HORNBACH Holding AG & Co (HBH) AI Stock Analysis

• Market Cap: €1.29B
• Dividend Yield: 2.88%
• Average Volume (3M): 12.37K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.95
• Revenue Growth: 3.26%
• EPS Growth: -17.15%
• Country: DE
• Employees: 25,357
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 0.64
• Shares Outstanding: 16,000,000
• 10 Day Avg. Volume: 18,760
• 30 Day Avg. Volume: 12,369
• PEG Ratio: 0.73
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 9.44
• 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: €96.20
• Price Target Upside: 19.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: €91.00 ▲(13.04% Upside)

The overall stock score of 67 reflects a mix of solid financial performance and attractive valuation, offset by weak technical indicators. The company's financials show growth but face challenges with cash flow. The stock appears undervalued, which is a positive, but the bearish technical signals suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, providing more flexibility for future investments.

Online Presence

A strong online presence supports revenue diversification and captures growing e-commerce trends, ensuring competitive advantage.

Negative Factors

Declining Net Income

Decreasing net income can limit reinvestment opportunities and affect shareholder returns, challenging long-term financial health.

Free Cash Flow Challenges

Reduced free cash flow may constrain the company's ability to fund new projects or reduce debt, impacting future growth potential.

Net Profit Margin Decline

A declining net profit margin suggests increased costs or competitive pricing pressures, potentially affecting long-term profitability.

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 products in its retail stores and online platforms. Key revenue streams include direct sales of building materials, tools, and garden supplies, as well as ancillary services such as installation and project consultations. The company also benefits from a loyalty program that encourages repeat purchases. Additionally, HORNBACH has formed partnerships with various suppliers and manufacturers, allowing it to offer exclusive products and promotions, which enhances its competitive edge and contributes to its earnings. The company's robust online presence complements its physical stores, facilitating a growing e-commerce segment that has become increasingly important for revenue generation.

HORNBACH Holding AG & Co Financial Statement Overview

Summary

HORNBACH Holding AG & Co shows solid revenue growth and stable profitability margins, but there are concerns about declining net income and free cash flow. Improved leverage management is a positive, but the decrease in free cash flow needs addressing to maintain financial flexibility.

Income Statement

HORNBACH Holding AG & Co has shown consistent revenue growth over the years, with a notable increase in the TTM period. The gross profit margin remains stable, indicating efficient cost management. However, the net profit margin has slightly decreased in the TTM period, suggesting increased expenses or lower pricing power. The EBIT and EBITDA margins are healthy, though they have slightly declined, indicating potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, reflecting better leverage management. Return on equity has slightly decreased, indicating a marginal decline in profitability relative to equity. The equity ratio remains stable, suggesting a balanced approach to financing through debt and equity.

Cash Flow

The free cash flow has decreased significantly in the TTM period, which could impact future investments or debt repayments. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to net income. However, the free cash flow to net income ratio has decreased, highlighting potential challenges in converting income into free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.20B	6.16B	6.26B	5.87B	4.73B
Gross Profit	2.16B	2.08B	2.09B	2.06B	1.69B
EBITDA	514.89M	510.50M	483.38M	558.22M	406.86M
Net Income	140.68M	125.14M	157.07M	199.66M	104.96M
Balance Sheet
Total Assets	4.61B	4.48B	4.73B	4.31B	3.76B
Cash, Cash Equivalents and Short-Term Investments	317.38M	370.25M	436.98M	332.26M	368.29M
Total Debt	1.59B	1.57B	1.78B	1.69B	1.54B
Total Liabilities	2.58B	2.53B	2.83B	2.54B	2.16B
Stockholders Equity	1.96B	1.85B	1.78B	1.63B	1.34B
Cash Flow
Free Cash Flow	134.53M	284.40M	222.03M	166.36M	193.30M
Operating Cash Flow	318.42M	454.91M	425.45M	344.95M	324.45M
Investing Cash Flow	-170.26M	-182.35M	-197.98M	-171.71M	-121.61M
Financing Cash Flow	-199.36M	-331.82M	-135.14M	-278.53M	-152.09M

HORNBACH Holding AG & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 80.5 is below the 20-day moving average (MA) of 81.30, below the 50-day MA of 83.67, and below the 200-day MA of 93.39, indicating a bearish trend. The MACD of -0.65 indicates Negative momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	67 Neutral	€1.29B	9.67	6.51%	2.88%	3.26%	-17.15%
HHFA	63 Neutral	€2.22B	50.12	5.78%	0.47%	13.44%	113.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WAC	58 Neutral	€1.33B	21.46	4.12%	2.46%	-9.55%	-24.60%
DUE	54 Neutral	€1.56B	-49.13	-7.86%	3.12%	-18.21%	-137.62%
B4B	54 Neutral	€2.11B	-9.63	-13.78%	―	4.57%	-82.48%