DB:HDD

Stock Analysis Report

Heidelberger Druckmaschinen

Executive Summary

Heidelberger Druckmaschinen Aktiengesellschaft provides products, services, consumables, and software solutions for the printing industry in Europe, the Middle East, Africa, Asia/Pacific, North America, South America, and Eastern Europe.

Rewards

Trading at 76.5% below its fair value

Earnings are forecast to grow 103.65% per year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.5%

HDD

-1.8%

DE Machinery

0.1%

DE Market


1 Year Return

-45.3%

HDD

-10.7%

DE Machinery

14.1%

DE Market

Return vs Industry: HDD underperformed the German Machinery industry which returned -9.3% over the past year.

Return vs Market: HDD underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

HDDIndustryMarket
7 Day-2.5%-1.8%0.1%
30 Day-14.3%-3.7%0.2%
90 Day-27.8%-1.3%3.3%
1 Year-45.3%-45.3%-7.9%-10.7%17.6%14.1%
3 Year-62.1%-62.1%-19.2%-24.9%14.8%4.8%
5 Year-57.5%-57.5%-0.4%-11.6%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Heidelberger Druckmaschinen 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: HDD (€0.9) is trading below our estimate of fair value (€3.84)

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


Price To Earnings Ratio

PE vs Industry: HDD is poor value based on its PE Ratio (26.5x) compared to the Machinery industry average (16x).

PE vs Market: HDD is poor value based on its PE Ratio (26.5x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: HDD is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: HDD is good value based on its PB Ratio (1x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is Heidelberger Druckmaschinen forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

103.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDD's forecast earnings growth (103.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: HDD's earnings (103.7% per year) are forecast to grow faster than the German market (13.3% per year).

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

Revenue vs Market: HDD's revenue (2.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: HDD's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDD's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Heidelberger Druckmaschinen performed over the past 5 years?

41.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDD has a large one-off loss of €25.6M impacting its December 31 2019 financial results.

Growing Profit Margin: HDD's current net profit margins (0.5%) are lower than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: HDD has become profitable over the past 5 years, growing earnings by 41.6% per year.

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

Earnings vs Industry: HDD had negative earnings growth (-40.3%) over the past year, making it difficult to compare to the Machinery industry average (-14.4%).


Return on Equity

High ROE: HDD's Return on Equity (3.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Heidelberger Druckmaschinen's financial position?


Financial Position Analysis

Short Term Liabilities: HDD's short term assets (€1.4B) exceed its short term liabilities (€916.0M).

Long Term Liabilities: HDD's short term assets (€1.4B) exceed its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: HDD's debt to equity ratio (163.8%) is considered high.

Reducing Debt: HDD's debt to equity ratio has reduced from 230.2% to 163.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HDD's debt is covered by short term assets (assets are 2.6x 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: HDD is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: HDD is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.12%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage2.3%forecastin3Years0.1%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate HDD'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 HDD's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: HDD is not paying a notable dividend for the German market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Rainer Hundsdörfer (62yo)

3.3yrs

Tenure

€1,970,000

Compensation

Mr. Rainer Hundsdörfer has been the Chief Executive Officer and Chairman of The Board of Management at Heidelberger Druckmaschinen AG since November 14, 2016 and has been its Chief Human Resources Officer  ...


CEO Compensation Analysis

Compensation vs Market: Rainer's total compensation ($USD2.13M) is above average for companies of similar size in the German market ($USD633.80K).

