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. 1HEI has an excellent profitability rating, but there are some minor concerns on its financial health. 1HEI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1HEI was profitable.
- 1HEI had a positive operating cash flow in the past year.
- Of the past 5 years 1HEI 4 years were profitable.
- In the past 5 years 1HEI always reported a positive cash flow from operatings.
1.2 Ratios
- 1HEI has a Return On Assets (5.14%) which is in line with its industry peers.
- The Return On Equity of 1HEI (10.35%) is better than 64.71% of its industry peers.
- With a decent Return On Invested Capital value of 7.73%, 1HEI is doing good in the industry, outperforming 64.71% of the companies in the same industry.
- 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's Profit Margin of 8.42% is fine compared to the rest of the industry. 1HEI outperforms 64.71% of its industry peers.
- In the last couple of years the Profit Margin of 1HEI has grown nicely.
- Looking at the Operating Margin, with a value of 13.55%, 1HEI is in line with its industry, outperforming 58.82% of the companies in the same 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.
- In the last couple of years the Gross Margin of 1HEI has remained more or less at the same level.
| 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.
- Compared to 1 year ago, 1HEI has less shares outstanding
- Compared to 5 years ago, 1HEI has less shares outstanding
- 1HEI has a better debt/assets ratio than last year.
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 (2.87) which is comparable to the rest of the 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.
- With a Debt to FCF ratio value of 4.57, 1HEI perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
- A Debt/Equity ratio of 0.38 indicates that 1HEI is not too dependend on debt financing.
- 1HEI has a Debt to Equity ratio (0.38) which is comparable to the rest of the 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.
- With a Current ratio value of 1.13, 1HEI is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
- A Quick Ratio of 0.73 indicates that 1HEI may have some problems paying 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.
- Measured over the past years, 1HEI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.04% on average per year.
- Looking at the last year, 1HEI shows a small growth in Revenue. The Revenue has grown by 4.68% in the last year.
- 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
- 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.
- 1HEI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.52% yearly.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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.
- 1HEI's Price/Earnings ratio is a bit more expensive when compared to the industry. 1HEI is more expensive than 64.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1HEI to the average of the S&P500 Index (27.25), we can say 1HEI is valued slightly more expensively.
- A Price/Forward Earnings ratio of 34.00 indicates a quite expensive valuation of 1HEI.
- Based on the Price/Forward Earnings ratio, 1HEI is valued a bit more expensive than the industry average as 76.47% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 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.
- Based on the Price/Free Cash Flow ratio, 1HEI is valued a bit more expensive than the industry average as 70.59% of the companies are valued more cheaply.
| 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 1HEI does not grow enough to justify the current Price/Earnings ratio.
- 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
- With a Yearly Dividend Yield of 1.41%, 1HEI has a reasonable but not impressive dividend return.
- 1HEI's Dividend Yield is slightly below the industry average, which is at 2.76.
- 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
- 1HEI pays out 33.05% of its income as dividend. This is a sustainable payout ratio.
- 1HEI's earnings are growing more than its dividend. This makes the dividend growth 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.