XTRA:HEI

Stock Analysis Report

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Executive Summary

HeidelbergCement AG produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HEI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.2%

HEI

11.0%

DE Basic Materials

6.8%

DE Market


1 Year Return

-25.5%

HEI

-6.1%

DE Basic Materials

5.6%

DE Market

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 4.1% over the past year.


Shareholder returns

HEIIndustryMarket
7 Day13.2%11.0%6.8%
30 Day21.1%18.6%14.0%
90 Day0.1%2.4%7.5%
1 Year-24.6%-25.5%-2.8%-6.1%7.4%5.6%
3 Year-36.1%-40.1%-12.7%-20.6%0.3%-7.3%
5 Year-23.3%-30.6%-0.5%-14.7%12.4%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEI (€50.54) is trading below our estimate of fair value (€78.39)

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 (8.9x) compared to the Basic Materials industry average (10.7x).

PE vs Market: HEI is good value based on its PE Ratio (8.9x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: HEI is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: HEI is good value based on its PB Ratio (0.6x) compared to the XE Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is HeidelbergCement forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEI's forecast earnings growth (3.7% per year) is above the savings rate (0.2%).

Earnings vs Market: HEI's earnings (3.7% per year) are forecast to grow slower than the German market (22.7% per year).

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

Revenue vs Market: HEI's revenue (1.4% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: HEI's revenue (1.4% 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 (6.3%).


Next Steps

Past Performance

How has HeidelbergCement performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEI has high quality earnings.

Growing Profit Margin: HEI's current net profit margins (5.9%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: HEI's earnings have grown by 9.6% per year over the past 5 years.

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

Earnings vs Industry: HEI had negative earnings growth (-2.9%) over the past year, making it difficult to compare to the Basic Materials industry average (-3%).


Return on Equity

High ROE: HEI's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is HeidelbergCement's financial position?


Financial Position Analysis

Short Term Liabilities: HEI's short term assets (€8.3B) exceed its short term liabilities (€7.4B).

Long Term Liabilities: HEI's short term assets (€8.3B) do not cover its long term liabilities (€12.7B).


Debt to Equity History and Analysis

Debt Level: HEI's debt to equity ratio (58.1%) is considered high.

Reducing Debt: HEI's debt to equity ratio has increased from 57.5% to 58.1% over the past 5 years.

Debt Coverage: HEI's debt is well covered by operating cash flow (24.8%).

Interest Coverage: HEI's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEI's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: HEI's dividend (1.19%) is low compared to the top 25% of dividend payers in the German market (3.8%).


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 (10.6%), HEI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HEI's dividends in 3 years are forecast to be well covered by earnings (39% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Dominik von Achten (54yo)

0.33

Tenure

€3,595,000

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 ($USD4.04M) is about average for companies of similar size in the German market ($USD4.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dominik von Achten
Chairman of Managing Board0.33yr€3.60mno data
Lorenz Näger
CFO, Head of Finance0.33yr€2.99mno data
Ernest Jelito
Member of the Managing Board0.92yr€1.57mno data
Hakan Gurdal
Member of Managing Board4.33yrs€2.52mno data
Kevin Gluskie
Member of Managing Board4.33yrs€3.54mno data
Jon Morrish
Member of Managing Board4.33yrs€3.11mno data
Chris Ward
Member of Management Board0.75yr€1.75mno data
Anna Toborek
Director of Group Corporate Financeno datano datano data
Christoph Beumelburg
Head of Group Communication & Investor Relationsno datano datano data
Andreas Schnurr
Director of Group Human Resources & Group Complianceno datano datano data

0.9yrs

Average Tenure

51yo

Average Age

Experienced Management: HEI's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Friedrich von Metzler
Member of Advisory Councilno datano datano data
Fritz-Jürgen Heckmann
Chairman of the Supervisory Board15.33yrs€257.00kno data
Paul Vanfrachem
Member of Advisor Councilno datano datano data
Ludwig Merckle
Member of Supervisory Board21yrs€165.90k26.7% 2.7b
Marinus Platschorre
Member of Advisory Councilno datano datano data
Jacques Merceron-Vicat
Member of Advisory Councilno datano datano data
Karl Kronimus
Member of Advisory Councilno datano datano data
Jochen Kirchhoff
Member of Advisory Councilno datano datano data
Heinz Schmitt
Deputy Chairman of Employee Representative Supervisory Board11.08yrs€177.00kno data
Luka Mucic
Member of Supervisory Board1.08yrs€101.40kno data

13.2yrs

Average Tenure

74yo

Average Age

Experienced Board: HEI's board of directors are seasoned and experienced ( 13.2 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HeidelbergCement AG
  • Ticker: HEI
  • Exchange: XTRA
  • Founded: 1873
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: €10.028b
  • Shares outstanding: 198.42m
  • Website: https://www.heidelbergcement.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLBZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
HEIDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
HEIXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
0MG2LSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
HEIDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1992
HEI NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1992
HEIDSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992
HEIBIT (Borsa Italiana)YesCommon SharesITEURJan 1992
HEIWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1992
HDEL.YOTCPK (Pink Sheets LLC)UNSPON ADR EA REPR 0.20 ORD NPVUSUSDMay 2010
HEIUDB (Deutsche Boerse AG)UNSPON ADR EA REPR 0.20 ORD NPVDEEURMay 2010
HEIUBST (Boerse-Stuttgart)UNSPON ADR EA REPR 0.20 ORD NPVDEEURMay 2010

Biography

HeidelbergCement AG produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. The company provides cement products, including special cements with targeted characteristics, special geotechnical building materials, and a range of binders. It also offers natural stone aggregates comprising sand and gravel; crushed aggregates, such as stone chippings and crushed stones; and concrete/ready-mixed concrete for the production of precast concrete parts consisting of stairs, ceiling elements, or structural components, as well as for use in the construction of tunnels or bridges, office buildings, or schools. In addition, the company offers asphalt primarily used in the building of traffic infrastructure comprising roads, walkways, and parking lots; and trades in cement, clinker, solid fuels, and other building materials. HeidelbergCement AG was founded in 1873 and is headquartered in Heidelberg, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 09:51
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.