Hella KGaA Hueck & Co (HLE) AI Stock Analysis

• Market Cap: €9.06B
• Dividend Yield: 1.17%
• Average Volume (3M): 9.95K
• Price to Earnings (P/E): 56.1
• Beta (1Y): 0.39
• Revenue Growth: <0.01%
• EPS Growth: -50.97%
• Country: DE
• Employees: 35,697
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 0.33
• Shares Outstanding: 111,111,115
• 10 Day Avg. Volume: 7,142
• 30 Day Avg. Volume: 9,949
• PEG Ratio: 0.83
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 56.78
• 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: €65.00
• Price Target Upside: -20.25% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €87.00 ▲(6.75% Upside)

Hella KGaA Hueck & Co's overall stock score is driven by stable financial performance and moderate technical indicators. However, the high P/E ratio indicates potential overvaluation, which is a significant concern. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates prudent leverage management, providing financial stability and flexibility for future investments.

Cash Flow Improvement

Improving free cash flow growth suggests better cash management and potential for reinvestment in business operations or debt reduction.

Stable Profit Margins

Consistent profit margins reflect operational efficiency and pricing power, supporting long-term profitability despite revenue challenges.

Negative Factors

Decline in Revenue Growth

A declining revenue growth rate can limit future earnings potential and indicates challenges in market expansion or product demand.

Weak Operating Cash Flow

Weak operating cash flow relative to net income suggests inefficiencies in converting sales into cash, potentially impacting liquidity.

Earnings Decline

A significant decline in EPS growth indicates reduced profitability, which could affect investor confidence and future capital raising efforts.

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 through multiple key streams, primarily from the sale of automotive components and systems to OEMs and the aftermarket. The company earns significant income by supplying lighting products, which are essential for vehicle safety and visibility, as well as electronic components that support advanced driver-assistance systems (ADAS) and vehicle connectivity. Additionally, Hella benefits from long-term partnerships with major automotive manufacturers, which provides a stable revenue base. The aftermarket sector contributes further to the revenue, as Hella's products are widely used in the replacement parts market. Hella's focus on innovation and development of new technologies, such as electric mobility and autonomous driving, also positions the company for future growth and profitability.

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	7.96B	8.02B	7.95B	7.56B	6.33B	6.38B
Gross Profit	1.63B	1.76B	2.02B	1.75B	1.46B	1.53B
EBITDA	895.62M	1.06B	1.00B	719.22M	676.13M	923.47M
Net Income	161.47M	353.10M	263.92M	600.90M	181.26M	358.28M
Balance Sheet
Total Assets	7.24B	7.48B	7.45B	7.59B	6.44B	6.06B
Cash, Cash Equivalents and Short-Term Investments	1.27B	1.40B	1.19B	1.44B	990.69M	1.42B
Total Debt	1.14B	958.98M	1.27B	1.43B	1.14B	1.11B
Total Liabilities	4.12B	4.24B	4.56B	4.53B	3.71B	3.60B
Stockholders Equity	3.07B	3.20B	2.89B	3.06B	2.74B	2.46B
Cash Flow
Free Cash Flow	251.42M	173.78M	190.51M	222.24M	-288.01M	53.21M
Operating Cash Flow	883.96M	854.14M	825.69M	625.52M	292.47M	703.83M
Investing Cash Flow	-669.07M	-460.39M	-538.50M	127.47M	-562.66M	-444.57M
Financing Cash Flow	-150.06M	-234.47M	-469.26M	-35.19M	-149.25M	-482.76M

Hella KGaA Hueck & Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 81.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 81.5 is above the 20-day moving average (MA) of 81.18, above the 50-day MA of 80.97, and below the 200-day MA of 84.34, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 66.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
KBX	70 Neutral	€15.23B	35.00	14.52%	1.85%	-1.77%	-28.68%
SFQ	66 Neutral	€677.28M	12.16	11.63%	5.70%	-12.01%	-28.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HLE	62 Neutral	€9.06B	56.08	5.24%	1.17%	<0.01%	-50.97%
CON	58 Neutral	€13.21B	53.27	-1.10%	2.88%	-38.10%	-75.32%
SHA0	52 Neutral	€7.48B	-5.31	-34.39%	3.15%	45.16%	-790.24%
ZIL2	46 Neutral	€270.86M	-2.35	-16.55%	3.51%	-6.21%	-995.53%