HOCHTIEF AG (HOT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HOT - DE0006070006 - Common Stock
364.4 EUR
-2.2 (-0.6%)
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 an average financial health and profitability rating. HOT is quite expensive at the moment. It does show a decent 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.
- 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 Return On Equity of 86.71%. This is amongst the best in the industry. HOT outperforms 100.00% of its industry peers.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital 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 67.44% of its industry peers.
- HOT's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 3.78%, HOT is not doing good in the industry: 76.74% of the companies in the same industry are doing better.
- 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 76.74% of the companies in the same industry.
- HOT's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for HOT remains at a similar level compared to 1 year ago.
- HOT has more shares outstanding than it did 5 years ago.
- HOT has a worse debt/assets ratio than last year.
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.
- HOT's Altman-Z score of 2.58 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 has a Debt to FCF ratio of 5.51. This is comparable to the rest of the industry: HOT outperforms 58.14% of its industry peers.
- HOT has a Debt/Equity ratio of 7.98. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 7.98, HOT is doing worse than 95.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.98 | ||
| Debt/FCF | 5.51 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.6
WACC7.07%
2.3 Liquidity
- HOT has a Current Ratio of 1.13. This is a normal value and indicates that HOT is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.13, HOT perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.09, HOT is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- HOT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.17%.
- The Earnings Per Share has been growing by 94.54% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 0.28% in the past year.
- The Revenue has been growing slightly by 5.19% on average over the past years.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 32.16 indicates a quite expensive valuation of HOT.
- Compared to the rest of the industry, the Price/Earnings ratio of HOT indicates a slightly more expensive valuation: HOT is more expensive than 76.74% of the companies listed in the same industry.
- HOT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 28.34, the valuation of HOT can be described as expensive.
- Based on the Price/Forward Earnings ratio, HOT is valued expensively inside the industry as 81.40% of the companies are valued cheaper.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HOT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.16 | ||
| Fwd PE | 28.34 |
4.2 Price Multiples
- 76.74% of the companies in the same industry are cheaper than HOT, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HOT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of HOT may justify a higher PE ratio.
- A more expensive valuation may be justified as HOT's earnings are expected to grow with 18.74% in the coming years.
PEG (NY)1.52
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%. Purely for dividend investing, there may be better candidates out there.
- HOT's Dividend Yield is slightly below the industry average, which is at 2.33.
- HOT's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| 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 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%.