HEINEKEN HOLDING NV (HEIO.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:HEIO - NL0000008977 - Common Stock
60.85 EUR
+0.35 (+0.58%)
Overall HEIO gets a fundamental rating of 3 out of 10. We evaluated HEIO against 29 industry peers in the Beverages industry. Both the profitability and financial health of HEIO have multiple concerns. HEIO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HEIO was profitable.
- In the past year HEIO had a positive cash flow from operations.
- 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
- The Return On Assets of HEIO (1.80%) is worse than 79.31% of its industry peers.
- The Return On Equity of HEIO (10.82%) is better than 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.
- HEIO had an Average Return On Invested Capital over the past 3 years of 7.38%. This 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
- With a Profit Margin value of 3.18%, HEIO is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
- HEIO's Profit Margin has declined in the last couple of years.
- The Operating Margin of HEIO (11.42%) is worse than 65.52% 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 82.76% 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.
- The number of shares outstanding for HEIO remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, HEIO has less shares outstanding
- 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.
- With a Altman-Z score value of 1.22, HEIO is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
- 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.
- HEIO has a Debt to FCF ratio of 6.57. This is in the better half of the industry: HEIO outperforms 65.52% of its industry peers.
- HEIO has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.75, HEIO is not doing good in the industry: 75.86% 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
WACC5.15%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that HEIO may have some problems paying 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.
- With a Quick ratio value of 0.51, HEIO is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
| 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.
- HEIO shows a decrease in Revenue. In the last year, the revenue decreased by -4.96%.
- The Revenue has been growing slightly by 4.40% on average over the past years.
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.
- The Revenue is expected to grow by 1.55% on average over the next years.
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
- A Price/Earnings ratio of 18.55 indicates a rather expensive valuation of HEIO.
- 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 27.25.
- A Price/Forward Earnings ratio of 11.86 indicates a reasonable valuation of HEIO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HEIO indicates a rather cheap valuation: HEIO is cheaper than 82.76% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HEIO to the average of the S&P500 Index (25.98), we can say HEIO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
- HEIO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HEIO is cheaper than 93.10% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HEIO is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.55 | ||
| EV/EBITDA | 5.28 |
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.
- HEIO's earnings are expected to grow with 43.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.2
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.
- HEIO's Dividend Yield is a higher than the industry average which is at 2.70.
- Compared to an average S&P500 Dividend Yield of 1.82, HEIO pays a better dividend.
| 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%.