HEIDELBERG MATERIALS AG (HEI.DE) Stock Fundamental Analysis
FRA:HEI - Deutsche Boerse Ag - DE0006047004 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to HEI. HEI was compared to 12 industry peers in the Construction Materials industry. While HEI has a great profitability rating, there are some minor concerns on its financial health. HEI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HEI had positive earnings in the past year.
In the past year HEI had a positive cash flow from operations.
Of the past 5 years HEI 4 years were profitable.
HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HEI (5.46%) is better than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 11.01%, HEI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.30%, HEI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HEI is below the industry average of 8.43%.
The last Return On Invested Capital (7.30%) for HEI is above the 3 year average (6.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.01% | ||
| ROIC | 7.3% |
ROA(3y)5.15%
ROA(5y)2.33%
ROE(3y)10.75%
ROE(5y)4.51%
ROIC(3y)6.24%
ROIC(5y)5.79%
1.3 Margins
HEI's Profit Margin of 9.11% is fine compared to the rest of the industry. HEI outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of HEI has grown nicely.
HEI has a Operating Margin of 12.44%. This is in the better half of the industry: HEI outperforms 75.00% of its industry peers.
HEI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 62.08%, HEI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of HEI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.44% | ||
| PM (TTM) | 9.11% | ||
| GM | 62.08% |
OM growth 3Y3.45%
OM growth 5Y7.61%
PM growth 3YN/A
PM growth 5Y7.57%
GM growth 3Y-0.46%
GM growth 5Y1%
2. Health
2.1 Basic Checks
HEI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HEI has less shares outstanding than it did 1 year ago.
HEI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HEI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.40 indicates that HEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
HEI has a Altman-Z score (2.40) which is comparable to the rest of the industry.
HEI has a debt to FCF ratio of 4.38. This is a neutral value as HEI would need 4.38 years to pay back of all of its debts.
The Debt to FCF ratio of HEI (4.38) is better than 66.67% of its industry peers.
HEI has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HEI (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.14
WACC6.41%
2.3 Liquidity
A Current Ratio of 1.11 indicates that HEI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, HEI is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
HEI has a Quick Ratio of 1.11. This is a bad value and indicates that HEI is not financially healthy enough and could expect problems in meeting its short term obligations.
HEI has a Quick ratio (0.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.67%, which is quite impressive.
The Earnings Per Share has been growing by 11.04% on average over the past years. This is quite good.
HEI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
The Revenue has been growing slightly by 5.34% on average over the past years.
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%N/A
Revenue 1Y (TTM)4.68%
Revenue growth 3Y10.31%
Revenue growth 5Y5.34%
Sales Q2Q%6.12%
3.2 Future
HEI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.58% yearly.
The Revenue is expected to grow by 3.52% on average over the next years.
EPS Next Y6.17%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
EPS Next 5Y12.58%
Revenue Next Year6.26%
Revenue Next 2Y-1%
Revenue Next 3Y1.22%
Revenue Next 5Y3.52%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.51 indicates a quite expensive valuation of HEI.
The rest of the industry has a similar Price/Earnings ratio as HEI.
The average S&P500 Price/Earnings ratio is at 28.89. HEI is around the same levels.
The Price/Forward Earnings ratio is 24.70, which indicates a rather expensive current valuation of HEI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.98, HEI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.51 | ||
| Fwd PE | 24.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HEI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.52 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEI does not grow enough to justify the current Price/Earnings ratio.
HEI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.78
PEG (5Y)2.67
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.80%, HEI has a reasonable but not impressive dividend return.
HEI's Dividend Yield is slightly below the industry average, which is at 2.92.
HEI's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
On average, the dividend of HEI grows each year by 6.71%, which is quite nice.
Dividend Growth(5Y)6.71%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
28.32% of the earnings are spent on dividend by HEI. This is a low number and sustainable payout ratio.
HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.32%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
FRA:HEI (3/27/2025, 10:37:19 AM)
171.45
-5.4 (-3.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners35.71%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap30.59B
Analysts75.38
Price Target148.15 (-13.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend2.63
Dividend Growth(5Y)6.71%
DP28.32%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.63%
Min EPS beat(2)-54.86%
Max EPS beat(2)-26.39%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-5.48%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-3.11%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)-1.2%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.04%
PT rev (3m)19.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.51 | ||
| Fwd PE | 24.7 | ||
| P/S | 1.44 | ||
| P/FCF | 15.52 | ||
| P/OCF | 9.45 | ||
| P/B | 1.75 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)5.81
EY3.39%
EPS(NY)6.94
Fwd EY4.05%
FCF(TTM)11.05
FCFY6.44%
OCF(TTM)18.14
OCFY10.58%
SpS118.69
BVpS98.21
TBVpS47.46
PEG (NY)4.78
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.01% | ||
| ROCE | 9.42% | ||
| ROIC | 7.3% | ||
| ROICexc | 7.81% | ||
| ROICexgc | 11.94% | ||
| OM | 12.44% | ||
| PM (TTM) | 9.11% | ||
| GM | 62.08% | ||
| FCFM | 9.31% |
ROA(3y)5.15%
ROA(5y)2.33%
ROE(3y)10.75%
ROE(5y)4.51%
ROIC(3y)6.24%
ROIC(5y)5.79%
ROICexc(3y)6.92%
ROICexc(5y)6.45%
ROICexgc(3y)10.59%
ROICexgc(5y)10.23%
ROCE(3y)8.05%
ROCE(5y)7.47%
ROICexcg growth 3Y6.64%
ROICexcg growth 5Y9.65%
ROICexc growth 3Y8.26%
ROICexc growth 5Y12.92%
OM growth 3Y3.45%
OM growth 5Y7.61%
PM growth 3YN/A
PM growth 5Y7.57%
GM growth 3Y-0.46%
GM growth 5Y1%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.38 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 94.03% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 7.63 | ||
| Cash Conversion | 81.31% | ||
| Profit Quality | 102.21% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.4 |
F-Score6
WACC6.41%
ROIC/WACC1.14
Cap/Depr(3y)110.5%
Cap/Depr(5y)86.43%
Cap/Sales(3y)6.73%
Cap/Sales(5y)6.39%
Profit Quality(3y)73.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%N/A
EPS Next Y6.17%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
EPS Next 5Y12.58%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y10.31%
Revenue growth 5Y5.34%
Sales Q2Q%6.12%
Revenue Next Year6.26%
Revenue Next 2Y-1%
Revenue Next 3Y1.22%
Revenue Next 5Y3.52%
EBIT growth 1Y31.23%
EBIT growth 3Y10.02%
EBIT growth 5Y11.07%
EBIT Next Year48.25%
EBIT Next 3Y18.45%
EBIT Next 5Y12.41%
FCF growth 1Y225.35%
FCF growth 3Y-3.04%
FCF growth 5Y15.62%
OCF growth 1Y53.24%
OCF growth 3Y1.93%
OCF growth 5Y10.24%