HEIDELBERG MATERIALS AG (HEI.DE) Stock Fundamental Analysis
FRA:HEI - Deutsche Boerse Ag - DE0006047004 - Common Stock - Currency: EUR
Taking everything into account, HEI scores 5 out of 10 in our fundamental rating. HEI was compared to 13 industry peers in the Construction Materials industry. HEI has an average financial health and profitability rating. While showing a medium growth rate, HEI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
HEI had positive earnings in the past year.
HEI had a positive operating cash flow in the past year.
Of the past 5 years HEI 4 years were profitable.
HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEI has a Return On Assets (5.46%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 11.01%, HEI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of HEI (7.30%) is comparable to the rest of the industry.
HEI had an Average Return On Invested Capital over the past 3 years of 6.24%. This is below the industry average of 8.37%.
The last Return On Invested Capital (7.30%) for HEI is above the 3 year average (6.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.01% | ||
| ROIC | 7.3% |
ROA(3y)5.15%
ROA(5y)2.33%
ROE(3y)10.75%
ROE(5y)4.51%
ROIC(3y)6.24%
ROIC(5y)5.79%
1.3 Margins
HEI's Profit Margin of 9.11% is fine compared to the rest of the industry. HEI outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of HEI has grown nicely.
HEI's Operating Margin of 12.44% is fine compared to the rest of the industry. HEI outperforms 66.67% of its industry peers.
HEI's Operating Margin has improved in the last couple of years.
HEI has a better Gross Margin (62.08%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of HEI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.44% | ||
| PM (TTM) | 9.11% | ||
| GM | 62.08% |
OM growth 3Y3.45%
OM growth 5Y7.61%
PM growth 3YN/A
PM growth 5Y7.57%
GM growth 3Y-0.46%
GM growth 5Y1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI is still creating some value.
HEI has less shares outstanding than it did 1 year ago.
HEI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HEI is higher compared to a year ago.
2.2 Solvency
HEI has an Altman-Z score of 2.34. This is not the best score and indicates that HEI is in the grey zone with still only limited risk for bankruptcy at the moment.
HEI's Altman-Z score of 2.34 is in line compared to the rest of the industry. HEI outperforms 58.33% of its industry peers.
HEI has a debt to FCF ratio of 4.38. This is a neutral value as HEI would need 4.38 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.38, HEI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that HEI is not too dependend on debt financing.
HEI's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. HEI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.15
WACC6.35%
2.3 Liquidity
HEI has a Current Ratio of 1.11. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
HEI has a Current ratio of 1.11. This is amonst the worse of the industry: HEI underperforms 83.33% of its industry peers.
A Quick Ratio of 0.74 indicates that HEI may have some problems paying its short term obligations.
The Quick ratio of HEI (0.74) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.67% over the past year.
HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.04% yearly.
The Revenue has been growing slightly by 4.68% in the past year.
The Revenue has been growing slightly by 5.34% on average over the past years.
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%2.58%
3.2 Future
Based on estimates for the next years, HEI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.58% on average per year.
The Revenue is expected to grow by 3.52% on average over the next years.
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.
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
HEI is valuated quite expensively with a Price/Earnings ratio of 28.72.
The rest of the industry has a similar Price/Earnings ratio as HEI.
The average S&P500 Price/Earnings ratio is at 29.35. HEI is around the same levels.
A Price/Forward Earnings ratio of 24.04 indicates a rather expensive valuation of HEI.
66.67% of the companies in the same industry are cheaper than HEI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. HEI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 24.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HEI is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.1 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of HEI may justify a higher PE ratio.
PEG (NY)4.66
PEG (5Y)2.6
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, HEI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.90, HEI is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.33, HEI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
On average, the dividend of HEI grows each year by 6.71%, which is quite nice.
Dividend Growth(5Y)6.71%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
HEI pays out 28.32% of its income as dividend. This is a sustainable payout ratio.
HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.32%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
FRA:HEI (3/7/2025, 7:00:00 PM)
166.85
-2.5 (-1.48%)
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 Cap29.77B
Analysts75.38
Price Target148.15 (-11.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.63
Dividend Growth(5Y)6.71%
DP28.32%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.63%
Min EPS beat(2)-54.86%
Max EPS beat(2)-26.39%
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)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-5.48%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-3.11%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)-1.2%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)10.1%
PT rev (3m)19.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 24.04 | ||
| P/S | 1.41 | ||
| P/FCF | 15.1 | ||
| P/OCF | 9.2 | ||
| P/B | 1.7 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)5.81
EY3.48%
EPS(NY)6.94
Fwd EY4.16%
FCF(TTM)11.05
FCFY6.62%
OCF(TTM)18.14
OCFY10.87%
SpS118.69
BVpS98.21
TBVpS47.46
PEG (NY)4.66
PEG (5Y)2.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.01% | ||
| ROCE | 9.42% | ||
| ROIC | 7.3% | ||
| ROICexc | 7.81% | ||
| ROICexgc | 11.94% | ||
| OM | 12.44% | ||
| PM (TTM) | 9.11% | ||
| GM | 62.08% | ||
| FCFM | 9.31% |
ROA(3y)5.15%
ROA(5y)2.33%
ROE(3y)10.75%
ROE(5y)4.51%
ROIC(3y)6.24%
ROIC(5y)5.79%
ROICexc(3y)6.92%
ROICexc(5y)6.45%
ROICexgc(3y)10.59%
ROICexgc(5y)10.23%
ROCE(3y)8.05%
ROCE(5y)7.47%
ROICexcg growth 3Y6.64%
ROICexcg growth 5Y9.65%
ROICexc growth 3Y8.26%
ROICexc growth 5Y12.92%
OM growth 3Y3.45%
OM growth 5Y7.61%
PM growth 3YN/A
PM growth 5Y7.57%
GM growth 3Y-0.46%
GM growth 5Y1%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.38 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 94.03% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 7.63 | ||
| Cash Conversion | 81.31% | ||
| Profit Quality | 102.21% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.34 |
F-Score6
WACC6.35%
ROIC/WACC1.15
Cap/Depr(3y)110.5%
Cap/Depr(5y)86.43%
Cap/Sales(3y)6.73%
Cap/Sales(5y)6.39%
Profit Quality(3y)73.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%N/A
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%2.58%
Revenue Next Year6.26%
Revenue Next 2Y-1%
Revenue Next 3Y1.22%
Revenue Next 5Y3.52%
EBIT growth 1Y31.23%
EBIT growth 3Y10.02%
EBIT growth 5Y11.07%
EBIT Next Year48.25%
EBIT Next 3Y18.45%
EBIT Next 5Y12.73%
FCF growth 1Y225.35%
FCF growth 3Y-3.04%
FCF growth 5Y15.62%
OCF growth 1Y53.24%
OCF growth 3Y1.93%
OCF growth 5Y10.24%