OTCPK:HBBH.F

Stock Analysis Report

Executive Summary

Hornbach Holding AG & Co. KGaA, through its subsidiaries, operates do-it-yourself (DIY) megastores with garden centers in Germany and other European countries.

Snowflake

Fundamentals

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Hornbach Holding KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

HBBH.F

1.8%

US Specialty Retail

1.0%

US Market


1 Year Return

n/a

HBBH.F

6.7%

US Specialty Retail

8.0%

US Market

Return vs Industry: Insufficient data to determine how HBBH.F performed against the US Specialty Retail industry.

Return vs Market: Insufficient data to determine how HBBH.F performed against the US Market.


Shareholder returns

HBBH.FIndustryMarket
7 Day0%1.8%1.0%
30 Day0%4.7%-0.07%
90 Dayn/a3.7%-1.0%
1 Yearn/a8.6%6.7%10.4%8.0%
3 Yearn/a42.0%34.7%46.2%36.7%
5 Yearn/a56.4%43.0%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Hornbach Holding KGaA undervalued compared to its fair value and its price relative to the market?

32.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HBBH.F ($53.5) is trading below our estimate of fair value ($78.93)

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


Price To Earnings Ratio

PE vs Industry: HBBH.F is good value based on its PE Ratio (10.5x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: HBBH.F is good value based on its PE Ratio (10.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: HBBH.F is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: HBBH.F is good value based on its PB Ratio (0.7x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Hornbach Holding KGaA forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBBH.F's forecast earnings growth (8.7% per year) is above the savings rate (2.7%).

Earnings vs Market: HBBH.F's earnings (8.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: HBBH.F's revenue (3.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: HBBH.F's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HBBH.F's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Hornbach Holding KGaA performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HBBH.F's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: HBBH.F's earnings growth over the past year (13.9%) exceeds its 5-year average (-3.3% per year).

Earnings vs Industry: HBBH.F earnings growth over the past year (13.9%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

High ROE: HBBH.F's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: HBBH.F's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: HBBH.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hornbach Holding KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: HBBH.F's short term assets (€1.4B) exceeds its short term liabilities (€928.5M)

Long Term Liabilities: HBBH.F's short term assets (1.4B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: HBBH.F's debt to equity ratio (48.4%) is considered high

Reducing Debt: HBBH.F's debt to equity ratio has reduced from 53.9% to 48.4% over the past 5 years.

Debt Coverage: HBBH.F's debt is well covered by operating cash flow (28.8%).

Interest Coverage: HBBH.F's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: HBBH.F's debt is covered by short term assets (assets are 1.774850x debt).


Next Steps

Dividend

What is Hornbach Holding KGaA's current dividend yield, its reliability and sustainability?

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HBBH.F's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HBBH.F's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, HBBH.F has been paying a dividend for less than 10 years.

Growing Dividend: HBBH.F has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), HBBH.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HBBH.F's dividends in 3 years are forecast to be well covered by earnings (26.8% payout ratio).


Next Steps

Management

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

2.6yrs

Average board tenure


CEO

Albrecht Hornbach (64yo)

0yrs

Tenure

€1,019,000

Compensation

Mr. Albrecht Hornbach serves as the Chairman of the Management Board at Hornbach Management AG, General Partner of Hornbach Holding AG & Co. KGaA. Mr. Hornbach serves as Head of DIY megastores with garden  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Albrecht's total compensation is reasonable compared to companies of similar size in the US market.

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


Board Age and Tenure

2.6yrs

Average Tenure

51yo

Average Age

Experienced Board: HBBH.F's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Roland Pelka

    Member of the Board of Management - Hornbach Management AG

    • Tenure: 0yrs
    • Compensation: €1.07m
  • Albrecht Hornbach (64yo)

    Chairman of the Board of Mgmt - Hornbach Management AG

    • Tenure: 0yrs
    • Compensation: €1.02m
  • Axel Müller

    Head of Group Communications

    • Tenure: 0yrs
  • Florian Preuß

    Head of Public Relations

    • Tenure: 0yrs
  • Anne Spies

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • John Feldmann (70yo)

    Chairman of the Supervisory Board

    • Tenure: 1.3yrs
    • Compensation: €118.00k
  • Martin Hornbach

    Vice Chairman of Supervisory Board

    • Tenure: 4yrs
    • Compensation: €85.00k
  • Susanne Wulfsberg

    Member of the Supervisory Board

    • Tenure: 6.3yrs
    • Compensation: €44.00k
  • Jens Wulfsberg

    Member of Supervisory Board of HORNBACH Management AG

    • Tenure: 0yrs
  • Erich Harsch (57yo)

    Member of the Supervisory Board

    • Tenure: 5.8yrs
    • Compensation: €64.00k
  • Georg Hornbach

    Member of Supervisory Board of HORNBACH Management AG

    • Tenure: 0yrs
    • Compensation: €23.00k
  • Simone Krah (45yo)

    Member of the Supervisory Board

    • Tenure: 1.3yrs
    • Compensation: €21.00k
  • Melanie Thomann-Bopp (41yo)

    Supervisory Board Member

    • Tenure: 1.3yrs
    • Compensation: €58.00k

Company Information

Hornbach Holding AG & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hornbach Holding AG & Co. KGaA
  • Ticker: HBBH.F
  • Exchange: OTCPK
  • Founded: 1877
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: €886.400m
  • Listing Market Cap: €987.522m
  • Shares outstanding: 16.00m
  • Website: https://www.hornbach-holding.de/de/

Number of Employees


Location

  • Hornbach Holding AG & Co. KGaA
  • Le Quartier Hornbach 19
  • Neustadt an der Weinstraße
  • Rhineland-Palatinate
  • 67433
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBHDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2015
HBH3SWX (SIX Swiss Exchange)YesCommon StockCHCHFOct 2015
HBHXTRA (XETRA Trading Platform)YesCommon StockDEEUROct 2015
HBHDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEUROct 2015
HBBH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2015
0RC9LSE (London Stock Exchange)YesCommon StockGBEUROct 2015
HBHWBAG (Wiener Boerse AG)YesCommon StockATEUROct 2015

Biography

Hornbach Holding AG & Co. KGaA, through its subsidiaries, operates do-it-yourself (DIY) megastores with garden centers in Germany and other European countries. The company’s stores offer approximately 50,0 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:45
End of Day Share Price2019/08/30 00:00
Earnings2019/08/31
Annual Earnings2019/02/28


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.