HORNBACH Holding AG & Co (HBH) AI Stock Analysis

• Market Cap: €1.65B
• Dividend Yield: 2.33%
• Average Volume (3M): 6.99K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.00
• Revenue Growth: 1.78%
• EPS Growth: -1.73%
• Country: DE
• Employees: 25,357
• Sector: Services
• Sector Strength: N/A
• Industry: Home Improvement
• EPS (TTM): 6.62
• Shares Outstanding: 16,000,000
• 10 Day Avg. Volume: 6,316
• 30 Day Avg. Volume: 6,990
• 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: €118.00
• Price Target Upside: 14.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: €115.00 ▲(11.43% Upside)

The overall stock score of 73.1 reflects a strong financial performance, particularly in cash flow management, and an attractive valuation with a reasonable P/E ratio and dividend yield. Technical analysis presents mixed signals, with no strong momentum in either direction. The absence of earnings call data and corporate events does not impact the score, as their weights are redistributed among the other components.

HORNBACH Holding AG & Co Business Overview & Revenue Model

Company Description

HORNBACH Holding AG & Co. KGaA, through its subsidiaries, develops and operates do-it-yourself (DIY) megastores with garden centers in Germany and other European countries. Its stationary stores offer approximately 50,000 articles in various divisions, including hardware/electrical, paint/wallpaper/flooring, construction materials/timber/prefabricated components, sanitary/tiles, and garden hardware/plants. The company also provides a range of construction materials and tools stocked and supply services, as well as professional advice for various product ranges and lines of trade, including shell construction and roofing; interior fittings and facades; and civil engineering, and garden and landscape construction materials for construction, conversion, or refurbishment projects. In addition, it develops and rents retail real estate properties. As of February 28, 2022, the company operated 165 DIY megastores and garden centers, including 98 stores in Germany; and 14 stores in Austria, 16 stores in the Netherlands, 1 store in Luxembourg, 10 stores in the Czech Republic, 8 stores in Switzerland, 8 stores in Sweden, 4 stores in Slovakia, and 8 stores in Romania, as well as 36 builders' merchant outlets in south-western Germany, and two specialist stores in France. It also operates HORNBACH online stores. The company was founded in 1877 and is based in Bornheim, Germany.

How the Company Makes Money

HORNBACH generates revenue primarily through the sale of DIY products, home improvement materials, and related services in its retail stores and online. Its revenue model is based on a combination of direct sales to consumers and professionals, as well as through its e-commerce platform. Key revenue streams include the sale of building materials, tools, garden products, and seasonal items. The company may also benefit from partnerships with suppliers and brands, enabling it to offer exclusive products and promotions. Additionally, HORNBACH may generate ancillary revenue through services such as workshops, rentals, and delivery, enhancing customer engagement and increasing overall sales.

HORNBACH Holding AG & Co Financial Statement Overview

Summary

HORNBACH Holding AG & Co presents a strong financial profile with consistent revenue and cash flow growth. While profitability margins could be improved, the company maintains a stable balance sheet with moderate leverage and a solid equity base. Excellent cash flow performance underlines operational strength, which is a key highlight.

Income Statement

The income statement shows solid performance with stable gross and net profit margins. The TTM gross profit margin is 34.8%, and the net profit margin is 2.4%. There is a moderate revenue growth rate of 2.5% over the past year, indicating steady growth. EBIT and EBITDA margins are also stable at 4.6% and 8.5% respectively, reflecting efficient operational management. However, the net profit margin is relatively low, which slightly impacts the overall score.

Balance Sheet

The balance sheet indicates a healthy financial structure with an equity ratio of 43.8%, suggesting a balanced use of debt and equity. The debt-to-equity ratio stands at 0.78, reflecting moderate leverage. ROE is 7.3%, which is decent but could be improved for higher shareholder returns. Overall, the balance sheet is stable, but the modest ROE and leverage levels suggest room for improvement.

Cash Flow

Cash flow analysis reveals strong operational efficiency with an operating cash flow to net income ratio of 2.99, indicating robust cash generation. The free cash flow growth rate is 81.4% from the previous period, showcasing excellent cash management. The free cash flow to net income ratio is 1.61, reflecting significant cash conversion efficiency. Strong cash flow metrics contribute to a high score in this vertical.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.30B	6.20B	6.16B	6.26B	5.87B	5.46B
Gross Profit	2.19B	2.16B	2.08B	2.09B	2.06B	1.92B
EBITDA	532.69M	514.89M	510.50M	483.38M	558.22M	498.77M
Net Income	151.28M	140.68M	125.14M	157.07M	199.66M	165.24M
Balance Sheet
Total Assets	4.71B	4.61B	4.48B	4.73B	4.31B	4.01B
Cash, Cash Equivalents and Short-Term Investments	426.40M	317.38M	370.25M	436.98M	332.26M	434.96M
Total Debt	1.60B	1.59B	1.57B	1.78B	1.69B	1.52B
Total Liabilities	2.56B	2.58B	2.53B	2.83B	2.54B	2.24B
Stockholders Equity	2.06B	1.96B	1.85B	1.78B	1.63B	1.48B
Cash Flow
Free Cash Flow	244.03M	134.53M	284.40M	222.03M	166.36M	192.13M
Operating Cash Flow	452.12M	318.42M	454.91M	425.45M	344.95M	346.50M
Investing Cash Flow	-199.66M	-170.26M	-182.35M	-197.98M	-171.71M	-149.22M
Financing Cash Flow	-193.96M	-199.36M	-331.82M	-135.14M	-278.53M	-129.02M

HORNBACH Holding AG & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.20
• 50DMA: Positive
• 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:HBH, the sentiment is Positive. The current price of 103.2 is above the 20-day moving average (MA) of 102.42, above the 50-day MA of 103.13, and above the 200-day MA of 89.93, indicating a bullish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 56.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HBH.

HORNBACH Holding AG & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBH	73 Outperform	€1.65B	10.66	7.56%	2.33%	1.78%	-1.73%
WAC	62 Neutral	1.52B	34.55	3.02%	2.71%	-15.59%	-61.34%
DUE	60 Neutral	1.39B	-74.44	-1.77%	3.48%	-15.83%	-120.52%
HHFA	57 Neutral	2.05B	58.31	4.87%	0.48%	16.39%	87.55%
B4B	54 Neutral	1.96B	-10.06	-7.19%	―	3.68%	1.52%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%