DB:HEI

Stock Analysis Report

HeidelbergCement

Executive Summary

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

Snowflake

Fundamentals

Undervalued established dividend payer.


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

1.2%

DB:HEI

0.1%

DE Basic Materials

-1.5%

DE Market


1 Year Return

-12.9%

DB:HEI

-6.6%

DE Basic Materials

-10.4%

DE Market

HEI underperformed the Basic Materials industry which returned -6.6% over the past year.

HEI underperformed the Market in Germany which returned -10.4% over the past year.


Share holder returns

HEIIndustryMarket
7 Day1.2%0.1%-1.5%
30 Day-10.4%-6.1%-4.6%
90 Day-12.7%-6.3%-4.6%
1 Year-10.2%-12.9%-3.7%-6.6%-7.6%-10.4%
3 Year-18.9%-24.5%-0.8%-8.8%9.4%0.03%
5 Year17.5%6.4%11.0%-3.4%25.6%8.1%

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 based on future cash flows and its price relative to the stock market?

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

HeidelbergCement's share price is below the future cash flow value, and at a moderate discount (> 20%).

HeidelbergCement's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

HeidelbergCement is overvalued based on earnings compared to the Europe Basic Materials industry average.

HeidelbergCement is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

HeidelbergCement is good value based on expected growth next year.


Price Based on Value of Assets

HeidelbergCement is good value based on assets compared to the Europe Basic Materials industry average.


Next Steps

Future Growth

How is HeidelbergCement expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HeidelbergCement's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

HeidelbergCement's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).

HeidelbergCement's revenue growth is positive but not above the Germany market average.

HeidelbergCement's earnings growth is positive but not above the Germany market average.

HeidelbergCement's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

HeidelbergCement is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

HeidelbergCement's year on year earnings growth rate has been positive over the past 5 years.

HeidelbergCement's 1-year earnings growth is negative, it can't be compared to the 5-year average.

HeidelbergCement's 1-year earnings growth is negative, it can't be compared to the Europe Basic Materials industry average.


Return on Equity

HeidelbergCement has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

HeidelbergCement used its assets less efficiently than the Europe Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

HeidelbergCement's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is HeidelbergCement's financial position?


Financial Position Analysis

HeidelbergCement's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

HeidelbergCement's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

HeidelbergCement's level of debt (72.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (74.6% vs 72.7% today).

Debt is not well covered by operating cash flow (17.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.26%

Expected Dividend Yield


Dividend Yield and Payments Analysis

HeidelbergCement's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.57%).

HeidelbergCement's dividend is below the markets top 25% of dividend payers in Germany (4.29%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Bernd Scheifele (61yo)

14.5yrs

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

Bernd's remuneration is higher than average for companies of similar size in Germany.

Bernd's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

52.5yo

Average Age

The tenure for the HeidelbergCement management team is about average.


Board Age and Tenure

12.4yrs

Average Tenure

74yo

Average Age

The average tenure for the HeidelbergCement board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Heinz Schirmer

    Chairman of the Council of Employees

    • Tenure: 0.0yrs
    • Compensation: €162.00k
  • Bernd Scheifele (61yo)

    Chairman of Managing Board & CEO

    • Tenure: 14.5yrs
    • Compensation: €7.42m
  • Lorenz Näger (59yo)

    CFO, Head of Finance

    • Tenure: 0.0yrs
    • Compensation: €3.26m
  • Jon Morrish (49yo)

    Member of Managing Board

    • Tenure: 3.5yrs
    • Compensation: €3.41m
  • Ernest Jelito (61yo)

    Member of the Managing Board

    • Tenure: 0.1yrs
  • Dominik von Achten (54yo)

    Deputy Chairman of Management Board & Chief Digital Officer

    • Tenure: 4.5yrs
    • Compensation: €4.05m
  • Kevin Gluskie (51yo)

    Member of Managing Board

    • Tenure: 3.5yrs
    • Compensation: €3.85m
  • Christoph Beumelburg (51yo)

    Head of Group Communication & Investor Relations

    • Tenure: 0.0yrs
  • Hakan Gurdal (51yo)

    Member of Managing Board

    • Tenure: 3.5yrs
    • Compensation: €2.75m
  • Anna Toborek

    Director of Group Corporate Finance

    • Tenure: 0.0yrs

Board Members

  • Friedrich von Metzler

    Member of Advisory Council

    • Tenure: 0.0yrs
  • Fritz-Jürgen Heckmann

    Chairman of the Supervisory Board

    • Tenure: 14.5yrs
    • Compensation: €232.00k
  • Paul Vanfrachem (74yo)

    Member of Advisor Council

    • Tenure: 0.0yrs
  • Ludwig Merckle

    Member of Supervisory Board

    • Tenure: 20.2yrs
    • Compensation: €172.00k
  • Marinus Platschorre

    Member of Advisory Council

    • Tenure: 0.0yrs
  • Jacques Merceron-Vicat (81yo)

    Member of Advisory Council

    • Tenure: 0.0yrs
  • Karl Kronimus

    Member of Advisory Council

    • Tenure: 0.0yrs
  • Jochen Kirchhoff

    Member of Advisory Council

    • Tenure: 0.0yrs
  • Heinz Schmitt

    Deputy Chairman of Supervisory Board

    • Tenure: 10.3yrs
    • Compensation: €162.00k
  • Luka Mucic (48yo)

    Supervisory Board Member

    • Tenure: 0.3yrs

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: €11.901b
  • 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 Analysis2019/08/19 20:44
End of Day Share Price2019/08/19 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.