HEIDELBERG MATERIALS AG (1HEI.MI) Stock Fundamental Analysis
BIT:1HEI - Euronext Milan - DE0006047004 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1HEI. 1HEI was compared to 12 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. While showing a medium growth rate, 1HEI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1HEI was profitable.
In the past year 1HEI had a positive cash flow from operations.
Of the past 5 years 1HEI 4 years were profitable.
1HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.78%, 1HEI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
1HEI's Return On Equity of 9.48% is fine compared to the rest of the industry. 1HEI outperforms 75.00% of its industry peers.
The Return On Invested Capital of 1HEI (7.14%) is better than 75.00% of its industry peers.
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 8.12%.
The last Return On Invested Capital (7.14%) for 1HEI is above the 3 year average (6.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.48% | ||
| ROIC | 7.14% |
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
The Profit Margin of 1HEI (8.42%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of 1HEI has grown nicely.
With a decent Operating Margin value of 13.55%, 1HEI is doing good in the industry, outperforming 75.00% 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 83.33% 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.
The number of shares outstanding for 1HEI has been reduced compared to 1 year ago.
1HEI has less shares outstanding than it did 5 years ago.
1HEI has a better debt/assets ratio than last year.
2.2 Solvency
1HEI has an Altman-Z score of 2.30. 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.
1HEI has a better Altman-Z score (2.30) than 66.67% of its industry peers.
The Debt to FCF ratio of 1HEI is 4.70, which is a neutral value as it means it would take 1HEI, 4.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.70, 1HEI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1HEI has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
1HEI has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: 1HEI outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.06
WACC6.76%
2.3 Liquidity
1HEI has a Current Ratio of 1.25. This is a normal value and indicates that 1HEI is financially healthy and should not expect problems in meeting its short term obligations.
1HEI has a worse Current ratio (1.25) than 66.67% of its industry peers.
1HEI has a Quick Ratio of 1.25. 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 0.86 is in line compared to the rest of the industry. 1HEI outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.67% over the past year.
1HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.04% yearly.
Looking at the last year, 1HEI shows a small growth in Revenue. The Revenue has grown by 4.68% in the last 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%2.28%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y10.31%
Revenue growth 5Y5.34%
Sales Q2Q%6.12%
3.2 Future
1HEI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.58% yearly.
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.
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
The Price/Earnings ratio is 28.16, which means the current valuation is very expensive for 1HEI.
Compared to the rest of the industry, the Price/Earnings ratio of 1HEI is on the same level as its industry peers.
1HEI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.57, which indicates a rather expensive current valuation of 1HEI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1HEI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.38. 1HEI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 23.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1HEI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1HEI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 7.83 |
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)4.56
PEG (5Y)2.55
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, 1HEI has a reasonable but not impressive dividend return.
1HEI's Dividend Yield is comparable with the industry average which is at 3.50.
Compared to an average S&P500 Dividend Yield of 2.46, 1HEI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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
30.65% 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.
DP30.65%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
BIT:1HEI (4/23/2025, 7:00:00 PM)
163.6
+0.3 (+0.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners35.71%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.19B
Analysts76.15
Price Target162.33 (-0.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend3.03
Dividend Growth(5Y)7.61%
DP30.65%
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)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)1.11%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)1.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
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)20.77%
PT rev (3m)40.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.25%
EPS NY rev (3m)5.92%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 23.57 | ||
| P/S | 1.38 | ||
| P/FCF | 16.03 | ||
| P/OCF | 9.03 | ||
| P/B | 1.55 | ||
| P/tB | 3.11 | ||
| EV/EBITDA | 7.83 |
EPS(TTM)5.81
EY3.55%
EPS(NY)6.94
Fwd EY4.24%
FCF(TTM)10.21
FCFY6.24%
OCF(TTM)18.11
OCFY11.07%
SpS118.57
BVpS105.34
TBVpS52.54
PEG (NY)4.56
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.48% | ||
| ROCE | 9.54% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.99% | ||
| ROICexgc | 12.31% | ||
| OM | 13.55% | ||
| PM (TTM) | 8.42% | ||
| GM | 63.93% | ||
| FCFM | 8.61% |
ROA(3y)5.01%
ROA(5y)2.72%
ROE(3y)10.11%
ROE(5y)5.12%
ROIC(3y)6.57%
ROIC(5y)6.16%
ROICexc(3y)7.24%
ROICexc(5y)6.85%
ROICexgc(3y)11.06%
ROICexgc(5y)10.59%
ROCE(3y)8.78%
ROCE(5y)8.23%
ROICexcg growth 3Y8.18%
ROICexcg growth 5Y7.28%
ROICexc growth 3Y8.47%
ROICexc growth 5Y10.51%
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%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 91.27% | ||
| Cap/Sales | 6.67% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 73.24% | ||
| Profit Quality | 102.23% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.3 |
F-Score6
WACC6.76%
ROIC/WACC1.06
Cap/Depr(3y)98.1%
Cap/Depr(5y)88.57%
Cap/Sales(3y)6.42%
Cap/Sales(5y)6.47%
Profit Quality(3y)89.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%2.28%
EPS Next Y6.17%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
EPS Next 5Y12.58%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y10.31%
Revenue growth 5Y5.34%
Sales Q2Q%6.12%
Revenue Next Year6.26%
Revenue Next 2Y-1%
Revenue Next 3Y1.22%
Revenue Next 5Y3.52%
EBIT growth 1Y8.81%
EBIT growth 3Y13.38%
EBIT growth 5Y9.93%
EBIT Next Year52.22%
EBIT Next 3Y19.65%
EBIT Next 5Y11.66%
FCF growth 1Y-2.87%
FCF growth 3Y23.1%
FCF growth 5Y4.23%
OCF growth 1Y0.83%
OCF growth 3Y10.49%
OCF growth 5Y3.94%