ENXTBR:HAMO

Stock Analysis Report

Hamon & Cie (International)

Executive Summary

Hamon & Cie (International) SA operates as an engineering, procurement, and construction company worldwide.

Rewards

Trading at 83.8% below its fair value

Risk Analysis

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (€12M)



Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

GEA Group

XTRA:G1A

Share Price & News

How has Hamon & Cie (International)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.3%

HAMO

0.6%

BE Building

-0.3%

BE Market


1 Year Return

-65.1%

HAMO

29.2%

BE Building

12.3%

BE Market

Return vs Industry: HAMO underperformed the Belgian Building industry which returned 34.5% over the past year.

Return vs Market: HAMO underperformed the Belgian Market which returned 14.3% over the past year.


Shareholder returns

HAMOIndustryMarket
7 Day2.3%0.6%-0.3%
30 Day-3.3%0.03%-0.8%
90 Day-41.5%7.5%-2.6%
1 Year-65.1%-65.1%32.3%29.2%14.5%12.3%
3 Year-90.7%-96.9%27.1%18.3%-0.5%-7.0%
5 Year-96.5%-98.9%71.7%51.7%4.4%-7.8%

Price Volatility Vs. Market

How volatile is Hamon & Cie (International)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hamon & Cie (International) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HAMO (€1.17) is trading below our estimate of fair value (€7.22)

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


Price To Earnings Ratio

PE vs Industry: HAMO is unprofitable, so we can't compare its PE Ratio to the Building industry average.

PE vs Market: HAMO is unprofitable, so we can't compare its PE Ratio to the Belgian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HAMO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HAMO is overvalued based on its PB Ratio (2.6x) compared to the XE Building industry average (1.7x).


Next Steps

Future Growth

How is Hamon & Cie (International) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hamon & Cie (International) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hamon & Cie (International) performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAMO is currently unprofitable.

Growing Profit Margin: HAMO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HAMO is unprofitable, but has reduced losses over the past 5 years at a rate of 1.7% per year.

Accelerating Growth: Unable to compare HAMO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HAMO is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (3%).


Return on Equity

High ROE: HAMO has a negative Return on Equity (-357.72%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hamon & Cie (International)'s financial position?


Financial Position Analysis

Short Term Liabilities: HAMO's short term assets (€241.7M) do not cover its short term liabilities (€305.2M).

Long Term Liabilities: HAMO's short term assets (€241.7M) exceed its long term liabilities (€24.1M).


Debt to Equity History and Analysis

Debt Level: HAMO's debt to equity ratio (2230.2%) is considered high.

Reducing Debt: HAMO's debt to equity ratio has increased from 738.8% to 2230.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HAMO's debt is covered by short term assets (assets are 1.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable HAMO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HAMO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 53.3% per year.


Next Steps

Dividend

What is Hamon & Cie (International)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%4.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HAMO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HAMO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HAMO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HAMO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HAMO is not paying a notable dividend for the Belgian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HAMO's dividend in 3 years as they are not forecast to pay a notable one for the Belgian market.


Next Steps

Management

What is the CEO of Hamon & Cie (International)'s salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Bernard Goblet 0

3yrs

Tenure

0

Mr. Bernard Goblet has been chief executive officer of Hamon & Cie (International) SA. since January 3, 2017. Mr. Goblet serves as General Manager of Hamon & Cie (International) SA. Mr. Goblet serves as Pr ...


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: HAMO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

Experienced Board: HAMO's board of directors are considered experienced (4.3 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 substantially diluted in the past year, with total shares outstanding growing by 102.9%.


Management Team

  • Bernard Goblet

    CEO, MD & GM

    • Tenure: 3yrs
  • Michèle Vrebos

    Group Legal Director & Secretary General

    • Rodica Exner

      Vice President & Chief Executive Officer of the Cooling Systems Business Unit

      • Gerda Clocheret

        Group Human Resources Director

        • Cédric Juliard

          Chairman of the Process Heat Exchangers Business Unit

          • Alexandre Catalão

            Chief Operations Officer

            • Tenure: 2.6yrs
          • Eric Binard

            Chief Sales Officer

            • Tenure: 1yrs
          • Quentin Biart

            Group Financial Director

            • Tenure: 1yrs

          Board Members

          • Bernard Louis Marcel Lambilliotte (61yo)

            Non Executive Director

            • Tenure: 15.7yrs
            • Compensation: €22.00k
          • Jacques Lambilliotte

            Honorary Chairman

            • Tenure: 3yrs
            • Compensation: €10.00k
          • Philippe Bodson (75yo)

            Independent Chairman

            • Tenure: 11.7yrs
            • Compensation: €50.00k
          • Valérie Potier

            Non Executive Director

            • Tenure: 4.8yrs
            • Compensation: €34.00k
          • Alexandre Grosjean

            Independent Director

            • Tenure: 4.3yrs
            • Compensation: €22.00k
          • Renaud Witmeur

            Vice-Chairman

            • Compensation: €40.00k
          • Laurent Levaux

            Independent Director

            • Tenure: 3yrs
            • Compensation: €32.50k
          • Aline Lambilliote

            Director

            • Tenure: 0.7yrs
            • Compensation: €5.50k

          Company Information

          Hamon & Cie (International) SA's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Hamon & Cie (International) SA
          • Ticker: HAMO
          • Exchange: ENXTBR
          • Founded: 1904
          • Industry: Building Products
          • Sector: Capital Goods
          • Market Cap: €13.086m
          • Shares outstanding: 10.66m
          • Website: https://www.hamon.com

          Number of Employees


          Location

          • Hamon & Cie (International) SA
          • Axisparc
          • Rue Emile Francqui 2
          • Mont-Saint-Guibert
          • Walloon Brabant
          • 1435
          • Belgium

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          HAMOENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJun 1997
          0NBALSE (London Stock Exchange)YesOrdinary SharesGBEURJun 1997

          Biography

          Hamon & Cie (International) SA operates as an engineering, procurement, and construction company worldwide. It operates through Cooling Systems, Air Quality System, and NAFTA segments. The company’s activities include sales, research and development, design, the manufacture of components, project management, procurement, onsite installation, commissioning, and aftermarket service. It also offers wet cooling systems, such as natural draft, induced draft, fan assisted natural draft, plume abated fan assisted natural draft, plume abated induced draft, and forced draft cooling tower; and dry cooling towers, including air cooled condensers and indirect cry cooling systems. In addition, the company provides air coolers comprising tube bundles, finned tubes, and studded and HF welded finned tubes; and dust removal products consist of fabric filters, electro-static precipitators, and hybrid collectors. Further, it offers acid gas removal, such as semi-dry flue gas desulfurization, wet gas scrubbers exxon process, wet flue gas desulfurization with lime/limestone slurry, and wet flue gas desulfurization with seawater; and Nox removals, including Denox, U2A, and Denox SCR. Additionally, the company provides multi-pollutants removal, such as react and urea scrubbers; chimneys, including industrial, steel stacks, and storage silos; and heat recovery systems for power generation and chips, and waste heat boilers. It primarily serves electric power plants; oil, gas, chemicals, and petrochemical industries; and other heavy industries, including steel, cement, glass, and waste incineration. The company was founded in 1904 and is headquartered in Mont-Saint-Guibert, Belgium. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/20 20:47
          End of Day Share Price2020/01/20 00:00
          Earnings2019/06/30
          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.