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

Established dividend payer with mediocre balance sheet.


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

6.9%

HBM

-1.0%

DE Specialty Retail

1.4%

DE Market


1 Year Return

-24.1%

HBM

13.2%

DE Specialty Retail

3.7%

DE Market

Return vs Industry: HBM underperformed the German Specialty Retail industry which returned 13.2% over the past year.

Return vs Market: HBM underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

HBMIndustryMarket
7 Day6.9%-1.0%1.4%
30 Day7.2%2.6%1.8%
90 Day6.9%1.4%3.4%
1 Year-21.3%-24.1%15.8%13.2%7.0%3.7%
3 Year-30.7%-36.3%-15.4%-51.0%18.5%8.3%
5 Year-25.7%-34.7%8.3%-44.4%42.2%22.9%

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?

10.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HBM (€18.55) is trading above our estimate of fair value (€17.18)

Significantly Undervalued: HBM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HBM is poor value based on its PE Ratio (10.5x) compared to the Specialty Retail industry average (10.5x).

PE vs Market: HBM is good value based on its PE Ratio (10.5x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: HBM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: HBM is good value based on its PB Ratio (0.5x) compared to the DE Specialty Retail industry average (0.9x).


Next Steps

Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBM's forecast earnings growth (4% per year) is above the savings rate (0.2%).

Earnings vs Market: HBM's earnings (4% per year) are forecast to grow slower than the German market (12.6% 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

High Future ROE: HBM's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has HORNBACH Baumarkt performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HBM's earnings have declined by -8.3% per year over the past 5 years.

Accelerating Growth: HBM's earnings growth over the past year (9.2%) exceeds its 5-year average (-8.3% per year).

Earnings vs Industry: HBM earnings growth over the past year (9.2%) underperformed the Specialty Retail industry 9.2%.


Return on Equity

High ROE: HBM's Return on Equity (4.9%) is considered low.


Return on Assets

ROA vs Industry: HBM has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is HORNBACH Baumarkt's financial position?


Financial Position Analysis

Short Term Liabilities: HBM's short term assets (€1.2B) exceeds its short term liabilities (€923.9M)

Long Term Liabilities: HBM's short term assets (1.2B) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: HBM's debt to equity ratio (53%) is considered high

Reducing Debt: HBM's debt to equity ratio has increased from 37.9% to 53% over the past 5 years.

Debt Coverage: HBM's debt is well covered by operating cash flow (32.6%).

Interest Coverage: HBM's interest payments on its debt are well covered by EBIT (3.4x 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 2.005590x debt).


Next Steps

Dividend

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

3.64%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.5%markettop25%3.8%industryaverage3.3%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HBM's dividend (3.64%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: HBM's dividend (3.64%) is low compared to the top 25% of dividend payers in the German market (3.8%).

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 (38.3%), 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 (40.4% payout ratio).


Next Steps

Management

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

7.6yrs

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

7.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: HBM's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

57yo

Average Age

Experienced Board: HBM's board of directors are considered experienced (6.3 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

  • 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: 7.6yrs
  • Ingo Leiner

    Member of Management Board

    • Tenure: 7.6yrs
  • Christian Garrecht (49yo)

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

    • Tenure: 6.3yrs
  • Karsten Kühn (51yo)

    Marketing

    • Tenure: 5yrs
  • Andreas Schobert (46yo)

    CTO & Member of Management Board

    • Tenure: 4.8yrs

Board Members

  • John Feldmann (70yo)

    Further Deputy Chairman of the Board

    • Tenure: 1.3yrs
  • Johannes Otto (63yo)

    Employee Representative Supervisory Board Member

    • Tenure: 1.3yrs
  • Albrecht Hornbach (64yo)

    Chairman of Supervisory Board

    • Tenure: 10.6yrs
  • Martin Hornbach

    Member of Supervisory Board

    • Tenure: 13.3yrs
  • Jens Wulfsberg

    Member of Supervisory Board

    • Tenure: 14.1yrs
  • Kay Strelow

    Deputy Chairman of Supervisory Board

    • Tenure: 11.3yrs
  • Erich Harsch (57yo)

    Member of Supervisory Board

    • Tenure: 6.3yrs
  • Mohamed Elaouch (45yo)

    Employee Representative Supervisory Board Member

    • Tenure: 6.3yrs
  • Christian Garrecht (49yo)

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

    • Tenure: 6.3yrs
  • Melanie Thomann-Bopp (41yo)

    Supervisory Board Member

    • Tenure: 1.3yrs

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: €594.791m
  • 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 Analysis2019/10/18 20:34
End of Day Share Price2019/10/18 00:00
Earnings2019/08/31
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.