ENXTAM:HEIA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record average dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

HEIA

0.4%

NL Beverage

1.8%

NL Market


1 Year Return

-25.4%

HEIA

-31.4%

NL Beverage

-24.0%

NL Market

Return vs Industry: HEIA exceeded the Dutch Beverage industry which returned -30% over the past year.

Return vs Market: HEIA matched the Dutch Market which returned -23.2% over the past year.


Shareholder returns

HEIAIndustryMarket
7 Day-1.9%0.4%1.8%
30 Day-23.6%-19.6%-17.0%
90 Day-26.3%-31.3%-24.8%
1 Year-24.1%-25.4%-30.0%-31.4%-20.8%-24.0%
3 Year-7.1%-11.7%-24.3%-29.0%-4.3%-14.8%
5 Year3.1%-5.2%-22.8%-30.9%7.3%-13.3%

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?

48.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEIA (€72.62) is trading below our estimate of fair value (€136.92)

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


Price To Earnings Ratio

PE vs Industry: HEIA is poor value based on its PE Ratio (19.2x) compared to the Beverage industry average (16.6x).

PE vs Market: HEIA is poor value based on its PE Ratio (19.2x) compared to the Dutch market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: HEIA is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: HEIA is overvalued based on its PB Ratio (2.6x) compared to the XE Beverage industry average (1.8x).


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEIA's forecast earnings growth (6.4% per year) is above the savings rate (-0.2%).

Earnings vs Market: HEIA's earnings (6.4% per year) are forecast to grow slower than the Dutch market (13.7% per year).

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

Revenue vs Market: HEIA's revenue (2.8% per year) is forecast to grow slower than the Dutch market (5.2% per year).

High Growth Revenue: HEIA's revenue (2.8% 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 (14%).


Next Steps

Past Performance

How has Heineken performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEIA has high quality earnings.

Growing Profit Margin: HEIA's current net profit margins (9%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: HEIA's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: HEIA's earnings growth over the past year (13.2%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: HEIA earnings growth over the past year (13.2%) exceeded the Beverage industry 3.3%.


Return on Equity

High ROE: HEIA's Return on Equity (13.7%) is considered low.


Next Steps

Financial Health

How is Heineken's financial position?


Financial Position Analysis

Short Term Liabilities: HEIA's short term assets (€8.4B) do not cover its short term liabilities (€12.3B).

Long Term Liabilities: HEIA's short term assets (€8.4B) do not cover its long term liabilities (€16.9B).


Debt to Equity History and Analysis

Debt Level: HEIA's debt to equity ratio (91.2%) is considered high.

Reducing Debt: HEIA's debt to equity ratio has increased from 87.2% to 91.2% over the past 5 years.

Debt Coverage: HEIA's debt is well covered by operating cash flow (27.5%).

Interest Coverage: HEIA's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: HEIA's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

2.37%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HEIA's dividend (2.31%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (3.04%).

High Dividend: HEIA's dividend (2.31%) is low compared to the top 25% of dividend payers in the Dutch market (7.79%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.5%), HEIA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HEIA's dividends in 3 years are forecast to be well covered by earnings (38.4% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Jean-François M. van Boxmeer (58yo)

14.5s

Tenure

€7,112,000

Compensation

Mr. Jean-François M. L. Van Boxmeer serves as Chairman of Executive Board and Chief Executive Officer at Heineken NV since October 1, 2005 and its Member of the Executive Board since 2001. Mr. Van Boxmeer  ...


CEO Compensation Analysis

Compensation vs Market: Jean-François M.'s total compensation ($USD7.74M) is above average for companies of similar size in the Dutch market ($USD4.78M).

Compensation vs Earnings: Jean-François M.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jean-François M. van Boxmeer
Chairman of the Executive Board & CEO14.5yrs€7.11m0.040% 16.2m
Laurence Debroux
CFO & Member of the Executive Board5yrs€3.73m0.011% 4.5m
Ronald den Elzen
Chief Digital & Technology Officer0.083yrno datano data
Ernst Van de Weert
Executive Director of Global Legal Affairs2.75yrsno datano data
Marc Koster
Executive Director of Global Business Developmentno datano datano data
Christiaan August Van Steenbergen
Chief Human Resources Officer5.92yrsno datano data
Marc Gross
Chief Supply Chain Officer15.25yrsno datano data
Stefan Orlowski
President of Europeno datano datano data
Frans Eusman
Executive Director of Global Audit1.5yrsno datano data
Marc Busain
President of Americasno datano datano data

5.0yrs

Average Tenure

55yo

Average Age

Experienced Management: HEIA's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Antonio Vicente Fernández Carbajal
Vice Chairman of Supervisory Board10yrsno datano data
Michel de Carvalho
Member of Supervisory Board24.25yrsno data0.017% 7.1m
V. Christophe O. B. Navarre
Independent Member of Supervisory Board11.25yrsno datano data
Maarten Das
Member of Supervisory Board26.25yrsno datano data
Javier Gerardo Astaburuaga Sanjines
Member of Supervisory Board10yrsno datano data
Rosemary Ripley
Independent Member of Supervisory Board1yrno datano data
Marion Helmes
Independent Member of Supervisory Board2yrsno datano data
Jean Huët
Independent Chairman of Supervisory Board1yrno datano data
Pamela Mars-Wright
Independent Member of Supervisory Board4yrsno datano data
Ingrid Arnold
Independent Member of Supervisory Board1yrno datano data

7.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: HEIA's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HEIA insiders have only sold shares 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 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: €40.720b
  • Shares outstanding: 575.31m
  • Website: https://www.theheinekencompany.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HINK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1976
HNK1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1976
HEIAENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJun 1976
HEISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJun 1976
HNK1XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJun 1976
0O26LSE (London Stock Exchange)YesOrdinary SharesGBEURJun 1976
HEIAABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 1976
HEIAWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 1976
HEIA-UETLX (Eurotlx)YesOrdinary SharesITEURJun 1976
HEIA NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 1976
HEIASEP (The Stock Exchange Prague Co. Ltd.)YesOrdinary SharesCZCZKJun 1976
HEIN.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 1/2 ORD EUR0.00USUSDJan 1980
HNK2DB (Deutsche Boerse AG)SPON ADR EACH REP 1/2 ORD EUR0.00DEEURJan 1980

Biography

Heineken N.V. engages in brewing and selling beer and cider. The company operates through Europe; Americas; Africa, Middle East & Eastern Europe; and Asia Pacific segments. It offers beer, cider, soft drinks, and water. The company 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, Cidrerie Stassen, Bulmers, Old Mout, and Blind Pig brands. It offers its products to retailers, bars, and restaurants through distributors. The company was founded in 1864 and is headquartered in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 20:44
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.