| Heidelberg Materials AG (DE0006047004) | |||
192,25 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 30.05.25 07:02:44 | HeidelbergCement India Ltd (BOM:500292) Q4 2025 Earnings Call Highlights: Navigating Expansion ... |  |
| EBITDA per Ton: Decreased from ?659 to ?530 due to price pressures. Net Cash Position: ?3,849 million, significantly exceeding debt of ?687 million. Dividend Payout: Proposed at 70% of the face value of ?10 per share. Trade Volume from Premium Products: 43%, up 9% from last year. Alternative Fuels Usage: 8%, flat year-on-year due to kiln upgrades. Trade Sales Percentage: 80%, down 1.8% year-on-year. Warning! GuruFocus has detected 5 Warning Sign with BOM:500292. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points HeidelbergCement India Ltd (BOM:500292) is executing an expansion project expected to add 200,000 tons of cement annually, enhancing production capacity. The company's balance sheet remains healthy, with net cash significantly exceeding debt, indicating strong financial stability. The dividend payout has been consistent, driven by operational cash flow, with a proposed dividend of 70% of the face value of ?10 per share. There is a significant increase in premium product sales, which now constitute 43% of trade volume, up by 9% from the previous year. The company is optimistic about future demand, driven by India's GDP growth forecast of 6.3% to 6.8%, and expects domestic demand to remain strong. Negative Points A major kiln shutdown for expansion led to increased raw material costs and a one-time purchase of clinker, impacting profitability. There was a 20% decrease in EBITDA due to price pressures and increased costs in raw materials and power. Geopolitical uncertainties and global economic slowdown pose risks to exports and investment inflows, potentially affecting growth. Intensified competition from new capacity expansions by competitors like Shree Cement and Altertech could pressure market share and pricing. Demand in the first two months of the new fiscal year was muted due to unseasonal rains and labor shortages, impacting sales. Q & A Highlights Q: Could you provide an update on the expansion projects and the status of the clinker and cement debottlenecking scheduled for May 2025? A: The main kiln was shut down for expansion, which is expected to be completed by June. This will result in an additional 200,000 tons of cement annually. The clinker capacity will increase by 130,000 tons. Q: What are the future expansion plans, and have there been any developments in the last 2-3 years? A: We have acquired new mines in Sukasappa and are identifying a project site. Environmental clearance is progressing, and we expect positive news from the Gujarat government soon. Story Continues Q: How is the demand faring in the first two months of Q1 FY26, given the heavy rainfall in many regions? A: Demand is muted compared to March due to seasonal factors like marriages and unseasonal rains. However, it is not extremely bad and is at the same level as last year. Q: What is the current difference between trade and non-trade prices in Central India? A: The price difference varies by location, ranging from ?15 to ?70 per bag. It depends on the footprint of competitors' non-trade sales. Q: Can you provide insights into the company's dividend payout policy, especially considering the expansion plans? A: The dividend payout decision is made before the board meeting and depends on earnings and cash needs for expansion. Historically, payouts have been between 70% to 90%, and this range is expected to continue unless significant cash is needed for expansions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 21.04.25 12:33:58 | Is Heidelberg Materials AG's (ETR:HEI) Recent Stock Performance Tethered To Its Strong Fundamentals? |  |
| Heidelberg Materials' (ETR:HEI) stock is up by a considerable 22% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Heidelberg Materials' ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. How Do You Calculate Return On Equity? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Heidelberg Materials is: 9.4% = €1.9b ÷ €20b (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. That means that for every €1 worth of shareholders' equity, the company generated €0.09 in profit. See our latest analysis for Heidelberg Materials What Is The Relationship Between ROE And Earnings Growth? We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. A Side By Side comparison of Heidelberg Materials' Earnings Growth And 9.4% ROE At first glance, Heidelberg Materials seems to have a decent ROE. Further, the company's ROE is similar to the industry average of 8.6%. Consequently, this likely laid the ground for the impressive net income growth of 38% seen over the past five years by Heidelberg Materials. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place. Next, on comparing with the industry net income growth, we found that Heidelberg Materials' growth is quite high when compared to the industry average growth of 8.9% in the same period, which is great to see.XTRA:HEI Past Earnings Growth April 21st 2025 Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Heidelberg Materials''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Story Continues Is Heidelberg Materials Using Its Retained Earnings Effectively? Heidelberg Materials' three-year median payout ratio is a pretty moderate 28%, meaning the company retains 72% of its income. So it seems that Heidelberg Materials is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered. Moreover, Heidelberg Materials is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 28%. Still, forecasts suggest that Heidelberg Materials' future ROE will rise to 13% even though the the company's payout ratio is not expected to change by much. Summary In total, we are pretty happy with Heidelberg Materials' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 04.04.25 13:02:55 | Heidelberg Materials' (ETR:HEI) Conservative Accounting Might Explain Soft Earnings | |
