XTRA:HNL

Stock Analysis Report

Executive Summary

Dr. Hönle AG operates in the UV market worldwide.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has Dr. Hönle's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.1%

HNL

9.2%

DE Electrical

9.9%

DE Market


1 Year Return

-44.2%

HNL

-8.2%

DE Electrical

-17.5%

DE Market

Return vs Industry: HNL underperformed the German Electrical industry which returned -6.8% over the past year.

Return vs Market: HNL underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

HNLIndustryMarket
7 Day4.1%9.2%9.9%
30 Day-31.0%-20.6%-16.6%
90 Day-39.9%-35.2%-24.8%
1 Year-42.7%-44.2%-7.9%-8.2%-15.0%-17.5%
3 Year-15.1%-19.4%-41.8%-43.7%-17.4%-24.5%
5 Year35.3%23.5%-39.9%-44.1%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dr. Hönle undervalued compared to its fair value and its price relative to the market?

14.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HNL (€26.55) is trading above our estimate of fair value (€16.33)

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


Price To Earnings Ratio

PE vs Industry: HNL is good value based on its PE Ratio (14x) compared to the Electrical industry average (24x).

PE vs Market: HNL is good value based on its PE Ratio (14x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: HNL is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: HNL is overvalued based on its PB Ratio (1.6x) compared to the DE Electrical industry average (1.5x).


Next Steps

Future Growth

How is Dr. Hönle forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

33.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNL's forecast earnings growth (33.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: HNL's earnings (33.5% per year) are forecast to grow faster than the German market (14.3% per year).

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

Revenue vs Market: HNL's revenue (10.5% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: HNL's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HNL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dr. Hönle performed over the past 5 years?

17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HNL has a high level of non-cash earnings.

Growing Profit Margin: HNL's current net profit margins (10.1%) are lower than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: HNL's earnings have grown by 17.5% per year over the past 5 years.

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

Earnings vs Industry: HNL had negative earnings growth (-50.6%) over the past year, making it difficult to compare to the Electrical industry average (17.2%).


Return on Equity

High ROE: HNL's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Dr. Hönle's financial position?


Financial Position Analysis

Short Term Liabilities: HNL's short term assets (€72.9M) exceed its short term liabilities (€25.9M).

Long Term Liabilities: HNL's short term assets (€72.9M) exceed its long term liabilities (€37.2M).


Debt to Equity History and Analysis

Debt Level: HNL's debt to equity ratio (28.3%) is considered satisfactory.

Reducing Debt: HNL's debt to equity ratio has increased from 25.8% to 28.3% over the past 5 years.

Debt Coverage: HNL's debt is well covered by operating cash flow (49.2%).

Interest Coverage: HNL's interest payments on its debt are well covered by EBIT (180.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: HNL's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

What is Dr. Hönle's current dividend yield, its reliability and sustainability?

3.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HNL's dividend (3.01%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: HNL's dividend (3.01%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

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

Growing Dividend: HNL's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.2%), HNL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.0yrs

Average board tenure


CEO

Dr. Hönle has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Karl Honle
Chairman of Supervisory Board5yrsno datano data
Gunther Henrich
Vice Chairman of Supervisory Board5yrsno datano data
Bernhard Gimple
Member of Supervisory Board5yrsno datano data

5.0yrs

Average Tenure

Experienced Board: HNL's board of directors are considered experienced (5 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

Dr. Hönle AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dr. Hönle AG
  • Ticker: HNL
  • Exchange: XTRA
  • Founded: 1976
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: €146.340m
  • Shares outstanding: 5.51m
  • Website: https://www.hoenle.de

Number of Employees


Location

  • Dr. Hönle AG
  • Lochhamer Schlag 1
  • Gräfelfing
  • Bavaria
  • 82166
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNLDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 2001
HNLXTRA (XETRA Trading Platform)YesBearer SharesDEEURJan 2001
0O27LSE (London Stock Exchange)YesBearer SharesGBEURJan 2001
DRHN.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 2001
HNLdBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 2001

Biography

Dr. Hönle AG operates in the UV market worldwide. It operates through three segments: Equipment & Systems, Glass & Lamps, and Adhesives. The Equipment & Systems segment offers UV equipment and systems, LED-UV units, IR units, inert systems, disinfection systems, solar simulation systems and light fixtures, lighting systems, UV measuring technology products, UV-adhesives, and components and replacement parts. This segment also provides hot air systems, and powder spraying and extraction systems for sheet-fed offset printing; UV dryers for Web printing; UV systems with nitrogen inertisation; and drying systems. Its products are used for drying inks and coatings, curing adhesives and plastics, disinfecting surfaces, and sunlight simulation. The Glass & Lamps segment offers UV low and medium pressure lamps; infrared emitters; electronic power supplies; UV sensors and measuring technology products; UV measuring devices; and submersible and immersion tube systems, as well as accessories. This segment also provides UV bulbs; and quartz glass tubing and rods for the lamp, automotive, semiconductor, and fiber cable industries. The Adhesives segment offers industrial, UV, medical grade, and conductive adhesives; dosing systems; potting and sealing compounds; and UV curing units. Dr. Hönle AG was founded in 1976 and is headquartered in Gräfelfing, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:32
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.