Compensation vs Earnings: Rainer's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rainer Hundsdörfer
Chairman of Management Board3.3yrs€1.97mno data
Ulrich Hermann
Chief Digital Officer of Lifecycle Solutions & Member of Management Board3.3yrs€1.23mno data
Marcus Wassenberg
CFO & Financial Services and Member of Management Board0.4yrsno datano data
Robin Karpp
Head of Investor Relations & Group Communications9.1yrsno datano data
Detlev Dierkes
Head of Print Media Relations0yrsno datano data
Frank Kropp
Head of Research & Development0yrsno datano data
André Schuengel
Head of Application Development0yrsno datano data
Michael Finke
Head of Advertising & Sales Media -Audi Ag0yrsno datano data

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: HDD's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mirko Geiger
Employee Representative Member of the Supervisory Board14.5yrs€53.50kno data
Beate Schmitt
Employee Representative Member of the Supervisory Board13.8yrs€49.50kno data
Kirsten Lange
Independent Member of Supervisory Board5yrs€53.50kno data
Oliver Jung
Independent Member of Supervisory Board2.8yrs€47.50kno data
Karen Heumann
Independent Member of Supervisory Board3.9yrs€47.50kno data
Martin Sonnenschein
Independent Chairman of the Supervisory Board0.2yrsno datano data
Ralph Arns
Deputy Chairman of the Supervisory Board1.6yrs€80.50kno data
Petra Otte
Employee Representative Member of Supervisory Board1.6yrs€32.00kno data
Joachim Dencker
Employee Representative Member of Supervisory Board1.6yrs€32.50kno data
Gerald Dörr
Employee Representative Member of Supervisory Board1.6yrs€35.50kno data

2.2yrs

Average Tenure

53yo

Average Age

Experienced Board: HDD's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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 substantially diluted in the past year, with total shares outstanding growing by 60.7%.


Top Shareholders

Company Information

Heidelberger Druckmaschinen Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Heidelberger Druckmaschinen Aktiengesellschaft
  • Ticker: HDD
  • Exchange: DB
  • Founded: 1850
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €273.446m
  • Shares outstanding: 304.34m
  • Website: https://www.heidelberg.com

Number of Employees


Location

  • Heidelberger Druckmaschinen Aktiengesellschaft
  • Kurfürsten-Anlage 52-60
  • Heidelberg
  • Baden-Württemberg
  • 69115
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBGR.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDDec 1997
HDDDB (Deutsche Boerse AG)YesBearer SharesDEEURDec 1997
HDDXTRA (XETRA Trading Platform)YesBearer SharesDEEURDec 1997
0OC2LSE (London Stock Exchange)YesBearer SharesGBEURDec 1997
HDDDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURDec 1997
HDDSWX (SIX Swiss Exchange)YesBearer SharesCHCHFDec 1997
HDDWBAG (Wiener Boerse AG)YesBearer SharesATEURDec 1997
HDDETLX (Eurotlx)YesBearer SharesITEURDec 1997
HBGR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Heidelberger Druckmaschinen Aktiengesellschaft provides products, services, consumables, and software solutions for the printing industry in Europe, the Middle East, Africa, Asia/Pacific, North America, South America, and Eastern Europe. The company operates through Heidelberg Digital Technology, Heidelberg Digital Business, and Heidelberg Financial Services segments. It offers prepress equipment, including computer-to-plate (CtP) and computer to screen equipment; press equipment, such as digital printing, sheetfed offset, inline flexo printing, narrow Web printing, and screen printing equipment; and postpress equipment comprising cutting, folding, die-cutting, hot foiling, offline inspection, folding carton gluing, and label systems, as well as used printing machines and remarketed equipment. The company also provides technical services, which include installation and relocation, maintenance and cleaning, remote support, repair, and overhauling services, as well as service parts; and performance services consisting of performance evaluation, color management, training, upgrades and retrofits, monitoring, output optimization, print shop optimization, and investment planning. In addition, it offers financial services; and consumables, such as CtP printing and analog plates, films, platemaking chemicals, proofing materials, toners, glues, staple cartridges, hole punching supplies, inks, coatings and varnishes, blankets, rollers, chemicals, pressroom supplies, cutting knives, banderoles, dispersion glues, binding glues, stitching wires and sealing threads, and folding carton gluing supplies. The company was formerly known as Schnellpressenfabrik AG Heidelberg and changed its name to Heidelberger Druckmaschinen Aktiengesellschaft in 1967. Heidelberger Druckmaschinen Aktiengesellschaft was founded in 1850 and is based in Heidelberg, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 20:33
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.