| The most recent earnings report from Heidelberg Materials AG (ETR:HEI) was disappointing for shareholders. Despite the soft profit numbers, our analysis has optimistic about the overall quality of the income statement. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.XTRA:HEI Earnings and Revenue History April 4th 2025 How Do Unusual Items Influence Profit? For anyone who wants to understand Heidelberg Materials' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by €348m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. If Heidelberg Materials doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Heidelberg Materials' Profit Performance Unusual items (expenses) detracted from Heidelberg Materials' earnings over the last year, but we might see an improvement next year. Because of this, we think Heidelberg Materials' earnings potential is at least as good as it seems, and maybe even better! And on top of that, its earnings per share have grown at 5.7% per year over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you'd like to know more about Heidelberg Materials as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Heidelberg Materials you should know about. Today we've zoomed in on a single data point to better understand the nature of Heidelberg Materials' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 27.03.25 04:14:47 | Heidelberg Materials Full Year 2024 Earnings: EPS Misses Expectations | |
| Heidelberg Materials (ETR:HEI) Full Year 2024 Results Key Financial Results Revenue: €21.3b (flat on FY 2023). Net income: €1.75b (down 14% from FY 2023). Profit margin: 8.2% (down from 9.6% in FY 2023). EPS: €9.67 (down from €10.99 in FY 2023).XTRA:HEI Earnings and Revenue Growth March 27th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Heidelberg Materials EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 10%. Looking ahead, revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Basic Materials industry in Europe. Performance of the market in Germany. The company's shares are down 1.6% from a week ago. Risk Analysis It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Heidelberg Materials, and understanding this should be part of your investment process. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 27.02.25 04:04:36 | Heidelberg Materials Full Year 2024 Earnings: EPS: €9.67 (vs €10.99 in FY 2023) | |
| Heidelberg Materials (ETR:HEI) Full Year 2024 Results Key Financial Results Revenue: €21.8b (up 2.3% from FY 2023). Net income: €1.75b (down 14% from FY 2023). Profit margin: 8.0% (down from 9.6% in FY 2023). The decrease in margin was driven by higher expenses. EPS: €9.67 (down from €10.99 in FY 2023).XTRA:HEI Earnings and Revenue Growth February 27th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Heidelberg Materials Earnings Insights Looking ahead, revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Basic Materials industry in Europe. Performance of the market in Germany. The company's shares are up 4.4% from a week ago. Risk Analysis It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Heidelberg Materials, and understanding this should be part of your investment process. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 03.02.25 08:03:43 | Heidelberg Materials (ETR:HEI) Is Experiencing Growth In Returns On Capital | |
| Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Speaking of which, we noticed some great changes in Heidelberg Materials' (ETR:HEI) returns on capital, so let's have a look. What Is Return On Capital Employed (ROCE)? If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Heidelberg Materials is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.098 = €2.7b ÷ (€35b - €7.4b) (Based on the trailing twelve months to June 2024). Therefore, Heidelberg Materials has an ROCE of 9.8%. In absolute terms, that's a low return but it's around the Basic Materials industry average of 8.7%. Check out our latest analysis for Heidelberg Materials XTRA:HEI Return on Capital Employed February 3rd 2025 Above you can see how the current ROCE for Heidelberg Materials compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our freeanalyst report for Heidelberg Materials . So How Is Heidelberg Materials' ROCE Trending? Heidelberg Materials is showing promise given that its ROCE is trending up and to the right. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 71% over the last five years. