WBAG:HLE

Stock Analysis Report

Executive Summary

HELLA GmbH & Co. KGaA, together with its subsidiaries, develops, manufactures, and sells lighting and electronic components and systems for automotive industry worldwide.

Snowflake

Solid track record with excellent balance sheet.

Rewards

PE ratio (8.7x) is below the Austrian market (14.5x)

Revenue is forecast to grow by 1.82% next year

Earnings grew by 52.2% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Similar Companies

Share Price & News

How has HELLA GmbH KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HLE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

HLE

-0.5%

AT Auto Components

0.4%

AT Market


1 Year Return

20.4%

HLE

5.4%

AT Auto Components

2.1%

AT Market

Return vs Industry: HLE exceeded the Austrian Auto Components industry which returned 5.4% over the past year.

Return vs Market: HLE exceeded the Austrian Market which returned 2.1% over the past year.


Shareholder returns

HLEIndustryMarket
7 Day1.0%-0.5%0.4%
30 Day13.5%9.8%5.2%
90 Day39.0%24.8%8.5%
1 Year30.4%20.4%9.3%5.4%5.8%2.1%
3 Yearn/a-0.4%-8.6%46.4%33.2%
5 Yearn/a29.2%14.4%69.3%45.5%

Price Volatility Vs. Market

How volatile is HELLA GmbH KGaA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is HELLA GmbH KGaA undervalued compared to its fair value and its price relative to the market?

8.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLE (€48.36) is trading above our estimate of fair value (€35.16)

Significantly Below Fair Value: HLE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HLE is good value based on its PE Ratio (8.7x) compared to the Auto Components industry average (11.9x).

PE vs Market: HLE is good value based on its PE Ratio (8.7x) compared to the Austrian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: HLE is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: HLE is overvalued based on its PB Ratio (1.8x) compared to the XE Auto Components industry average (1.2x).


Next Steps

Future Growth

How is HELLA GmbH KGaA forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLE's forecast earnings growth (7.3% per year) is above the savings rate (0.5%).

Earnings vs Market: HLE's earnings (7.3% per year) are forecast to grow slower than the Austrian market (8.7% per year).

High Growth Earnings: HLE's earnings are forecast to grow, but not significantly.

Revenue vs Market: HLE's revenue (4.7% per year) is forecast to grow faster than the Austrian market (2.8% per year).

High Growth Revenue: HLE's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLE's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has HELLA GmbH KGaA performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLE has large one-off items impacting its financial results.

Growing Profit Margin: HLE's current net profit margins (9%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: HLE's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: HLE's earnings growth over the past year (52.2%) exceeds its 5-year average (20.3% per year).

Earnings vs Industry: HLE earnings growth over the past year (52.2%) exceeded the Auto Components industry -8.3%.


Return on Equity

High ROE: HLE's Return on Equity (20.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HELLA GmbH KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: HLE's short term assets (€3.6B) exceeds its short term liabilities (€2.0B)

Long Term Liabilities: HLE's short term assets (3.6B) exceeds its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: HLE's debt to equity ratio (40.7%) is considered high

Reducing Debt: HLE's debt to equity ratio has reduced from 102.1% to 40.7% over the past 5 years.

Debt Coverage: HLE's debt is well covered by operating cash flow (63.7%).

Interest Coverage: HLE's interest payments on its debt are well covered by EBIT (19.8x coverage).


Balance Sheet

Inventory Level: HLE has a high level of physical assets or inventory.

Debt Coverage by Assets: HLE's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is HELLA GmbH KGaA's current dividend yield, its reliability and sustainability?

2.19%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.7%markettop25%4.2%industryaverage3.4%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: HLE's dividend (2.19%) is higher than the bottom 25% of dividend payers in the Austrian market (1.69%).

High Dividend: HLE's dividend (2.19%) is low compared to the top 25% of dividend payers in the Austrian market (4.18%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HLE has been paying a dividend for less than 10 years.

Growing Dividend: HLE's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.1%), HLE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLE's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Next Steps

Management

What is the CEO of HELLA GmbH KGaA's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Rolf Breidenbach 0

1.8yrs

Tenure

0

Dr. Rolf Breidenbach has been Member of the Supervisory Board at Dürr Aktiengesellschaft since March 2019. He has been the Chief Executive Officer and President at Hella Kgaa Hueck & Co. of Hella Aglaia M ...


