XTRA:HBM

Stock Analysis Report

HORNBACH Baumarkt

Executive Summary

HORNBACH Baumarkt AG operates as a do-it-yourself (DIY) retail company in Germany, Austria, the Czech Republic, Luxembourg, the Netherlands, Romania, Slovakia, Sweden, and Switzerland.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HBM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

HBM

-4.3%

DE Specialty Retail

0.2%

DE Market


1 Year Return

14.8%

HBM

16.1%

DE Specialty Retail

14.4%

DE Market

Return vs Industry: HBM underperformed the German Specialty Retail industry which returned 15.1% over the past year.

Return vs Market: HBM underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

HBMIndustryMarket
7 Day0.5%-4.3%0.2%
30 Day-5.1%-1.8%0.9%
90 Day9.6%4.7%4.6%
1 Year19.0%14.8%18.8%16.1%17.9%14.4%
3 Year-25.5%-31.4%-10.2%-49.0%15.7%5.6%
5 Year-27.8%-36.5%0.4%-49.0%23.4%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HBM (€20.5) is trading below our estimate of fair value (€29.66)

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


Price To Earnings Ratio

PE vs Industry: HBM is good value based on its PE Ratio (9.7x) compared to the Specialty Retail industry average (10.1x).

PE vs Market: HBM is good value based on its PE Ratio (9.7x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: HBM is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: HBM is good value based on its PB Ratio (0.6x) compared to the DE Specialty Retail industry average (1.2x).


Next Steps

Future Growth

How is HORNBACH Baumarkt forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBM's forecast earnings growth (3% per year) is above the savings rate (-0.4%).

Earnings vs Market: HBM's earnings (3% per year) are forecast to grow slower than the German market (13.3% per year).

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

Revenue vs Market: HBM's revenue (4.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: HBM's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HBM's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has HORNBACH Baumarkt performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBM has high quality earnings.

Growing Profit Margin: HBM's current net profit margins (1.5%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: HBM's earnings have declined by -7.3% per year over the past 5 years.

Accelerating Growth: HBM's earnings growth over the past year (40.5%) exceeds its 5-year average (-7.3% per year).

Earnings vs Industry: HBM earnings growth over the past year (40.5%) exceeded the Specialty Retail industry 31.9%.


Return on Equity

High ROE: HBM's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HORNBACH Baumarkt's financial position?


Financial Position Analysis

Short Term Liabilities: HBM's short term assets (€1.5B) exceed its short term liabilities (€896.5M).

Long Term Liabilities: HBM's short term assets (€1.5B) do not cover its long term liabilities (€1.8B).


Debt to Equity History and Analysis

Debt Level: HBM's debt to equity ratio (72.9%) is considered high.

Reducing Debt: HBM's debt to equity ratio has increased from 38% to 72.9% over the past 5 years.

Debt Coverage: HBM's debt is well covered by operating cash flow (26.3%).

Interest Coverage: HBM's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: HBM's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBM's dividend (3.32%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: HBM's dividend (3.32%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: HBM's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), HBM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HBM's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Erich Harsch (56yo)

0.08yrs

Tenure

Mr. Erich Harsch serves as Chairman of Management Board and Chief Executive Officer at HORNBACH Baumarkt AG. He serves as Member of Supervisory Board at GS1 Germany GmbH. Mr. Harsch serves as Chairman at d ...


Leadership Team

NamePositionTenureCompensationOwnership
Erich Harsch
Chairman of Management Board & CEO0.08yrsno datano data
Roland Pelka
Deputy Chairman of Management Board11.2yrsno datano data
Susanne Jäger
Member of Management Board13.2yrsno datano data
Wolfger Ketzler
Member of Management Board7.9yrsno datano data
Ingo Leiner
Member of Management Board7.9yrsno datano data
Karsten Kühn
Marketing5.3yrsno datano data
Andreas Schobert
CTO & Member of Management Board5.1yrsno datano data
Axel Mueller
Group Communications & Investor Relations Director0yrsno datano data
Christian Garrecht
Optv Head of Workplace Safety & Fire Prevention and Employee Representative Supervisory Board Member6.6yrsno datano data

7.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: HBM's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christian Garrecht
Optv Head of Workplace Safety & Fire Prevention and Employee Representative Supervisory Board Member6.6yrsno datano data
John Feldmann
Further Deputy Chairman of the Board1.6yrsno datano data
Johannes Otto
Employee Representative Supervisory Board Member1.6yrsno datano data
Albrecht Hornbach
Chairman of Supervisory Board10.9yrsno datano data
Martin Hornbach
Member of Supervisory Board13.6yrsno datano data
Jens Wulfsberg
Member of Supervisory Board14.4yrsno datano data
Kay Strelow
Deputy Chairman of Supervisory Board11.6yrsno datano data
Mohamed Elaouch
Employee Representative Supervisory Board Member6.6yrsno datano data
Brigitte Mauer
Employee Representative Supervisory Board Member6.6yrsno datano data
Melanie Thomann-Bopp
Supervisory Board Member1.6yrsno datano data

6.6yrs

Average Tenure

57yo

Average Age

Experienced Board: HBM's board of directors are considered experienced (6.6 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

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


Key Information

  • Name: HORNBACH Baumarkt AG
  • Ticker: HBM
  • Exchange: XTRA
  • Founded: 1877
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: €655.224m
  • Shares outstanding: 31.81m
  • Website: https://www.hornbach.com

Number of Employees


Location

  • HORNBACH Baumarkt AG
  • Hornbachstrasse
  • Bornheim
  • North Rhine-Westphalia
  • 76878
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBMDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1993
HBMXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 1993
0ENNLSE (London Stock Exchange)YesCommon StockGBEURNov 1993
HBAU.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 1993
HBMDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURNov 1993

Biography

HORNBACH Baumarkt AG operates as a do-it-yourself (DIY) retail company in Germany, Austria, the Czech Republic, Luxembourg, the Netherlands, Romania, Slovakia, Sweden, and Switzerland. It operates through Retail and Real Estate segments. The company offers various DIY goods, home improvement goods, and gardening products in hardware/electrical, paint/wallpaper/flooring, construction materials/timber/prefabricated components, sanitary/tiles, and garden divisions. As of February 28, 2019, the company operated 158 DIY megastores with garden centers in 9 countries. The company was founded in 1877 and is based in Bornheim, Germany. HORNBACH Baumarkt AG is a subsidiary of Hornbach Holding AG & Co. KGaA. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:22
End of Day Share Price2020/02/20 00:00
Earnings2019/11/30
Annual Earnings2019/02/28


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.