Hochtief (HOT) AI Stock Analysis

• Market Cap: €14.62B
• Dividend Yield: 2.69%
• Average Volume (3M): 59.59K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.02
• Revenue Growth: 25.95%
• EPS Growth: 17.64%
• Country: DE
• Employees: 54,035
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): 2.30
• Shares Outstanding: 77,711,300
• 10 Day Avg. Volume: 58,824
• 30 Day Avg. Volume: 59,585
• PEG Ratio: 0.62
• Price to Book (P/B): 10.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.78
• 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: €162.33
• Price Target Upside: -16.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: €219.00 ▲(12.71%Upside)

Hochtief's strong financial performance and reasonable valuation are the primary drivers of its stock score. While technical analysis indicates a bullish trend, caution is advised due to overbought signals. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Financial Performance

Hochtief published a very strong set of results, beating consensus expectations.

Sales Growth

Sales increased significantly, driven by a much stronger than expected performance at Turner.

Negative Factors

Debt Levels

Net Debt level was higher than anticipated, given the impact from Flatiron's deconsolidation.

Valuation Concerns

The stock currently trades on 17x PE and 8.7x EV/EBIT 25E, which may be overvalued against some of its peers with more consistent track records.

Hochtief Business Overview & Revenue Model

Company Description

HOCHTIEF Aktiengesellschaft engages in the construction business worldwide. The company operates through HOCHTIEF Americas, HOCHTIEF Asia Pacific, HOCHTIEF Europe, and Abertis Investment divisions. The HOCHTIEF Americas division provides building and transportation infrastructure construction services primarily in the United States and Canada. The HOCHTIEF Asia Pacific division offers infrastructure construction, resource and mineral processing services, engineering and technical services, and maintenance services in the Asia-Pacific region. This division also undertakes public-private partnerships (PPP). The HOCHTIEF Europe division provides services primarily for infrastructure and building construction projects, as well as PPP in transportation, energy, social, and urban infrastructure. It also offers engineering services, including virtual construction, and facility management; and designs, develops, builds, operates, and manages real estate and infrastructure. The Abertis Investment segment operates toll roads in France, Spain, North America, Brazil, Chile, and Mexico. The company also provides insurance products; and reinsurance products primarily for contractors' casualty and surety, subcontractor default, liability, and occupational accident insurance. HOCHTIEF Aktiengesellschaft was founded in 1873 and is headquartered in Essen, Germany. HOCHTIEF Aktiengesellschaft operates as a subsidiary of ACS, Actividades de Construcción y Servicios, S.A.

How the Company Makes Money

Hochtief makes money primarily through its construction and infrastructure services, which include the planning, design, and building of large-scale projects such as roads, bridges, tunnels, airports, and commercial buildings. The company generates revenue by securing contracts for these projects, often through competitive bidding processes. Key revenue streams include long-term contracts with government agencies, public-private partnerships, and private sector clients. Additionally, Hochtief has significant holdings in its subsidiary companies such as CIMIC Group, which further contributes to its earnings through activities in mining, engineering, and construction services in the Asia Pacific region. The company’s diversified operations across various geographic regions and sectors help stabilize its revenue against market fluctuations.

Hochtief Financial Statement Overview

Summary

Hochtief demonstrates strong financial health with robust revenue growth and profitability improvements. However, operational efficiency could be enhanced, as indicated by lower EBIT and EBITDA margins. The company benefits from effective leverage management and strong cash flow generation.

Income Statement

Hochtief shows a strong revenue growth trajectory, with a significant increase from the previous years. The TTM (Trailing-Twelve-Months) gross profit margin stands at 22.0%, indicating efficient cost management. The TTM net profit margin improved to 2.68%, reflecting healthy profitability. However, EBIT and EBITDA margins are relatively lower, highlighting potential challenges in operational efficiencies.

Balance Sheet

The company's balance sheet demonstrates a solid equity position with an equity ratio of 5.22% in the TTM, despite being on the lower side, indicating reliance on liabilities. The debt-to-equity ratio decreased significantly, showing improved financial leverage management. ROE stands at a robust 77.25% in the TTM, showcasing effective utilization of equity.

Cash Flow

Hochtief's cash flow position is strong, with a consistent increase in operating and free cash flows, reflecting positive cash generation capabilities. The free cash flow to net income ratio is 1.58 in the TTM, indicating efficient cash conversion. However, fluctuations in capital expenditures could pose risks to maintaining this trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.46B	33.30B	27.76B	26.22B	21.38B	22.95B
Gross Profit	7.80B	8.78B	6.85B	6.32B	5.29B	5.55B
EBITDA	2.21B	2.03B	1.07B	968.99M	747.04M	1.67B
Net Income	950.58M	775.63M	522.75M	481.77M	293.40M	427.24M
Balance Sheet
Total Assets	23.56B	24.65B	19.01B	18.30B	16.24B	16.98B
Cash, Cash Equivalents and Short-Term Investments	5.90B	6.25B	5.78B	4.94B	4.57B	5.14B
Total Debt	704.48M	8.20B	5.50B	5.67B	4.83B	5.33B
Total Liabilities	22.29B	23.46B	17.74B	17.07B	15.15B	16.02B
Stockholders Equity	1.23B	1.07B	1.24B	1.13B	801.00M	669.61M
Cash Flow
Free Cash Flow	1.50B	1.66B	1.12B	863.28M	307.96M	310.07M
Operating Cash Flow	2.04B	2.13B	1.34B	1.05B	387.20M	707.33M
Investing Cash Flow	-2.11B	-1.49B	-249.67M	-484.59M	-220.00M	647.75M
Financing Cash Flow	745.39M	346.11M	-583.61M	-167.20M	-1.08B	-632.14M

Hochtief Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 194.30
• 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:HOT, the sentiment is Positive. The current price of 194.3 is above the 20-day moving average (MA) of 174.58, above the 50-day MA of 167.08, and above the 200-day MA of 143.98, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 83.61 is Negative, neither overbought nor oversold. The STOCH value of 87.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HOT.

Hochtief Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOT	75 Outperform	€14.62B	17.03	108.18%	2.69%	25.95%	17.64%
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
0NRG	―	€3.44B	18.52	14.62%	2.28%	―	―
0MPJ	―	€9.85B	26.21	16.56%	1.89%	―	―
0R3U	―	€9.76B	31.22	10.12%	1.08%	―	―
0QFU	―	€6.86B	34.10	3.39%	1.57%	―	―
0O1C	―	€6.94B	―	-9.83%	1.34%	―	―