WBAG:HOT

Stock Analysis Report

Executive Summary

HOCHTIEF Aktiengesellschaft engages in the construction business worldwide.

Rewards

Trading at 41.9% below its fair value

Earnings are forecast to grow 5.44% per year

Earnings grew by 13.6% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has HOCHTIEF's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HOT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.8%

HOT

-2.8%

AT Construction

-2.2%

AT Market


1 Year Return

-17.5%

HOT

17.7%

AT Construction

3.6%

AT Market

Return vs Industry: HOT underperformed the Austrian Construction industry which returned 24.8% over the past year.

Return vs Market: HOT underperformed the Austrian Market which returned 9.1% over the past year.


Shareholder returns

HOTIndustryMarket
7 Day-7.8%-2.8%-2.2%
30 Day-5.5%-2.7%-2.9%
90 Day-3.0%-3.2%-2.5%
1 Year-14.0%-17.5%22.2%17.7%7.3%3.6%
3 Yearn/a28.8%15.8%28.4%16.8%
5 Yearn/a60.0%30.9%65.6%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is HOCHTIEF undervalued compared to its fair value and its price relative to the market?

45.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOT (€114) is trading below our estimate of fair value (€196.2)

Significantly Below Fair Value: HOT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HOT is poor value based on its PE Ratio (13.5x) compared to the Construction industry average (9.6x).

PE vs Market: HOT is good value based on its PE Ratio (13.5x) compared to the Austrian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: HOT is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: HOT is overvalued based on its PB Ratio (4.2x) compared to the AT Construction industry average (1.2x).


Next Steps

Future Growth

How is HOCHTIEF forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOT's forecast earnings growth (5.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: HOT's earnings (5.4% per year) are forecast to grow slower than the Austrian market (8.8% per year).

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

Revenue vs Market: HOT's revenue (3.1% per year) is forecast to grow faster than the Austrian market (2.5% per year).

High Growth Revenue: HOT's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOT's Return on Equity is forecast to be high in 3 years time (27.6%)


Next Steps

Past Performance

How has HOCHTIEF performed over the past 5 years?

49.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOT has high quality earnings.

Growing Profit Margin: HOT's current net profit margins (2.4%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: HOT has become profitable over the past 5 years, growing earnings by 49.1% per year.

Accelerating Growth: HOT's earnings growth over the past year (13.6%) is below its 5-year average (49.1% per year).

Earnings vs Industry: HOT earnings growth over the past year (13.6%) exceeded the Construction industry 8%.


Return on Equity

High ROE: Whilst HOT's Return on Equity (30.88%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HOCHTIEF's financial position?


Financial Position Analysis

Short Term Liabilities: HOT's short term assets (€12.2B) exceed its short term liabilities (€10.8B).

Long Term Liabilities: HOT's short term assets (€12.2B) exceed its long term liabilities (€4.6B).


Debt to Equity History and Analysis

Debt Level: HOT's debt to equity ratio (155.9%) is considered high.

Reducing Debt: HOT's debt to equity ratio has increased from 122.7% to 155.9% over the past 5 years.

Debt Coverage: HOT's debt is well covered by operating cash flow (30.4%).

Interest Coverage: HOT's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet

Inventory Level: HOT has a low level of unsold assets or inventory.

Debt Coverage by Assets: HOT's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

What is HOCHTIEF's current dividend yield, its reliability and sustainability?

4.60%

Current Dividend Yield


Upcoming Dividend Payment

Purchase HOCHTIEF before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.6%marketbottom25%1.6%markettop25%4.4%industryaverage3.5%forecastin3Years6.0%

Current dividend yield vs market & industry

Notable Dividend: HOT's dividend (4.38%) is higher than the bottom 25% of dividend payers in the Austrian market (1.6%).

High Dividend: HOT's dividend (4.59%) is in the top 25% of dividend payers in the Austrian market (4.21%)


Stability and Growth of Payments

Stable Dividend: HOT's dividend payments have been volatile in the past 10 years.

Growing Dividend: HOT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), HOT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HOT's dividends in 3 years are forecast to be covered by earnings (64% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Marcelino Fernandez Verdes (64yo)

7.2yrs

Tenure

€7,109,000

Compensation

Mr. Marcelino Fernández Verdes, Civ Eng, has been an Executive Chairman of CIMIC Group Limited since June 11, 2014 and its Executive Director since October 10, 2012. Mr. Fernández Verdes has been the Chair ...


CEO Compensation Analysis

Compensation vs Market: Marcelino's total compensation ($USD7.91M) is above average for companies of similar size in the Austrian market ($USD2.52M).

Compensation vs Earnings: Marcelino's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

54yo

Average Age

Experienced Management: HOT's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HOT's board of directors are considered experienced (6.2 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 been diluted in the past year, with total shares outstanding growing by 9.3%.


