ENXTAM:HEIA

Stock Analysis Report

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Market Cap

€56.4b

Last Updated

2021/06/13 20:29 UTC

Data Sources

Company Financials +

Executive Summary

Heineken N.V. engages in brewing and selling beer and cider. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HEIA is less volatile than 75% of Dutch stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: HEIA's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

HEIA

1.4%

NL Beverage

1.2%

NL Market


1 Year Return

20.2%

HEIA

30.5%

NL Beverage

36.1%

NL Market

Return vs Industry: HEIA underperformed the Dutch Beverage industry which returned 30.5% over the past year.

Return vs Market: HEIA underperformed the Dutch Market which returned 35.6% over the past year.


Shareholder returns

HEIAIndustryMarket
7 Day0.4%1.4%1.2%
30 Day-1.0%2.1%3.7%
90 Day7.2%14.2%5.3%
1 Year21.1%20.2%32.6%30.5%38.4%36.1%
3 Year15.6%10.5%8.9%3.4%31.7%19.5%
5 Year35.2%25.0%20.4%9.4%85.3%54.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEIA (€97.94) is trading below our estimate of fair value (€156.13)

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


Price To Earnings Ratio

PE vs Industry: HEIA is unprofitable, so we can't compare its PE Ratio to the European Beverage industry average.

PE vs Market: HEIA is unprofitable, so we can't compare its PE Ratio to the Dutch market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HEIA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HEIA is overvalued based on its PB Ratio (4.2x) compared to the XE Beverage industry average (2.5x).


Future Growth

How is Heineken forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

33.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEIA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.1%).

Earnings vs Market: HEIA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HEIA's is expected to become profitable in the next 3 years.

Revenue vs Market: HEIA's revenue (6.2% per year) is forecast to grow slower than the Dutch market (6.4% per year).

High Growth Revenue: HEIA's revenue (6.2% 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 (15.8%).


Past Performance

How has Heineken performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEIA is currently unprofitable.

Growing Profit Margin: HEIA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HEIA is unprofitable, and losses have increased over the past 5 years at a rate of 9.2% per year.

Accelerating Growth: Unable to compare HEIA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HEIA is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (-13.8%).


Return on Equity

High ROE: HEIA has a negative Return on Equity (-0.61%), as it is currently unprofitable.


Financial Health

How is Heineken's financial position?


Financial Position Analysis

Short Term Liabilities: HEIA's short term assets (€9.0B) do not cover its short term liabilities (€10.9B).

Long Term Liabilities: HEIA's short term assets (€9.0B) do not cover its long term liabilities (€17.4B).


Debt to Equity History and Analysis

Debt Level: HEIA's debt to equity ratio (118.1%) is considered high.

Reducing Debt: HEIA's debt to equity ratio has increased from 97.3% to 118.1% over the past 5 years.

Debt Coverage: HEIA's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: HEIA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEIA's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (1.57%).

High Dividend: HEIA's dividend (0.71%) is low compared to the top 25% of dividend payers in the Dutch market (4.45%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HEIA's dividend in 3 years as they are not forecast to pay a notable one for the Dutch market.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Dolf van den Brink (47 yo)

1

Tenure

€1,549,998

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 ($USD1.87M) is below average for companies of similar size in the Dutch market ($USD3.19M).

Compensation vs Earnings: Insufficient data to compare Dolf's compensation with company performance.


Leadership Team

Experienced Management: HEIA's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: HEIA's board of directors are considered experienced (4.2 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

Heineken N.V.'s company bio, 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
  • Market Cap: €56.386b
  • Shares outstanding: 575.72m
  • Website: https://www.theheinekencompany.com

Number of Employees


Location

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

Listings


Biography

Heineken N.V. engages in brewing and selling beer and cider. It operates through Europe; Americas; Africa, Middle East & Eastern Europe; and Asia Pacific segments. It offers beer, cider, soft drinks, and w...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 20:29
End of Day Share Price2021/06/11 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.