Fact based stock research
HeidelbergCement (XTRA:HEI)

DE0006047004

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

HeidelbergCement stock research in summary

heidelbergcement.com

ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), HeidelbergCement (Construction Materials, Germany) shares have much better financial characteristics than comparable stocks. Shares of HeidelbergCement are a good value (attractively priced) with a consolidated Value Rank of 66 (better than 66% of alternatives), show above-average growth (Growth Rank of 90) but are riskily financed (Safety Rank of 43), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on HeidelbergCement's financial characteristics. As the company HeidelbergCement's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 66) and above-average growth (Obermatt Growth Rank of 90), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 43) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	66
Growth Rank	90
Safety Rank	43
Combined Rank	81

Country	Germany
Industry	Construction Materials
Index	CDAX, DAX 40, Low Emissions, Energy Efficient, Diversity Europe, Human Rights
Size class	XX-Large

This stock has achievements: Insight 2024-04-18, Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: HeidelbergCement

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	82	95	86	66
GROWTH
GROWTH	45	15	85	90
SAFETY
SAFETY	48	52	32	43
SENTIMENT
SENTIMENT	n/a	13	76	^new
360° VIEW
360° VIEW	n/a	29	86	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better HeidelbergCement is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	82	95	86	66
GROWTH
GROWTH	45	15	85	90
SAFETY
SAFETY	48	52	32	43
COMBINED
COMBINED	71	64	80	81

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of HeidelbergCement the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 66 (better than 66% compared with alternatives), HeidelbergCement shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for HeidelbergCement. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 62 which means that the stock price compared with what market professionals expect for future profits is lower than for 62% of comparable companies, indicating a good value concerning HeidelbergCement's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 67, and for Dividend Yield with a Dividend Yield Rank of 62. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 58% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 42). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 66, is a buy recommendation based on HeidelbergCement's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that HeidelbergCement has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing HeidelbergCement shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	79	81	65	42
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	87	85	62
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	79	85	79	67
DIVIDEND YIELD
DIVIDEND YIELD	76	70	74	62
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	82	95	86	66

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of HeidelbergCement; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 90 (better than 90% compared with alternatives) for 2024, HeidelbergCement shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for HeidelbergCement. Profit Growth has a rank of 79 which means that currently professionals expect the company to grow its profits more than 79% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 90, and Stock Returns has a rank of 96 which means that the stock returns have recently been above 96% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 26 (74% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 90, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	33	21	44	26
PROFIT GROWTH
PROFIT GROWTH	46	75	71	79
CAPITAL GROWTH
CAPITAL GROWTH	n/a	42	63	90
STOCK RETURNS
STOCK RETURNS	36	19	89	96
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	45	15	85	90

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of HeidelbergCement.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 43 (better than 43% compared with alternatives), the company HeidelbergCement has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of HeidelbergCement is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for HeidelbergCement. Leverage is at a rank of 50, meaning the company has a below-average debt-to-equity ratio. It has less debt than 50% of its competitors. Liquidity is also good at a rank of 73, meaning the company generates more profit to service its debt than 73% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 14, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 43 (worse than 57% compared with alternatives), HeidelbergCement has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for HeidelbergCement. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with HeidelbergCement and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	21	45	56	50
REFINANCING
REFINANCING	79	40	21	14
LIQUIDITY
LIQUIDITY	27	55	39	73
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	48	52	32	43

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of HeidelbergCement and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	38	26	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	49	71	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	28	96	^new
MARKET PULSE
MARKET PULSE	n/a	36	75	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	13	76	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for HeidelbergCement.
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