XTRA:HAW

Stock Analysis Report

Executive Summary

Hawesko Holding AG, together with its subsidiaries, engages in the trading and sale of wines, champagnes, and other alcoholic drinks in Germany, rest of Europe, and internationally.

Rewards

Trading at 64.4% below its fair value

Earnings are forecast to grow 12.28% per year

Earnings grew by 8.2% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Solid track record established dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HAW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

HAW

0.2%

DE Consumer Retailing

0.3%

DE Market


1 Year Return

-16.9%

HAW

0.6%

DE Consumer Retailing

13.8%

DE Market

Return vs Industry: HAW underperformed the German Consumer Retailing industry which returned 4.8% over the past year.

Return vs Market: HAW underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

HAWIndustryMarket
7 Day-1.5%0.2%0.3%
30 Day-2.6%-1.2%1.7%
90 Day0.9%0.5%5.7%
1 Year-13.9%-16.9%4.6%0.6%17.4%13.8%
3 Year-21.7%-28.1%2.7%-7.5%15.9%5.7%
5 Year-2.7%-16.4%14.5%-3.2%27.9%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hawesko Holding 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: HAW (€34.7) is trading below our estimate of fair value (€97.46)

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


Price To Earnings Ratio

PE vs Industry: HAW is good value based on its PE Ratio (17.5x) compared to the Consumer Retailing industry average (19.2x).

PE vs Market: HAW is good value based on its PE Ratio (17.5x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: HAW is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: HAW is overvalued based on its PB Ratio (3.1x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAW's forecast earnings growth (12.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: HAW's earnings (12.3% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: HAW's earnings are forecast to grow, but not significantly.

Revenue vs Market: HAW's revenue (3.9% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: HAW's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAW's Return on Equity is forecast to be low in 3 years time (18.9%).


Next Steps

Past Performance

How has Hawesko Holding performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAW has high quality earnings.

Growing Profit Margin: HAW's current net profit margins (3.2%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: HAW's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: HAW's earnings growth over the past year (8.2%) exceeds its 5-year average (8.1% per year).

Earnings vs Industry: HAW earnings growth over the past year (8.2%) exceeded the Consumer Retailing industry 0.5%.


Return on Equity

High ROE: HAW's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hawesko Holding's financial position?


Financial Position Analysis

Short Term Liabilities: HAW's short term assets (€189.4M) exceed its short term liabilities (€147.9M).

Long Term Liabilities: HAW's short term assets (€189.4M) exceed its long term liabilities (€116.2M).


Debt to Equity History and Analysis

Debt Level: HAW's debt to equity ratio (70.7%) is considered high.

Reducing Debt: HAW's debt to equity ratio has increased from 43.6% to 70.7% over the past 5 years.

Debt Coverage: HAW's debt is well covered by operating cash flow (26.4%).

Interest Coverage: HAW's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: HAW's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

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

3.89%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.3%markettop25%3.6%industryaverage3.5%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: HAW's dividend (3.75%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: HAW's dividend (3.75%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.5%), HAW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HAW's dividends in 3 years are forecast to be covered by earnings (57.7% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Thorsten Hermelink (50yo)

4.1yrs

Tenure

€763,000

Compensation

Mr. Thorsten Hermelink serves as the Chief Executive Officer of Strauss VERWALTUNGS GmbH. Mr. Hermelink has been the Chief Executive Officer of Hawesko Holding AG since December 2015 and has been its Membe ...


CEO Compensation Analysis

Compensation vs Market: Thorsten's total compensation ($USD848.82K) is about average for companies of similar size in the German market ($USD817.80K).

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


Management Age and Tenure

4.1yrs

Average Tenure

51yo

Average Age

Experienced Management: HAW's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

Experienced Board: HAW's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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.


Management Team

  • Thorsten Hermelink (50yo)

    CEO & Member of Management Board

    • Tenure: 4.1yrs
    • Compensation: €763.00k
  • Alexander Borwitzky (51yo)

    Member of Management Board

    • Tenure: 5yrs
    • Compensation: €529.00k
  • Raimund Hackenberger (51yo)

    CFO & Member of Management Board

    • Tenure: 2.8yrs
    • Compensation: €512.00k

Board Members

  • Thomas Fischer (72yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €47.00k
  • Franz Säcker

    Independent Member of Supervisory Board

    • Tenure: 4.8yrs
    • Compensation: €29.00k
  • Detlev Meyer

    Chairman of Supervisory Board

    • Tenure: 4.8yrs
    • Compensation: €62.00k
  • Jörg Haas (56yo)

    Independent Member of Supervisory Board

    • Tenure: 2.1yrs
    • Compensation: €3.00k
  • Kim-Eva Wempe

    Independent Member of Supervisory Board

    • Tenure: 8.6yrs
    • Compensation: €27.00k
  • Wilhelm Weil

    Independent Member of Supervisory Board

    • Tenure: 2.6yrs
    • Compensation: €27.00k

Company Information

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


Key Information

  • Name: Hawesko Holding AG
  • Ticker: HAW
  • Exchange: XTRA
  • Founded: 1964
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: €300.046m
  • Shares outstanding: 8.98m
  • Website: https://www.hawesko-holding.com

Number of Employees


Location

  • Hawesko Holding AG
  • Elbkaihaus
  • Grosse Elbstrasse 145d
  • Hamburg
  • Hamburg
  • 22767
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HAWDB (Deutsche Boerse AG)YesBearer SharesDEEURMay 1998
HAWXTRA (XETRA Trading Platform)YesBearer SharesDEEURMay 1998
0ENJLSE (London Stock Exchange)YesBearer SharesGBEURMay 1998
HAWDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURMay 1998

Biography

Hawesko Holding AG, together with its subsidiaries, engages in the trading and sale of wines, champagnes, and other alcoholic drinks in Germany, rest of Europe, and internationally. It operates through three segments: Retail, B2B, and E-commerce. The company operates a network of specialist wine retail shops under the Jacques' Wein-Depot brand name. It sells its products to end customers, various sales channels, catering trade, and retailers through specialty retail stores and wholesale operations/distribution, as well as through distance selling primarily under the Hawesko and Vinos names. As of December 31, 2018, the company operated 313 Jacques' Wein-Depot outlets. The company was founded in 1964 and is headquartered in Hamburg, Germany. Hawesko Holding AG is a subsidiary of Tocos Beteiligung GmbH. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/25 21:25
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
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.