HIGHLIGHT COMMUNICATIONS-BR (HLG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HLG - CH0006539198 - Common Stock
1.24 EUR
-0.04 (-3.12%)
HLG gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 44 industry peers in the Entertainment industry. Both the profitability and financial health of HLG have multiple concerns. HLG does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
HLG had negative earnings in the past year.
HLG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HLG reported negative net income in multiple years.
In the past 5 years HLG always reported a positive cash flow from operatings.
1.2 Ratios
HLG's Return On Assets of -10.45% is on the low side compared to the rest of the industry. HLG is outperformed by 77.27% of its industry peers.
HLG's Return On Equity of -51.43% is on the low side compared to the rest of the industry. HLG is outperformed by 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.21%, HLG is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
HLG had an Average Return On Invested Capital over the past 3 years of 2.76%. This is significantly below the industry average of 9.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.45% | ||
| ROE | -51.43% | ||
| ROIC | 2.21% |
ROA(3y)-2.22%
ROA(5y)-0.52%
ROE(3y)-9.14%
ROE(5y)-2.66%
ROIC(3y)2.76%
ROIC(5y)4.37%
1.3 Margins
HLG's Operating Margin of 1.05% is in line compared to the rest of the industry. HLG outperforms 52.27% of its industry peers.
HLG's Operating Margin has declined in the last couple of years.
HLG has a Gross Margin (52.17%) which is in line with its industry peers.
In the last couple of years the Gross Margin of HLG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.05% | ||
| PM (TTM) | N/A | ||
| GM | 52.17% |
OM growth 3Y-35.53%
OM growth 5Y-28.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.9%
GM growth 5Y-1.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLG is destroying value.
The number of shares outstanding for HLG remains at a similar level compared to 1 year ago.
Compared to 5 years ago, HLG has about the same amount of shares outstanding.
HLG has a worse debt/assets ratio than last year.
2.2 Solvency
HLG has an Altman-Z score of 0.58. This is a bad value and indicates that HLG is not financially healthy and even has some risk of bankruptcy.
HLG has a worse Altman-Z score (0.58) than 61.36% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that HLG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, HLG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.37
WACC6.02%
2.3 Liquidity
HLG has a Current Ratio of 0.31. This is a bad value and indicates that HLG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HLG (0.31) is worse than 97.73% of its industry peers.
HLG has a Quick Ratio of 0.31. This is a bad value and indicates that HLG is not financially healthy enough and could expect problems in meeting its short term obligations.
HLG's Quick ratio of 0.29 is on the low side compared to the rest of the industry. HLG is outperformed by 97.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
HLG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -160.91%.
HLG shows a decrease in Revenue. In the last year, the revenue decreased by -4.09%.
The Revenue has been decreasing by -3.66% on average over the past years.
EPS 1Y (TTM)-160.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y-7.35%
Revenue growth 5Y-3.66%
Sales Q2Q%42.11%
3.2 Future
HLG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 65.10% yearly.
The Revenue is expected to grow by 0.94% on average over the next years.
EPS Next Y-100%
EPS Next 2Y73.21%
EPS Next 3Y65.1%
EPS Next 5YN/A
Revenue Next Year-1.15%
Revenue Next 2Y0.41%
Revenue Next 3Y0.94%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for HLG. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 28.52, the valuation of HLG can be described as expensive.
HLG's Price/Forward Earnings is on the same level as the industry average.
HLG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLG is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.96 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HLG's earnings are expected to grow with 65.10% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y73.21%
EPS Next 3Y65.1%
5. Dividend
5.1 Amount
HLG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:HLG (12/30/2025, 7:00:00 PM)
1.24
-0.04 (-3.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners12.11%
Inst Owner ChangeN/A
Ins Owners11.11%
Ins Owner ChangeN/A
Market Cap78.12M
Revenue(TTM)565.74M
Net Income(TTM)-62.92M
Analysts40
Price Target1.02 (-17.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP-0.85%
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)0%
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 | 28.52 | ||
| P/S | 0.14 | ||
| P/FCF | N/A | ||
| P/OCF | 0.89 | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.96 |
EPS(TTM)-0.53
EYN/A
EPS(NY)0.04
Fwd EY3.51%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)1.39
OCFY111.9%
SpS9.12
BVpS2.09
TBVpS-4.53
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.45% | ||
| ROE | -51.43% | ||
| ROCE | 3.14% | ||
| ROIC | 2.21% | ||
| ROICexc | 2.44% | ||
| ROICexgc | N/A | ||
| OM | 1.05% | ||
| PM (TTM) | N/A | ||
| GM | 52.17% | ||
| FCFM | N/A |
ROA(3y)-2.22%
ROA(5y)-0.52%
ROE(3y)-9.14%
ROE(5y)-2.66%
ROIC(3y)2.76%
ROIC(5y)4.37%
ROICexc(3y)3.06%
ROICexc(5y)5.07%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.91%
ROCE(5y)6.21%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-38.31%
ROICexc growth 5Y-23.39%
OM growth 3Y-35.53%
OM growth 5Y-28.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.9%
GM growth 5Y-1.3%
F-Score3
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 90.55% | ||
| Cap/Sales | 16.2% | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | 80.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.58 |
F-Score3
WACC6.02%
ROIC/WACC0.37
Cap/Depr(3y)135.85%
Cap/Depr(5y)107.5%
Cap/Sales(3y)23.09%
Cap/Sales(5y)19.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-160.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y-100%
EPS Next 2Y73.21%
EPS Next 3Y65.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y-7.35%
Revenue growth 5Y-3.66%
Sales Q2Q%42.11%
Revenue Next Year-1.15%
Revenue Next 2Y0.41%
Revenue Next 3Y0.94%
Revenue Next 5YN/A
EBIT growth 1Y-46.02%
EBIT growth 3Y-40.27%
EBIT growth 5Y-31.13%
EBIT Next Year220.83%
EBIT Next 3Y68.1%
EBIT Next 5YN/A
FCF growth 1Y81.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.92%
OCF growth 3Y-15.09%
OCF growth 5Y-21.92%
HIGHLIGHT COMMUNICATIONS-BR / HLG.DE FAQ
What is the fundamental rating for HLG stock?
ChartMill assigns a fundamental rating of 2 / 10 to HLG.DE.
Can you provide the valuation status for HIGHLIGHT COMMUNICATIONS-BR?
ChartMill assigns a valuation rating of 2 / 10 to HIGHLIGHT COMMUNICATIONS-BR (HLG.DE). This can be considered as Overvalued.
Can you provide the profitability details for HIGHLIGHT COMMUNICATIONS-BR?
HIGHLIGHT COMMUNICATIONS-BR (HLG.DE) has a profitability rating of 3 / 10.
Can you provide the financial health for HLG stock?
The financial health rating of HIGHLIGHT COMMUNICATIONS-BR (HLG.DE) is 1 / 10.
Can you provide the expected EPS growth for HLG stock?
The Earnings per Share (EPS) of HIGHLIGHT COMMUNICATIONS-BR (HLG.DE) is expected to decline by -100% in the next year.