DB:HOT

Stock Analysis Report

Executive Summary

HOCHTIEF Aktiengesellschaft engages in the construction business worldwide.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

DB:HOT

-0.4%

DE Construction

0.2%

DE Market


1 Year Return

-28.6%

DB:HOT

-27.0%

DE Construction

-10.0%

DE Market

HOT outperformed the Construction industry which returned -30.6% over the past year.

HOT underperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

HOTIndustryMarket
7 Day-0.5%-0.4%0.2%
30 Day0.7%0.2%-3.3%
90 Day-14.3%-13.9%-3.9%
1 Year-25.6%-28.6%-24.0%-27.0%-7.1%-10.0%
3 Year-12.4%-19.0%-10.3%-16.9%11.3%1.7%
5 Year88.8%66.6%82.9%62.6%25.8%8.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HOCHTIEF undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

HOCHTIEF's share price is below the future cash flow value, and at a moderate discount (> 20%).

HOCHTIEF's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

HOCHTIEF is overvalued based on earnings compared to the Europe Construction industry average.

HOCHTIEF is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

HOCHTIEF is poor value based on expected growth next year.


Price Based on Value of Assets

HOCHTIEF is overvalued based on assets compared to the Europe Construction industry average.


Next Steps

Future Growth

How is HOCHTIEF expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HOCHTIEF's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

HOCHTIEF's earnings are expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

HOCHTIEF's revenue growth is positive but not above the Germany market average.

HOCHTIEF's earnings growth is positive but not above the Germany market average.

HOCHTIEF's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

HOCHTIEF is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has HOCHTIEF performed over the past 5 years?

52.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

HOCHTIEF has delivered over 20% year on year earnings growth in the past 5 years.

HOCHTIEF's 1-year earnings growth is less than its 5-year average (27.9% vs 52.3%)

HOCHTIEF's earnings growth has exceeded the Europe Construction industry average in the past year (27.9% vs 8.5%).


Return on Equity

Whilst HOCHTIEF has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

HOCHTIEF used its assets less efficiently than the Europe Construction industry average last year based on Return on Assets.


Return on Capital Employed

HOCHTIEF has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is HOCHTIEF's financial position?


Financial Position Analysis

HOCHTIEF is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

HOCHTIEF's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

HOCHTIEF's level of debt (117%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (135.8% vs 117% today).

Debt is well covered by operating cash flow (51.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.9x debt.


Next Steps

Dividend

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

6.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

HOCHTIEF's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.57%).

HOCHTIEF's dividend is above the markets top 25% of dividend payers in Germany (4.29%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of HOCHTIEF's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Marcelino Fernandez Verdes (64yo)

6.8yrs

Tenure

€7,109,000

Compensation

Mr. Marcelino Fernández Verdes, Civ Eng, has been an Executive Chairman of CIMIC Group Limited since June 11, 2014 and its Executive Director since October 10, 2012. Mr. Fernández Verdes has been the Chair ...


CEO Compensation Analysis

Marcelino's remuneration is higher than average for companies of similar size in Germany.

Marcelino's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.9yrs

Average Tenure

54yo

Average Age

The average tenure for the HOCHTIEF management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.8yrs

Average Tenure

59.5yo

Average Age

The tenure for the HOCHTIEF board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Peter-Wilhelm Sassenfeld (53yo)

    CFO & Member of the Executive Board

    • Tenure: 7.8yrs
    • Compensation: €3.67m
  • Marcelino Fernandez Verdes (64yo)

    Chairman of the Executive Board & CEO

    • Tenure: 6.8yrs
    • Compensation: €7.11m
  • Mike Pinkney (53yo)

    Head of Corporate Strategy

    • Tenure: 5.9yrs
  • Bernd Pütter

    Senior Vice President of Corporate Communications

    • Tenure: 0.0yrs
  • Nikolaus Graf von Matuschka (56yo)

    Labor Director & Member of Executive Board

    • Tenure: 5.3yrs
    • Compensation: €2.10m
  • José Ignacio Escobar (54yo)

    COO & Member of the Executive Board

    • Tenure: 5.3yrs
    • Compensation: €1.81m
  • Alexandra Albrecht-Baba

    Head of Corporate Compliance

    • Tenure: 0.0yrs
  • Georg von Bronk

    Chief Compliance Officer

    • Tenure: 0.0yrs
  • Martina Steffen

    Head of Human Resources

    • Tenure: 0.0yrs
  • Nadine Wärmer

    Investor Relations Officer

    • Tenure: 0.0yrs

Board Members

  • Francisco Javier Garcia Sanz (62yo)

    Member of the Supervisory Board

    • Tenure: 7.3yrs
    • Compensation: €73.00k
  • Ángel Manuel García Altozano (70yo)

    Member of the Supervisory Board

    • Tenure: 12.2yrs
    • Compensation: €150.00k
  • Pedro Jose López Jiménez (74yo)

    Chairman of the Supervisory Board

    • Tenure: 4.8yrs
    • Compensation: €206.50k
  • José Del Valle Pérez (69yo)

    Member of the Supervisory Board

    • Tenure: 8.3yrs
    • Compensation: €119.00k
  • Christine Wolff (59yo)

    Member of the Supervisory Board

    • Tenure: 4.8yrs
    • Compensation: €107.00k
  • Carsten Burckhardt (46yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 5.8yrs
    • Compensation: €115.50k
  • Klaus Stümper (60yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 5.8yrs
    • Compensation: €119.00k
  • Matthias Maurer (58yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 3.3yrs
    • Compensation: €150.00k
  • Nikolaos Paraskevopoulos (53yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 5.8yrs
    • Compensation: €107.50k
  • Beate Bell (52yo)

    Member of the Supervisory Board

    • Tenure: 4.3yrs
    • Compensation: €109.00k

Company Information

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


Key Information

  • Name: HOCHTIEF Aktiengesellschaft
  • Ticker: HOT
  • Exchange: DB
  • Founded: 1873
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €6.681b
  • Shares outstanding: 70.62m
  • Website: https://www.hochtief.com

Number of Employees


Location

  • HOCHTIEF Aktiengesellschaft
  • Opernplatz 2
  • Essen
  • North Rhine-Westphalia
  • 45128
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOCF.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1992
HOTDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
HOTXTRA (XETRA Trading Platform)YesBearer SharesDEEURJan 1992
0EPWLSE (London Stock Exchange)YesBearer SharesGBEURJan 1992
HOTDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992
HOTSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
HOTWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1992
HOCF.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2008

Biography

HOCHTIEF Aktiengesellschaft engages in the construction business worldwide. The company operates through HOCHTIEF Americas, HOCHTIEF Asia Pacific, and HOCHTIEF Europe divisions. The HOCHTIEF Americas divis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 20:43
End of Day Share Price2019/08/19 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.