XTRA:HP3

Stock Analysis Report

Executive Summary

Ringmetall AG engages in industrial packaging and industrial handling businesses in Germany and internationally.


Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HP3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.9%

HP3

2.8%

DE Machinery

9.9%

DE Market


1 Year Return

-35.0%

HP3

-30.9%

DE Machinery

-17.5%

DE Market

Return vs Industry: HP3 underperformed the German Machinery industry which returned -30.1% over the past year.

Return vs Market: HP3 underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

HP3IndustryMarket
7 Day4.9%2.8%9.9%
30 Day-17.3%-18.7%-16.6%
90 Day-18.6%-29.7%-24.8%
1 Year-33.7%-35.0%-28.8%-30.9%-15.0%-17.5%
3 Year-33.4%-36.8%-41.6%-45.8%-17.4%-24.5%
5 Year51.0%36.1%-28.9%-36.9%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HP3 (€2.15) is trading below our estimate of fair value (€4)

Significantly Below Fair Value: HP3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HP3 is poor value based on its PE Ratio (17.3x) compared to the Machinery industry average (9.9x).

PE vs Market: HP3 is poor value based on its PE Ratio (17.3x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: HP3 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HP3 is overvalued based on its PB Ratio (1.3x) compared to the DE Machinery industry average (1x).


Next Steps

Future Growth

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

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HP3's forecast earnings growth (20.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: HP3's earnings (20.8% 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: HP3's revenue (4% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: HP3's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HP3's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Ringmetall performed over the past 5 years?

38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HP3 has high quality earnings.

Growing Profit Margin: HP3's current net profit margins (3.1%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: HP3 has become profitable over the past 5 years, growing earnings by 38.2% per year.

Accelerating Growth: HP3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HP3 had negative earnings growth (-37.8%) over the past year, making it difficult to compare to the Machinery industry average (-19.9%).


Return on Equity

High ROE: HP3's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Ringmetall's financial position?


Financial Position Analysis

Short Term Liabilities: HP3's short term assets (€40.2M) exceed its short term liabilities (€36.0M).

Long Term Liabilities: HP3's short term assets (€40.2M) exceed its long term liabilities (€18.9M).


Debt to Equity History and Analysis

Debt Level: HP3's debt to equity ratio (53.6%) is considered high.

Reducing Debt: HP3's debt to equity ratio has reduced from 77.4% to 53.6% over the past 5 years.

Debt Coverage: HP3's debt is well covered by operating cash flow (28.1%).

Interest Coverage: HP3's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet

Inventory Level: HP3 has a high level of physical assets or inventory.

Debt Coverage by Assets: HP3's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HP3's dividend (2.79%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: HP3's dividend (2.79%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: HP3's dividend payments have been volatile in the past 10 years.

Growing Dividend: HP3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.2%), HP3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HP3's dividends in 3 years are forecast to be well covered by earnings (34.1% payout ratio).


Next Steps

Management

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


CEO

Christoph Petri (38yo)

no data

Tenure

Mr. Christoph Alexander Petri serves as Chairman of Management Board at Ringmetall AG since 2011. Mr. Petri served as the Chief Financial Officer at Ringmetall AG. He was responsible for finance, controlli ...


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 been diluted in the past year, with total shares outstanding growing by 8.3%.


Top Shareholders

Company Information

Ringmetall AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ringmetall AG
  • Ticker: HP3
  • Exchange: XTRA
  • Founded: 1997
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €62.498m
  • Shares outstanding: 29.07m
  • Website: https://ringmetall.de

Number of Employees


Location

  • Ringmetall AG
  • Innere Wiener Str. 9
  • Munich
  • Bavaria
  • 81667
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HP3DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2007
HP3XTRA (XETRA Trading Platform)YesCommon StockDEEURAug 2007

Biography

Ringmetall AG engages in industrial packaging and industrial handling businesses in Germany and internationally. It develops and produces drum locking systems and clamping rings, as well as individual system components, such as covers, seals, locking divisions, handles, and various special parts. The company also develops and produces special vehicle components for industrial trucks, tractors, and agricultural vehicles, including restraint systems and lifting mast parts for forklift trucks, special brake and clutch pedals, and complex welding assemblies, as well as specialized trailer coupling systems and brackets for hydraulic components for use in forestry and agriculture. It serves the chemical, petrochemical, pharmaceutical, food, and logistics industries. The company was formerly known as H.P.I. Holding AG and changed its name to Ringmetall AG in September 2015. Ringmetall AG was founded in 1997 and is headquartered in Munich, 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 22:07
End of Day Share Price2020/03/30 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.