HEIDELBERG MATERIALS AG (HEI.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:HEI • DE0006047004
231.2 EUR
+0.6 (+0.26%)
Last: Jan 30, 2026, 03:55 PM
HEI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 17 industry peers in the Construction Materials industry. While HEI has a great profitability rating, 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.
- HEI had positive earnings in 4 of the past 5 years.
- In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
- HEI has a Return On Assets of 5.14%. This is comparable to the rest of the industry: HEI outperforms 58.82% of its industry peers.
- HEI's Return On Equity of 10.35% is fine compared to the rest of the industry. HEI outperforms 64.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.73%, HEI is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 7.81%.
- The 3 year average ROIC (6.57%) for HEI is below the current ROIC(7.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 10.35% | ||
| ROIC | 7.73% |
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
- Looking at the Profit Margin, with a value of 8.42%, HEI is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- In the last couple of years the Profit Margin of HEI has grown nicely.
- HEI has a Operating Margin (13.55%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of HEI has grown nicely.
- HEI has a better Gross Margin (63.93%) than 82.35% 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI is still creating some value.
- Compared to 1 year ago, HEI has less shares outstanding
- The number of shares outstanding for HEI has been reduced compared to 5 years ago.
- The debt/assets ratio for HEI has been reduced compared to a year ago.
2.2 Solvency
- HEI has an Altman-Z score of 2.84. 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.
- The Altman-Z score of HEI (2.84) is comparable to the rest of the industry.
- HEI has a debt to FCF ratio of 4.57. This is a neutral value as HEI would need 4.57 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 4.57, HEI perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
- A Debt/Equity ratio of 0.38 indicates that HEI is not too dependend on debt financing.
- HEI has a Debt to Equity ratio (0.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.1
WACC7%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that HEI should not have too much problems paying its short term obligations.
- HEI has a Current ratio of 1.13. This is amonst the worse of the industry: HEI underperforms 88.24% of its industry peers.
- HEI has a Quick Ratio of 1.13. This is a bad value and indicates that HEI is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.73, HEI is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.73 |
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.
- HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.04% yearly.
- HEI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.68%.
- 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%N/A
Revenue 1Y (TTM)4.68%
Revenue growth 3Y10.31%
Revenue growth 5Y5.34%
Sales Q2Q%0.89%
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
- 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
- The Price/Earnings ratio is 39.79, which means the current valuation is very expensive for HEI.
- Based on the Price/Earnings ratio, HEI is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of HEI to the average of the S&P500 Index (28.39), we can say HEI is valued slightly more expensively.
- HEI is valuated quite expensively with a Price/Forward Earnings ratio of 33.31.
- Based on the Price/Forward Earnings ratio, HEI is valued a bit more expensive than the industry average as 76.47% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of HEI to the average of the S&P500 Index (25.72), we can say HEI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.79 | ||
| Fwd PE | 33.31 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEI indicates a rather expensive valuation: HEI more expensive than 82.35% of the companies listed in the same industry.
- HEI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HEI is more expensive than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- HEI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.45
PEG (5Y)3.61
EPS Next 2Y9.35%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.38%, HEI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.76, HEI is paying slightly less dividend.
- Compared to the average S&P500 Dividend Yield of 1.82, HEI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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
- HEI pays out 33.05% of its income as dividend. This is a sustainable payout ratio.
- The dividend of HEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.05%
EPS Next 2Y9.35%
EPS Next 3Y11.32%
HEIDELBERG MATERIALS AG / HEI.DE FAQ
What is the ChartMill fundamental rating of HEIDELBERG MATERIALS AG (HEI.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HEI.DE.
Can you provide the valuation status for HEIDELBERG MATERIALS AG?
ChartMill assigns a valuation rating of 1 / 10 to HEIDELBERG MATERIALS AG (HEI.DE). This can be considered as Overvalued.
Can you provide the profitability details for HEIDELBERG MATERIALS AG?
HEIDELBERG MATERIALS AG (HEI.DE) has a profitability rating of 7 / 10.
Can you provide the financial health for HEI stock?
The financial health rating of HEIDELBERG MATERIALS AG (HEI.DE) is 4 / 10.
What is the earnings growth outlook for HEIDELBERG MATERIALS AG?
The Earnings per Share (EPS) of HEIDELBERG MATERIALS AG (HEI.DE) is expected to grow by 6.17% in the next year.