H&R GmbH & Co. KGaA (2HRA) AI Stock Analysis

• Market Cap: €184.99M
• Dividend Yield: 2.02%
• Average Volume (3M): 7.42K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.34
• Revenue Growth: -0.94%
• EPS Growth: -15.16%
• Country: DE
• Employees: 1,705
• Sector: Real Estate
• Sector Strength: 53
• Industry: Chemicals
• EPS (TTM): -0.04
• Shares Outstanding: 37,221,745
• 10 Day Avg. Volume: 3,124
• 30 Day Avg. Volume: 7,418
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €5.00
• Price Target Upside: 0.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: €5.50 ▲(10.89% Upside)

The overall stock score of 64 reflects a mixed financial performance with strengths in profit margins and balance sheet stability, offset by challenges in revenue growth and cash flow consistency. Technical indicators suggest stability but lack strong momentum, while valuation metrics indicate potential overvaluation.

H&R GmbH & Co. KGaA Business Overview & Revenue Model

Company Description

H&R GmbH & Co. KGaA manufactures and sells chemical-pharmaceutical raw materials and injection molded precision plastic parts. It operates through three segments: ChemPharm Refining, ChemPharm Sales, and Plastics. The ChemPharm Refining segment manufactures and distributes paraffins, white oils, plasticizers, base oils, lubricants, and other crude oil-based specialty products, as well as feedstocks and bunker fuels. The ChemPharm Sales segment processes and distributes plasticizers, wax emulsions, paraffins, and other crude oil-based specialty products. The Plastics segment develops, manufactures, and sells precision plastic parts for medical technology, automotive, and other industries. The company also provides petroleum jellies, motor oils, process oils, cable filling compounds, ozone protection waxes, cosmetic and pharmaceutical raw materials, mineral oils, and construction insulation materials. The company was formerly known as H&R Aktiengesellschaft and changed its name to H&R GmbH & Co. KGaA in August 2016. The company was founded in 1919 and is headquartered in Salzbergen, Germany. H&R GmbH & Co. KGaA is a subsidiary of H&R Komplementär GmbH.

How the Company Makes Money

H&R GmbH & Co. KGaA generates revenue through the manufacturing and sale of its core products, which include different types of waxes and specialty chemicals. The company has established key revenue streams from various sectors, including the cosmetics and personal care industries, where it supplies high-quality waxes for formulations. Additionally, H&R benefits from long-term contracts and partnerships with major players in the food and pharmaceutical sectors, ensuring a steady demand for its products. The company's focus on sustainability and innovation also positions it favorably in the market, enabling it to command premium pricing for its environmentally-friendly product offerings.

H&R GmbH & Co. KGaA Financial Statement Overview

Summary

H&R GmbH & Co. KGaA presents a mixed financial performance with strengths in gross profit margins and balance sheet stability. However, challenges in revenue growth, net profitability, and cash flow consistency pose potential risks. The company needs to focus on enhancing profitability and cash management to ensure sustainable growth.

Income Statement

The company exhibits strong gross profit margins with an upward trend, indicating efficient cost management. However, the net profit margin is relatively low, reflecting limited profitability. Revenue growth has been inconsistent, with a decline in recent years, which could be a concern for future growth prospects.

Balance Sheet

The balance sheet shows a healthy equity ratio, suggesting financial stability and a strong ability to cover liabilities. The debt-to-equity ratio is moderate, indicating manageable leverage levels. However, the return on equity is low, reflecting limited returns on shareholder investments.

Cash Flow

Operating cash flow remains positive, showing effective cash generation from operations. However, free cash flow has fluctuated significantly, indicating potential challenges in maintaining consistent cash flow. The free cash flow to net income ratio is low, suggesting limited cash available for reinvestment or distribution to shareholders.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.34B	1.35B	1.58B	1.19B	873.03M
Gross Profit	320.98M	121.06M	115.78M	155.57M	143.55M	203.74M
EBITDA	92.74M	91.69M	88.33M	123.76M	131.35M	48.42M
Net Income	11.05M	10.62M	10.56M	42.71M	50.18M	-9.02M
Balance Sheet
Total Assets	1.01B	1.01B	903.24M	962.07M	874.38M	745.72M
Cash, Cash Equivalents and Short-Term Investments	69.77M	64.01M	69.44M	55.89M	48.92M	55.03M
Total Debt	181.87M	194.60M	202.61M	244.24M	196.28M	177.52M
Total Liabilities	545.42M	546.26M	445.62M	490.91M	465.90M	398.83M
Stockholders Equity	425.12M	426.86M	413.02M	423.64M	362.60M	307.58M
Cash Flow
Free Cash Flow	-3.91M	15.23M	61.42M	-32.04M	-11.59M	21.90M
Operating Cash Flow	50.77M	70.24M	119.07M	37.98M	37.42M	60.15M
Investing Cash Flow	-52.47M	-54.45M	-56.26M	-72.46M	-48.56M	-38.11M
Financing Cash Flow	-23.99M	-25.80M	-46.94M	41.51M	2.48M	-57.66M

H&R GmbH & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:2HRA, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.96, below the 50-day MA of 4.98, and above the 200-day MA of 4.34, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:2HRA.

H&R GmbH & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAG	71 Outperform	€181.90M	9.50	10.12%	1.72%	-10.53%	31.52%
2HRA	64 Neutral	€184.99M	22.78	1.97%	2.02%	-0.94%	-15.16%
GSC1	57 Neutral	€162.05M	22.63	2.64%	0.67%	-4.45%	-16.88%
BAS	49 Neutral	€38.01B	97.98	1.20%	5.31%	-0.77%	―
SGL	46 Neutral	€394.91M	-2.73	-28.38%	―	-11.72%	-275.49%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%