HEIDELBERG MATERIALS AG (HEI.DE) Stock Fundamental Analysis
FRA:HEI - Deutsche Boerse Ag - DE0006047004 - Common Stock - Currency: EUR
Overall HEI gets a fundamental rating of 5 out of 10. We evaluated HEI against 11 industry peers in the Construction Materials industry. HEI has an excellent profitability rating, but there are some minor concerns on its financial health. HEI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HEI was profitable.
HEI had a positive operating cash flow in the past year.
Of the past 5 years HEI 4 years were profitable.
Each year in the past 5 years HEI had a positive operating cash flow.
1.2 Ratios
HEI's Return On Assets of 4.78% is fine compared to the rest of the industry. HEI outperforms 72.73% of its industry peers.
Looking at the Return On Equity, with a value of 9.48%, HEI is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
The Return On Invested Capital of HEI (7.14%) is better than 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 8.24%.
The 3 year average ROIC (6.57%) for HEI is below the current ROIC(7.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.48% | ||
| ROIC | 7.14% |
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 HEI (8.42%) is better than 72.73% of its industry peers.
In the last couple of years the Profit Margin of HEI has grown nicely.
HEI's Operating Margin of 13.55% is fine compared to the rest of the industry. HEI outperforms 72.73% of its industry peers.
HEI's Operating Margin has improved in the last couple of years.
The Gross Margin of HEI (63.93%) is better than 81.82% of its industry peers.
HEI's Gross Margin has been stable in the last couple of years.
| 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), HEI is creating some value.
HEI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HEI has less shares outstanding
The debt/assets ratio for HEI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.32 indicates that HEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HEI (2.32) is better than 72.73% of its industry peers.
HEI has a debt to FCF ratio of 4.70. This is a neutral value as HEI would need 4.70 years to pay back of all of its debts.
The Debt to FCF ratio of HEI (4.70) is better than 72.73% of its industry peers.
HEI has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
HEI has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.09
WACC6.56%
2.3 Liquidity
HEI has a Current Ratio of 1.25. 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 worse Current ratio (1.25) than 72.73% of its industry peers.
HEI has a Quick Ratio of 1.25. This is a bad value and indicates that HEI is not financially healthy enough and could expect problems in meeting its short term obligations.
HEI's Quick ratio of 0.86 is on the low side compared to the rest of the industry. HEI is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.67% over the past year.
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.
Measured over the past years, HEI shows a small growth in Revenue. The Revenue has been growing by 5.34% on average per year.
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%2.28%
Revenue 1Y (TTM)4.68%
Revenue growth 3Y10.31%
Revenue growth 5Y5.34%
Sales Q2Q%6.12%
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.
Based on estimates for the next years, HEI 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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
HEI is valuated quite expensively with a Price/Earnings ratio of 29.73.
The rest of the industry has a similar Price/Earnings ratio as HEI.
HEI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.89, HEI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI indicates a slightly more expensive valuation: HEI is more expensive than 63.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, HEI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HEI.
HEI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.92 | ||
| EV/EBITDA | 7.94 |
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.
HEI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.82
PEG (5Y)2.69
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, HEI has a reasonable but not impressive dividend return.
HEI's Dividend Yield is slightly below the industry average, which is at 3.68.
HEI's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
On average, the dividend of HEI grows each year by 7.61%, which is quite nice.
Dividend Growth(5Y)7.61%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
HEI pays out 30.65% 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.
DP30.65%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
FRA:HEI (4/25/2025, 7:00:00 PM)
172.75
+6.3 (+3.78%)
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 Cap30.82B
Analysts76.15
Price Target161.31 (-6.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend3.03
Dividend Growth(5Y)7.61%
DP30.65%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)1.11%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)1.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
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)8.88%
PT rev (3m)25.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.27%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 24.89 | ||
| P/S | 1.46 | ||
| P/FCF | 16.92 | ||
| P/OCF | 9.54 | ||
| P/B | 1.64 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)5.81
EY3.36%
EPS(NY)6.94
Fwd EY4.02%
FCF(TTM)10.21
FCFY5.91%
OCF(TTM)18.11
OCFY10.48%
SpS118.57
BVpS105.34
TBVpS52.54
PEG (NY)4.82
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.48% | ||
| ROCE | 9.54% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.99% | ||
| ROICexgc | 12.31% | ||
| OM | 13.55% | ||
| PM (TTM) | 8.42% | ||
| GM | 63.93% | ||
| FCFM | 8.61% |
ROA(3y)5.01%
ROA(5y)2.72%
ROE(3y)10.11%
ROE(5y)5.12%
ROIC(3y)6.57%
ROIC(5y)6.16%
ROICexc(3y)7.24%
ROICexc(5y)6.85%
ROICexgc(3y)11.06%
ROICexgc(5y)10.59%
ROCE(3y)8.78%
ROCE(5y)8.23%
ROICexcg growth 3Y8.18%
ROICexcg growth 5Y7.28%
ROICexc growth 3Y8.47%
ROICexc growth 5Y10.51%
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%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 91.27% | ||
| Cap/Sales | 6.67% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 73.24% | ||
| Profit Quality | 102.23% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.32 |
F-Score6
WACC6.56%
ROIC/WACC1.09
Cap/Depr(3y)98.1%
Cap/Depr(5y)88.57%
Cap/Sales(3y)6.42%
Cap/Sales(5y)6.47%
Profit Quality(3y)89.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.67%
EPS 3Y12.66%
EPS 5Y11.04%
EPS Q2Q%2.28%
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%6.12%
Revenue Next Year6.26%
Revenue Next 2Y-1%
Revenue Next 3Y1.22%
Revenue Next 5Y3.52%
EBIT growth 1Y8.81%
EBIT growth 3Y13.38%
EBIT growth 5Y9.93%
EBIT Next Year51.87%
EBIT Next 3Y19.48%
EBIT Next 5Y10.68%
FCF growth 1Y-2.87%
FCF growth 3Y23.1%
FCF growth 5Y4.23%
OCF growth 1Y0.83%
OCF growth 3Y10.49%
OCF growth 5Y3.94%