HEINEKEN HOLDING NV (HEIO.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:HEIO - NL0000008977 - Common Stock
60.5 EUR
-0.65 (-1.06%)
Taking everything into account, HEIO scores 3 out of 10 in our fundamental rating. HEIO was compared to 29 industry peers in the Beverages industry. HEIO may be in some trouble as it scores bad on both profitability and health. HEIO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- HEIO had positive earnings in the past year.
- HEIO had a positive operating cash flow in the past year.
- HEIO had positive earnings in 4 of the past 5 years.
- HEIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.80%, HEIO is doing worse than 79.31% of the companies in the same industry.
- HEIO has a Return On Equity of 10.82%. This is in the better half of the industry: HEIO outperforms 68.97% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.70%, HEIO is in line with its industry, outperforming 51.72% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HEIO is in line with the industry average of 7.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 10.82% | ||
| ROIC | 6.7% |
ROA(3y)1.88%
ROA(5y)1.76%
ROE(3y)10.38%
ROE(5y)9.79%
ROIC(3y)7.38%
ROIC(5y)6.52%
1.3 Margins
- The Profit Margin of HEIO (3.18%) is worse than 75.86% of its industry peers.
- HEIO's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 11.42%, HEIO is doing worse than 65.52% of the companies in the same industry.
- HEIO's Operating Margin has declined in the last couple of years.
- HEIO has a Gross Margin of 35.12%. This is amonst the worse of the industry: HEIO underperforms 82.76% of its industry peers.
- In the last couple of years the Gross Margin of HEIO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.42% | ||
| PM (TTM) | 3.18% | ||
| GM | 35.12% |
OM growth 3Y-4.64%
OM growth 5Y-3.09%
PM growth 3Y-39.54%
PM growth 5Y-18.06%
GM growth 3Y-0.99%
GM growth 5Y-1.07%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEIO is still creating some value.
- HEIO has about the same amout of shares outstanding than it did 1 year ago.
- HEIO has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for HEIO has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.22, we must say that HEIO is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.22, HEIO is doing worse than 86.21% of the companies in the same industry.
- The Debt to FCF ratio of HEIO is 6.57, which is on the high side as it means it would take HEIO, 6.57 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.57, HEIO is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
- HEIO has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
- HEIO has a worse Debt to Equity ratio (1.75) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 6.57 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.3
WACC5.17%
2.3 Liquidity
- HEIO has a Current Ratio of 0.75. This is a bad value and indicates that HEIO is not financially healthy enough and could expect problems in meeting its short term obligations.
- HEIO's Current ratio of 0.75 is on the low side compared to the rest of the industry. HEIO is outperformed by 75.86% of its industry peers.
- HEIO has a Quick Ratio of 0.75. This is a bad value and indicates that HEIO is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.51, HEIO is doing worse than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- HEIO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.64%, which is quite impressive.
- Measured over the past years, HEIO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.14% on average per year.
- Looking at the last year, HEIO shows a decrease in Revenue. The Revenue has decreased by -4.96% in the last year.
- Measured over the past years, HEIO shows a small growth in Revenue. The Revenue has been growing by 4.40% on average per year.
EPS 1Y (TTM)72.64%
EPS 3Y-32.69%
EPS 5Y-14.14%
EPS Q2Q%892.99%
Revenue 1Y (TTM)-4.96%
Revenue growth 3Y10.66%
Revenue growth 5Y4.4%
Sales Q2Q%-4.34%
3.2 Future
- The Earnings Per Share is expected to grow by 19.98% on average over the next years. This is quite good.
- HEIO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.55% yearly.
EPS Next Y5.79%
EPS Next 2Y23.84%
EPS Next 3Y43.18%
EPS Next 5Y19.98%
Revenue Next Year1.62%
Revenue Next 2Y6.88%
Revenue Next 3Y6.46%
Revenue Next 5Y1.55%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- Based on the Price/Earnings ratio of 18.45, the valuation of HEIO can be described as rather expensive.
- HEIO's Price/Earnings is on the same level as the industry average.
- HEIO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 11.79, the valuation of HEIO can be described as very reasonable.
- 82.76% of the companies in the same industry are more expensive than HEIO, based on the Price/Forward Earnings ratio.
- HEIO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 11.79 |
4.2 Price Multiples
- 93.10% of the companies in the same industry are more expensive than HEIO, based on the Enterprise Value to EBITDA ratio.
- HEIO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HEIO is cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.51 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEIO does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as HEIO's earnings are expected to grow with 43.18% in the coming years.
PEG (NY)3.18
PEG (5Y)N/A
EPS Next 2Y23.84%
EPS Next 3Y43.18%
5. Dividend
5.1 Amount
- HEIO has a Yearly Dividend Yield of 3.10%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.70, HEIO pays a bit more dividend than its industry peers.
- HEIO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
- The dividend of HEIO decreases each year by -0.04%.
Dividend Growth(5Y)-0.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- HEIO pays out 143.20% of its income as dividend. This is not a sustainable payout ratio.
DP143.2%
EPS Next 2Y23.84%
EPS Next 3Y43.18%
HEINEKEN HOLDING NV / HEIO.AS FAQ
What is the fundamental rating for HEIO stock?
ChartMill assigns a fundamental rating of 3 / 10 to HEIO.AS.
What is the valuation status of HEINEKEN HOLDING NV (HEIO.AS) stock?
ChartMill assigns a valuation rating of 6 / 10 to HEINEKEN HOLDING NV (HEIO.AS). This can be considered as Fairly Valued.
Can you provide the profitability details for HEINEKEN HOLDING NV?
HEINEKEN HOLDING NV (HEIO.AS) has a profitability rating of 3 / 10.
Can you provide the financial health for HEIO stock?
The financial health rating of HEINEKEN HOLDING NV (HEIO.AS) is 2 / 10.
How sustainable is the dividend of HEINEKEN HOLDING NV (HEIO.AS) stock?
The dividend rating of HEINEKEN HOLDING NV (HEIO.AS) is 3 / 10 and the dividend payout ratio is 143.2%.