HEIDELBERG MATERIALS AG (HEI.DE) Stock Fundamental Analysis
FRA:HEI - Deutsche Boerse Ag - DE0006047004 - Common Stock - Currency: EUR
Overall HEI gets a fundamental rating of 5 out of 10. We evaluated HEI against 6 industry peers in the Construction Materials industry. While HEI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HEI is quite expensive at the moment. 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.
HEI had positive earnings in 4 of the past 5 years.
In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.78%, HEI is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
HEI has a Return On Equity of 9.48%. This is in the better half of the industry: HEI outperforms 61.54% of its industry peers.
HEI has a better Return On Invested Capital (7.14%) than 61.54% of its industry peers.
HEI had an Average Return On Invested Capital over the past 3 years of 6.57%. This is above the industry average of 3.37%.
The 3 year average ROIC (6.57%) for HEI is below the current ROIC(7.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.48% | ||
| ROIC | 7.14% |
ROA(3y)5.01%
ROA(5y)2.72%
ROE(3y)10.11%
ROE(5y)5.12%
ROIC(3y)6.57%
ROIC(5y)6.16%
1.3 Margins
The Profit Margin of HEI (8.42%) is better than 61.54% of its industry peers.
In the last couple of years the Profit Margin of HEI has grown nicely.
Looking at the Operating Margin, with a value of 13.55%, HEI is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
HEI's Operating Margin has improved in the last couple of years.
HEI has a better Gross Margin (63.93%) than 69.23% of its industry peers.
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 | 13.55% | ||
| PM (TTM) | 8.42% | ||
| GM | 63.93% |
OM growth 3Y8.85%
OM growth 5Y7.42%
PM growth 3Y-3.58%
PM growth 5Y7.79%
GM growth 3Y1.33%
GM growth 5Y1.2%
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 an improved debt to assets ratio.
2.2 Solvency
HEI has an Altman-Z score of 2.40. This is not the best score and indicates that HEI is in the grey zone with still only limited risk for bankruptcy at the moment.
HEI has a better Altman-Z score (2.40) than 69.23% of its industry peers.
The Debt to FCF ratio of HEI is 4.70, which is a neutral value as it means it would take HEI, 4.70 years of fcf income to pay off all of its debts.
HEI's Debt to FCF ratio of 4.70 is in line compared to the rest of the industry. HEI outperforms 53.85% of its industry peers.
HEI has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
HEI has a Debt to Equity ratio of 0.36. This is in the better half of the industry: HEI outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.13
WACC6.32%
2.3 Liquidity
A Current Ratio of 1.25 indicates that HEI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.25, HEI is doing worse than 76.92% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that HEI may have some problems paying its short term obligations.
HEI's Quick ratio of 0.86 is on the low side compared to the rest of the industry. HEI is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 |
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.
HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.04% yearly.
HEI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
Measured over the past years, HEI shows a small growth in Revenue. The Revenue has been growing by 5.34% on average per year.
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%2.28%
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.
HEI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.52% yearly.
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
With a Price/Earnings ratio of 30.61, HEI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, HEI is valued a bit more expensive than 61.54% of the companies in the same industry.
HEI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.62, which means the current valuation is very expensive for HEI.
69.23% of the companies in the same industry are cheaper than HEI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.41. HEI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.61 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEI indicates a slightly more expensive valuation: HEI is more expensive than 61.54% of the companies listed in the same industry.
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 | 17.42 | ||
| EV/EBITDA | 8.49 |
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)4.96
PEG (5Y)2.77
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
HEI has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.55, HEI is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.40, HEI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of HEI is nicely growing with an annual growth rate of 7.61%!
Dividend Growth(5Y)7.61%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
30.65% of the earnings are spent on dividend by HEI. This is a low number and sustainable payout ratio.
The dividend of HEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.65%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
FRA:HEI (6/17/2025, 12:02:01 PM)
177.85
-2.1 (-1.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners37.1%
Inst Owner ChangeN/A
Ins Owners28.4%
Ins Owner ChangeN/A
Market Cap31.73B
Analysts74.81
Price Target182.11 (2.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend3.03
Dividend Growth(5Y)7.61%
DP30.65%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)1.11%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)1.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
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)6.29%
PT rev (3m)22.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.61 | ||
| Fwd PE | 25.62 | ||
| P/S | 1.5 | ||
| P/FCF | 17.42 | ||
| P/OCF | 9.82 | ||
| P/B | 1.69 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 8.49 |
EPS(TTM)5.81
EY3.27%
EPS(NY)6.94
Fwd EY3.9%
FCF(TTM)10.21
FCFY5.74%
OCF(TTM)18.11
OCFY10.18%
SpS118.57
BVpS105.34
TBVpS52.54
PEG (NY)4.96
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.48% | ||
| ROCE | 9.54% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.99% | ||
| ROICexgc | 12.31% | ||
| OM | 13.55% | ||
| PM (TTM) | 8.42% | ||
| GM | 63.93% | ||
| FCFM | 8.61% |
ROA(3y)5.01%
ROA(5y)2.72%
ROE(3y)10.11%
ROE(5y)5.12%
ROIC(3y)6.57%
ROIC(5y)6.16%
ROICexc(3y)7.24%
ROICexc(5y)6.85%
ROICexgc(3y)11.06%
ROICexgc(5y)10.59%
ROCE(3y)8.78%
ROCE(5y)8.23%
ROICexcg growth 3Y8.18%
ROICexcg growth 5Y7.28%
ROICexc growth 3Y8.47%
ROICexc growth 5Y10.51%
OM growth 3Y8.85%
OM growth 5Y7.42%
PM growth 3Y-3.58%
PM growth 5Y7.79%
GM growth 3Y1.33%
GM growth 5Y1.2%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 91.27% | ||
| Cap/Sales | 6.67% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 73.24% | ||
| Profit Quality | 102.23% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.4 |
F-Score6
WACC6.32%
ROIC/WACC1.13
Cap/Depr(3y)98.1%
Cap/Depr(5y)88.57%
Cap/Sales(3y)6.42%
Cap/Sales(5y)6.47%
Profit Quality(3y)89.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%2.28%
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 1Y8.81%
EBIT growth 3Y13.38%
EBIT growth 5Y9.93%
EBIT Next Year50.77%
EBIT Next 3Y19.61%
EBIT Next 5Y13.85%
FCF growth 1Y-2.87%
FCF growth 3Y23.1%
FCF growth 5Y4.23%
OCF growth 1Y0.83%
OCF growth 3Y10.49%
OCF growth 5Y3.94%