HEIDELBERG MATERIALS AG (1HEI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HEI - DE0006047004 - Common Stock
236 EUR
+13.9 (+6.26%)
Taking everything into account, 1HEI scores 5 out of 10 in our fundamental rating. 1HEI was compared to 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
- 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
- The Return On Assets of 1HEI (5.14%) is better than 62.50% of its industry peers.
- With a decent Return On Equity value of 10.35%, 1HEI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- With a decent Return On Invested Capital value of 7.73%, 1HEI is doing good in the industry, outperforming 62.50% 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 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
- The Profit Margin of 1HEI (8.42%) is better than 68.75% of its industry peers.
- In the last couple of years the Profit Margin of 1HEI has grown nicely.
- 1HEI has a Operating Margin of 13.55%. This is in the better half of the industry: 1HEI outperforms 62.50% of its industry peers.
- In the last couple of years the Operating Margin of 1HEI has grown nicely.
- The Gross Margin of 1HEI (63.93%) is better than 81.25% 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.
- 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 2.78. 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 2.78, 1HEI perfoms like the industry average, outperforming 50.00% 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 in line with its industry peers.
- A Debt/Equity ratio of 0.38 indicates that 1HEI is not too dependend on debt financing.
- The Debt to Equity ratio of 1HEI (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.13
WACC6.85%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that 1HEI should not have too much problems paying its short term obligations.
- The Current ratio of 1HEI (1.13) is worse than 87.50% of its industry peers.
- A Quick Ratio of 0.73 indicates that 1HEI may have some problems paying its short term obligations.
- 1HEI has a Quick ratio of 0.73. This is in the lower half of the industry: 1HEI underperforms 75.00% 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.
- The Earnings Per Share has been growing by 11.04% on average over the past years. This is quite good.
- 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
- 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
- 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
- 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 62.50% of the companies listed in the same industry.
- 1HEI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 34.00, 1HEI can be considered very expensive at the moment.
- 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 75.00% of the companies listed in the same industry.
- 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
- 81.25% of the companies in the same industry are cheaper than 1HEI, based on the Enterprise Value to EBITDA ratio.
- 75.00% of the companies in the same industry are cheaper than 1HEI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 10.77 |
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.
- 1HEI has a very decent profitability rating, which 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%.
- 1HEI's Dividend Yield is slightly below the industry average, which is at 2.76.
- 1HEI's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| 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
- 1HEI pays out 33.05% of its income as dividend. This is a 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.