ENXTAM:HEIA

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 19.8% below its fair value

Earnings are forecast to grow 10.06% per year

Pays a reliable dividend of 1.72%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Average dividend payer with questionable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

HEIA

-0.5%

NL Beverage

0.5%

NL Market


1 Year Return

21.8%

HEIA

14.9%

NL Beverage

14.5%

NL Market

Return vs Industry: HEIA exceeded the Dutch Beverage industry which returned 14.9% over the past year.

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


Shareholder returns

HEIAIndustryMarket
7 Day1.7%-0.5%0.5%
30 Day5.3%1.4%-0.5%
90 Day-2.4%-9.5%4.0%
1 Year23.9%21.8%17.3%14.9%19.7%14.5%
3 Year43.8%36.7%19.0%11.6%41.2%25.1%
5 Year78.2%63.9%41.0%26.1%73.9%39.2%

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?

19.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEIA (€95.68) is trading below our estimate of fair value (€119.25)

Significantly Below Fair Value: HEIA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HEIA is poor value based on its PE Ratio (28.9x) compared to the Beverage industry average (20.8x).

PE vs Market: HEIA is poor value based on its PE Ratio (28.9x) compared to the Dutch market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: HEIA is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: HEIA is overvalued based on its PB Ratio (3.6x) compared to the XE Beverage industry average (2.1x).


Next Steps

Future Growth

How is Heineken forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEIA's forecast earnings growth (10.1% per year) is above the savings rate (-0.2%).

Earnings vs Market: HEIA's earnings (10.1% per year) are forecast to grow slower than the Dutch market (11.8% per year).

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

Revenue vs Market: HEIA's revenue (4.5% per year) is forecast to grow slower than the Dutch market (5.5% per year).

High Growth Revenue: HEIA's revenue (4.5% 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 (15.2%).


Next Steps

Past Performance

How has Heineken performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEIA has high quality earnings.

Growing Profit Margin: HEIA's current net profit margins (8.2%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: HEIA's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: HEIA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HEIA had negative earnings growth (-6.1%) over the past year, making it difficult to compare to the Beverage industry average (3.3%).


Return on Equity

High ROE: HEIA's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Heineken's financial position?


Financial Position Analysis

Short Term Liabilities: HEIA's short term assets (€8.8B) do not cover its short term liabilities (€12.4B).

Long Term Liabilities: HEIA's short term assets (€8.8B) do not cover its long term liabilities (€17.6B).


Debt to Equity History and Analysis

Debt Level: HEIA's debt to equity ratio (102%) is considered high.

Reducing Debt: HEIA's debt to equity ratio has increased from 93.8% to 102% over the past 5 years.

Debt Coverage: HEIA's debt is well covered by operating cash flow (24.2%).

Interest Coverage: HEIA's interest payments on its debt are well covered by EBIT (8.2x 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?

1.72%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.2%markettop25%5.6%industryaverage2.2%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: HEIA's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.19%).

High Dividend: HEIA's dividend (1.72%) is low compared to the top 25% of dividend payers in the Dutch market (5.65%).


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 (49.9%), 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 (36.9% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Jean-François M. Van Boxmeer (58yo)

14.2yrs

Tenure

€8,244,000

Compensation

Mr. Jean-François M. L. Van Boxmeer has been the 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 Boxme ...


CEO Compensation Analysis

Compensation vs Market: Jean-François M.'s total compensation ($USD9.14M) is above average for companies of similar size in the Dutch market ($USD3.93M).

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


Management Age and Tenure

6.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: HEIA's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: HEIA's board of directors are considered experienced (6.7 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.


Recent Insider Transactions

Sell€1,985,80024 Jun 19
Jean-François M. Van Boxmeer
EntityIndividual
Role
Chief Executive Officer
Chairman of the Executive Board & CEO
Shares20,000
Max Price€99.29
Sell€1,902,40014 May 19
Jean-François M. Van Boxmeer
EntityIndividual
Role
Chief Executive Officer
Chairman of the Executive Board & CEO
Shares20,000
Max Price€95.12
Sell€1,916,20006 May 19
Jean-François M. Van Boxmeer
EntityIndividual
Role
Chief Executive Officer
Chairman of the Executive Board & CEO
Shares20,000
Max Price€95.81
Sell€1,803,80008 Mar 19
Jean-François M. Van Boxmeer
EntityIndividual
Role
Chief Executive Officer
Chairman of the Executive Board & CEO
Shares20,000
Max Price€90.19

Ownership Breakdown

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


Management Team

  • Jean-François M. Van Boxmeer (58yo)

    Chairman of the Executive Board & CEO

    • Tenure: 14.2yrs
    • Compensation: €8.24m
  • Marc Gross (61yo)

    Chief Supply Chain Officer

    • Tenure: 14.9yrs
  • Laurence Debroux (50yo)

    CFO & Member of the Executive Board

    • Tenure: 4.7yrs
    • Compensation: €3.81m
  • Chris Van Steenbergen (63yo)

    Chief Human Resources Officer

    • Tenure: 5.6yrs
  • Jan van Karnebeek (52yo)

    Chief Commercial Officer

    • Tenure: 10.9yrs
  • Marc Koster

    Executive Director of Global Business Development

    • Tenure: 0yrs
  • Frans Eusman (57yo)

    Executive Director of Global Audit

    • Tenure: 1.2yrs
  • Ernst Van de Weert

    Executive Director of Global Legal Affairs

    • Tenure: 2.4yrs
  • Jacco Van Der Linden

    Managing Director of China Business

    • Tenure: 7.9yrs
  • David Forde

    Managing Director of UK Business

    • Tenure: 6.6yrs

Board Members

  • José Antonio Vicente Fernández Carbajal (65yo)

    Vice Chairman of Supervisory Board

    • Tenure: 9.7yrs
  • Michel de Carvalho (75yo)

    Member of Supervisory Board

    • Tenure: 23.9yrs
  • V. Christophe O. B. Navarre (61yo)

    Member of Supervisory Board

    • Tenure: 10.9yrs
  • Maarten Das (71yo)

    Member of Supervisory Board

    • Tenure: 25.9yrs
  • Javier Gerardo Astaburuaga Sanjines (60yo)

    Member of Supervisory Board

    • Tenure: 9.7yrs
  • Rosemary Ripley (64yo)

    Member of Supervisory Board

    • Tenure: 0.7yrs
  • Marion Helmes (54yo)

    Member of Supervisory Board

    • Tenure: 1.7yrs
  • Jean Huët (50yo)

    Chairman of Supervisory Board

    • Tenure: 0.7yrs
  • Pamela Mars-Wright (59yo)

    Member of Supervisory Board

    • Tenure: 3.7yrs
  • Ingrid Arnold (50yo)

    Member of Supervisory Board

    • Tenure: 0.7yrs

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: €53.711b
  • Shares outstanding: 570.18m
  • 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
0O26LSE (London Stock Exchange)YesOrdinary SharesGBEURJun 1976
HEIASEP (The Stock Exchange Prague Co. Ltd.)YesOrdinary SharesCZCZKJun 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
HINK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1976
HEIAABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 1976
HEIA NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 1976
HEIAWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 1976
HEIA-UETLX (Eurotlx)YesOrdinary SharesITEURJun 1976
HNK2DB (Deutsche Boerse AG)SPON ADR EACH REP 1/2 ORD EUR0.00DEEURJan 1980
HEIN.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 1/2 ORD EUR0.00USUSDJan 1980

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 20:43
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.