HOCHTIEF AG (HOT.DE) Stock Fundamental Analysis
FRA:HOT - Deutsche Boerse Ag - DE0006070006 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to HOT. HOT was compared to 40 industry peers in the Construction & Engineering industry. While HOT is still in line with the averages on profitability rating, there are concerns on its financial health. HOT has a correct valuation and a medium growth rate.
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.
HOT had positive earnings in each of the past 5 years.
HOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HOT has a Return On Assets (3.68%) which is comparable to the rest of the industry.
With an excellent Return On Equity value of 84.76%, HOT belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
HOT has a better Return On Invested Capital (10.85%) than 65.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HOT is significantly below the industry average of 20.73%.
The last Return On Invested Capital (10.85%) for HOT is above the 3 year average (8.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 84.76% | ||
| ROIC | 10.85% |
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 Profit Margin (2.27%) which is in line with its industry peers.
HOT's Profit Margin has improved in the last couple of years.
HOT has a Operating Margin of 3.25%. This is in the lower half of the industry: HOT underperforms 65.00% of its industry peers.
HOT's Operating Margin has improved in the last couple of years.
HOT's Gross Margin of 26.24% is on the low side compared to the rest of the industry. HOT is outperformed by 75.00% of its industry peers.
HOT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.25% | ||
| PM (TTM) | 2.27% | ||
| GM | 26.24% |
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.
Compared to 1 year ago, HOT has about the same amount of shares outstanding.
Compared to 5 years ago, HOT has more shares outstanding
Compared to 1 year ago, HOT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.14 indicates that HOT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HOT has a better Altman-Z score (2.14) than 65.00% of its industry peers.
HOT has a debt to FCF ratio of 4.97. This is a neutral value as HOT would need 4.97 years to pay back of all of its debts.
HOT has a Debt to FCF ratio of 4.97. This is comparable to the rest of the industry: HOT outperforms 50.00% of its industry peers.
HOT has a Debt/Equity ratio of 6.67. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HOT (6.67) is worse than 92.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.67 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.66
WACC6.55%
2.3 Liquidity
A Current Ratio of 1.12 indicates that HOT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, HOT is in line with its industry, outperforming 47.50% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that HOT should not have too much problems paying its short term obligations.
HOT has a Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
HOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.74%, which is quite impressive.
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.
Looking at the last year, HOT shows a very strong growth in Revenue. The Revenue has grown by 44.32%.
Measured over the past years, HOT shows a small growth in Revenue. The Revenue has been growing by 5.19% on average per year.
EPS 1Y (TTM)73.74%
EPS 3Y49.11%
EPS 5Y94.54%
EPS Q2Q%38.59%
Revenue 1Y (TTM)44.32%
Revenue growth 3Y15.92%
Revenue growth 5Y5.19%
Sales Q2Q%32.32%
3.2 Future
The Earnings Per Share is expected to grow by 3.92% on average over the next years.
HOT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.73% yearly.
EPS Next Y4.37%
EPS Next 2Y7.3%
EPS Next 3Y3.92%
EPS Next 5YN/A
Revenue Next Year8.96%
Revenue Next 2Y6.65%
Revenue Next 3Y4.73%
Revenue Next 5YN/A
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.55, which indicates a correct valuation of HOT.
The rest of the industry has a similar Price/Earnings ratio as HOT.
Compared to an average S&P500 Price/Earnings ratio of 29.35, HOT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 17.43, the valuation of HOT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HOT is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
HOT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
HOT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HOT indicates a somewhat cheap valuation: HOT is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.68 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HOT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of HOT may justify a higher PE ratio.
PEG (NY)3.1
PEG (5Y)0.14
EPS Next 2Y7.3%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
HOT has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.65, HOT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, HOT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of HOT decreases each year by -4.33%.
Dividend Growth(5Y)-4.33%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
DP0%
EPS Next 2Y7.3%
EPS Next 3Y3.92%
FRA:HOT (3/7/2025, 7:00:00 PM)
163.7
-12.7 (-7.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners5.66%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.72B
Analysts72
Price Target138.11 (-15.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend3.55
Dividend Growth(5Y)-4.33%
DP0%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)12.67%
Min Revenue beat(2)1.24%
Max Revenue beat(2)24.1%
Revenue beat(4)4
Avg Revenue beat(4)9.47%
Min Revenue beat(4)1.24%
Max Revenue beat(4)24.1%
Revenue beat(8)7
Avg Revenue beat(8)12.49%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.1%
PT rev (3m)12.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.58%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.24%
Revenue NY rev (3m)4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 17.43 | ||
| P/S | 0.32 | ||
| P/FCF | 7.68 | ||
| P/OCF | 5.97 | ||
| P/B | 11.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.17 |
EPS(TTM)12.08
EY7.38%
EPS(NY)9.39
Fwd EY5.74%
FCF(TTM)21.31
FCFY13.02%
OCF(TTM)27.4
OCFY16.74%
SpS515.48
BVpS13.79
TBVpS-28.95
PEG (NY)3.1
PEG (5Y)0.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 84.76% | ||
| ROCE | 13.35% | ||
| ROIC | 10.85% | ||
| ROICexc | 32.8% | ||
| ROICexgc | N/A | ||
| OM | 3.25% | ||
| PM (TTM) | 2.27% | ||
| GM | 26.24% | ||
| FCFM | 4.13% |
ROA(3y)2.84%
ROA(5y)2.43%
ROE(3y)52.39%
ROE(5y)48.53%
ROIC(3y)8.25%
ROIC(5y)N/A
ROICexc(3y)27.14%
ROICexc(5y)N/A
ROICexgc(3y)298.89%
ROICexgc(5y)N/A
ROCE(3y)10.16%
ROCE(5y)N/A
ROICexcg growth 3Y162.2%
ROICexcg growth 5Y28.11%
ROICexc growth 3Y29.75%
ROICexc growth 5Y-1.85%
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%
F-Score7
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.67 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 79.69% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 2.92 | ||
| Cash Conversion | 112.23% | ||
| Profit Quality | 182.25% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.14 |
F-Score7
WACC6.55%
ROIC/WACC1.66
Cap/Depr(3y)68.98%
Cap/Depr(5y)57.95%
Cap/Sales(3y)0.97%
Cap/Sales(5y)1%
Profit Quality(3y)202.59%
Profit Quality(5y)166.26%
High Growth Momentum
Growth
EPS 1Y (TTM)73.74%
EPS 3Y49.11%
EPS 5Y94.54%
EPS Q2Q%38.59%
EPS Next Y4.37%
EPS Next 2Y7.3%
EPS Next 3Y3.92%
EPS Next 5YN/A
Revenue 1Y (TTM)44.32%
Revenue growth 3Y15.92%
Revenue growth 5Y5.19%
Sales Q2Q%32.32%
Revenue Next Year8.96%
Revenue Next 2Y6.65%
Revenue Next 3Y4.73%
Revenue Next 5YN/A
EBIT growth 1Y135.31%
EBIT growth 3Y58.49%
EBIT growth 5Y14.45%
EBIT Next Year55.56%
EBIT Next 3Y28.22%
EBIT Next 5YN/A
FCF growth 1Y47.24%
FCF growth 3Y75.18%
FCF growth 5Y23.65%
OCF growth 1Y59.47%
OCF growth 3Y76.51%
OCF growth 5Y13.77%