HEIDELBERG MATERIALS AG (HEI.DE) Stock Fundamental Analysis
FRA:HEI - Deutsche Boerse Ag - DE0006047004 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to HEI. HEI was compared to 14 industry peers in the Construction Materials industry. HEI has only an average score on both its financial health and profitability. 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.
HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEI's Return On Assets of 4.78% is in line compared to the rest of the industry. HEI outperforms 53.33% of its industry peers.
Looking at the Return On Equity, with a value of 9.48%, HEI is in line with its industry, outperforming 53.33% of the companies in the same industry.
HEI has a Return On Invested Capital (7.14%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 7.71%.
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 comparable to the rest of the industry.
HEI's Profit Margin has improved in the last couple of years.
HEI has a Operating Margin (13.55%) which is in line with its industry peers.
HEI's Operating Margin has improved in the last couple of years.
HEI has a better Gross Margin (63.93%) than 73.33% of its industry peers.
HEI's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for HEI has been reduced compared to 1 year ago.
Compared to 5 years ago, HEI has less shares outstanding
The debt/assets ratio for HEI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.54 indicates that HEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.54, HEI is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
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 has a Debt to FCF ratio (4.70) which is in line with 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 comparable to the rest of the industry: HEI outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.09
WACC6.54%
2.3 Liquidity
HEI has a Current Ratio of 1.25. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.25, HEI is doing worse than 73.33% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.86, HEI is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.67% over the past year.
HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.04% yearly.
Looking at the last year, HEI shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
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
Based on estimates for the next years, HEI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.58% on average per year.
Based on estimates for the next years, HEI will show a small growth in Revenue. The Revenue will grow by 3.52% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.04 indicates a quite expensive valuation of HEI.
Based on the Price/Earnings ratio, HEI is valued a bit more expensive than 73.33% of the companies in the same industry.
HEI is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.33, which means the current valuation is very expensive for HEI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI indicates a slightly more expensive valuation: HEI is more expensive than 73.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. HEI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.04 | ||
| Fwd PE | 29.33 |
4.2 Price Multiples
80.00% of the companies in the same industry are cheaper than HEI, based on the Enterprise Value to EBITDA ratio.
HEI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HEI is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 9.44 |
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)5.68
PEG (5Y)3.18
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, HEI has a reasonable but not impressive dividend return.
HEI's Dividend Yield is slightly below the industry average, which is at 3.51.
Compared to the average S&P500 Dividend Yield of 2.35, HEI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
HEI pays out 30.65% of its income as dividend. This is a 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 (7/11/2025, 7:00:00 PM)
203.6
-1.2 (-0.59%)
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 Cap36.33B
Analysts73.33
Price Target186.31 (-8.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)2.31%
PT rev (3m)15.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.23%
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 | 35.04 | ||
| Fwd PE | 29.33 | ||
| P/S | 1.72 | ||
| P/FCF | 19.94 | ||
| P/OCF | 11.24 | ||
| P/B | 1.93 | ||
| P/tB | 3.87 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)5.81
EY2.85%
EPS(NY)6.94
Fwd EY3.41%
FCF(TTM)10.21
FCFY5.01%
OCF(TTM)18.11
OCFY8.9%
SpS118.57
BVpS105.34
TBVpS52.54
PEG (NY)5.68
PEG (5Y)3.18
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 | 2.54 |
F-Score6
WACC6.54%
ROIC/WACC1.09
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 5Y13.39%
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%