HEIDELBERG MATERIALS AG (1HEI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HEI - DE0006047004 - Common Stock
236 EUR
+14.6 (+6.59%)
1HEI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
- In the past year 1HEI had a positive cash flow from operations.
- 1HEI had positive earnings in 4 of the past 5 years.
- 1HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1HEI has a Return On Assets of 5.14%. This is comparable to the rest of the industry: 1HEI outperforms 58.82% of its industry peers.
- 1HEI's Return On Equity of 10.35% is fine compared to the rest of the industry. 1HEI outperforms 64.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.73%, 1HEI is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- 1HEI had an Average Return On Invested Capital over the past 3 years of 6.57%. This is in line with the industry average of 7.81%.
- The 3 year average ROIC (6.57%) for 1HEI is below the current ROIC(7.73%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 8.42%, 1HEI is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1HEI has grown nicely.
- 1HEI has a Operating Margin (13.55%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of 1HEI has grown nicely.
- 1HEI's Gross Margin of 63.93% is amongst the best of the industry. 1HEI outperforms 82.35% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1HEI is creating some value.
- 1HEI has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1HEI has less shares outstanding
- 1HEI has a better debt/assets ratio than last year.
2.2 Solvency
- 1HEI has an Altman-Z score of 2.87. This is not the best score and indicates that 1HEI is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.87, 1HEI perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
- The Debt to FCF ratio of 1HEI is 4.57, which is a neutral value as it means it would take 1HEI, 4.57 years of fcf income to pay off all of its debts.
- 1HEI has a Debt to FCF ratio (4.57) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.38 indicates that 1HEI is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.38, 1HEI perfoms like the industry average, 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/WACC1.1
WACC7%
2.3 Liquidity
- 1HEI has a Current Ratio of 1.13. This is a normal value and indicates that 1HEI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.13, 1HEI is doing worse than 88.24% of the companies in the same industry.
- 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.
- 1HEI's Quick ratio of 0.73 is on the low side compared to the rest of the industry. 1HEI is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 25.67% over the past year.
- The Earnings Per Share has been growing by 11.04% on average over the past years. This is quite good.
- 1HEI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
- The Revenue has been growing slightly by 5.34% on average over the past years.
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
- The Earnings Per Share is expected to grow by 12.58% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.52% on average over the next years.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 40.62, the valuation of 1HEI can be described as expensive.
- 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.
- The average S&P500 Price/Earnings ratio is at 28.87. 1HEI is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 34.00, the valuation of 1HEI can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HEI indicates a slightly more expensive valuation: 1HEI is more expensive than 76.47% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, 1HEI is valued a bit more expensive.
| 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 more expensive than 82.35% of the companies in the same industry.
- 1HEI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1HEI is 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 1.82, 1HEI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
- The dividend of 1HEI is nicely growing with an annual growth rate of 7.61%!
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.