HEIDELBERG MATERIALS AG (HEI.DE) Stock Fundamental Analysis
FRA:HEI - Deutsche Boerse Ag - DE0006047004 - Common Stock - Currency: EUR
HEI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. While HEI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
Each year in the past 5 years HEI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HEI (4.78%) is better than 69.23% of its industry peers.
HEI's Return On Equity of 9.48% is fine compared to the rest of the industry. HEI outperforms 69.23% of its industry peers.
HEI has a Return On Invested Capital of 7.14%. This is in the better half of the industry: HEI outperforms 69.23% of its industry peers.
HEI had an Average Return On Invested Capital over the past 3 years of 6.57%. This is in line with the industry average of 7.73%.
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
With a decent Profit Margin value of 8.42%, HEI is doing good in the industry, outperforming 69.23% of the companies in the same industry.
HEI's Profit Margin has improved in the last couple of years.
HEI has a Operating Margin of 13.55%. This is in the better half of the industry: HEI outperforms 69.23% 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 76.92% 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.
Compared to 1 year ago, HEI has less shares outstanding
HEI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HEI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.49 indicates that HEI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.49, HEI is doing good in the industry, outperforming 69.23% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.70, HEI is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that HEI is not too dependend on debt financing.
HEI has a Debt to Equity ratio of 0.36. This is in the better half of the industry: HEI outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.11
WACC6.41%
2.3 Liquidity
A Current Ratio of 1.25 indicates that HEI should not have too much problems paying its short term obligations.
HEI has a Current ratio of 1.25. This is in the lower half of the industry: HEI underperforms 69.23% 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 has a worse Quick ratio (0.86) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.67%, which is quite impressive.
Measured over the past years, HEI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.04% on average per year.
HEI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
HEI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.34% yearly.
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
HEI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.58% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same 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
HEI is valuated quite expensively with a Price/Earnings ratio of 33.39.
Based on the Price/Earnings ratio, HEI is valued a bit more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. HEI is valued slightly more expensive when compared to this.
HEI is valuated quite expensively with a Price/Forward Earnings ratio of 27.95.
61.54% 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 21.90. HEI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 27.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HEI is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
HEI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HEI is more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of HEI may justify a higher PE ratio.
PEG (NY)5.41
PEG (5Y)3.03
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
HEI has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.54, HEI is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.42, HEI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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 Years1
Div Non Decr Years4
5.3 Sustainability
30.65% of the earnings are spent on dividend by HEI. This is a low number and 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 (7/4/2025, 7:00:00 PM)
194
-1.6 (-0.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners37.1%
Inst Owner ChangeN/A
Ins Owners28.4%
Ins Owner ChangeN/A
Market Cap34.62B
Analysts74.81
Price Target186.31 (-3.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend3.03
Dividend Growth(5Y)7.61%
DP30.65%
Div Incr Years1
Div Non Decr Years4
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)8.74%
PT rev (3m)22.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 27.95 | ||
| P/S | 1.64 | ||
| P/FCF | 19 | ||
| P/OCF | 10.71 | ||
| P/B | 1.84 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)5.81
EY2.99%
EPS(NY)6.94
Fwd EY3.58%
FCF(TTM)10.21
FCFY5.26%
OCF(TTM)18.11
OCFY9.34%
SpS118.57
BVpS105.34
TBVpS52.54
PEG (NY)5.41
PEG (5Y)3.03
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 | 2.49 |
F-Score6
WACC6.41%
ROIC/WACC1.11
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 Year50.77%
EBIT Next 3Y19.61%
EBIT Next 5Y13.39%
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%