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. On that front, things are looking good so it's worth exploring what management has said about growth plans going forward. In Conclusion... In summary, we're delighted to see that Heidelberg Materials has been able to increase efficiencies and earn higher rates of return on the same amount of capital. Since the stock has returned a staggering 149% to shareholders over the last five years, it looks like investors are recognizing these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. On a separate note, we've found 1 warning sign for Heidelberg Materials you'll probably want to know about. Story Continues If you want to search for solid companies with great earnings, check out this freelist of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 07.01.25 14:40:16 | Should Value Investors Buy Heidelberg Materials AG Unsponsored ADR (HDLMY) Stock? | |
| Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today. One stock to keep an eye on is Heidelberg Materials AG Unsponsored ADR (HDLMY). HDLMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.54, while its industry has an average P/E of 16.49. Over the last 12 months, HDLMY's Forward P/E has been as high as 9.91 and as low as 7.20, with a median of 8.09. Investors will also notice that HDLMY has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HDLMY's industry currently sports an average PEG of 1.52. Within the past year, HDLMY's PEG has been as high as 0.90 and as low as 0.50, with a median of 0.71. These are just a handful of the figures considered in Heidelberg Materials AG Unsponsored ADR's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HDLMY is an impressive value stock right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Heidelberg Materials AG Unsponsored ADR (HDLMY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research View Comments |
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| 20.12.24 07:25:19 | Is Heidelberg Materials AG (ETR:HEI) Trading At A 50% Discount? | |
| Key Insights The projected fair value for Heidelberg Materials is €240 based on 2 Stage Free Cash Flow to Equity Current share price of €120 suggests Heidelberg Materials is potentially 50% undervalued Analyst price target for HEI is €127 which is 47% below our fair value estimate Today we will run through one way of estimating the intrinsic value of Heidelberg Materials AG (ETR:HEI) by estimating the company's future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Check out our latest analysis for Heidelberg Materials What's The Estimated Valuation? We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €2.08b €2.24b €2.19b €2.16b €2.15b €2.15b €2.15b €2.16b €2.18b €2.19b Growth Rate Estimate Source Analyst x8 Analyst x7 Analyst x1 Est @ -1.15% Est @ -0.52% Est @ -0.07% Est @ 0.24% Est @ 0.45% Est @ 0.61% Est @ 0.71% Present Value (€, Millions) Discounted @ 5.7% €2.0k €2.0k €1.9k €1.7k €1.6k €1.5k €1.5k €1.4k €1.3k €1.3k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €16b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (1.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 5.7%. Story Continues Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €2.2b× (1 + 1.0%) ÷ (5.7%– 1.0%) = €47b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €47b÷ ( 1 + 5.7%)10= €27b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €43b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of €120, the company appears quite undervalued at a 50% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.XTRA:HEI Discounted Cash Flow December 20th 2024 The Assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Heidelberg Materials as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.7%, which is based on a levered beta of 1.152. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for Heidelberg Materials Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings growth over the past year is below its 5-year average. Dividend is low compared to the top 25% of dividend payers in the Basic Materials market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the German market. Next Steps: Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For Heidelberg Materials, we've compiled three further elements you should further examine: Risks: Take risks, for example - Heidelberg Materials has 1 warning sign we think you should be aware of. Future Earnings: How does HEI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 11.10.24 15:40:10 | HDELY vs. ROAD: Which Stock Should Value Investors Buy Now? | |
| Investors interested in Building Products - Miscellaneous stocks are likely familiar with Heidelberg Materials AG Unsponsored ADR (HDELY) and Construction Partners (ROAD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. Currently, both Heidelberg Materials AG Unsponsored ADR and Construction Partners are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels. Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years. HDELY currently has a forward P/E ratio of 8.57, while ROAD has a forward P/E of 39.61. We also note that HDELY has a PEG ratio of 0.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ROAD currently has a PEG ratio of 1.28. Another notable valuation metric for HDELY is its P/B ratio of 1.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ROAD has a P/B of 6.75. These are just a few of the metrics contributing to HDELY's Value grade of A and ROAD's Value grade of C. Both HDELY and ROAD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HDELY is the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Heidelberg Materials AG Unsponsored ADR (HDELY) : Free Stock Analysis Report Construction Partners, Inc. (ROAD) : Free Stock Analysis Report Story continues To read this article on Zacks.com click here. Zacks Investment Research View comments |
