Heidelberg Materials (HEI) AI Stock Analysis

• Market Cap: €36.26B
• Dividend Yield: 1.53%
• Average Volume (3M): 328.54K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.12
• Revenue Growth: 4.16%
• EPS Growth: 7.78%
• Country: DE
• Employees: 50,692
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 178,430,760
• 10 Day Avg. Volume: 319,295
• 30 Day Avg. Volume: 328,539
• PEG Ratio: -2.30
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 11.52
• 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: €221.68
• Price Target Upside: 2.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €214.00 ▼(-0.70% Downside)

Heidelberg Materials' strong financial performance is the most significant factor, supported by robust revenue growth and cash flow generation. Technical analysis presents mixed signals, with short-term strength but potential medium-term challenges. Valuation metrics suggest the stock is fairly valued with a moderate dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and product demand, supporting long-term business sustainability and competitive positioning.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for strategic investments, debt reduction, and shareholder returns, bolstering long-term stability.

Profit Margins

High profit margins reflect effective cost control and pricing power, contributing to sustained profitability and competitive advantage in the market.

Negative Factors

Equity Fluctuations

Fluctuations in equity levels can indicate potential instability in capital structure, which may affect financial resilience and investor confidence over time.

Leverage

While leverage is moderate, any increase could strain financial resources, impacting the company's ability to invest in growth opportunities and weather economic downturns.

Market Sentiment

Although not a direct fundamental factor, trading below moving averages may reflect broader market concerns, potentially affecting investor sentiment and access to capital.

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 primarily through the sale of its core products, which include cement, aggregates, ready-mixed concrete, and asphalt. The company operates through several distinct segments, with cement being one of the largest contributors to its revenue. Revenue also comes from the sale of related services, including logistics and technical support for construction projects. Key revenue streams are bolstered by strategic partnerships with construction firms, government contracts for infrastructure projects, and sustainability initiatives that promote eco-friendly building practices. Additionally, the company's focus on innovation, efficiency, and cost management plays a crucial role in maintaining profitability and driving growth in a competitive market.

Heidelberg Materials Financial Statement Overview

Summary

Heidelberg Materials demonstrates strong financial health with consistent revenue growth, robust profit margins, and effective cash management. The balance sheet is stable with moderate leverage, and cash flow metrics indicate strong cash generation capabilities.

Income Statement

Heidelberg Materials shows strong financial performance with consistent revenue growth, highlighted by a 94.1% increase in TTM. The gross profit margin remains robust at approximately 63.8%, indicating efficient cost management. The net profit margin is stable at 8.4%, reflecting solid profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.44, indicating moderate leverage. Return on equity is solid at 9.8%, showcasing effective use of shareholder funds. The equity ratio is strong, suggesting a well-capitalized structure. However, slight fluctuations in equity levels warrant monitoring.

Cash Flow

Cash flow performance is robust, with a significant free cash flow growth rate of 154.8% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, reflecting efficient cash conversion. The free cash flow to net income ratio of 0.59 suggests effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.60B	21.20B	21.18B	21.10B	18.72B	17.61B
Gross Profit	13.82B	13.52B	13.12B	12.43B	11.50B	11.08B
EBITDA	4.28B	4.25B	4.30B	3.37B	4.02B	-279.70M
Net Income	1.89B	1.78B	1.93B	1.60B	1.76B	-2.10B
Balance Sheet
Total Assets	34.66B	37.30B	35.47B	33.26B	33.71B	32.34B
Cash, Cash Equivalents and Short-Term Investments	1.33B	3.22B	3.30B	1.47B	3.13B	2.86B
Total Debt	8.66B	8.56B	8.62B	7.11B	8.02B	9.74B
Total Liabilities	16.49B	17.33B	17.10B	15.63B	17.05B	17.79B
Stockholders Equity	17.22B	18.80B	17.24B	16.54B	15.44B	13.27B
Cash Flow
Free Cash Flow	1.97B	1.91B	1.88B	1.08B	976.50M	2.06B
Operating Cash Flow	3.29B	3.23B	3.21B	2.42B	2.40B	3.03B
Investing Cash Flow	-2.37B	-1.81B	-1.48B	-1.48B	619.80M	-949.30M
Financing Cash Flow	-1.35B	-1.45B	134.60M	-2.54B	-2.84B	-2.64B

Heidelberg Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 215.50
• 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:HEI, the sentiment is Positive. The current price of 215.5 is above the 20-day moving average (MA) of 199.98, above the 50-day MA of 197.92, and above the 200-day MA of 181.83, indicating a bullish trend. The MACD of 2.71 indicates Negative momentum. The RSI at 67.12 is Neutral, neither overbought nor oversold. The STOCH value of 73.38 is Neutral, 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
MTX	76 Outperform	€19.86B	23.31	24.74%	0.60%	45.24%	―
FRA	73 Outperform	€6.93B	17.53	9.56%	―	3.38%	-14.57%
HEI	72 Outperform	€36.26B	19.39	10.71%	1.53%	4.16%	7.78%
HOT	69 Neutral	€19.61B	23.90	100.05%	1.89%	22.16%	18.23%
G1A	65 Neutral	€9.91B	25.44	17.33%	1.92%	2.26%	6.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TKA	51 Neutral	€5.80B	-4.70	-12.35%	1.21%	-4.77%	49.72%