XTRA: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 Analysis

Excellent balance sheet with reasonable growth potential.


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

9.3%

HLE

6.1%

DE Auto Components

4.3%

DE Market


1 Year Return

-34.8%

HLE

-45.1%

DE Auto Components

-14.2%

DE Market

Return vs Industry: HLE exceeded the German Auto Components industry which returned -47.8% over the past year.

Return vs Market: HLE underperformed the German Market which returned -16.6% over the past year.


Shareholder returns

HLEIndustryMarket
7 Day9.3%6.1%4.3%
30 Day-14.1%-15.4%-9.0%
90 Day-42.3%-39.2%-21.6%
1 Year-29.4%-34.8%-42.8%-45.1%-11.7%-14.2%
3 Year-21.5%-30.4%-58.1%-61.6%-12.3%-19.6%
5 Year-24.8%-36.3%-62.0%-66.1%-14.0%-25.6%

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

Valuation

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

9.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLE (€29.04) is trading above our estimate of fair value (€26.71)

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 (9.3x) compared to the Auto Components industry average (12.1x).

PE vs Market: HLE is good value based on its PE Ratio (9.3x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: HLE is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: HLE is overvalued based on its PB Ratio (1.2x) compared to the DE Auto Components industry average (0.7x).


Next Steps

Future Growth

How is HELLA GmbH KGaA forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLE's forecast earnings growth (20.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: HLE's earnings (20.3% per year) are forecast to grow faster than the German market (14% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HLE's revenue (4.7% per year) is forecast to grow faster than the German market (3.9% 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 (10.4%).


Next Steps

Past Performance

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

17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLE has a large one-off gain of €152.2M impacting its November 30 2019 financial results.

Growing Profit Margin: HLE's current net profit margins (5.2%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: HLE's earnings have grown by 17.8% per year over the past 5 years.

Accelerating Growth: HLE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HLE had negative earnings growth (-45.1%) over the past year, making it difficult to compare to the Auto Components industry average (-45.1%).


Return on Equity

High ROE: HLE's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is HELLA GmbH KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: HLE's short term assets (€3.9B) exceed its short term liabilities (€2.1B).

Long Term Liabilities: HLE's short term assets (€3.9B) exceed its long term liabilities (€1.9B).


Debt to Equity History and Analysis

Debt Level: HLE's debt to equity ratio (62.5%) is considered high.

Reducing Debt: HLE's debt to equity ratio has reduced from 72.7% to 62.5% over the past 5 years.

Debt Coverage: HLE's debt is well covered by operating cash flow (45.9%).

Interest Coverage: HLE's interest payments on its debt are well covered by EBIT (19.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLE's dividend (3.62%) is higher than the bottom 25% of dividend payers in the German market (1.67%).

High Dividend: HLE's dividend (3.62%) is low compared to the top 25% of dividend payers in the German market (4.71%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.5%), 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% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Rolf Breidenbach (56yo)

2.25s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Michaela Bittner
Secretary & Member of Supervisory Board11.25yrs€20.00kno data
Rolf Breidenbach
Chairman of Management Board2.25yrsno datano data
Ulric Schaferbarthold
MD of Finance & Controlling and Member of Management Board - Hella Geschäftsführungsgesellschaft mbH3.42yrsno datano data
Frank Huber
MD of Automotive Lighting & Member of Management Board - Hella Geschäftsführungsgesellschaft mbH2.25yrsno datano data
Bjorn Twiehaus
Deputy MD of the Automotive Electronics Division & Member of Management Boardno datano datano data
Marco Dobrich
Head of Sensors & the Technical Centreno datano datano data
Carsten Roch
Head of Assisted & Automated Drivingno datano datano data
Michaela Schafer
Head of Global Purchasing and CEO of Office & Projects4.92yrsno datano data
Jörg Weisgerber
Member of Executive Board - Business Division Electronicsno datano datano data

2.8yrs

Average Tenure

49yo

Average Age

Experienced Management: HLE's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michaela Bittner
Secretary & Member of Supervisory Board11.25yrs€20.00kno data
Klaus Kühn
Chairman of Supervisory Board0.58yr€40.00kno data
Dietrich Hueck
Member of Supervisory Board1.25yrsno datano data
Stephanie Hueck
Member of Supervisory Board6.25yrs€20.00kno data
Christoph Thomas
Member of Supervisory Board6.25yrs€20.00k0.98% 31.6m
Claudia Owen
Member of Supervisory Board4.25yrs€20.00kno data
Manfred Menningen
Member of Supervisory Board11.25yrs€30.00kno data
Heinrich-Georg Bölter
Vice-Chairman of the Supervisory Boardno data€25.67kno data
Susanna Hülsbömer
Member of Supervisory Board11.25yrs€20.00kno data
Christoph Rudiger
Member of Supervisory Board1.5yrs€13.32kno data

6.3yrs

Average Tenure

Experienced Board: HLE's board of directors are considered experienced (6.3 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.


Top Shareholders

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: XTRA
  • Founded: 1899
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €3.227b
  • 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
HLEDB (Deutsche Boerse AG)YesLimited Partner SharesDEEURNov 2014
HLESWX (SIX Swiss Exchange)YesLimited Partner SharesCHCHFNov 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
0R3ULSE (London Stock Exchange)YesLimited Partner SharesGBEURNov 2014
HLEWBAG (Wiener Boerse AG)YesLimited Partner SharesATEURNov 2014
HLKH.FOTCPK (Pink Sheets LLC)YesLimited Partner SharesUSUSDNov 2014
HLE NBMV (Bolsa Mexicana de Valores)YesLimited Partner SharesMXMXNNov 2014
HLEETLX (Eurotlx)YesLimited Partner SharesITEURNov 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: Automotive, Aftermarket, and Special Applications. The Automotive segment offers headlamps, rear combination lamps, car body and interior lighting products, and radomes; and body electronics, energy management, lighting electronics, and steering solutions, as well as driver assistance systems and components, including sensors and engine compartment actuators. The Aftermarket segment produces and sells automotive parts and accessories primarily in the areas of lighting, electrics, and electronics; and provides workshop solutions in the areas of diagnostics and calibration, as well as various services for wholesalers and workshops. The Special Applications segment develops, manufactures, and markets lighting technology and electronic products for special vehicles comprising construction and agricultural machinery, buses, and motor homes, as well as for the marine sector. The company has strategic collaboration with AEye, Inc. to develop LiDAR sensor systems. The company was formerly known as HELLA KGaA Hueck & Co. and changed its name to HELLA GmbH & Co. KGaA in October 2017. HELLA GmbH & Co. KGaA was founded in 1899 and is headquartered in Lippstadt, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 22:59
End of Day Share Price2020/04/07 00:00
Earnings2019/11/30
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.