DB:HEI

Stock Analysis Report

HeidelbergCement

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and fair value.


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


Market Performance


7 Day Return

2.6%

HEI

2.5%

DE Basic Materials

2.4%

DE Market


1 Year Return

16.2%

HEI

14.8%

DE Basic Materials

4.9%

DE Market

Return vs Industry: HEI exceeded the German Basic Materials industry which returned 14.8% over the past year.

Return vs Market: HEI exceeded the German Market which returned 4.9% over the past year.


Shareholder returns

HEIIndustryMarket
7 Day2.6%2.5%2.4%
30 Day-2.7%-0.05%2.3%
90 Day-5.6%0.5%2.7%
1 Year19.8%16.2%18.4%14.8%8.2%4.9%
3 Year-18.6%-24.2%2.7%-5.5%18.3%8.0%
5 Year37.6%24.7%31.6%14.8%44.2%24.6%

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?

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEI (€65.42) is trading below our estimate of fair value (€107.46)

Significantly Below Fair Value: HEI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HEI is poor value based on its PE Ratio (13x) compared to the Basic Materials industry average (12x).

PE vs Market: HEI is good value based on its PE Ratio (13x) compared to the German market (19.2x).


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 (0.8x) compared to the XE Basic Materials industry average (1.1x).


Next Steps

Future Growth

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

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEI's forecast earnings growth (11.2% per year) is above the savings rate (0.2%).

Earnings vs Market: HEI's earnings (11.2% per year) are forecast to grow slower than the German market (12.8% per year).

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

Revenue vs Market: HEI's revenue (4.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: HEI's revenue (4.1% 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 (9%).


Next Steps

Past Performance

How has HeidelbergCement performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HEI's earnings have grown by 12.8% 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 (-5.2%) over the past year, making it difficult to compare to the Basic Materials industry average (16.6%).


Return on Equity

High ROE: HEI's Return on Equity (6.8%) is considered low.


Return on Assets

ROA vs Industry: HEI's Return on Assets is below or equal to the Basic Materials industry average last year.


Return on Capital Employed

ROCE Improving: HEI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is HeidelbergCement's financial position?


Financial Position Analysis

Short Term Liabilities: HEI's short term assets (€7.3B) do not cover its short term liabilities (€7.8B)

Long Term Liabilities: HEI's short term assets (7.3B) do not cover its long term liabilities (12.2B)


Debt to Equity History and Analysis

Debt Level: HEI's debt to equity ratio (72.7%) is considered high

Reducing Debt: HEI's debt to equity ratio has reduced from 74.6% to 72.7% over the past 5 years.

Debt Coverage: HEI's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: HEI's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: HEI's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

3.21%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years4.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HEI's dividend (3.21%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: HEI's dividend (3.21%) is low compared to the top 25% of dividend payers in the German market (3.79%).

Stable Dividend: HEI's dividends per share have been stable 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 reasonably low payout ratio (41.7%), 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 (37.9% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Bernd Scheifele (61yo)

14.7yrs

Tenure

€7,418,000

Compensation

Dr. Bernd Scheifele, LLM has been the Chairman of the Managing Board and Chief Executive Officer of HeidelbergCement AG since February 1, 2005. Dr. Scheifele serves as the Chief Executive Officer of Phoeni ...


CEO Compensation Analysis

Compensation vs. Market: Bernd's total compensation ($USD8.26M) is about average for companies of similar size in the German market ($USD4.75M).

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


Management Age and Tenure

3.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: HEI's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

12.5yrs

Average Tenure

74yo

Average Age

Experienced Board: HEI's board of directors are seasoned and experienced ( 12.5 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


Management Team

  • Heinz Schirmer

    Chairman of the Council of Employees

    • Tenure: 0yrs
    • Compensation: €162.00k
  • Bernd Scheifele (61yo)

    Chairman of Managing Board & CEO

    • Tenure: 14.7yrs
    • Compensation: €7.42m
  • Lorenz Näger (59yo)

    CFO, Head of Finance

    • Tenure: 0yrs
    • Compensation: €3.26m
  • Jon Morrish (49yo)

    Member of Managing Board

    • Tenure: 3.7yrs
    • Compensation: €3.41m
  • Ernest Jelito (61yo)

    Member of the Managing Board

    • Tenure: 0.3yrs
  • Dominik von Achten (54yo)

    Deputy Chairman of Management Board & Chief Digital Officer

    • Tenure: 4.7yrs
    • Compensation: €4.05m
  • Kevin Gluskie (51yo)

    Member of Managing Board

    • Tenure: 3.7yrs
    • Compensation: €3.85m
  • Hakan Gurdal (51yo)

    Member of Managing Board

    • Tenure: 3.7yrs
    • Compensation: €2.75m
  • Anna Toborek

    Director of Group Corporate Finance

    • Tenure: 0yrs
  • Chris Ward (47yo)

    Member of Management Board

    • Tenure: 0.08yrs

Board Members

  • Friedrich von Metzler

    Member of Advisory Council

    • Tenure: 0yrs
  • Fritz-Jürgen Heckmann

    Chairman of the Supervisory Board

    • Tenure: 14.7yrs
    • Compensation: €232.00k
  • Paul Vanfrachem (74yo)

    Member of Advisor Council

    • Tenure: 0yrs
  • Ludwig Merckle

    Member of Supervisory Board

    • Tenure: 20.3yrs
    • Compensation: €172.00k
  • Marinus Platschorre

    Member of Advisory Council

    • Tenure: 0yrs
  • Jacques Merceron-Vicat (81yo)

    Member of Advisory Council

    • Tenure: 0yrs
  • Karl Kronimus

    Member of Advisory Council

    • Tenure: 0yrs
  • Jochen Kirchhoff

    Member of Advisory Council

    • Tenure: 0yrs
  • Heinz Schmitt

    Deputy Chairman of Supervisory Board

    • Tenure: 10.4yrs
    • Compensation: €162.00k
  • Luka Mucic (48yo)

    Supervisory Board Member

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: HeidelbergCement AG
  • Ticker: HEI
  • Exchange: DB
  • Founded: 1873
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: €12.969b
  • 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
HEIWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1992
HEIXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
0MG2LSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
HEIBIT (Borsa Italiana)YesCommon SharesITEURJan 1992
HEIDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1992
HEIDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
HEI NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1992
HEIDSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992
HDEL.YOTCPK (Pink Sheets LLC)UNSPON ADR EA REPR 0.20 ORD NPVUSUSDMay 2010
HEIUBST (Boerse-Stuttgart)UNSPON ADR EA REPR 0.20 ORD NPVDEEURMay 2010
HEIUDB (Deutsche Boerse AG)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 offers cement products, including special cements with targeted characteristics, sp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:41
End of Day Share Price2019/10/21 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.