HEIDELBERGER DRUCKMASCHINEN (HDD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HDD - DE0007314007 - Common Stock
1.906 EUR
-0.03 (-1.45%)
HDD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 111 industry peers in the Machinery industry. HDD scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HDD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year HDD was profitable.
- In the past year HDD had a positive cash flow from operations.
- Of the past 5 years HDD 4 years were profitable.
- HDD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HDD has a worse Return On Assets (1.51%) than 62.61% of its industry peers.
- HDD has a Return On Equity of 6.19%. This is comparable to the rest of the industry: HDD outperforms 46.09% of its industry peers.
- The Return On Invested Capital of HDD (3.40%) is worse than 66.96% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HDD is significantly below the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 6.19% | ||
| ROIC | 3.4% |
ROA(3y)2.06%
ROA(5y)1.14%
ROE(3y)8.67%
ROE(5y)0.07%
ROIC(3y)3.95%
ROIC(5y)3.61%
1.3 Margins
- With a Profit Margin value of 1.12%, HDD is not doing good in the industry: 68.70% of the companies in the same industry are doing better.
- HDD's Profit Margin has declined in the last couple of years.
- HDD has a worse Operating Margin (3.40%) than 67.83% of its industry peers.
- HDD's Operating Margin has declined in the last couple of years.
- The Gross Margin of HDD (55.47%) is better than 76.52% of its industry peers.
- HDD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.4% | ||
| PM (TTM) | 1.12% | ||
| GM | 55.47% |
OM growth 3Y-16.88%
OM growth 5YN/A
PM growth 3Y-47.48%
PM growth 5YN/A
GM growth 3Y0.69%
GM growth 5Y1.09%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HDD is destroying value.
- HDD has about the same amout of shares outstanding than it did 1 year ago.
- HDD has about the same amout of shares outstanding than it did 5 years ago.
- HDD has a worse debt/assets ratio than last year.
2.2 Solvency
- HDD has an Altman-Z score of 1.69. This is a bad value and indicates that HDD is not financially healthy and even has some risk of bankruptcy.
- HDD has a worse Altman-Z score (1.69) than 60.00% of its industry peers.
- The Debt to FCF ratio of HDD is 1.24, which is an excellent value as it means it would take HDD, only 1.24 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.24, HDD belongs to the best of the industry, outperforming 88.70% of the companies in the same industry.
- HDD has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.13, HDD belongs to the top of the industry, outperforming 80.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.46
WACC7.31%
2.3 Liquidity
- HDD has a Current Ratio of 1.33. This is a normal value and indicates that HDD is financially healthy and should not expect problems in meeting its short term obligations.
- HDD's Current ratio of 1.33 is on the low side compared to the rest of the industry. HDD is outperformed by 62.61% of its industry peers.
- A Quick Ratio of 0.50 indicates that HDD may have some problems paying its short term obligations.
- HDD has a Quick ratio of 0.50. This is amonst the worse of the industry: HDD underperforms 90.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
- HDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 145.66%, which is quite impressive.
- Measured over the past years, HDD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -46.75% on average per year.
- The Revenue has decreased by -8.43% in the past year.
- The Revenue has been decreasing by -0.60% on average over the past years.
EPS 1Y (TTM)145.66%
EPS 3Y-46.75%
EPS 5YN/A
EPS Q2Q%134.78%
Revenue 1Y (TTM)-8.43%
Revenue growth 3Y1.45%
Revenue growth 5Y-0.6%
Sales Q2Q%-43.28%
3.2 Future
- Based on estimates for the next years, HDD will show a very strong growth in Earnings Per Share. The EPS will grow by 40.34% on average per year.
- The Revenue is expected to grow by 2.07% on average over the next years.
EPS Next Y73.66%
EPS Next 2Y54.92%
EPS Next 3Y40.34%
EPS Next 5YN/A
Revenue Next Year1.4%
Revenue Next 2Y1.92%
Revenue Next 3Y2.23%
Revenue Next 5Y2.07%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HDD is valuated rather expensively with a Price/Earnings ratio of 19.06.
- Compared to the rest of the industry, the Price/Earnings ratio of HDD indicates a somewhat cheap valuation: HDD is cheaper than 69.57% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, HDD is valued a bit cheaper.
- A Price/Forward Earnings ratio of 7.67 indicates a rather cheap valuation of HDD.
- HDD's Price/Forward Earnings ratio is rather cheap when compared to the industry. HDD is cheaper than 93.91% of the companies in the same industry.
- HDD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HDD is valued cheaper than 92.17% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDD indicates a rather cheap valuation: HDD is cheaper than 83.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 3.22 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- HDD's earnings are expected to grow with 40.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y54.92%
EPS Next 3Y40.34%
5. Dividend
5.1 Amount
- No dividends for HDD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
HEIDELBERGER DRUCKMASCHINEN / HDD.DE FAQ
Can you provide the ChartMill fundamental rating for HEIDELBERGER DRUCKMASCHINEN?
ChartMill assigns a fundamental rating of 4 / 10 to HDD.DE.
What is the valuation status of HEIDELBERGER DRUCKMASCHINEN (HDD.DE) stock?
ChartMill assigns a valuation rating of 8 / 10 to HEIDELBERGER DRUCKMASCHINEN (HDD.DE). This can be considered as Undervalued.
What is the profitability of HDD stock?
HEIDELBERGER DRUCKMASCHINEN (HDD.DE) has a profitability rating of 3 / 10.
What is the valuation of HEIDELBERGER DRUCKMASCHINEN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HEIDELBERGER DRUCKMASCHINEN (HDD.DE) is 19.06 and the Price/Book (PB) ratio is 1.09.