Heidelberg Materials (HEI) AI Stock Analysis

• Market Cap: €35.61B
• Dividend Yield: 1.72%
• Average Volume (3M): 441.08K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.17
• 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: 514,291
• 30 Day Avg. Volume: 441,082
• PEG Ratio: -1.22
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.28
• 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: €191.64
• Price Target Upside: -3.99% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 73 Outperform
• Price Target: €223.00 ▲(11.72%Upside)

Heidelberg Materials' strong financial performance drives the stock score, underpinned by robust profitability and cash flow management. Technical analysis suggests caution due to overbought indicators, which could affect short-term movements. The valuation is fair, supporting long-term investment potential.

Positive Factors

Company 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.

European Stimulus

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

Valuation

The stock is viewed as cheap with a price-to-earnings ratio of 11.8, offering potential for financial targets to boost value.

Negative Factors

Geopolitical Risks

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

Margin Squeeze

A margin squeeze is forecasted in the USA due to weaker volumes and limited change year over year in pricing.

Weather Impact

Bad weather in the first quarter is likely to hide much of the evidence of improvement in underlying demand, posing a risk to near-term share price momentum.

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 shows strong financial performance, with high profitability, efficient operations, and robust cash flows. The company maintains a solid balance sheet with healthy returns and stable leverage.

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
EBITDA	4.25B	4.30B	3.37B	4.02B	-279.70M
Net Income	1.78B	1.93B	1.60B	1.76B	-1.94B
Balance Sheet
Total Assets	37.30B	35.47B	33.26B	33.71B	32.34B
Cash, Cash Equivalents and Short-Term Investments	3.22B	3.30B	1.40B	3.10B	2.84B
Total Debt	8.56B	8.62B	6.62B	7.97B	9.68B
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: 199.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 199.6 is above the 20-day moving average (MA) of 180.49, above the 50-day MA of 177.94, and above the 200-day MA of 138.93, indicating a bullish trend. The MACD of 3.85 indicates Negative momentum. The RSI at 71.43 is Negative, neither overbought nor oversold. The STOCH value of 96.71 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	73 Outperform	€35.61B	20.23	9.69%	1.72%	-0.10%	-6.11%
Sector *	58 Neutral	$1.33B	4.26	-2.93%	9.53%	3.41%	-51.76%
0BFA		€38.27B	51.33	2.02%	4.62%	―	―
0QDS		€8.54B	28.58	3.25%	5.68%	―	―
0MPL		€440.76M	6.82	-16.90%	―	―	―
LNXSF		$2.52B	―	-3.92%	0.39%	―	―
WKCMF		$3.57B	13.77	5.37%	3.83%	―	―