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: HLE's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

Experienced Board: HLE's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rolf Breidenbach

    Chairman of Management Board

    • Tenure: 1.8yrs
  • Ulric Schäferbarthold (49yo)

    MD of Finance & Controlling and Member of Management Board - Hella Geschäftsführungsgesellschaft mbH

    • Tenure: 3yrs
  • Michaela Schafer

    Head of Global Purchasing and CEO of Office & Projects

    • Tenure: 4.5yrs
  • Werner Benade

    MD of Aftermarket & Special App. and Member of Mgmt Board - Hella Geschäftsführungsgesellschaft mbH

    • Tenure: 2.6yrs
  • Michaela Bittner

    Secretary & Member of Supervisory Board

    • Tenure: 10.8yrs
    • Compensation: €20.00k
  • Frank Huber

    MD of Automotive Lighting & Member of Management Board - Hella Geschäftsführungsgesellschaft mbH

    • Tenure: 1.8yrs
  • Jörg Weisgerber

    Member of Executive Board - Business Division Electronics

    • Tenure: 0yrs
  • Marco Dobrich

    Head of Sensors & the Technical Centre

    • Tenure: 0yrs
  • Carsten Roch

    Head of Assisted & Automated Driving

    • Tenure: 0yrs
  • Nicole Schneider

    MD of Human Resources & Member of Management Board - Hella Geschäftsführungsgesellschaft mbH

    • Tenure: 1.8yrs

Board Members

  • Klaus Kühn (67yo)

    Chairman of Supervisory Board

    • Tenure: 0.2yrs
    • Compensation: €40.00k
  • Dietrich Hueck

    Member of Supervisory Board

    • Tenure: 0.8yrs
  • Stephanie Hueck

    Member of Supervisory Board

    • Tenure: 5.8yrs
    • Compensation: €20.00k
  • Christoph Thomas

    Member of Supervisory Board

    • Tenure: 5.8yrs
    • Compensation: €20.00k
  • Claudia Owen

    Member of Supervisory Board

    • Tenure: 3.8yrs
    • Compensation: €20.00k
  • Manfred Menningen

    Member of Supervisory Board

    • Tenure: 10.8yrs
    • Compensation: €30.00k
  • Michaela Bittner

    Secretary & Member of Supervisory Board

    • Tenure: 10.8yrs
    • Compensation: €20.00k
  • Heinrich-Georg Bölter

    Member of Supervisory Board

    • Tenure: 15.8yrs
    • Compensation: €25.67k
  • Susanna Hülsbömer

    Member of Supervisory Board

    • Tenure: 10.8yrs
    • Compensation: €20.00k
  • Christoph Rudiger

    Member of Supervisory Board

    • Tenure: 1.1yrs
    • Compensation: €13.32k

Company Information

HELLA GmbH & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HELLA GmbH & Co. KGaA
  • Ticker: HLE
  • Exchange: WBAG
  • Founded: 1899
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €5.329b
  • Shares outstanding: 111.11m
  • Website: https://www.hella.com

Number of Employees


Location

  • HELLA GmbH & Co. KGaA
  • Rixbecker Strasse 75
  • Lippstadt
  • North Rhine-Westphalia
  • 59552
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0R3ULSE (London Stock Exchange)YesLimited Partner SharesGBEURNov 2014
HLEDB (Deutsche Boerse AG)YesLimited Partner SharesDEEURNov 2014
HLEXTRA (XETRA Trading Platform)YesLimited Partner SharesDEEURNov 2014
HLEdBATS-CHIXE (BATS 'Chi-X Europe')YesLimited Partner SharesGBEURNov 2014
111856940BDL (Bourse de Luxembourg)YesLimited Partner SharesLUEURNov 2014
HLESWX (SIX Swiss Exchange)YesLimited Partner SharesCHCHFNov 2014
HLEWBAG (Wiener Boerse AG)YesLimited Partner SharesATEURNov 2014
HLE NBMV (Bolsa Mexicana de Valores)YesLimited Partner SharesMXMXNNov 2014
HLKH.FOTCPK (Pink Sheets LLC)YesLimited Partner SharesUSUSDNov 2014
HLLG.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.50 ORD SHSUSUSDMay 2016
HLEABST (Boerse-Stuttgart)UNSP ADR EACH REPR 0.50 ORD SHSDEEURMay 2016

Biography

HELLA GmbH & Co. KGaA, together with its subsidiaries, develops, manufactures, and sells lighting and electronic components and systems for automotive industry worldwide. It operates through three segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 21:33
End of Day Share Price2019/11/13 00:00
Earnings2019/08/31
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.