HOCHTIEF AG (HOT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HOT - DE0006070006 - Common Stock
352.6 EUR
-8.8 (-2.43%)
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. HOT is valied quite expensively at the moment, while 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.
- Each year in the past 5 years HOT had a positive operating cash flow.
1.2 Ratios
- HOT has a Return On Assets of 3.61%. This is comparable to the rest of the industry: HOT outperforms 44.44% 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 64.44% 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 11.32%.
- 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
- With a Profit Margin value of 2.25%, HOT is not doing good in the industry: 64.44% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of HOT has grown nicely.
- HOT has a worse Operating Margin (3.78%) than 73.33% of its industry peers.
- HOT's Operating Margin has improved in the last couple of years.
- HOT has a worse Gross Margin (25.83%) than 73.33% of its industry peers.
- 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.
- Compared to 1 year ago, HOT has about the same amount of shares outstanding.
- Compared to 5 years ago, HOT has more shares outstanding
- HOT has a worse debt/assets ratio than last year.
2.2 Solvency
- HOT has an Altman-Z score of 2.58. 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.
- 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.
- 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 60.00% 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.
- With a Debt to Equity ratio value of 7.98, HOT is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.98 | ||
| Debt/FCF | 5.51 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.61
WACC7.06%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that HOT should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.13, HOT is in line with its industry, outperforming 55.56% 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.
- With a decent Quick ratio value of 1.09, HOT is doing good in 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
- The Earnings Per Share is expected to grow by 19.72% on average over the next years. This is quite good.
- HOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.61% yearly.
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.
- 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 31.12 indicates a quite expensive valuation of HOT.
- 73.33% of the companies in the same industry are cheaper than HOT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, HOT is valued at the same level.
- HOT is valuated quite expensively with a Price/Forward Earnings ratio of 27.43.
- 77.78% of the companies in the same industry are cheaper than HOT, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of HOT to the average of the S&P500 Index (25.83), we can say HOT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.12 | ||
| Fwd PE | 27.43 |
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 73.33% 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 | 18.04 | ||
| EV/EBITDA | 14.2 |
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.
- A more expensive valuation may be justified as HOT's earnings are expected to grow with 18.74% in the coming years.
PEG (NY)1.47
PEG (5Y)0.33
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 comparable with the industry average which is at 2.33.
- HOT's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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 31.12 and the Price/Book (PB) ratio is 27.87.
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%.