HIGHLIGHT COMMUNICATIONS-BR(FRA:HLG) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to HLG. HLG was compared to 49 industry peers in the Entertainment industry. While HLG is still in line with the averages on profitability rating, there are concerns on its financial health. HLG is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year HLG has reported negative net income.

HLG had a positive operating cash flow in the past year.

In multiple years HLG reported negative net income over the last 5 years.

Each year in the past 5 years HLG had a positive operating cash flow.

1.2 Ratios

HLG's Return On Assets of -0.59% is in line compared to the rest of the industry. HLG outperforms 55.10% of its industry peers.

HLG has a Return On Equity (-2.49%) which is comparable to the rest of the industry.

Looking at the Return On Invested Capital, with a value of 4.92%, HLG is in the better half of the industry, outperforming 63.27% of the companies in the same industry.

HLG had an Average Return On Invested Capital over the past 3 years of 4.47%. This is significantly below the industry average of 9.64%.

The 3 year average ROIC (4.47%) for HLG is below the current ROIC(4.92%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	-0.59%
ROE	-2.49%
ROIC	4.92%

ROA(3y)-0.01%

ROA(5y)1.11%

ROE(3y)-0.2%

ROE(5y)3.85%

ROIC(3y)4.47%

ROIC(5y)5.32%

1.3 Margins

HLG has a Operating Margin (3.43%) which is in line with its industry peers.

HLG's Operating Margin has declined in the last couple of years.

Looking at the Gross Margin, with a value of 68.29%, HLG is in the better half of the industry, outperforming 65.31% of the companies in the same industry.

In the last couple of years the Gross Margin of HLG has declined.

		Industry Rank	Sector Rank
OM	3.43%
PM (TTM)	N/A
GM	68.29%

OM growth 3Y-33.57%

OM growth 5Y-20.28%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.87%

GM growth 5Y-2.51%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HLG is destroying value.

Compared to 1 year ago, HLG has about the same amount of shares outstanding.

The number of shares outstanding for HLG remains at a similar level compared to 5 years ago.

HLG has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.48, we must say that HLG is in the distress zone and has some risk of bankruptcy.

HLG's Altman-Z score of 0.48 is on the low side compared to the rest of the industry. HLG is outperformed by 65.31% of its industry peers.

The Debt to FCF ratio of HLG is 23.72, which is on the high side as it means it would take HLG, 23.72 years of fcf income to pay off all of its debts.

HLG has a Debt to FCF ratio (23.72) which is comparable to the rest of the industry.

HLG has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.

Looking at the Debt to Equity ratio, with a value of 0.17, HLG is in the better half of the industry, outperforming 73.47% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.17
Debt/FCF	23.72
Altman-Z	0.48

ROIC/WACC0.92

WACC5.32%

2.3 Liquidity

A Current Ratio of 0.33 indicates that HLG may have some problems paying its short term obligations.

HLG's Current ratio of 0.33 is on the low side compared to the rest of the industry. HLG is outperformed by 89.80% of its industry peers.

A Quick Ratio of 0.31 indicates that HLG may have some problems paying its short term obligations.

Looking at the Quick ratio, with a value of 0.31, HLG is doing worse than 89.80% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.33
Quick Ratio	0.31

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 66.98% over the past year.

HLG shows a decrease in Revenue. In the last year, the revenue decreased by -5.44%.

Measured over the past years, HLG shows a decrease in Revenue. The Revenue has been decreasing by -4.54% on average per year.

EPS 1Y (TTM)66.98%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%35.57%

Revenue 1Y (TTM)-5.44%

Revenue growth 3Y0.54%

Revenue growth 5Y-4.54%

Sales Q2Q%-1.84%

3.2 Future

The Earnings Per Share is expected to grow by 37.00% on average over the next years. This is a very strong growth

Based on estimates for the next years, HLG will show a small growth in Revenue. The Revenue will grow by 3.56% on average per year.

EPS Next Y42.86%

EPS Next 2Y64.75%

EPS Next 3Y37%

EPS Next 5YN/A

Revenue Next Year5.71%

Revenue Next 2Y4.35%

Revenue Next 3Y3.56%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

HLG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

A Price/Forward Earnings ratio of 22.44 indicates a rather expensive valuation of HLG.

