HWA (XTRA:H9W) - Share price, News & Analysis

Q: What is the Fair Price of H9W when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

H9W (€7.65) is trading below our estimate of [[fair value]] (€83.27)

H9W fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

H9W Stock Overview

HWA AG develops, builds, and produces technology for racing and passenger cars in Germany, Australia, and the United States.

Rewards

Trading at 90.8% below our estimate of its fair value

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (€46M)

HWA Competitors

Knaus Tabbert

XTRA:KTA

€313.4m

Progress-Werk Oberkirch

XTRA:PWO

€96.9m

Pininfarina

BIT:PINF

€66.9m

EDAG Engineering Group

XTRA:ED4

€286.3m

Price History & Performance

Summary of all time highs, changes and price drops for HWA
Historical stock prices
Current Share Price	€7.65
52 Week High	€8.85
52 Week Low	€6.95
Beta	-0.10
1 Month Change	7.75%
3 Month Change	-2.55%
1 Year Change	-12.07%
3 Year Change	-45.75%
5 Year Change	-49.10%
Change since IPO	-72.48%

Shareholder Returns

	H9W	DE Auto	DE Market
7D	2.0%	1.9%	1.1%
1Y	-12.1%	-23.0%	-20.0%

Return vs Industry: H9W exceeded the German Auto industry which returned -23% over the past year.

Return vs Market: H9W exceeded the German Market which returned -20% over the past year.

Price Volatility

Is H9W's price volatile compared to industry and market?
H9W volatility
H9W Average Weekly Movement	3.4%
Auto Industry Average Movement	5.3%
Market Average Movement	5.7%
10% most volatile stocks in DE Market	10.7%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: H9W is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: H9W's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	270	n/a	https://www.hwaag.com

HWA AG develops, builds, and produces technology for racing and passenger cars in Germany, Australia, and the United States. The company operates in two segments, Motor Racing and Vehicles/Vehicle Components. It participates in the FIA Formula 2 championship and FIA Formula 3 championship under the HWA RACELAB name; and participates in the ABB FIA Formula E championship as a racing team for the Mercedes-Benz EQ Formula E team.

HWA Fundamentals Summary

How do HWA's earnings and revenue compare to its market cap?
H9W fundamental statistics
Market Cap	€45.84m
Earnings (TTM)	€620.46k
Revenue (TTM)	€85.91m

73.9x

P/E Ratio

0.5x

P/S Ratio

Is H9W overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
H9W income statement (TTM)
Revenue	€85.91m
Cost of Revenue	€49.10m
Gross Profit	€36.81m
Other Expenses	€36.19m
Earnings	€620.46k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.10
Gross Margin	42.85%
Net Profit Margin	0.72%
Debt/Equity Ratio	138.5%

How did H9W perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is H9W undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for H9W?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for H9W. This is calculated by dividing H9W's market cap by their current preferred multiple.
What is H9W's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€45.84m

H9W key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	18.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does H9W's PE Ratio compare to its peers?

H9W PE Ratio vs Peers

The above table shows the PE ratio for H9W vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.2x
KTA Knaus Tabbert	19.6x	38.2%	€313.4m
PWO Progress-Werk Oberkirch	6.1x	0.5%	€96.9m
PINF Pininfarina	22.1x	n/a	€66.9m
ED4 EDAG Engineering Group	13.1x	15.4%	€286.3m
H9W HWA	73.9x	n/a	€45.8m

Price-To-Earnings vs Peers: H9W is expensive based on its Price-To-Earnings Ratio (73.9x) compared to the peer average (15.2x).

Price to Earnings Ratio vs Industry

How does H9W's PE Ratio compare vs other companies in the Global Auto Industry?

Price-To-Earnings vs Industry: H9W is expensive based on its Price-To-Earnings Ratio (73.9x) compared to the German Auto industry average (5x)

Price to Earnings Ratio vs Fair Ratio

What is H9W's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

H9W PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	73.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate H9W's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of H9W when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: H9W (€7.65) is trading below our estimate of fair value (€83.27)

Significantly Below Fair Value: H9W is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is HWA forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-2.4%

Forecasted Automobiles 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 HWA 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.

Discover growth companies

HWA competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has HWA performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-48.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: H9W has high quality earnings.

Growing Profit Margin: H9W became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: H9W has become profitable over the past 5 years, growing earnings by -48.5% per year.

Accelerating Growth: H9W has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: H9W has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto industry (-3.4%).

Return on Equity

High ROE: H9W's Return on Equity (3.2%) is considered low.

Discover strong past performing companies

Financial Health

How is HWA's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: H9W's short term assets (€39.8M) exceed its short term liabilities (€28.8M).

Long Term Liabilities: H9W's short term assets (€39.8M) exceed its long term liabilities (€11.1M).

Debt to Equity History and Analysis

Debt Level: H9W's net debt to equity ratio (123.7%) is considered high.

Reducing Debt: H9W's debt to equity ratio has increased from 108.4% to 138.5% over the past 5 years.

Debt Coverage: H9W's debt is well covered by operating cash flow (26.3%).

Interest Coverage: H9W's interest payments on its debt are not well covered by EBIT (0.9x coverage).

Balance Sheet

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Dividend

What is HWA current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate H9W's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate H9W's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if H9W's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if H9W's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: H9W is not paying a notable dividend for the German market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as H9W has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure

CEO

HWA has no CEO, or we have no data on them.

Leadership Team

Experienced Management: H9W's management team is seasoned and experienced (8.2 years average tenure).

Board Members

Experienced Board: H9W's board of directors are considered experienced (8.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31