HORNBACH HOLDING AG & CO KGA (HBH.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HBH - DE0006083405 - Common Stock
82.2 EUR
-0.5 (-0.6%)
Overall HBH gets a fundamental rating of 5 out of 10. We evaluated HBH against 56 industry peers in the Specialty Retail industry. Both the profitability and the financial health of HBH get a neutral evaluation. Nothing too spectacular is happening here. HBH has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- HBH had positive earnings in the past year.
- HBH had a positive operating cash flow in the past year.
- In the past 5 years HBH has always been profitable.
- HBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HBH has a better Return On Assets (3.03%) than 64.29% of its industry peers.
- HBH has a Return On Equity (6.72%) which is in line with its industry peers.
- The Return On Invested Capital of HBH (5.28%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for HBH is below the industry average of 10.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 6.72% | ||
| ROIC | 5.28% |
ROA(3y)3.06%
ROA(5y)3.59%
ROE(3y)7.6%
ROE(5y)9.25%
ROIC(3y)5.42%
ROIC(5y)6.27%
1.3 Margins
- HBH's Profit Margin of 2.21% is fine compared to the rest of the industry. HBH outperforms 60.71% of its industry peers.
- HBH's Profit Margin has been stable in the last couple of years.
- With a Operating Margin value of 4.07%, HBH perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
- HBH's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 34.88%, HBH perfoms like the industry average, outperforming 48.21% of the companies in the same industry.
- HBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.07% | ||
| PM (TTM) | 2.21% | ||
| GM | 34.88% |
OM growth 3Y-11.02%
OM growth 5Y-0.71%
PM growth 3Y-12.6%
PM growth 5Y0.44%
GM growth 3Y-0.17%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HBH is destroying value.
- HBH has about the same amout of shares outstanding than it did 1 year ago.
- HBH has about the same amout of shares outstanding than it did 5 years ago.
- HBH has a better debt/assets ratio than last year.
2.2 Solvency
- HBH has an Altman-Z score of 2.61. This is not the best score and indicates that HBH is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.61, HBH is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- The Debt to FCF ratio of HBH is 10.09, which is on the high side as it means it would take HBH, 10.09 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HBH (10.09) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.61 indicates that HBH is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.61, HBH is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.93
WACC5.65%
2.3 Liquidity
- A Current Ratio of 1.62 indicates that HBH should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.62, HBH belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
- A Quick Ratio of 0.55 indicates that HBH may have some problems paying its short term obligations.
- HBH has a Quick ratio of 0.55. This is comparable to the rest of the industry: HBH outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
- The earnings per share for HBH have decreased strongly by -17.10% in the last year.
- HBH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.06% yearly.
- HBH shows a small growth in Revenue. In the last year, the Revenue has grown by 3.26%.
- HBH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
EPS 1Y (TTM)-17.1%
EPS 3Y-10.97%
EPS 5Y6.06%
EPS Q2Q%-39.62%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y1.81%
Revenue growth 5Y5.57%
Sales Q2Q%2.23%
3.2 Future
- Based on estimates for the next years, HBH will show a small growth in Earnings Per Share. The EPS will grow by 4.22% on average per year.
- Based on estimates for the next years, HBH will show a small growth in Revenue. The Revenue will grow by 2.75% on average per year.
EPS Next Y-5.27%
EPS Next 2Y0.84%
EPS Next 3Y2.93%
EPS Next 5Y4.22%
Revenue Next Year3.14%
Revenue Next 2Y2.81%
Revenue Next 3Y2.51%
Revenue Next 5Y2.75%
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 decreasing.
- 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 9.83, which indicates a very decent valuation of HBH.
- Based on the Price/Earnings ratio, HBH is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- HBH is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 8.54, which indicates a very decent valuation of HBH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HBH indicates a rather cheap valuation: HBH is cheaper than 87.50% of the companies listed in the same industry.
- HBH is valuated cheaply 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 | 9.83 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
- 78.57% of the companies in the same industry are more expensive than HBH, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HBH is valued a bit cheaper than 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.41 | ||
| EV/EBITDA | 4.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y0.84%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.91%, HBH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.47, HBH pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, HBH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
- The dividend of HBH is nicely growing with an annual growth rate of 9.85%!
Dividend Growth(5Y)9.85%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
- HBH pays out 28.76% of its income as dividend. This is a sustainable payout ratio.
- The dividend of HBH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.76%
EPS Next 2Y0.84%
EPS Next 3Y2.93%
HORNBACH HOLDING AG & CO KGA / HBH.DE FAQ
Can you provide the ChartMill fundamental rating for HORNBACH HOLDING AG & CO KGA?
ChartMill assigns a fundamental rating of 5 / 10 to HBH.DE.
What is the valuation status of HORNBACH HOLDING AG & CO KGA (HBH.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to HORNBACH HOLDING AG & CO KGA (HBH.DE). This can be considered as Fairly Valued.
What is the profitability of HBH stock?
HORNBACH HOLDING AG & CO KGA (HBH.DE) has a profitability rating of 5 / 10.
What is the financial health of HORNBACH HOLDING AG & CO KGA (HBH.DE) stock?
The financial health rating of HORNBACH HOLDING AG & CO KGA (HBH.DE) is 4 / 10.
What is the earnings growth outlook for HORNBACH HOLDING AG & CO KGA?
The Earnings per Share (EPS) of HORNBACH HOLDING AG & CO KGA (HBH.DE) is expected to decline by -5.27% in the next year.