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HEI

HeidelbergCementXTRA:HEI Stock Report

Last Price

€65.50

Market Cap

€12.7b

7D

2.8%

1Y

-0.3%

Updated

17 Jan, 2022

Data

Company Financials +
HEI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends5/6

HEI Stock Overview

HeidelbergCement AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide.

HeidelbergCement Competitors

Home Depot

NYSE:HD

US$388.5b

VINCI

ENXTPA:DG

€55.9b

CRH

ISE:CRG

€35.8b

Compagnie de Saint-Gobain

ENXTPA:SGO

€35.0b

Price History & Performance

Summary of all time highs, changes and price drops for HeidelbergCement
Historical stock prices
Current Share Price€65.50
52 Week High€81.04
52 Week Low€56.60
Beta1.47
1 Month Change11.09%
3 Month Change1.80%
1 Year Change-0.27%
3 Year Change7.91%
5 Year Change-25.45%
Change since IPO108.35%

Recent News & Updates

Jan 10
When Should You Buy HeidelbergCement AG (ETR:HEI)?

When Should You Buy HeidelbergCement AG (ETR:HEI)?

HeidelbergCement AG ( ETR:HEI ) received a lot of attention from a substantial price movement on the XTRA over the last...

Dec 21
HeidelbergCement (ETR:HEI) Has A Pretty Healthy Balance Sheet

HeidelbergCement (ETR:HEI) Has A Pretty Healthy Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Nov 24
HeidelbergCement (ETR:HEI) Is Looking To Continue Growing Its Returns On Capital

HeidelbergCement (ETR:HEI) Is Looking To Continue Growing Its Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Oct 02
Is It Too Late To Consider Buying HeidelbergCement AG (ETR:HEI)?

Is It Too Late To Consider Buying HeidelbergCement AG (ETR:HEI)?

Let's talk about the popular HeidelbergCement AG ( ETR:HEI ). The company's shares received a lot of attention from a...

Aug 19
HeidelbergCement (ETR:HEI) Seems To Use Debt Quite Sensibly

HeidelbergCement (ETR:HEI) Seems To Use Debt Quite Sensibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

HEIDE Basic MaterialsDE Market
7D2.8%2.4%-0.6%
1Y-0.3%9.7%12.1%

Return vs Industry: HEI underperformed the German Basic Materials industry which returned 9.7% over the past year.

Return vs Market: HEI underperformed the German Market which returned 12.1% over the past year.

Price Volatility

Is HEI's price volatile compared to industry and market?
HEI volatility
HEI Average Weekly Movement2.8%
Basic Materials Industry Average Movement3.8%
Market Average Movement5.0%
10% most volatile stocks in DE Market9.8%
10% least volatile stocks in DE Market2.6%

Stable Share Price: HEI is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HEI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187353,327Dominik von Achtenhttps://www.heidelbergcement.com

HeidelbergCement AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. It provides cement products, including special cements with targeted characteristics, special geotechnical building materials, and a range of binders. The company also offers natural stone aggregates, such as sand and gravel; crushed aggregates comprising stone chippings and crushed stones; and concrete/ready-mixed concrete for use in the construction of tunnels or bridges, office buildings, or schools, as well as for the production of precast concrete parts consisting of stairs, ceiling elements, or structural components.

HeidelbergCement Fundamentals Summary

How do HeidelbergCement's earnings and revenue compare to its market cap?
HEI fundamental statistics
Market Cap€12.69b
Earnings (TTM)€1.80b
Revenue (TTM)€18.35b

7.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HEI income statement (TTM)
Revenue€18.35b
Cost of Revenue€6.74b
Gross Profit€11.61b
Expenses€9.81b
Earnings€1.80b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)9.29
Gross Margin63.27%
Net Profit Margin9.81%
Debt/Equity Ratio54.7%

How did HEI perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

24%

Payout Ratio

Valuation

Is HeidelbergCement 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: HEI (€65.5) is trading below our estimate of fair value (€133.68)

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


Price To Earnings Ratio

PE vs Industry: HEI is good value based on its PE Ratio (7.1x) compared to the European Basic Materials industry average (16.2x).

PE vs Market: HEI is good value based on its PE Ratio (7.1x) compared to the German market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: HEI is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: HEI is good value based on its PB Ratio (0.9x) compared to the XE Basic Materials industry average (1.6x).


Future Growth

How is HeidelbergCement forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEI's forecast earnings growth (6.1% per year) is above the savings rate (-0.01%).

Earnings vs Market: HEI's earnings (6.1% per year) are forecast to grow slower than the German market (10.4% per year).

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

Revenue vs Market: HEI's revenue (3.9% per year) is forecast to grow slower than the German market (5.6% per year).

High Growth Revenue: HEI'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: HEI's Return on Equity is forecast to be low in 3 years time (11.2%).


Past Performance

How has HeidelbergCement performed over the past 5 years?

-30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEI has high quality earnings.

Growing Profit Margin: HEI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HEI's earnings have declined by 30.8% per year over the past 5 years.

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

Earnings vs Industry: HEI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (33%).


Return on Equity

High ROE: HEI's Return on Equity (12.8%) is considered low.


Financial Health

How is HeidelbergCement's financial position?


Financial Position Analysis

Short Term Liabilities: HEI's short term assets (€8.5B) exceed its short term liabilities (€5.8B).

Long Term Liabilities: HEI's short term assets (€8.5B) do not cover its long term liabilities (€11.4B).


Debt to Equity History and Analysis

Debt Level: HEI's net debt to equity ratio (42.6%) is considered high.

Reducing Debt: HEI's debt to equity ratio has reduced from 55.4% to 54.7% over the past 5 years.

Debt Coverage: HEI's debt is well covered by operating cash flow (36.4%).

Interest Coverage: HEI's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet


Dividend

What is HeidelbergCement current dividend yield, its reliability and sustainability?

3.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEI's dividend (3.36%) is higher than the bottom 25% of dividend payers in the German market (1.02%).

High Dividend: HEI's dividend (3.36%) is in the top 25% of dividend payers in the German market (3.34%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.3%), HEI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HEI's dividends in 3 years are forecast to be well covered by earnings (30.2% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Dominik von Achten (56 yo)

14.25yrs

Tenure

€5,112,668

Compensation

Dr. Dominik von Achten has been Chairman of Managing Board at HeidelbergCement AG (a/k/a HeidelbergCement Group) since February 1, 2020 and served as its Vice Chairman of Management Board since February 1,...


CEO Compensation Analysis

Compensation vs Market: Dominik's total compensation ($USD5.83M) is about average for companies of similar size in the German market ($USD5.11M).

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


Leadership Team

Experienced Management: HEI's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: HEI's board of directors are seasoned and experienced ( 17.8 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

HeidelbergCement AG's employee growth, exchange listings and data sources


Key Information

  • Name: HeidelbergCement AG
  • Ticker: HEI
  • Exchange: XTRA
  • Founded: 1873
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: €12.691b
  • Shares outstanding: 193.76m
  • Website: https://www.heidelbergcement.com

Number of Employees


Location

  • HeidelbergCement AG
  • Berliner Strasse 6
  • Heidelberg
  • Baden-Württemberg
  • 69120
  • Germany

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:02
End of Day Share Price2022/01/17 00:00
Earnings2021/06/30
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.