HOCHTIEF AG (HOT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HOT - DE0006070006 - Common Stock
364.4 EUR
-2.2 (-0.6%)
HOT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 43 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of HOT get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, HOT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- HOT had positive earnings in the past year.
- In the past year HOT had a positive cash flow from operations.
- In the past 5 years HOT has always been profitable.
- Each year in the past 5 years HOT had a positive operating cash flow.
1.2 Ratios
- HOT's Return On Assets of 3.61% is in line compared to the rest of the industry. HOT outperforms 41.86% of its industry peers.
- Looking at the Return On Equity, with a value of 86.71%, HOT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- HOT has a Return On Invested Capital of 11.34%. This is in the better half of the industry: HOT outperforms 62.79% of its industry peers.
- HOT had an Average Return On Invested Capital over the past 3 years of 8.25%. This is below the industry average of 11.17%.
- The last Return On Invested Capital (11.34%) for HOT is above the 3 year average (8.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 86.71% | ||
| ROIC | 11.34% |
ROA(3y)2.84%
ROA(5y)2.43%
ROE(3y)52.39%
ROE(5y)48.53%
ROIC(3y)8.25%
ROIC(5y)N/A
1.3 Margins
- HOT has a worse Profit Margin (2.25%) than 67.44% of its industry peers.
- HOT's Profit Margin has improved in the last couple of years.
- HOT's Operating Margin of 3.78% is on the low side compared to the rest of the industry. HOT is outperformed by 76.74% of its industry peers.
- HOT's Operating Margin has improved in the last couple of years.
- The Gross Margin of HOT (25.83%) is worse than 76.74% of its industry peers.
- In the last couple of years the Gross Margin of HOT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.78% | ||
| PM (TTM) | 2.25% | ||
| GM | 25.83% |
OM growth 3Y36.72%
OM growth 5Y8.8%
PM growth 3Y32.84%
PM growth 5Y86.94%
GM growth 3Y2.15%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
- HOT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- HOT has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for HOT has been increased compared to 5 years ago.
- HOT has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.59 indicates that HOT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- HOT's Altman-Z score of 2.59 is fine compared to the rest of the industry. HOT outperforms 72.09% of its industry peers.
- The Debt to FCF ratio of HOT is 5.51, which is a neutral value as it means it would take HOT, 5.51 years of fcf income to pay off all of its debts.
- HOT's Debt to FCF ratio of 5.51 is in line compared to the rest of the industry. HOT outperforms 58.14% of its industry peers.
- A Debt/Equity ratio of 7.98 is on the high side and indicates that HOT has dependencies on debt financing.
- With a Debt to Equity ratio value of 7.98, HOT is not doing good in the industry: 95.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.98 | ||
| Debt/FCF | 5.51 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.6
WACC7.07%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that HOT should not have too much problems paying its short term obligations.
- HOT has a Current ratio (1.13) which is in line with its industry peers.
- HOT has a Quick Ratio of 1.09. This is a normal value and indicates that HOT is financially healthy and should not expect problems in meeting its short term obligations.
- HOT has a Quick ratio of 1.09. This is in the better half of the industry: HOT outperforms 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- The earnings per share for HOT have decreased by -0.17% in the last year.
- Measured over the past years, HOT shows a very strong growth in Earnings Per Share. The EPS has been growing by 94.54% on average per year.
- HOT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.28%.
- HOT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.19% yearly.
EPS 1Y (TTM)-0.17%
EPS 3Y49.11%
EPS 5Y94.54%
EPS Q2Q%46.78%
Revenue 1Y (TTM)0.28%
Revenue growth 3Y15.92%
Revenue growth 5Y5.19%
Sales Q2Q%9.13%
3.2 Future
- Based on estimates for the next years, HOT will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.72% on average per year.
- Based on estimates for the next years, HOT will show a quite strong growth in Revenue. The Revenue will grow by 12.61% on average per year.
EPS Next Y21.13%
EPS Next 2Y19.53%
EPS Next 3Y18.74%
EPS Next 5Y19.72%
Revenue Next Year18.79%
Revenue Next 2Y15.24%
Revenue Next 3Y13.37%
Revenue Next 5Y12.61%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 32.16, which means the current valuation is very expensive for HOT.
- Based on the Price/Earnings ratio, HOT is valued a bit more expensive than 76.74% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, HOT is valued at the same level.
- With a Price/Forward Earnings ratio of 28.34, HOT can be considered very expensive at the moment.
- 81.40% of the companies in the same industry are cheaper than HOT, based on the Price/Forward Earnings ratio.
- HOT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.16 | ||
| Fwd PE | 28.34 |
4.2 Price Multiples
- HOT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HOT is more expensive than 76.74% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HOT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 14.39 |
4.3 Compensation for Growth
- HOT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- HOT has a very decent profitability rating, which may justify a higher PE ratio.
- HOT's earnings are expected to grow with 18.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)0.34
EPS Next 2Y19.53%
EPS Next 3Y18.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.41%, HOT has a reasonable but not impressive dividend return.
- HOT's Dividend Yield is slightly below the industry average, which is at 2.48.
- Compared to the average S&P500 Dividend Yield of 1.82, HOT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
DP0%
EPS Next 2Y19.53%
EPS Next 3Y18.74%
HOCHTIEF AG / HOT.DE FAQ
What is the ChartMill fundamental rating of HOCHTIEF AG (HOT.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to HOT.DE.
What is the valuation status for HOT stock?
ChartMill assigns a valuation rating of 2 / 10 to HOCHTIEF AG (HOT.DE). This can be considered as Overvalued.
Can you provide the profitability details for HOCHTIEF AG?
HOCHTIEF AG (HOT.DE) has a profitability rating of 6 / 10.
What is the valuation of HOCHTIEF AG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HOCHTIEF AG (HOT.DE) is 32.16 and the Price/Book (PB) ratio is 28.81.
Is the dividend of HOCHTIEF AG sustainable?
The dividend rating of HOCHTIEF AG (HOT.DE) is 1 / 10 and the dividend payout ratio is 0%.