HOCHTIEF AG (HOT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HOT - DE0006070006 - Common Stock
361.4 EUR
-2 (-0.55%)
Overall HOT gets a fundamental rating of 4 out of 10. We evaluated HOT against 45 industry peers in the Construction & Engineering industry. HOT has only an average score on both its financial health and profitability. While showing a medium growth rate, HOT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year HOT was profitable.
- HOT had a positive operating cash flow in the past year.
- HOT had positive earnings in each of the past 5 years.
- In the past 5 years HOT always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of HOT (3.61%) is comparable to the rest of the industry.
- HOT has a better Return On Equity (86.71%) than 100.00% of its industry peers.
- The Return On Invested Capital of HOT (11.34%) is better than 64.44% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HOT is below the industry average of 11.32%.
- The 3 year average ROIC (8.25%) for HOT is below the current ROIC(11.34%), indicating increased profibility in the last year.
| 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 64.44% of its industry peers.
- In the last couple of years the Profit Margin of HOT has grown nicely.
- HOT's Operating Margin of 3.78% is on the low side compared to the rest of the industry. HOT is outperformed by 73.33% of its industry peers.
- HOT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 25.83%, HOT is doing worse than 73.33% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HOT 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.
- The debt/assets ratio for HOT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.58 indicates that HOT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.58, HOT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- HOT has a debt to FCF ratio of 5.51. This is a neutral value as HOT would need 5.51 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.51, HOT is in line with its industry, outperforming 60.00% of the companies in the same industry.
- HOT has a Debt/Equity ratio of 7.98. This is a high value indicating a heavy dependency on external financing.
- HOT has a worse Debt to Equity ratio (7.98) than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.98 | ||
| Debt/FCF | 5.51 | ||
| Altman-Z | 2.58 |
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.
- The Current ratio of HOT (1.13) is comparable to the rest of the industry.
- A Quick Ratio of 1.09 indicates that HOT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.09, HOT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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.
- The Revenue has been growing slightly by 0.28% in the past year.
- 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
- HOT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.72% yearly.
- The Revenue is expected to grow by 12.61% on average over the next years. This is quite good.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 31.90, which means the current valuation is very expensive for HOT.
- 73.33% of the companies in the same industry are cheaper than HOT, based on the Price/Earnings ratio.
- HOT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 28.11, the valuation of HOT can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HOT indicates a slightly more expensive valuation: HOT is more expensive than 77.78% of the companies listed in the same industry.
- HOT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.9 | ||
| Fwd PE | 28.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HOT is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
- HOT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.49 | ||
| EV/EBITDA | 14.28 |
4.3 Compensation for Growth
- The 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)1.51
PEG (5Y)0.34
EPS Next 2Y19.53%
EPS Next 3Y18.74%
5. Dividend
5.1 Amount
- HOT has a Yearly Dividend Yield of 1.43%.
- Compared to an average industry Dividend Yield of 2.33, HOT has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, HOT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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 31.9 and the Price/Book (PB) ratio is 28.57.
Is the dividend of HOCHTIEF AG sustainable?
The dividend rating of HOCHTIEF AG (HOT.DE) is 2 / 10 and the dividend payout ratio is 0%.