Heidelberg Materials (HEI) AI Stock Analysis

• Market Cap: €33.01B
• Dividend Yield: 1.62%
• Average Volume (3M): 448.63K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.11
• Revenue Growth: -0.10%
• EPS Growth: -6.11%
• Country: DE
• Employees: 50,692
• Sector: Industrials
• Sector Strength: 83
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 178,430,760
• 10 Day Avg. Volume: 338,882
• 30 Day Avg. Volume: 448,633
• PEG Ratio: -5.96
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.94
• 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: €174.57
• Price Target Upside: -5.54% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Heidelberg Materials achieves a strong overall score driven by excellent financial performance, underpinned by solid profitability, growth, and cash flow management. The technical trend is positive, with shares trading above key moving averages, though limited by lack of certain indicators. Valuation appears fair, providing a stable investment opportunity without significant undervaluation. The absence of recent earnings calls or corporate events results in no additional impact on the score.

Positive Factors

Earnings Outlook

The group is on an upward trajectory in terms of earnings, pro-active cost management, decarbonisation and value crystallisation.

Financial Performance

Heidelberg Materials announced a strong set of results ending the year on a high, beating consensus and delivering strong cash flow which made its balance stronger than ever before.

Stimulus Impact

The recently announced European/German stimulus is significant and expected to positively impact the German and European infrastructure sectors.

Negative Factors

Market Volatility

The guidance mid-point is below consensus, with geopolitical risks potentially causing market volatility.

Recovery Challenges

Near-term factors look somewhat more challenging with ongoing weakness in North America and a muted recovery in Europe due to weather.

Stock Upside

The upside is less pronounced even when factoring in a full volume recovery, suggesting a cautious approach to the stock.

Heidelberg Materials Business Overview & Revenue Model

Company Description

HeidelbergCement AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. It provides cement products, natural stone aggregates, such as sand and gravel; crushed aggregates comprising stone chippings and crushed stones; and concrete/ready-mixed concrete for use in the construction of tunnels or bridges, office buildings, or schools, as well as to produce precast concrete parts consisting of stairs, ceiling elements, or structural components. In addition, it provides asphalt primarily used as a top layer in road construction, as well as trades in cement, clinker, secondary cementitious materials, and solid and alternative fuels. HeidelbergCement AG was founded in 1873 and is headquartered in Heidelberg, Germany.

How the Company Makes Money

Heidelberg Materials generates revenue through the production and sale of construction-related materials. Its key revenue streams include the sale of aggregates, cement, and ready-mixed concrete to construction companies, infrastructure developers, and other industrial clients. The company capitalizes on its extensive global network of production sites and distribution channels to efficiently meet the demand for building materials. Strategic partnerships and collaborations with construction firms and infrastructure projects further enhance its market reach and revenue potential. Additionally, Heidelberg Materials focuses on sustainable practices and innovative products, which can attract environmentally conscious clients and projects, contributing to its earnings.

Heidelberg Materials Financial Statement Overview

Summary

Heidelberg Materials exhibits strong financial performance with robust profitability, solid revenue growth, efficient operations, and prudent financial management. The company maintains a healthy balance sheet with manageable debt levels and strong cash flow generation, positioning it well for resilience and growth in the industry.

Income Statement

Heidelberg Materials shows strong profitability with a consistent Gross Profit Margin above 60% and a stable Net Profit Margin near 8% over recent years. The company has demonstrated a solid Revenue Growth Rate, recovering well from past declines. The EBIT and EBITDA Margins reflect efficient operational management, contributing to robust financial health.

Balance Sheet

The company's Balance Sheet is solid with a manageable Debt-to-Equity Ratio around 0.45, indicating a balanced approach to leveraging debt. The Return on Equity is healthy, reinforcing shareholder value. The Equity Ratio is strong, reflecting financial stability and a good capital structure.

Cash Flow

Consistent Free Cash Flow generation and a favorable Operating Cash Flow to Net Income Ratio highlight strong cash management. The company maintains positive Free Cash Flow Growth, supporting its ability to fund operations and growth opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
21.20B	21.18B	21.10B	18.72B	17.61B
	Gross Profit
13.52B	13.12B	12.43B	11.50B	11.08B
	EBIT
3.20B	3.02B	2.48B	2.61B	-432.10M
	EBITDA
4.25B	4.30B	3.37B	4.02B	-279.70M
	Net Income Common Stockholders
1.78B	1.93B	1.60B	1.76B	-1.94B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.22B	3.30B	1.40B	3.10B	2.84B
	Total Assets
37.30B	35.47B	33.26B	33.71B	32.34B
	Total Debt
8.56B	8.62B	6.62B	7.97B	9.68B
	Net Debt
5.34B	5.35B	5.22B	4.87B	6.83B
	Total Liabilities
17.33B	17.10B	15.63B	17.05B	17.79B
	Stockholders Equity
18.80B	17.24B	16.54B	15.44B	13.27B
Cash Flow		Free Cash Flow
1.91B	1.88B	1.08B	976.50M	2.06B
	Operating Cash Flow
3.23B	3.21B	2.42B	2.40B	3.03B
	Investing Cash Flow
-1.81B	-1.48B	-1.48B	619.80M	-949.30M
	Financing Cash Flow
-1.45B	134.60M	-2.54B	-2.84B	-2.64B

Heidelberg Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 184.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HEI, the sentiment is Positive. The current price of 184.8 is above the 20-day moving average (MA) of 170.91, above the 50-day MA of 166.13, and above the 200-day MA of 125.68, indicating a bullish trend. The MACD of 6.24 indicates Negative momentum. The RSI at 66.57 is Neutral, neither overbought nor oversold. The STOCH value of 81.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HEI.

Heidelberg Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEI	75 Outperform	€33.01B	18.75	9.69%	1.62%	-0.10%	-6.11%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%