HEINEKEN NV (HEIA.AS)

NL0000009165 - Common Stock

92.34  -1.04 (-1.11%)

Fundamental Rating

3

Taking everything into account, HEIA scores 3 out of 10 in our fundamental rating. HEIA was compared to 25 industry peers in the Beverages industry. HEIA has a medium profitability rating, but doesn't score so well on its financial health evaluation. HEIA is valied quite expensively at the moment, while it does show a decent growth rate.



4

1. Profitability

1.1 Basic Checks

HEIA had positive earnings in the past year.
HEIA had a positive operating cash flow in the past year.
HEIA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HEIA had a positive operating cash flow.

1.2 Ratios

The Return On Assets of HEIA (4.18%) is comparable to the rest of the industry.
HEIA's Return On Equity of 11.49% is fine compared to the rest of the industry. HEIA outperforms 66.67% of its industry peers.
The Return On Invested Capital of HEIA (8.46%) is better than 79.17% of its industry peers.
HEIA had an Average Return On Invested Capital over the past 3 years of 7.71%. This is in line with the industry average of 7.57%.
The 3 year average ROIC (7.71%) for HEIA is below the current ROIC(8.46%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.18%
ROE 11.49%
ROIC 8.46%
ROA(3y)5.37%
ROA(5y)4.06%
ROE(3y)14.79%
ROE(5y)11.25%
ROIC(3y)7.71%
ROIC(5y)7.39%

1.3 Margins

The Profit Margin of HEIA (7.59%) is comparable to the rest of the industry.
HEIA's Profit Margin has declined in the last couple of years.
HEIA's Operating Margin of 13.86% is in line compared to the rest of the industry. HEIA outperforms 45.83% of its industry peers.
In the last couple of years the Operating Margin of HEIA has declined.
HEIA has a worse Gross Margin (19.54%) than 95.83% of its industry peers.
In the last couple of years the Gross Margin of HEIA has declined.
Industry RankSector Rank
OM 13.86%
PM (TTM) 7.59%
GM 19.54%
OM growth 3Y7.69%
OM growth 5Y-2.65%
PM growth 3YN/A
PM growth 5Y-2.26%
GM growth 3Y-1.54%
GM growth 5Y-1.83%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEIA is still creating some value.
HEIA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HEIA has been reduced compared to 5 years ago.
Compared to 1 year ago, HEIA has a worse debt to assets ratio.

2.2 Solvency

HEIA has an Altman-Z score of 2.16. This is not the best score and indicates that HEIA is in the grey zone with still only limited risk for bankruptcy at the moment.
HEIA has a Altman-Z score (2.16) which is comparable to the rest of the industry.
The Debt to FCF ratio of HEIA is 10.40, which is on the high side as it means it would take HEIA, 10.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HEIA (10.40) is better than 62.50% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that HEIA is somewhat dependend on debt financing.
HEIA has a Debt to Equity ratio (0.77) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 10.4
Altman-Z 2.16
ROIC/WACC1.37
WACC6.2%

2.3 Liquidity

A Current Ratio of 0.77 indicates that HEIA may have some problems paying its short term obligations.
HEIA has a Current ratio of 0.77. This is amonst the worse of the industry: HEIA underperforms 83.33% of its industry peers.
HEIA has a Quick Ratio of 0.77. This is a bad value and indicates that HEIA is not financially healthy enough and could expect problems in meeting its short term obligations.
HEIA's Quick ratio of 0.52 is on the low side compared to the rest of the industry. HEIA is outperformed by 70.83% of its industry peers.
Industry RankSector Rank
Current Ratio 0.77
Quick Ratio 0.52

4

3. Growth

3.1 Past

HEIA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.14%.
HEIA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.90% yearly.
HEIA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.72%.
HEIA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
EPS 1Y (TTM)-5.14%
EPS 3Y32.67%
EPS 5Y1.9%
EPS Q2Q%0.76%
Revenue 1Y (TTM)5.72%
Revenue growth 3Y15.48%
Revenue growth 5Y6.19%
Sales Q2Q%3.68%

3.2 Future

The Earnings Per Share is expected to grow by 13.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y5.18%
EPS Next 2Y10.85%
EPS Next 3Y10.93%
EPS Next 5Y13.63%
Revenue Next Year4.71%
Revenue Next 2Y4.72%
Revenue Next 3Y4.78%
Revenue Next 5Y4.83%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.77 indicates a rather expensive valuation of HEIA.
The rest of the industry has a similar Price/Earnings ratio as HEIA.
HEIA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.20.
With a Price/Forward Earnings ratio of 18.80, HEIA is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEIA is on the same level as its industry peers.
HEIA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.02.
Industry RankSector Rank
PE 19.77
Fwd PE 18.8

4.2 Price Multiples

HEIA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HEIA is cheaper than 75.00% of the companies in the same industry.
HEIA's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 29.78
EV/EBITDA 9.2

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.82
PEG (5Y)10.39
EPS Next 2Y10.85%
EPS Next 3Y10.93%

3

5. Dividend

5.1 Amount

HEIA has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
HEIA's Dividend Yield is slightly below the industry average, which is at 2.32.
Compared to the average S&P500 Dividend Yield of 2.37, HEIA is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.83%

5.2 History

The dividend of HEIA has a limited annual growth rate of 4.13%.
Dividend Growth(5Y)4.13%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

HEIA pays out 57.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
HEIA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.94%
EPS Next 2Y10.85%
EPS Next 3Y10.93%

HEINEKEN NV

AMS:HEIA (5/29/2024, 5:35:30 PM)

92.34

-1.04 (-1.11%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.21B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.83%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 19.77
Fwd PE 18.8
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.82
PEG (5Y)10.39
Profitability
Industry RankSector Rank
ROA 4.18%
ROE 11.49%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.86%
PM (TTM) 7.59%
GM 19.54%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.77
Quick Ratio 0.52
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.14%
EPS 3Y32.67%
EPS 5Y
EPS Q2Q%
EPS Next Y5.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.72%
Revenue growth 3Y15.48%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y