HORNBACH HOLDING AG & CO KGA (HBH.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HBH - DE0006083405 - Common Stock
80.9 EUR
+0.4 (+0.5%)
We assign a fundamental rating of 5 out of 10 to HBH. HBH was compared to 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.
- HBH had positive earnings in each of the past 5 years.
- HBH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HBH (3.03%) is better than 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.
- HBH has a Return On Invested Capital (5.28%) which is in line with its industry peers.
- 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
- The Profit Margin of HBH (2.21%) is better than 60.71% of its industry peers.
- In the last couple of years the Profit Margin of HBH has remained more or less at the same level.
- HBH's Operating Margin of 4.07% is in line compared to the rest of the industry. HBH outperforms 53.57% of its industry peers.
- In the last couple of years the Operating Margin of HBH has remained more or less at the same level.
- HBH's Gross Margin of 34.88% is in line compared to the rest of the industry. HBH outperforms 48.21% of its industry peers.
- 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
- HBH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- HBH has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HBH has about the same amount of shares outstanding.
- HBH has a better debt/assets ratio than last year.
2.2 Solvency
- HBH has an Altman-Z score of 2.60. 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.
- HBH's Altman-Z score of 2.60 is fine compared to the rest of the industry. HBH outperforms 76.79% of its industry peers.
- 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 10.09 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.94
WACC5.63%
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.
- The Current ratio of HBH (1.62) is better than 82.14% of its industry peers.
- A Quick Ratio of 0.55 indicates that HBH may have some problems paying its short term obligations.
- The Quick ratio of HBH (0.55) is comparable to the rest of the industry.
| 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%.
- Measured over the past 5 years, HBH shows a small growth in Earnings Per Share. The EPS has been growing by 6.06% on average per year.
- The Revenue has been growing slightly by 3.26% in the past year.
- The Revenue has been growing slightly by 5.57% on average over the past years.
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
- The Earnings Per Share is expected to grow by 4.22% on average over the next years.
- 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.
- 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
- With a Price/Earnings ratio of 9.68, the valuation of HBH can be described as very reasonable.
- HBH's Price/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/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- HBH is valuated reasonably with a Price/Forward Earnings ratio of 8.40.
- 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.
- When comparing the Price/Forward Earnings ratio of HBH to the average of the S&P500 Index (25.72), we can say HBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 8.4 |
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 | 8.27 | ||
| EV/EBITDA | 4.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.6
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
- On average, the dividend of HBH grows each year by 9.85%, which is quite nice.
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.
- HBH's earnings are growing slower than its dividend. 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.