinery · Industrials
Price
$81.15
-0.32 (-0.39%)
Market Cap
$2.68B
Winston Score
50
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+2.5% over 5y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 32.5M (2021) → 33.3M (2026)

Helios Technologies makes parts that control the flow of fluids and electronic systems inside heavy machines. Its two main product lines are hydraulic components — like valves and manifolds — and electronic controls used in equipment such as construction machinery, agriculture equipment, and marine vessels. The company sells to industrial manufacturers around the world and is a notable supplier in the niche market for motion and fluid control technology.

Helios makes money by selling these components directly to equipment manufacturers and through distribution channels. It operates globally, with customers across North America, Europe, and Asia, and generates roughly $2 billion in annual revenue. The company has built some competitive staying power through specialized engineering and long-standing customer relationships, which can make switching suppliers costly. The main risk is that its business is closely tied to industrial and construction spending cycles, meaning a slowdown in capital equipment demand could quickly pressure sales and margins.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

YoY Growth Rate

Revenue data limited

EPS Growth

YoY Growth Rate

EPS data limited

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.4%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$73M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
33.6%
Modest — 33.6% gross margin
Operating Margin
12.1%
Healthy — 12.1% operating margin
ROCE
2.5%
Weak — 2.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+10.5%
Steady sales growth (10.5% YoY)
EPS YoY
+65.8%
Earnings growing fast (65.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
217%
Turns 217% of profit into real cash
FCF Margin
12.4%
Converts sales into free cash efficiently (12.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.12
Conservative — low debt load (0.12)
Interest Cover
4.02x
Adequate interest coverage (4.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
44.1x
Pricey — P/E 44.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+19.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (44.1 → 24.5)

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Dividends

Dividend Yield
0.47%
Small dividend — 0.47% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+16.7%
Dividend growing fast (16.7% YoY)

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