Hella KGaA Hueck & Co (HLE) AI Stock Analysis

• Market Cap: €9.10B
• Dividend Yield: 1.16%
• Average Volume (3M): 8.13K
• Price to Earnings (P/E): 47.3
• Beta (1Y): 0.41
• Revenue Growth: -0.29%
• EPS Growth: -41.38%
• Country: DE
• Employees: 35,697
• Sector: Industrials
• Sector Strength: 73
• Industry: Auto - Parts
• EPS (TTM): 0.40
• Shares Outstanding: 111,111,115
• 10 Day Avg. Volume: 8,094
• 30 Day Avg. Volume: 8,127
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €72.33
• Price Target Upside: -11.68% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: €87.00 ▲(6.23% Upside)

The overall stock score of 55 reflects a combination of stable financial performance and bearish technical indicators. The company's financials are solid, with a strong balance sheet and healthy cash flows, but profitability needs improvement. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and nearing oversold conditions. The valuation suggests the stock is overvalued, limiting its attractiveness for growth or income-focused investors.

Hella KGaA Hueck & Co Business Overview & Revenue Model

Company Description

HELLA GmbH & Co. KGaA, together with its subsidiaries, develops, manufactures, and sells lighting systems and electronic components for automotive industry worldwide. It operates through three segments: Automotive, Aftermarket, and Special Applications. The Automotive segment offers headlamps, rear combination lamps, car body and interior lighting products, and radomes; and body electronics, energy management, lighting electronics, and power steering solutions, as well as driver assistance systems and components, including sensors and engine compartment actuators. The Aftermarket segment produces and sells automotive parts and accessories primarily in the areas of lighting, electrics, and electronics; and provides workshop solutions in the areas of diagnostics and calibration, as well as various services for wholesalers and workshops. The Special Applications segment develops, manufactures, and markets lighting technology and electronic products for special vehicles comprising construction and agricultural machinery, buses, caravans, and marine vessels. The company was formerly known as HELLA KGaA Hueck & Co. and changed its name to HELLA GmbH & Co. KGaA in October 2017. HELLA GmbH & Co. KGaA was founded in 1899 and is headquartered in Lippstadt, Germany. HELLA GmbH & Co. KGaA is a subsidiary of Faurecia S.E.

How the Company Makes Money

Hella generates revenue primarily through the sale of automotive lighting and electronic components to OEMs and the aftermarket. Key revenue streams include the design and supply of lighting systems, which account for a significant portion of sales, as well as electronic components that enhance vehicle functionality. The company benefits from long-term contracts with major automobile manufacturers, ensuring stable revenue from large-scale production. Additionally, Hella's aftermarket sales contribute to earnings through the distribution of replacement parts and accessories. Strategic partnerships with automotive manufacturers and continuous investment in R&D to innovate and develop new products further bolster its revenue model.

Hella KGaA Hueck & Co Financial Statement Overview

Summary

Hella KGaA Hueck & Co shows overall financial stability with consistent revenue and profit margins, though there is room for growth in net profitability. The balance sheet is robust with a strong equity position and manageable debt levels. Cash flows are healthy, but careful management of capital expenditures is necessary to maintain free cash flow generation. The company is well-positioned for future growth, with a need to focus on enhancing profitability and cash efficiency.

Income Statement

The company demonstrated stable revenue with a slight decline in TTM compared to the previous year. Gross profit margin for TTM was approximately 21.3%, showing a healthy mark-up. The net profit margin for TTM was 3.88%, indicating positive profitability, albeit with room for improvement. EBIT and EBITDA margins for TTM were 3.52% and 12.94% respectively, reflecting operational efficiency but also highlighting potential cost control challenges.

Balance Sheet

The debt-to-equity ratio is 0.37, suggesting a conservative use of leverage. The equity ratio is 42.97%, indicating a stable capital structure with a solid equity base. Return on equity (ROE) for TTM is 9.79%, showcasing the company's ability to generate returns on shareholders' investments. Overall, the balance sheet reflects financial stability with manageable debt levels.

Cash Flow

There was a modest decrease in free cash flow in TTM compared to the previous year, implying potential challenges in cash generation. The operating cash flow to net income ratio is 2.75, indicating strong cash conversion from profits. The free cash flow to net income ratio is 0.52, pointing to the company's ability to generate cash above its earnings. Cash flows demonstrate operational strength but highlight potential risks in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.02B	8.02B	7.95B	7.56B	6.33B	6.38B
Gross Profit	1.71B	1.76B	2.02B	1.75B	1.46B	1.53B
EBITDA	1.04B	1.06B	1.00B	719.22M	676.13M	923.47M
Net Income	311.10M	353.10M	263.92M	600.90M	181.26M	358.28M
Balance Sheet
Total Assets	7.39B	7.48B	7.45B	7.59B	6.44B	6.06B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.40B	1.19B	1.44B	990.69M	1.42B
Total Debt	1.19B	958.98M	1.27B	1.43B	1.14B	1.11B
Total Liabilities	4.17B	4.24B	4.56B	4.53B	3.71B	3.60B
Stockholders Equity	3.18B	3.20B	2.89B	3.06B	2.74B	2.46B
Cash Flow
Free Cash Flow	162.88M	173.78M	190.51M	222.24M	-288.01M	53.21M
Operating Cash Flow	856.00M	854.14M	825.69M	625.52M	292.47M	703.83M
Investing Cash Flow	-465.39M	-460.39M	-538.50M	127.47M	-562.66M	-444.57M
Financing Cash Flow	-416.38M	-234.47M	-469.26M	-35.19M	-149.25M	-482.76M

Hella KGaA Hueck & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HLE, the sentiment is Negative. The current price of 81.9 is below the 20-day moving average (MA) of 84.85, below the 50-day MA of 86.33, and below the 200-day MA of 86.87, indicating a bearish trend. The MACD of -1.55 indicates Positive momentum. The RSI at 30.39 is Neutral, neither overbought nor oversold. The STOCH value of 29.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HLE.

Hella KGaA Hueck & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
HLE	55 Neutral	€9.10B	47.29	6.30%	1.16%	-0.29%	-41.38%
0MG5	―	€293.04M	―	-23.03%	―	―	―
0O4N	―	€686.36M	14.12	10.72%	―	―	―
0RBK	―	€5.20B	21.23	-24.27%	―	―	―
KBX	57 Neutral	€13.86B	32.84	14.67%	2.04%	-1.78%	-30.46%
CTTAF	―	$17.04B	10.59	14.83%	3.38%	―	―