Heidelberger Druckmaschinen (HDD) AI Stock Analysis

• Market Cap: €586.15M
• Dividend Yield: N/A
• Average Volume (3M): 700.71K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.78
• Revenue Growth: 5.97%
• EPS Growth: N/A
• Country: DE
• Employees: 9,398
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.04
• Shares Outstanding: 304,479,280
• 10 Day Avg. Volume: 723,390
• 30 Day Avg. Volume: 700,714
• PEG Ratio: -0.14
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 12.42
• 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: €2.13
• Price Target Upside: 10.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: €2.00 ▲(3.63% Upside)

Heidelberger Druckmaschinen's overall score reflects strong financial performance with significant revenue growth and stable balance sheet. Technical indicators suggest a neutral to slightly bearish trend, and valuation appears fair. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates strong market demand and effective sales strategies, contributing to long-term business expansion.

Cash Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction, supporting long-term stability.

Balance Sheet Health

A low debt-to-equity ratio ensures financial stability, reducing risk and enabling the company to withstand economic fluctuations over time.

Negative Factors

Profitability Margins

Low net profit margins may limit the company's ability to reinvest in growth and innovation, potentially impacting long-term competitiveness.

Return on Equity

Moderate ROE indicates that the company may not be utilizing its equity base as effectively as possible, potentially limiting shareholder returns.

Profitability Improvement

While operational efficiency is improving, the need for further profitability enhancement could hinder the company's ability to maximize shareholder value.

Heidelberger Druckmaschinen Business Overview & Revenue Model

Company Description

Heidelberger Druckmaschinen AG (HDD) is a leading global provider of printing technology and solutions, primarily focused on the commercial and packaging printing sectors. Established in 1850 and headquartered in Heidelberg, Germany, the company specializes in the development and production of offset printing presses, digital printing systems, and related services. HDD's core products include sheet-fed and web-fed offset presses, digital printing machines, and workflow solutions that enhance the efficiency and quality of the printing process.

How the Company Makes Money

Heidelberger Druckmaschinen generates revenue through multiple streams, including the sale of printing presses, digital printing systems, and consumables such as inks and plates. The company also earns money from service contracts, maintenance agreements, and the sale of spare parts which create recurring revenue. Significant partnerships with suppliers and technology firms enhance its product offerings and market reach. Additionally, HDD benefits from its global distribution network and after-sales services, which contribute to customer retention and sustained income over time.

Heidelberger Druckmaschinen Financial Statement Overview

Summary

Heidelberger Druckmaschinen is showing gradual financial recovery with improved profitability margins and operational efficiency. However, challenges in sustaining revenue growth and managing high liabilities persist. Cash flow stability remains a concern, necessitating focused management efforts to enhance long-term financial health.

Income Statement

Heidelberger Druckmaschinen has shown a mixed performance in recent years. The gross profit margin has been consistent, reflecting stable cost management. However, net profit margins have been volatile, with recent improvements. Revenue growth has been inconsistent, suggesting challenges in sustaining top-line growth. EBIT and EBITDA margins have improved, indicating better operational efficiency, although still recovering from past losses.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. Return on equity has shown improvement, though remains modest, indicating moderate efficiency in generating returns from equity. The equity ratio is stable, suggesting a consistent asset financing strategy. However, total liabilities have been relatively high, indicating potential risks if not managed carefully.

Cash Flow

Heidelberger Druckmaschinen's cash flow performance highlights both strengths and weaknesses. The free cash flow has fluctuated, with recent improvements but still showing periods of negative cash flow. The operating cash flow to net income ratio suggests reasonable cash conversion, but volatility in free cash flow raises concerns about long-term sustainability. Overall, cash flow management needs attention to ensure stable cash reserves.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.35B	2.42B	2.28B	2.47B	2.18B	1.91B
Gross Profit	1.17B	1.15B	1.13B	1.17B	1.04B	988.25M
EBITDA	173.00M	152.00M	141.00M	202.00M	146.30M	96.72M
Net Income	40.00M	39.00M	5.00M	91.00M	33.00M	-42.89M
Balance Sheet
Total Assets	2.18B	2.11B	2.17B	2.22B	2.18B	2.17B
Cash, Cash Equivalents and Short-Term Investments	63.00M	153.00M	116.00M	116.00M	140.24M	197.88M
Total Debt	99.00M	72.00M	76.00M	96.00M	128.29M	263.52M
Total Liabilities	1.65B	1.59B	1.63B	1.71B	1.94B	2.06B
Stockholders Equity	533.00M	527.00M	545.00M	513.00M	242.01M	109.04M
Cash Flow
Free Cash Flow	82.00M	25.00M	25.00M	-45.00M	-4.20M	-59.75M
Operating Cash Flow	170.00M	90.00M	113.00M	33.00M	51.22M	55.00K
Investing Cash Flow	-82.00M	-34.00M	-62.00M	39.00M	36.33M	39.77M
Financing Cash Flow	-91.00M	-53.00M	-31.00M	-60.00M	-152.36M	-208.02M

Heidelberger Druckmaschinen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.93
• 50DMA: Negative
• 100DMA: Negative
• 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:HDD, the sentiment is Positive. The current price of 1.93 is above the 20-day moving average (MA) of 1.90, below the 50-day MA of 1.98, and above the 200-day MA of 1.68, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 66.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HDD.

Heidelberger Druckmaschinen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRN	75 Outperform	€3.82B	13.28	14.99%	1.95%	8.15%	16.17%
WSU	75 Outperform	€587.48M	16.91	47.28%	5.16%	7.24%	22.00%
HDD	65 Neutral	€586.15M	14.47	8.07%	―	5.97%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUE	54 Neutral	€1.36B	-72.89	-7.86%	3.31%	-18.21%	-137.62%
SKB	51 Neutral	€170.54M	―	-4.67%	―	4.81%	75.36%