XTRA:2HRA

Stock Analysis Report

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Market Cap

€288.8m

Last Updated

2021/06/19 18:27 UTC

Data Sources

Company Financials +

Executive Summary

H&R GmbH & Co. KGaA manufactures and sells chemical-pharmaceutical raw materials and injection molded precision plastic parts. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has H&R GmbH KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2HRA is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2HRA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

5.4%

2HRA

-3.6%

DE Chemicals

-1.4%

DE Market


1 Year Return

41.1%

2HRA

28.5%

DE Chemicals

27.0%

DE Market

Return vs Industry: 2HRA exceeded the German Chemicals industry which returned 31.5% over the past year.

Return vs Market: 2HRA exceeded the German Market which returned 29.2% over the past year.


Shareholder returns

2HRAIndustryMarket
7 Day5.4%-3.6%-1.4%
30 Day13.8%-3.0%2.3%
90 Day38.8%-2.6%4.8%
1 Year41.1%41.1%33.8%28.5%31.4%27.0%
3 Year-30.6%-30.6%-3.5%-14.5%27.9%17.4%
5 Year-29.1%-31.6%32.6%10.6%64.7%42.1%

Long-Term Price Volatility Vs. Market

How volatile is H&R GmbH KGaA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is H&R GmbH KGaA undervalued compared to its fair value and its price relative to the market?

41.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2HRA (€7.76) is trading below our estimate of fair value (€13.36)

Significantly Below Fair Value: 2HRA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2HRA is poor value based on its PE Ratio (98.8x) compared to the German Chemicals industry average (24.3x).

PE vs Market: 2HRA is poor value based on its PE Ratio (98.8x) compared to the German market (26.7x).


Price to Earnings Growth Ratio

PEG Ratio: 2HRA is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 2HRA is good value based on its PB Ratio (0.9x) compared to the DE Chemicals industry average (2.2x).


Future Growth

How is H&R GmbH KGaA forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

40.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2HRA's forecast earnings growth (40.2% per year) is above the savings rate (0.01%).

Earnings vs Market: 2HRA's earnings (40.2% per year) are forecast to grow faster than the German market (14.5% per year).

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

Revenue vs Market: 2HRA's revenue (8.4% per year) is forecast to grow faster than the German market (5.6% per year).

High Growth Revenue: 2HRA's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2HRA's Return on Equity is forecast to be high in 3 years time


Past Performance

How has H&R GmbH KGaA performed over the past 5 years?

-50.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2HRA has a large one-off loss of €1.4M impacting its March 31 2021 financial results.

Growing Profit Margin: 2HRA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 2HRA's earnings have declined by 50.8% per year over the past 5 years.

Accelerating Growth: 2HRA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 2HRA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (14.9%).


Return on Equity

High ROE: 2HRA's Return on Equity (1.2%) is considered low.


Financial Health

How is H&R GmbH KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: 2HRA's short term assets (€340.2M) exceed its short term liabilities (€222.4M).

Long Term Liabilities: 2HRA's short term assets (€340.2M) exceed its long term liabilities (€228.9M).


Debt to Equity History and Analysis

Debt Level: 2HRA's debt to equity ratio (44%) is considered high.

Reducing Debt: 2HRA's debt to equity ratio has reduced from 47.9% to 44% over the past 5 years.

Debt Coverage: 2HRA's debt is well covered by operating cash flow (33.4%).

Interest Coverage: 2HRA's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

What is H&R GmbH KGaA current dividend yield, its reliability and sustainability?

0.77%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2HRA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2HRA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2HRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2HRA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2HRA is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2HRA'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?

9.1yrs

Average board tenure


CEO

Niels Hansen (55 yo)

9.42yrs

Tenure

€706,245

Compensation

Mr. Niels H. Hansen serves as the Managing Director of Hansen & Rosenthal KG. Mr. Hansen has been Managing Director and served as Chairman of The Executive Board at H&R GmbH & Co. KGaA since January 01, 20...


CEO Compensation Analysis

Compensation vs Market: Niels's total compensation ($USD837.28K) is about average for companies of similar size in the German market ($USD973.43K).

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


Board Members

Experienced Board: 2HRA's board of directors are considered experienced (9.1 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

H&R GmbH & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H&R GmbH & Co. KGaA
  • Ticker: 2HRA
  • Exchange: XTRA
  • Founded: 1919
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: €288.841m
  • Shares outstanding: 37.22m
  • Website: https://www.hur.com

Number of Employees


Location

  • H&R GmbH & Co. KGaA
  • Neuenkirchener Strasse 8
  • Salzbergen
  • Lower Saxony
  • 48499
  • Germany

Listings


Biography

H&R GmbH & Co. KGaA manufactures and sells chemical-pharmaceutical raw materials and injection molded precision plastic parts. It operates through three segments: ChemPharm Refining, ChemPharm Sales, and P...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 18:27
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.