HLG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HLG is cheaper than 65.31% of the companies in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, HLG is valued at the same level.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	22.44

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HLG is valued cheaper than 81.63% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, HLG is valued cheaper than 83.67% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.91
EV/EBITDA	3.57

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

HLG's earnings are expected to grow with 37.00% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y64.75%

EPS Next 3Y37%

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5. Dividend

5.1 Amount

HLG does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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HIGHLIGHT COMMUNICATIONS-BR

FRA:HLG (5/20/2025, 7:00:00 PM)

1.21

0 (0%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupMedia & Entertainment

GICS IndustryEntertainment

Earnings (Last)04-22 2025-04-22/amc

Earnings (Next)05-26 2025-05-26

Inst Owners20.97%

Inst Owner ChangeN/A

Ins Owners11.11%

Ins Owner ChangeN/A

Market Cap76.23M

Analysts40

Price Target1.02 (-15.7%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly Dividend0

Dividend Growth(5Y)N/A

DP0%

Div Incr Years0

Div Non Decr Years0

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)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

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)0%

PT rev (3m)-45.6%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)0%

EPS NY rev (3m)0%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)0%

Revenue NY rev (3m)0%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	22.44
P/S	0.17
P/FCF	6.91
P/OCF	0.58
P/B	0.47
P/tB	N/A
EV/EBITDA	3.57

EPS(TTM)-0.07

EYN/A

EPS(NY)0.05

Fwd EY4.46%

FCF(TTM)0.18

FCFY14.47%

OCF(TTM)2.08

OCFY172.11%

SpS7.08

BVpS2.58

TBVpS-4.13

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-0.59%
ROE	-2.49%
ROCE	6.99%
ROIC	4.92%
ROICexc	5.27%
ROICexgc	N/A
OM	3.43%
PM (TTM)	N/A
GM	68.29%
FCFM	2.47%

ROA(3y)-0.01%

ROA(5y)1.11%

ROE(3y)-0.2%

ROE(5y)3.85%

ROIC(3y)4.47%

ROIC(5y)5.32%

ROICexc(3y)5.24%

ROICexc(5y)6.18%

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)6.35%

ROCE(5y)7.55%

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3Y-20.21%

ROICexc growth 5Y-22.36%

OM growth 3Y-33.57%

OM growth 5Y-20.28%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.87%

GM growth 5Y-2.51%

F-Score5

Asset Turnover0.65

Health

		Industry Rank	Sector Rank
Debt/Equity	0.17
Debt/FCF	23.72
Debt/EBITDA	0.31
Cap/Depr	159.51%
Cap/Sales	26.94%
Interest Coverage	1.2
Cash Conversion	144.71%
Profit Quality	N/A
Current Ratio	0.33
Quick Ratio	0.31
Altman-Z	0.48

F-Score5

WACC5.32%

ROIC/WACC0.92

Cap/Depr(3y)119.37%

Cap/Depr(5y)102.35%

Cap/Sales(3y)20.46%

Cap/Sales(5y)18.86%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)66.98%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%35.57%

EPS Next Y42.86%

EPS Next 2Y64.75%

EPS Next 3Y37%

EPS Next 5YN/A

Revenue 1Y (TTM)-5.44%

Revenue growth 3Y0.54%

Revenue growth 5Y-4.54%

Sales Q2Q%-1.84%

Revenue Next Year5.71%

Revenue Next 2Y4.35%

Revenue Next 3Y3.56%

Revenue Next 5YN/A

EBIT growth 1Y75.28%

EBIT growth 3Y-33.21%

EBIT growth 5Y-23.91%

EBIT Next Year253.76%

EBIT Next 3Y63.16%

EBIT Next 5YN/A

FCF growth 1Y268.29%

FCF growth 3Y12.79%

FCF growth 5YN/A

OCF growth 1Y85.8%

OCF growth 3Y25.48%

OCF growth 5Y-4.1%

HIGHLIGHT COMMUNICATIONS-BR (HLG.DE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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