DB: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

Fundamentals

6 star dividend payer and slightly overvalued.

Risks

  • HORNBACH Baumarkt is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-2.0%

DB:HBM

1.5%

DE Specialty Retail

1.8%

DE Market


1 Year Return

-30.0%

DB:HBM

0.03%

DE Specialty Retail

-3.5%

DE Market

HBM underperformed the Specialty Retail industry which returned 0% over the past year.

HBM underperformed the Market in Germany which returned -3.5% over the past year.


Share holder returns

HBMIndustryMarket
7 Day-2.0%1.5%1.8%
30 Day7.9%11.0%8.6%
90 Day7.2%4.6%3.3%
1 Year-27.4%-30.0%2.1%0.03%-0.5%-3.5%
3 Year-32.7%-38.1%-12.2%-48.4%20.6%10.3%
5 Year-34.9%-42.8%2.6%-47.7%30.7%12.8%

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

11.62x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

HORNBACH Baumarkt's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

HORNBACH Baumarkt's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

HORNBACH Baumarkt is overvalued based on earnings compared to the DE Specialty Retail industry average.

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


Price Based on Expected Growth

HORNBACH Baumarkt is poor value based on expected growth next year.


Price Based on Value of Assets

HORNBACH Baumarkt is good value based on assets compared to the DE Specialty Retail industry average.


Next Steps

Future Growth

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

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HORNBACH Baumarkt's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

HORNBACH Baumarkt's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has HORNBACH Baumarkt performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

HORNBACH Baumarkt's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

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

HORNBACH Baumarkt's 1-year earnings growth is negative, it can't be compared to the DE Specialty Retail industry average.


Return on Equity

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


Return on Assets

HORNBACH Baumarkt used its assets less efficiently than the DE Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is HORNBACH Baumarkt's financial position?


Financial Position Analysis

HORNBACH Baumarkt is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

HORNBACH Baumarkt's level of debt (147.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (41% vs 147.4% today).

Debt is not well covered by operating cash flow (1.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

3.90%

Expected Dividend Yield


Dividend Yield and Payments Analysis

HORNBACH Baumarkt's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.4%).

HORNBACH Baumarkt's dividend is above the markets top 25% of dividend payers in Germany (3.85%).

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 (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Steffen Hornbach (61yo)

0yrs

Tenure

0

Mr. Steffen Hornbach serves as the Chairman of the Board of Management at HORNBACH Baumarkt AG since November 1, 2001 and serves as Chief Executive Officer at HORNBACH Baumarkt AG He served as Head of Mark ...


Management Age and Tenure

7.5yrs

Average Tenure

52.5yo

Average Age

The average tenure for the HORNBACH Baumarkt management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.2yrs

Average Tenure

57yo

Average Age

The tenure for the HORNBACH Baumarkt board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Roland Pelka

    Deputy Chairman of Management Board

    • Tenure: 10.8yrs
  • Steffen Hornbach (61yo)

    Chairman of Management Board & CEO

    • Tenure: 0yrs
  • Susanne Jäger (54yo)

    Member of Management Board

    • Tenure: 12.8yrs
  • Wolfger Ketzler (62yo)

    Member of Management Board

    • Tenure: 7.5yrs
  • Ingo Leiner

    Member of Management Board

    • Tenure: 7.5yrs
  • Christian Garrecht (49yo)

    Optv Head of Workplace Safety & Fire Prevention and Employee Representative Supervisory Board Member

    • Tenure: 6.2yrs
  • Karsten Kühn (51yo)

    Marketing

    • Tenure: 4.9yrs
  • Andreas Schobert (46yo)

    CTO & Member of Management Board

    • Tenure: 4.7yrs

Board Members

  • John Feldmann (70yo)

    Further Deputy Chairman of the Board

    • Tenure: 1.2yrs
  • Johannes Otto (63yo)

    Employee Representative Supervisory Board Member

    • Tenure: 1.2yrs
  • Albrecht Hornbach (64yo)

    Chairman of Supervisory Board

    • Tenure: 10.5yrs
  • Martin Hornbach

    Member of Supervisory Board

    • Tenure: 13.2yrs
  • Jens Wulfsberg

    Member of Supervisory Board

    • Tenure: 14yrs
  • Kay Strelow

    Deputy Chairman of Supervisory Board

    • Tenure: 11.2yrs
  • Erich Harsch (57yo)

    Member of Supervisory Board

    • Tenure: 6.2yrs
  • Mohamed Elaouch (45yo)

    Employee Representative Supervisory Board Member

    • Tenure: 6.2yrs
  • Christian Garrecht (49yo)

    Optv Head of Workplace Safety & Fire Prevention and Employee Representative Supervisory Board Member

    • Tenure: 6.2yrs
  • Melanie Thomann-Bopp (41yo)

    Supervisory Board Member

    • Tenure: 1.2yrs

Company Information

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


Key Information

  • Name: HORNBACH Baumarkt AG
  • Ticker: HBM
  • Exchange: DB
  • Founded: 1877
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: €555.032m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/14 20:38
End of Day Share Price2019/09/13 00:00
Earnings2019/05/31
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.