HOCHTIEF AG (HOT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HOT - DE0006070006 - Common Stock
363.4 EUR
-3.2 (-0.87%)
We assign a fundamental rating of 4 out of 10 to HOT. HOT was compared to 43 industry peers in the Construction & Engineering industry. HOT has only an average score on both its financial health and profitability. HOT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HOT was profitable.
- In the past year HOT had a positive cash flow from operations.
- In the past 5 years HOT has always been profitable.
- 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.
- With an excellent Return On Equity value of 86.71%, HOT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- With a decent Return On Invested Capital value of 11.34%, HOT is doing good in the industry, outperforming 62.79% of the companies in the same industry.
- 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
- The Profit Margin of HOT (2.25%) is worse than 67.44% of its industry peers.
- In the last couple of years the Profit Margin of HOT has grown nicely.
- The Operating Margin of HOT (3.78%) is worse than 76.74% of its industry peers.
- In the last couple of years the Operating Margin of HOT has grown nicely.
- 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.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HOT is still 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
- HOT has an Altman-Z score of 2.59. This is not the best score and indicates that HOT is in the grey zone with still only limited risk for bankruptcy at the moment.
- HOT has a better Altman-Z score (2.59) than 72.09% of its industry peers.
- 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.
- 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.
- 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's Current ratio of 1.13 is in line compared to the rest of the industry. HOT outperforms 55.81% of its industry peers.
- A Quick Ratio of 1.09 indicates that HOT should not have too much problems paying its short term obligations.
- The Quick ratio of HOT (1.09) is better than 62.79% of its industry peers.
| 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
- Looking at the last year, HOT shows a small growth in Revenue. The Revenue has grown by 0.28% in the last 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
- A Price/Earnings ratio of 32.07 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.
- The average S&P500 Price/Earnings ratio is at 27.21. HOT is around the same levels.
- Based on the Price/Forward Earnings ratio of 28.27, the valuation of HOT can be described as expensive.
- HOT's Price/Forward Earnings ratio is rather expensive when compared to the industry. HOT is more expensive than 81.40% of the companies in the same industry.
- 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 | 32.07 | ||
| Fwd PE | 28.27 |
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 | 18.59 | ||
| 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.
- 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
- 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.
- HOT's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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 32.07 and the Price/Book (PB) ratio is 28.73.
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%.