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| 10.10.24 03:07:38 | Top German Dividend Stocks For October 2024 | |
| As of October 2024, the German market has been influenced by escalating Middle East tensions and a cautious investor sentiment, leading to a decline in major indices such as the DAX. Despite these challenges, dividend stocks remain an attractive option for investors seeking steady income streams, particularly in uncertain economic climates. Top 10 Dividend Stocks In Germany Name Dividend Yield Dividend Rating Edel SE KGaA (XTRA:EDL) 6.73% ★★★★★★ MLP (XTRA:MLP) 5.01% ★★★★★☆ SAF-Holland (XTRA:SFQ) 5.53% ★★★★★☆ OVB Holding (XTRA:O4B) 4.71% ★★★★★☆ DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) 7.52% ★★★★★☆ Allianz (XTRA:ALV) 4.70% ★★★★★☆ Uzin Utz (XTRA:UZU) 3.33% ★★★★★☆ Mercedes-Benz Group (XTRA:MBG) 9.30% ★★★★★☆ FRoSTA (DB:NLM) 3.28% ★★★★★☆ MVV Energie (XTRA:MVV1) 3.69% ★★★★★☆ Click here to see the full list of 34 stocks from our Top German Dividend Stocks screener. Below we spotlight a couple of our favorites from our exclusive screener. SIMONA Simply Wall St Dividend Rating: ★★★★☆☆ Overview: SIMONA Aktiengesellschaft is a company that develops, manufactures, and markets semi-finished thermoplastics, pipes, fittings, and profiles globally with a market cap of €384 million. Operations: SIMONA generates revenue of €578.85 million from its segments, which include semi-finished plastics, pipes, fittings, and finished parts. Dividend Yield: 3% SIMONA's dividend sustainability is supported by a low payout ratio of 35.7% and cash payout ratio of 35%, indicating dividends are well-covered by earnings and cash flows. However, its 3.01% yield is below the top quartile in Germany, and dividends have been volatile over the past decade despite some growth. Recent earnings show improvement with net income rising to €13.24 million for H1 2024, suggesting potential stability in future payouts. Click here to discover the nuances of SIMONA with our detailed analytical dividend report. Upon reviewing our latest valuation report, SIMONA's share price might be too pessimistic. DB:SIM0 Dividend History as at Oct 2024 Heidelberg Materials Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Heidelberg Materials AG is a global producer and distributor of cement, aggregates, ready-mixed concrete, and asphalt with a market cap of €17.72 billion. Operations: Heidelberg Materials AG generates revenue from its primary segments, including €10.90 billion from cement, €4.92 billion from aggregates, and €5.71 billion from ready-mixed concrete and asphalt. Dividend Yield: 3% Heidelberg Materials' dividend yield of 3.03% is below the top quartile in Germany, with a history of volatility over the past decade. Despite this, dividends are well-covered by earnings and cash flows, with payout ratios at 29.6% and 27.2%, respectively. The company recently completed a €154.5 million share buyback, which might indicate confidence in its financial position despite a decline in half-year earnings to €574.3 million from €718.7 million last year. Story continues Click here and access our complete dividend analysis report to understand the dynamics of Heidelberg Materials. In light of our recent valuation report, it seems possible that Heidelberg Materials is trading behind its estimated value. XTRA:HEI Dividend History as at Oct 2024 Wacker Neuson Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Wacker Neuson SE manufactures and distributes light and compact equipment in Germany, Austria, the United States, and internationally, with a market cap of approximately €1.01 billion. Operations: Wacker Neuson's revenue is derived from its Services segment (€502.60 million), Light Equipment (€480.20 million), and Compact Equipment (€1.53 billion). Dividend Yield: 7.8% Wacker Neuson's dividend yield of 7.76% ranks in the top quartile in Germany, but its dividends are not well-covered by free cash flows, reflecting a high cash payout ratio of 418.3%. Despite past volatility and a decrease in profit margins from 8% to 4.6%, dividends remain covered by earnings with a payout ratio of 68.3%. The stock trades at a favorable price-to-earnings ratio of 8.8x compared to the market average of 16.7x. Get an in-depth perspective on Wacker Neuson's performance by reading our dividend report here. Our valuation report unveils the possibility Wacker Neuson's shares may be trading at a discount. XTRA:WAC Dividend History as at Oct 2024 Summing It All Up Explore the 34 names from our Top German Dividend Stocks screener here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DB:SIM0 XTRA:HEI and XTRA:WAC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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