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HEIA

Heineken ENXTAM:HEIA Stock Report

Last Price

€94.60

Market Cap

€54.5b

7D

-1.2%

1Y

0.2%

Updated

08 Aug, 2022

Data

Company Financials +
HEIA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance1/6
Financial Health3/6
Dividends0/6

HEIA Stock Overview

Heineken N.V. engages in the brewing and selling of beer and cider.

Heineken Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Heineken
Historical stock prices
Current Share Price€94.60
52 Week High€104.60
52 Week Low€77.50
Beta0.75
1 Month Change1.70%
3 Month Change2.78%
1 Year Change0.19%
3 Year Change0.063%
5 Year Change8.54%
Change since IPO1,594.08%

Recent News & Updates

Jun 26
Heineken N.V.'s (AMS:HEIA) Intrinsic Value Is Potentially 85% Above Its Share Price

Heineken N.V.'s (AMS:HEIA) Intrinsic Value Is Potentially 85% Above Its Share Price

In this article we are going to estimate the intrinsic value of Heineken N.V. ( AMS:HEIA ) by taking the forecast...

Shareholder Returns

HEIANL BeverageNL Market
7D-1.2%-0.2%0.06%
1Y0.2%-0.8%-14.5%

Return vs Industry: HEIA exceeded the Dutch Beverage industry which returned -2.3% over the past year.

Return vs Market: HEIA exceeded the Dutch Market which returned -14.5% over the past year.

Price Volatility

Is HEIA's price volatile compared to industry and market?
HEIA volatility
HEIA Average Weekly Movement3.4%
Beverage Industry Average Movement3.8%
Market Average Movement5.0%
10% most volatile stocks in NL Market7.9%
10% least volatile stocks in NL Market3.0%

Stable Share Price: HEIA is less volatile than 75% of Dutch stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HEIA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186481,070Dolf van den Brinkhttps://www.theheinekencompany.com

Heineken N.V. engages in the brewing and selling of beer and cider. It also provides soft drinks and water. It offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Birra Moretti, Affligem, Lagunitas, and Mort Subite brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Follow The Fox, Cidrerie Stassen, Bulmers, Old Mout, and Blind Pig brands.

Heineken Fundamentals Summary

How do Heineken's earnings and revenue compare to its market cap?
HEIA fundamental statistics
Market Cap€54.45b
Earnings (TTM)€3.32b
Revenue (TTM)€21.94b

16.4x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HEIA income statement (TTM)
Revenue€21.94b
Cost of Revenue€13.33b
Gross Profit€8.62b
Other Expenses€5.29b
Earnings€3.32b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Feb 15, 2023

Earnings per share (EPS)5.77
Gross Margin39.26%
Net Profit Margin15.15%
Debt/Equity Ratio80.0%

How did HEIA perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

21%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HEIA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HEIA?

Other financial metrics that can be useful for relative valuation.

HEIA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA15x
PEG Ratio5.5x

Price to Earnings Ratio vs Peers

How does HEIA's PE Ratio compare to its peers?

HEIA PE Ratio vs Peers
The above table shows the PE ratio for HEIA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.6x
HEIO Heineken Holding
12x17.4%€21.4b
CCEP Coca-Cola Europacific Partners
16.7x5.3%€23.4b
JDEP JDE Peet's
17.6x5.8%€15.7b
1876 Budweiser Brewing Company APAC
36.1x14.0%HK$304.1b
HEIA Heineken
16.4x3.0%€54.5b

Price-To-Earnings vs Peers: HEIA is good value based on its Price-To-Earnings Ratio (16.4x) compared to the peer average (20.6x).


Price to Earnings Ratio vs Industry

How does HEIA's PE Ratio compare vs other companies in the European Beverage Industry?

Price-To-Earnings vs Industry: HEIA is good value based on its Price-To-Earnings Ratio (16.4x) compared to the European Beverage industry average (18.8x)


Price to Earnings Ratio vs Fair Ratio

What is HEIA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HEIA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.4x
Fair PE Ratio35.4x

Price-To-Earnings vs Fair Ratio: HEIA is good value based on its Price-To-Earnings Ratio (16.4x) compared to the estimated Fair Price-To-Earnings Ratio (35.4x).


Share Price vs Fair Value

What is the Fair Price of HEIA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HEIA (€94.6) is trading below our estimate of fair value (€188.57)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEIA's forecast earnings growth (3% per year) is above the savings rate (0.1%).

Earnings vs Market: HEIA's earnings (3% per year) are forecast to grow slower than the Dutch market (4.7% per year).

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

Revenue vs Market: HEIA's revenue (9% per year) is forecast to grow faster than the Dutch market (7.2% per year).

High Growth Revenue: HEIA's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HEIA's Return on Equity is forecast to be low in 3 years time (15.3%).


Discover growth companies

Past Performance

How has Heineken performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HEIA has a large one-off gain of €1.3B impacting its December 31 2021 financial results.

Growing Profit Margin: HEIA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HEIA's earnings have declined by 5.8% per year over the past 5 years.

Accelerating Growth: HEIA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HEIA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Beverage industry (38.2%).


Return on Equity

High ROE: HEIA's Return on Equity (17.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Heineken's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HEIA's short term assets (€9.6B) do not cover its short term liabilities (€12.1B).

Long Term Liabilities: HEIA's short term assets (€9.6B) do not cover its long term liabilities (€17.1B).


Debt to Equity History and Analysis

Debt Level: HEIA's net debt to equity ratio (63.5%) is considered high.

Reducing Debt: HEIA's debt to equity ratio has reduced from 100.3% to 80% over the past 5 years.

Debt Coverage: HEIA's debt is well covered by operating cash flow (26.5%).

Interest Coverage: HEIA's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


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Dividend

What is Heineken current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HEIA's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.21%).

High Dividend: HEIA's dividend (1.54%) is low compared to the top 25% of dividend payers in the Dutch market (5.96%).


Stability and Growth of Payments

Stable Dividend: HEIA is not paying a notable dividend for the Dutch market, therefore no need to check if payments are stable.

Growing Dividend: HEIA is not paying a notable dividend for the Dutch market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: HEIA is not paying a notable dividend for the Dutch market.


Cash Payout to Shareholders

Cash Flow Coverage: HEIA is not paying a notable dividend for the Dutch market.


Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure


CEO

Dolf van den Brink (49 yo)

2.33yrs

Tenure

€8,437,000

Compensation

Mr. Rudolf Gijsbert Servaas van den Brink, also known as Dolf, serves as Chairman of the Executive Board and Chief Executive Officer at Heineken N.V. since June 1, 2020. He served as Non–Executive Director...


CEO Compensation Analysis

Compensation vs Market: Dolf's total compensation ($USD8.62M) is above average for companies of similar size in the Dutch market ($USD3.27M).

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


Leadership Team

Experienced Management: HEIA's management team is considered experienced (3.8 years average tenure).


Board Members

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Heineken N.V.'s employee growth, exchange listings and data sources


Key Information

  • Name: Heineken N.V.
  • Ticker: HEIA
  • Exchange: ENXTAM
  • Founded: 1864
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: €54.451b
  • Shares outstanding: 575.59m
  • Website: https://www.theheinekencompany.com

Number of Employees


Location

  • Heineken N.V.
  • Tweede Weteringplantsoen 21
  • Amsterdam
  • Noord-Holland
  • 1017 ZD
  • Netherlands

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.