DB:PHH2

Stock Analysis Report

Executive Summary

Paul Hartmann AG manufactures and sells medical and hygiene products for wound care, incontinence, disinfection, and surgical efficiency in Europe, North and South America, Africa, Asia, and Oceania.

Rewards

PE ratio (13.9x) is below the German market (20.6x)

Pays a reliable dividend of 2.43%

Risk Analysis

No risks detected for PHH2 from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PHH2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

PHH2

2.2%

DE Medical Equipment

-0.3%

DE Market


1 Year Return

-4.6%

PHH2

36.1%

DE Medical Equipment

14.0%

DE Market

Return vs Industry: PHH2 underperformed the German Medical Equipment industry which returned 35.7% over the past year.

Return vs Market: PHH2 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

PHH2IndustryMarket
7 Day0.7%2.2%-0.3%
30 Day0.7%4.7%0.5%
90 Day-4.0%18.0%4.5%
1 Year-2.4%-4.6%38.2%36.1%17.6%14.0%
3 Year-28.0%-32.1%146.2%139.8%14.3%4.2%
5 Year-6.7%-14.8%296.7%276.7%26.0%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PHH2 (€288) is trading above our estimate of fair value (€198.32)

Significantly Below Fair Value: PHH2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PHH2 is good value based on its PE Ratio (13.9x) compared to the Medical Equipment industry average (44.9x).

PE vs Market: PHH2 is good value based on its PE Ratio (13.9x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PHH2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PHH2 is good value based on its PB Ratio (1.2x) compared to the DE Medical Equipment industry average (5.8x).


Next Steps

Future Growth

How is Paul Hartmann forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Paul Hartmann has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Paul Hartmann performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHH2 has high quality earnings.

Growing Profit Margin: PHH2's current net profit margins (3.4%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: PHH2's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: PHH2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PHH2 had negative earnings growth (-12.8%) over the past year, making it difficult to compare to the Medical Equipment industry average (23.9%).


Return on Equity

High ROE: PHH2's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Paul Hartmann's financial position?


Financial Position Analysis

Short Term Liabilities: PHH2's short term assets (€867.6M) exceed its short term liabilities (€400.7M).

Long Term Liabilities: PHH2's short term assets (€867.6M) exceed its long term liabilities (€301.6M).


Debt to Equity History and Analysis

Debt Level: PHH2's debt to equity ratio (11.9%) is considered satisfactory.

Reducing Debt: PHH2's debt to equity ratio has reduced from 21.6% to 11.9% over the past 5 years.

Debt Coverage: PHH2's debt is well covered by operating cash flow (130.2%).

Interest Coverage: PHH2's interest payments on its debt are well covered by EBIT (68x coverage).


Balance Sheet

Inventory Level: PHH2 has a high level of physical assets or inventory.

Debt Coverage by Assets: PHH2's debt is covered by short term assets (assets are 8.1x debt).


Next Steps

Dividend

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

2.43%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.6%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PHH2's dividend (2.43%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: PHH2's dividend (2.43%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: PHH2's dividends per share have been stable in the past 10 years.

Growing Dividend: PHH2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.7%), PHH2'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

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

7.7yrs

Average management tenure


CEO

Britta Fuenfstueck 0

1yrs

Tenure

0

Ms. Britta Fuenfstueck has been Chief Executive Officer at Paul Hartmann AG since January 1, 2019 and its Management Board since January 1, 2019. Ms. Fuenfstueck served as Chairman of the Management Board  ...


Management Age and Tenure

7.7yrs

Average Tenure

Experienced Management: PHH2's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

11.8yrs

Average Tenure

Experienced Board: PHH2's board of directors are seasoned and experienced ( 11.8 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

  • Raymund Heinen

    Chief Process Officer & Member of the Management Board

    • Tenure: 4.3yrs
  • Michel Kuehn (65yo)

    Chief Hygiene Officer & Member of Management Board

    • Tenure: 11.3yrs
  • Michael Banz

    Vice President of Corporate Legal

    • Ralf Fenske

      Senior Vice President of Corporate Accounting

      • Peter Halbauer

        Head of Group Purchasing Management

        • Tenure: 12yrs
      • Gabriele Müller

        Vice President of Human Resources Management

        • Tenure: 9yrs
      • Michael Brauner

        Executive Managing Director of SANIMED Group Germany

        • Tenure: 6.3yrs
      • Christian Sievert

        Senior Vice President Business Unit Risk Prevention

        • Britta Fuenfstueck

          CEO & Member of Management Board

          • Tenure: 1yrs
        • François Georgelin

          Member of the Management Board


          Board Members

          • Joachim Schielke (70yo)

            Member of Supervisory Board

            • Tenure: 11.8yrs
            • Compensation: €22.50k
          • Fritz-Jürgen Heckmann

            Chairman of Supervisory Board

            • Tenure: 14.5yrs
            • Compensation: €69.50k
          • Werner Casper

            Member of Supervisory Board

            • Compensation: €22.50k
          • Eduard Schleicher

            Member of Supervisory Board

            • Tenure: 11.8yrs
            • Compensation: €53.83k
          • Gerhard Hirth

            Member of Supervisory Board

            • Tenure: 11.8yrs
            • Compensation: €22.50k
          • Rinaldo Riguzzi (73yo)

            Member of Supervisory Board

            • Tenure: 6.5yrs
          • Christine Geppert

            Member of Supervisory Board

            • Compensation: €22.50k
          • Wolfgang Röhrl

            Vice President Operations Management Medical Production & Member of Supervisory Board

            • Tenure: 2yrs
          • Ralf Willeck

            Deputy Chairman of the Supervisory Board

            • Yvonne Brix

              Member of Supervisory Board

              • Tenure: 6.7yrs

            Company Information

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


            Key Information

            • Name: Paul Hartmann AG
            • Ticker: PHH2
            • Exchange: DB
            • Founded: 1818
            • Industry: Health Care Supplies
            • Sector: Healthcare
            • Market Cap: €1.002b
            • Shares outstanding: 3.55m
            • Website: https://hartmann.info

            Number of Employees


            Location

            • Paul Hartmann AG
            • Paul-Hartmann-Strasse 12
            • Heidenheim
            • Baden-Württemberg
            • 89522
            • Germany

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            PHH2DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
            PLHN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992

            Biography

            Paul Hartmann AG manufactures and sells medical and hygiene products for wound care, incontinence, disinfection, and surgical efficiency in Europe, North and South America, Africa, Asia, and Oceania. The company offers disinfectant products for hands, surface, and instruments; cleaning, skin care, and skin antisepsis products, as well as Sterillium, a hand disinfectant; incontinence management products; and personal healthcare products, such as diagnostic devices and first aid products. It also provides single-use and pre-surgical products, disposable surgical gloves, clothing and gowns, and disposable drapes for use in operating theatres, treatment rooms, and wards; and wound management solutions, including traditional compresses, bandages, hydro therapy products. The company offers its products and services to nursing and healthcare professionals, home residents, and patients. Paul Hartmann AG was founded in 1818 and is based in Heidenheim, Germany. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/23 20:54
            End of Day Share Price2020/01/23 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.