HEINEKEN HOLDING NV (HEIO.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:HEIO - NL0000008977 - Common Stock
61.15 EUR
-0.4 (-0.65%)
Overall HEIO gets a fundamental rating of 3 out of 10. We evaluated HEIO against 29 industry peers in the Beverages industry. HEIO has a bad profitability rating. Also its financial health evaluation is rather negative. HEIO has a decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years HEIO had a positive operating cash flow.
1.2 Ratios
- HEIO's Return On Assets of 1.80% is on the low side compared to the rest of the industry. HEIO is outperformed by 76.67% of its industry peers.
- The Return On Equity of HEIO (10.82%) is better than 70.00% of its industry peers.
- HEIO has a Return On Invested Capital of 6.70%. This is comparable to the rest of the industry: HEIO outperforms 50.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- HEIO has a Profit Margin of 3.18%. This is in the lower half of the industry: HEIO underperforms 73.33% of its industry peers.
- HEIO's Profit Margin has declined in the last couple of years.
- HEIO's Operating Margin of 11.42% is on the low side compared to the rest of the industry. HEIO is outperformed by 66.67% of its industry peers.
- HEIO's Operating Margin has declined in the last couple of years.
- The Gross Margin of HEIO (35.12%) is worse than 83.33% of its industry peers.
- HEIO's Gross Margin has been stable in the last couple of years.
| 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
- HEIO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, HEIO has about the same amount of shares outstanding.
- 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
- HEIO has an Altman-Z score of 1.22. This is a bad value and indicates that HEIO is not financially healthy and even has some risk of bankruptcy.
- HEIO's Altman-Z score of 1.22 is on the low side compared to the rest of the industry. HEIO is outperformed by 86.67% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 6.57, HEIO perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.75 is on the high side and indicates that HEIO has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.75, HEIO is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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.
- Looking at the Current ratio, with a value of 0.75, HEIO is doing worse than 73.33% of the companies in the same industry.
- 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 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 72.64% over the past year.
- HEIO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.14% yearly.
- The Revenue has decreased by -4.96% in the past year.
- HEIO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.40% yearly.
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
- Based on estimates for the next years, HEIO will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.98% on average per year.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 18.64, the valuation of HEIO can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as HEIO.
- The average S&P500 Price/Earnings ratio is at 27.21. HEIO is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 11.92 indicates a reasonable valuation of HEIO.
- Based on the Price/Forward Earnings ratio, HEIO is valued a bit cheaper than 80.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. HEIO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 11.92 |
4.2 Price Multiples
- 93.33% of the companies in the same industry are more expensive than HEIO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HEIO is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.58 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- HEIO's earnings are expected to grow with 43.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.22
PEG (5Y)N/A
EPS Next 2Y23.84%
EPS Next 3Y43.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.10%, HEIO has a reasonable but not impressive dividend return.
- 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
- 143.20% of the earnings are spent on dividend by HEIO. 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%.