Management Team

  • Peter-Wilhelm Sassenfeld (53yo)

    CFO & Member of the Executive Board

    • Tenure: 8.2yrs
    • Compensation: €3.67m
  • Marcelino Fernandez Verdes (64yo)

    Chairman of the Executive Board & CEO

    • Tenure: 7.2yrs
    • Compensation: €7.11m
  • Mike Pinkney (53yo)

    Head of Corporate Strategy

    • Tenure: 6.3yrs
  • Bernd Pütter

    Senior Vice President of Corporate Communications

    • Nikolaus Graf von Matuschka (56yo)

      Labor Director & Member of Executive Board

      • Tenure: 5.7yrs
      • Compensation: €2.10m
    • José Ignacio Escobar (54yo)

      COO & Member of the Executive Board

      • Tenure: 5.7yrs
      • Compensation: €1.81m
    • Alexandra Albrecht-Baba

      Head of Corporate Compliance

      • Georg von Bronk

        Chief Compliance Officer

        • Martina Steffen

          Head of Human Resources

          • Nadine Wärmer

            Investor Relations Officer


            Board Members

            • Francisco Javier Garcia Sanz (62yo)

              Member of the Supervisory Board

              • Tenure: 7.8yrs
              • Compensation: €73.00k
            • Ángel Manuel García Altozano (70yo)

              Member of the Supervisory Board

              • Tenure: 12.6yrs
              • Compensation: €150.00k
            • Pedro Jose López Jiménez (74yo)

              Chairman of the Supervisory Board

              • Tenure: 5.3yrs
              • Compensation: €206.50k
            • José Luis Del Valle Pérez (69yo)

              Member of the Supervisory Board

              • Tenure: 8.7yrs
              • Compensation: €119.00k
            • Christine Wolff (59yo)

              Member of the Supervisory Board

              • Tenure: 5.3yrs
              • Compensation: €107.00k
            • Carsten Burckhardt (46yo)

              Employee Representative Member of the Supervisory Board

              • Tenure: 6.2yrs
              • Compensation: €115.50k
            • Klaus Stümper (60yo)

              Employee Representative Member of the Supervisory Board

              • Tenure: 6.2yrs
              • Compensation: €119.00k
            • Matthias Maurer (58yo)

              Deputy Chairman of the Supervisory Board

              • Tenure: 3.7yrs
              • Compensation: €150.00k
            • Nikolaos Paraskevopoulos (53yo)

              Employee Representative Member of the Supervisory Board

              • Tenure: 6.2yrs
              • Compensation: €107.50k
            • Beate Bell (52yo)

              Member of the Supervisory Board

              • Tenure: 4.8yrs
              • Compensation: €109.00k

            Company Information

            HOCHTIEF Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: HOCHTIEF Aktiengesellschaft
            • Ticker: HOT
            • Exchange: WBAG
            • Founded: 1873
            • Industry: Construction and Engineering
            • Sector: Capital Goods
            • Market Cap: €7.747b
            • Shares outstanding: 70.62m
            • Website: https://www.hochtief.com

            Number of Employees


            Location

            • HOCHTIEF Aktiengesellschaft
            • Opernplatz 2
            • Essen
            • North Rhine-Westphalia
            • 45128
            • Germany

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            HOCF.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1992
            HOTDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
            HOTXTRA (XETRA Trading Platform)YesBearer SharesDEEURJan 1992
            0EPWLSE (London Stock Exchange)YesBearer SharesGBEURJan 1992
            HOTDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992
            HOTSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
            HOTETLX (Eurotlx)YesBearer SharesITEURJan 1992
            HOTWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1992
            HOCF.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2008

            Biography

            HOCHTIEF Aktiengesellschaft engages in the construction business worldwide. The company operates through HOCHTIEF Americas, HOCHTIEF Asia Pacific, and HOCHTIEF Europe divisions. The HOCHTIEF Americas division provides building and infrastructure construction services primarily in the United States and Canada. The HOCHTIEF Asia Pacific division offers construction, mining and mineral processing, engineering, asset management, and maintenance services in the Asia-Pacific region. This division also undertakes public-private partnerships (PPP). The HOCHTIEF Europe division provides services primarily for infrastructure and building construction projects, as well as PPP. This division primarily focuses on the transportation, energy, and social and urban infrastructure segments. It also designs, develops, builds, operates, and manages real estate properties, as well as provides project financing and management services. The company also provides insurance products; and reinsurance products primarily for contractors’ casualty and surety, subcontractor default, liability, and occupational accident insurance. HOCHTIEF Aktiengesellschaft was founded in 1873 and is based in Essen, Germany. HOCHTIEF Aktiengesellschaft operates as a subsidiary of ACS, Actividades de Construcción y Servicios, S.A. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/27 22:59
            End of Day Share Price2020/01/27 00:00
            Earnings2019/09/30
            Annual Earnings2018/12/31


            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.