ENXTAM:HEIA

Stock Analysis Report

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


Market Performance


7 Day Return

2.6%

HEIA

3.0%

NL Beverage

2.1%

NL Market


1 Year Return

-15.5%

HEIA

-25.5%

NL Beverage

-11.4%

NL Market

Return vs Industry: HEIA exceeded the Dutch Beverage industry which returned -26.2% over the past year.

Return vs Market: HEIA underperformed the Dutch Market which returned -10.8% over the past year.


Shareholder returns

HEIAIndustryMarket
7 Day2.6%3.0%2.1%
30 Day-3.6%-5.3%1.3%
90 Day11.4%5.9%12.5%
1 Year-13.7%-15.5%-24.1%-25.5%-8.6%-11.4%
3 Year3.1%-2.4%-14.0%-19.1%8.0%-3.1%
5 Year26.1%15.5%-10.2%-19.3%25.0%1.6%

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?

10.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEIA (€83.66) is trading below our estimate of fair value (€93.23)

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 (22.2x) compared to the Beverage industry average (18.9x).

PE vs Market: HEIA is poor value based on its PE Ratio (22.2x) compared to the Dutch market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: HEIA is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: HEIA is overvalued based on its PB Ratio (3x) compared to the XE Beverage industry average (1.6x).


Next Steps

Future Growth

How is Heineken forecast to perform in the next 1 to 3 years based on estimates from 19 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 (0.4%).

Earnings vs Market: HEIA's earnings (6.4% per year) are forecast to grow slower than the Dutch market (21.1% per year).

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

Revenue vs Market: HEIA's revenue (1.8% per year) is forecast to grow slower than the Dutch market (7.2% per year).

High Growth Revenue: HEIA's revenue (1.8% 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 (13.1%).


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 2.8%.


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


Next Steps

Dividend

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

2.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEIA's dividend (2.01%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.21%).

High Dividend: HEIA's dividend (2.01%) is low compared to the top 25% of dividend payers in the Dutch market (6.33%).


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 (38.5% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Dolf van den Brink (47yo)

0.083

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Laurence Debroux
CFO & Member of the Executive Board5.25yrs€3.73m0.011% 5.3m
Rudolf Gijsbert van den Brink
Chairman of the Executive Board & CEO0.083yrno data0.00076% 365.8k
Ronald den Elzen
Chief Digital & Technology Officer0.33yrno datano data
Ernst Van de Weert
Executive Director of Global Legal Affairs3yrsno datano data
Marc Koster
Executive Director of Global Business Developmentno datano datano data
Christiaan August Van Steenbergen
Chief Human Resources Officer6.17yrsno datano data
Frans Eusman
Executive Director of Global Audit1.75yrsno datano data
Marc Busain
President of Americasno datano datano data
Jan van Karnebeek
Chief Commercial Officer11.5yrsno datano data
Jacco Van Der Linden
President of the Asia Pacific Region8.5yrsno datano data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: HEIA's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jose Antonio Vicente Fernandez Carbajal
Vice Chairman of Supervisory Board10.25yrsno datano data
Michel de Carvalho
Member of Supervisory Board24.5yrsno data0.017% 8.4m
V. Christophe O. B. Navarre
Independent Member of Supervisory Board11.5yrsno datano data
Maarten Das
Member of Supervisory Board26.5yrsno datano data
Javier Gerardo Astaburuaga Sanjines
Member of Supervisory Board10.25yrsno datano data
Rosemary Ripley
Independent Member of Supervisory Board1.25yrsno datano data
Marion Helmes
Independent Member of Supervisory Board2.25yrsno datano data
Jean Huët
Independent Chairman of Supervisory Board1.25yrsno datano data
Pamela Mars-Wright
Independent Member of Supervisory Board4.25yrsno datano data
Ingrid Arnold
Independent Member of Supervisory Board1.25yrsno datano data

7.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: HEIA's board of directors are considered experienced (7.3 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 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: €48.130b
  • 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)SPONSORED ADR L1USUSDJan 1980
HNK2DB (Deutsche Boerse AG)SPONSORED ADR L1DEEURJan 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 Analysis2020/07/08 20:53
End of Day Share Price2020/07/08 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.