HEIDELBERG MATERIALS AG (HEI.DE) Stock Fundamental Analysis
FRA:HEI - Deutsche Boerse Ag - DE0006047004 - Common Stock - Currency: EUR
HEI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Construction Materials industry. HEI scores excellent on profitability, but 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
In the past year HEI was profitable.
HEI had a positive operating cash flow in the past year.
Of the past 5 years HEI 4 years were profitable.
In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
HEI has a better Return On Assets (4.78%) than 66.67% of its industry peers.
The Return On Equity of HEI (9.48%) is better than 66.67% of its industry peers.
HEI has a better Return On Invested Capital (7.14%) than 66.67% of its industry peers.
HEI had an Average Return On Invested Capital over the past 3 years of 6.57%. This is in line with the industry average of 8.12%.
The last Return On Invested Capital (7.14%) for HEI is above the 3 year average (6.57%), which is a sign of increasing profitability.
| 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 66.67% of its industry peers.
In the last couple of years the Profit Margin of HEI has grown nicely.
The Operating Margin of HEI (13.55%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of HEI has grown nicely.
HEI has a better Gross Margin (63.93%) than 75.00% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI is creating some value.
Compared to 1 year ago, HEI has less shares outstanding
HEI has less shares outstanding than it did 5 years ago.
HEI has a better debt/assets ratio than last year.
2.2 Solvency
HEI has an Altman-Z score of 2.39. 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.
With a decent Altman-Z score value of 2.39, HEI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
HEI has a debt to FCF ratio of 4.70. This is a neutral value as HEI would need 4.70 years to pay back of all of its debts.
HEI has a Debt to FCF ratio (4.70) which is in line with its industry peers.
A Debt/Equity ratio of 0.36 indicates that HEI is not too dependend on debt financing.
The Debt to Equity ratio of HEI (0.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.07
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.25 indicates that HEI should not have too much problems paying its short term obligations.
HEI has a Current ratio of 1.25. This is in the lower half of the industry: HEI underperforms 75.00% of its industry peers.
HEI has a Quick Ratio of 1.25. This is a bad value and indicates that HEI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HEI (0.86) is worse than 66.67% 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.
The Revenue has been growing slightly by 4.68% in the past year.
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%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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 30.80, HEI can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as HEI.
HEI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.78 indicates a quite expensive valuation of HEI.
Based on the Price/Forward Earnings ratio, HEI is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HEI to the average of the S&P500 Index (20.81), we can say HEI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.8 | ||
| Fwd PE | 25.78 |
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 66.67% 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 | 17.53 | ||
| EV/EBITDA | 8.45 |
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.
The decent profitability rating of HEI may justify a higher PE ratio.
PEG (NY)4.99
PEG (5Y)2.79
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
HEI has a Yearly Dividend Yield of 1.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.46, HEI is paying slightly less dividend.
HEI's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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 Years2
Div Non Decr Years3
5.3 Sustainability
30.65% 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.
DP30.65%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
FRA:HEI (5/2/2025, 7:00:00 PM)
178.95
+4.7 (+2.7%)
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 Cap31.93B
Analysts76.15
Price Target165.16 (-7.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend3.03
Dividend Growth(5Y)7.61%
DP30.65%
Div Incr Years2
Div Non Decr Years3
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)8.63%
PT rev (3m)22.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.23%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.8 | ||
| Fwd PE | 25.78 | ||
| P/S | 1.51 | ||
| P/FCF | 17.53 | ||
| P/OCF | 9.88 | ||
| P/B | 1.7 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)5.81
EY3.25%
EPS(NY)6.94
Fwd EY3.88%
FCF(TTM)10.21
FCFY5.7%
OCF(TTM)18.11
OCFY10.12%
SpS118.57
BVpS105.34
TBVpS52.54
PEG (NY)4.99
PEG (5Y)2.79
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 | 2.39 |
F-Score6
WACC6.64%
ROIC/WACC1.07
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 Year51.87%
EBIT Next 3Y19.48%
EBIT Next 5Y10.68%
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%