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

• Market Cap: €166.38M
• Dividend Yield: 2.24%
• Average Volume (3M): 2.84K
• Price to Earnings (P/E): 42.3
• Beta (1Y): 0.39
• Revenue Growth: -3.07%
• EPS Growth: -28.82%
• Country: DE
• Employees: 1,705
• Sector: Real Estate
• Sector Strength: 53
• Industry: Chemicals
• EPS (TTM): -0.02
• Shares Outstanding: 37,221,745
• 10 Day Avg. Volume: 1,415
• 30 Day Avg. Volume: 2,840
• PEG Ratio: 3.33
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 8.29
• 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: 11.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: €4.50 ▲(0.67% Upside)

The overall stock score of 50 reflects significant challenges in financial performance and bearish technical indicators. The company's high P/E ratio suggests overvaluation, while the dividend yield offers limited compensation. Improving operational efficiency and profitability is crucial for enhancing future prospects.

Positive Factors

Business Model Strength

H&R's diverse product offerings across multiple industries provide a stable revenue base and reduce dependence on any single market, enhancing resilience.

Sustainability Focus

H&R's focus on sustainable products aligns with growing industry trends towards eco-friendly solutions, potentially expanding its customer base and market share.

Stable Balance Sheet

A stable balance sheet with manageable leverage provides financial flexibility, supporting long-term strategic investments and growth opportunities.

Negative Factors

Declining Revenue

Declining revenue indicates potential market challenges and competitive pressures, which could impact long-term growth and profitability.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to invest in growth initiatives and may strain financial resources over time.

Low Profitability

Low profitability margins suggest operational inefficiencies and could hinder the company's ability to generate returns for shareholders in the long term.

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 sale of its wax products and specialty chemical solutions to various industries. The company's revenue model is primarily based on direct sales to B2B clients, leveraging long-term contracts and partnerships with major corporations in sectors such as cosmetics and packaging. Key revenue streams include the production and distribution of paraffin waxes, microcrystalline waxes, and other customized products tailored to specific industrial applications. Additionally, H&R benefits from strategic partnerships with suppliers and distributors, which enhance its market reach and operational efficiency. The company's commitment to sustainability also attracts clients looking for eco-friendly alternatives, potentially expanding its customer base and contributing to increased sales.

H&R GmbH & Co. KGaA Financial Statement Overview

Summary

H&R GmbH & Co. KGaA shows a stable financial position with a strong gross profit margin and prudent leverage management. However, challenges are evident in revenue growth, cash flow generation, and profitability, as indicated by low net profit margin and return on equity.

Income Statement

The company shows a mixed performance in its income statement. The gross profit margin for TTM is strong at 24.38%, indicating efficient production processes. However, the net profit margin is low at 0.62%, reflecting challenges in controlling costs or pricing strategies. Revenue growth has been negative recently, with a decline of 2.32% in the TTM, suggesting potential market or operational challenges. EBIT and EBITDA margins are modest, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.38 in the TTM, showing prudent leverage management. Return on equity is low at 1.94%, suggesting limited profitability on shareholders' investments. The equity ratio is not explicitly calculated, but the overall asset management appears conservative, which is typical for the chemicals industry.

Cash Flow

Cash flow analysis reveals some concerns, with a significant decline in free cash flow growth at -1052.20% in the TTM, indicating cash generation issues. The operating cash flow to net income ratio is 0.31, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.42, indicating some ability to generate cash relative to net income, but improvements are needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.34B	1.35B	1.58B	1.19B	873.03M
Gross Profit	273.20M	121.06M	115.78M	155.57M	143.55M	61.56M
EBITDA	86.15M	91.69M	88.33M	123.76M	131.35M	48.42M
Net Income	3.94M	10.62M	10.56M	42.71M	50.18M	-9.02M
Balance Sheet
Total Assets	983.64M	1.01B	903.24M	962.07M	874.38M	745.72M
Cash, Cash Equivalents and Short-Term Investments	78.69M	64.01M	69.44M	55.89M	48.92M	55.03M
Total Debt	160.91M	194.60M	202.61M	244.24M	196.28M	177.52M
Total Liabilities	531.54M	546.26M	445.62M	490.91M	465.90M	398.83M
Stockholders Equity	412.92M	426.86M	413.02M	423.64M	362.60M	307.58M
Cash Flow
Free Cash Flow	5.77M	15.23M	61.42M	-32.04M	-11.59M	21.90M
Operating Cash Flow	65.37M	70.24M	119.07M	37.98M	37.42M	60.15M
Investing Cash Flow	-58.38M	-54.45M	-56.26M	-72.46M	-48.56M	-38.11M
Financing Cash Flow	-16.77M	-25.80M	-46.94M	41.51M	2.48M	-57.66M

H&R GmbH & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 4.47 is below the 20-day moving average (MA) of 4.69, below the 50-day MA of 4.82, and below the 200-day MA of 4.71, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 37.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	€139.17M	10.06	8.44%	1.82%	-26.69%	-1.95%
GSC1	67 Neutral	€162.05M	20.86	2.79%	0.67%	-3.37%	15.71%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BAS	61 Neutral	€39.06B	143.05	0.71%	5.14%	-2.94%	-45.21%
SGL	53 Neutral	€368.01M	-2.24	-29.56%	―	-14.48%	-340.02%
2HRA	50 Neutral	€166.38M	42.29	0.94%	2.24%	-3.07%	-28.82%