HEIDELBERG MATERIALS AG (1HEI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HEI - DE0006047004 - Common Stock
236 EUR
+14.6 (+6.59%)
Overall 1HEI gets a fundamental rating of 5 out of 10. We evaluated 1HEI against 17 industry peers in the Construction Materials industry. While 1HEI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1HEI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1HEI had positive earnings in the past year.
- 1HEI had a positive operating cash flow in the past year.
- 1HEI had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years 1HEI had a positive operating cash flow.
1.2 Ratios
- 1HEI has a Return On Assets (5.14%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 10.35%, 1HEI is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- 1HEI's Return On Invested Capital of 7.73% is fine compared to the rest of the industry. 1HEI outperforms 64.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1HEI is in line with the industry average of 7.81%.
- The last Return On Invested Capital (7.73%) for 1HEI is above the 3 year average (6.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 10.35% | ||
| ROIC | 7.73% |
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
- 1HEI has a better Profit Margin (8.42%) than 64.71% of its industry peers.
- In the last couple of years the Profit Margin of 1HEI has grown nicely.
- The Operating Margin of 1HEI (13.55%) is comparable to the rest of the industry.
- 1HEI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 63.93%, 1HEI belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
- 1HEI'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
- 1HEI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, 1HEI has less shares outstanding
- Compared to 5 years ago, 1HEI has less shares outstanding
- Compared to 1 year ago, 1HEI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.87 indicates that 1HEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1HEI has a Altman-Z score of 2.87. This is comparable to the rest of the industry: 1HEI outperforms 52.94% of its industry peers.
- 1HEI has a debt to FCF ratio of 4.57. This is a neutral value as 1HEI would need 4.57 years to pay back of all of its debts.
- 1HEI has a Debt to FCF ratio (4.57) which is comparable to the rest of the industry.
- 1HEI has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.38, 1HEI is in line with its industry, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.11
WACC6.99%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that 1HEI should not have too much problems paying its short term obligations.
- 1HEI's Current ratio of 1.13 is on the low side compared to the rest of the industry. 1HEI is outperformed by 88.24% of its industry peers.
- 1HEI has a Quick Ratio of 1.13. This is a bad value and indicates that 1HEI is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of 1HEI (0.73) is worse than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- 1HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.67%, which is quite impressive.
- 1HEI 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.
- 1HEI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.34% yearly.
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%N/A
Revenue 1Y (TTM)4.68%
Revenue growth 3Y10.31%
Revenue growth 5Y5.34%
Sales Q2Q%0.89%
3.2 Future
- Based on estimates for the next years, 1HEI 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, 1HEI 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
- 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.
- 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 40.62 indicates a quite expensive valuation of 1HEI.
- Compared to the rest of the industry, the Price/Earnings ratio of 1HEI indicates a slightly more expensive valuation: 1HEI is more expensive than 64.71% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1HEI is valued a bit more expensive.
- 1HEI is valuated quite expensively with a Price/Forward Earnings ratio of 34.00.
- 76.47% of the companies in the same industry are cheaper than 1HEI, based on the Price/Forward Earnings ratio.
- 1HEI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.62 | ||
| Fwd PE | 34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1HEI is valued expensively inside the industry as 82.35% of the companies are valued cheaper.
- Based on the Price/Free Cash Flow ratio, 1HEI is valued a bit more expensive than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of 1HEI may justify a higher PE ratio.
PEG (NY)6.58
PEG (5Y)3.68
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
- 1HEI has a Yearly Dividend Yield of 1.41%.
- Compared to an average industry Dividend Yield of 2.76, 1HEI is paying slightly less dividend.
- Compared to the average S&P500 Dividend Yield of 1.81, 1HEI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
- On average, the dividend of 1HEI grows each year by 7.61%, which is quite nice.
Dividend Growth(5Y)7.61%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 33.05% of the earnings are spent on dividend by 1HEI. This is a low number and sustainable payout ratio.
- The dividend of 1HEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.05%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
HEIDELBERG MATERIALS AG / 1HEI.MI FAQ
Can you provide the ChartMill fundamental rating for HEIDELBERG MATERIALS AG?
ChartMill assigns a fundamental rating of 5 / 10 to 1HEI.MI.
What is the valuation status of HEIDELBERG MATERIALS AG (1HEI.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to HEIDELBERG MATERIALS AG (1HEI.MI). This can be considered as Overvalued.
Can you provide the profitability details for HEIDELBERG MATERIALS AG?
HEIDELBERG MATERIALS AG (1HEI.MI) has a profitability rating of 7 / 10.
What is the financial health of HEIDELBERG MATERIALS AG (1HEI.MI) stock?
The financial health rating of HEIDELBERG MATERIALS AG (1HEI.MI) is 4 / 10.
What is the earnings growth outlook for HEIDELBERG MATERIALS AG?
The Earnings per Share (EPS) of HEIDELBERG MATERIALS AG (1HEI.MI) is expected to grow by 6.17% in the next year.