HORNBACH HOLDING AG & CO KGA (HBH.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HBH - DE0006083405 - Common Stock
80.6 EUR
-1.4 (-1.71%)
Taking everything into account, HBH scores 5 out of 10 in our fundamental rating. HBH was compared to 56 industry peers in the Specialty Retail industry. HBH has only an average score on both its financial health and profitability. 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.
- HBH had positive earnings in each of the past 5 years.
- In the past 5 years HBH always reported a positive cash flow from operatings.
1.2 Ratios
- HBH has a Return On Assets of 3.03%. This is in the better half of the industry: HBH outperforms 64.29% of its industry peers.
- HBH has a Return On Equity of 6.72%. This is comparable to the rest of the industry: HBH outperforms 55.36% of 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.
- HBH has a Operating Margin of 4.07%. This is comparable to the rest of the industry: HBH outperforms 53.57% of its industry peers.
- HBH's Operating Margin has been stable in the last couple of years.
- The Gross Margin of HBH (34.88%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of HBH has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HBH is destroying value.
- The number of shares outstanding for HBH remains at a similar level compared to 1 year ago.
- The number of shares outstanding for HBH remains at a similar level compared to 5 years ago.
- The debt/assets ratio for HBH has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.60 indicates that HBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.60, HBH is doing good in the industry, outperforming 76.79% 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.
- Looking at the Debt to FCF ratio, with a value of 10.09, HBH is in line with its industry, outperforming 42.86% of the companies in the same industry.
- A Debt/Equity ratio of 0.61 indicates that HBH is somewhat dependend on debt financing.
- HBH has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.94
WACC5.64%
2.3 Liquidity
- HBH has a Current Ratio of 1.62. This is a normal value and indicates that HBH is financially healthy and should not expect problems in meeting 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.
- HBH has a Quick Ratio of 1.62. This is a bad value and indicates that HBH is not financially healthy enough and could expect problems in meeting 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
- HBH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.10%.
- The Earnings Per Share has been growing slightly by 6.06% on average over the past years.
- Looking at the last year, HBH shows a small growth in Revenue. The Revenue has grown by 3.26% in the last year.
- Measured over the past years, HBH shows a small growth in Revenue. The Revenue has been growing by 5.57% on average per year.
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
- HBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.22% yearly.
- The Revenue is expected to grow by 2.75% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less 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 9.64 indicates a reasonable valuation of HBH.
- Compared to the rest of the industry, the Price/Earnings ratio of HBH indicates a rather cheap valuation: HBH is cheaper than 89.29% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, HBH is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.37 indicates a reasonable valuation of HBH.
- HBH's Price/Forward Earnings ratio is rather cheap when compared to the industry. HBH is cheaper than 87.50% of the companies in the same industry.
- HBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 8.37 |
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.
- HBH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HBH is cheaper than 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 4.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y0.84%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
- HBH has a Yearly Dividend Yield of 2.91%.
- HBH's Dividend Yield is a higher than the industry average which is at 1.47.
- HBH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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
- 28.76% of the earnings are spent on dividend by HBH. This is a low number and 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.