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Hochtief AG (DE:HOT)
XETRA:HOT
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Hochtief (HOT) AI Stock Analysis

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DE:HOT

Hochtief

(XETRA:HOT)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
€265.00
▲(6.43% Upside)
Hochtief's stock score is primarily driven by solid financial performance, despite concerns over profitability and leverage. Technical analysis shows a positive trend, supporting the stock's outlook. However, the valuation suggests the stock may be overvalued, which tempers the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective project execution, enhancing long-term business stability and expansion potential.
Efficient Cost Management
Stable gross profit margins reflect effective cost control, which supports sustainable profitability and competitive pricing strategies over time.
Strong Return on Equity
A high return on equity signifies efficient capital utilization, enhancing shareholder value and supporting future investments and growth.
Negative Factors
High Leverage
High leverage can increase financial risk, limiting flexibility and increasing vulnerability to interest rate changes, potentially impacting long-term financial health.
Low Net Profit Margin
Low net profit margins indicate challenges in converting revenue into profit, which may hinder long-term profitability and investment capacity.
Decline in Free Cash Flow
A decline in free cash flow can constrain the company's ability to fund operations, invest in growth opportunities, and return capital to shareholders.

Hochtief (HOT) vs. iShares MSCI Germany ETF (EWG)

Hochtief Business Overview & Revenue Model

Company DescriptionHOCHTIEF 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 MoneyHochtief generates revenue primarily through its construction projects, which include civil engineering and building services. The company's revenue model is based on contracting for large-scale construction projects, which are often awarded through competitive bidding processes. Key revenue streams include payments for completed construction work, project management services, and maintenance contracts. Additionally, Hochtief engages in PPP projects, which provide long-term revenue through the operation of infrastructure assets. Significant partnerships with public entities and private developers enhance its project pipeline and facilitate access to new markets, thereby contributing to the company's overall earnings.

Hochtief Financial Statement Overview

Summary
Hochtief demonstrates solid revenue growth and efficient cost management, but profitability remains a concern with low net profit margins. The high leverage poses financial risks, although the company effectively generates returns on equity. Cash flow management is generally sound, but recent declines in free cash flow growth warrant attention.
Income Statement
75
Positive
Hochtief has shown consistent revenue growth, with a TTM revenue growth rate of 4.39%. The gross profit margin is stable at around 26.56%, indicating efficient cost management. However, the net profit margin is relatively low at 2.22%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting moderate operational efficiency.
Balance Sheet
60
Neutral
The company has a high debt-to-equity ratio of 0.93 in the TTM, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 87.65%, demonstrating effective use of equity to generate profits. The equity ratio is low, suggesting a reliance on debt financing.
Cash Flow
68
Positive
Operating cash flow is strong, but free cash flow has decreased by 3.5% in the TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio is low, suggesting that not all net income is translating into cash. The free cash flow to net income ratio is healthy at 73.35%, indicating good cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue37.02B33.30B27.76B26.22B21.38B22.95B
Gross Profit9.83B8.78B6.85B6.32B5.29B5.55B
EBITDA2.33B2.03B1.07B968.99M747.04M1.67B
Net Income820.32M775.63M522.75M481.77M293.40M427.24M
Balance Sheet
Total Assets23.11B24.65B19.01B18.30B16.24B16.98B
Cash, Cash Equivalents and Short-Term Investments5.83B6.25B5.78B4.94B4.57B5.14B
Total Debt667.98M8.20B5.50B5.67B4.83B5.33B
Total Liabilities22.32B23.46B17.74B17.07B15.15B16.02B
Stockholders Equity720.68M1.07B1.24B1.13B801.00M669.61M
Cash Flow
Free Cash Flow1.45B1.66B1.12B863.28M307.96M310.07M
Operating Cash Flow1.98B2.13B1.34B1.05B387.20M707.33M
Investing Cash Flow-1.88B-1.49B-249.67M-484.59M-220.00M647.75M
Financing Cash Flow-284.41M346.11M-583.61M-167.20M-1.08B-632.14M

Hochtief Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price249.00
Price Trends
50DMA
233.97
Positive
100DMA
205.21
Positive
200DMA
178.95
Positive
Market Momentum
MACD
6.85
Positive
RSI
49.04
Neutral
STOCH
17.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HOT, the sentiment is Neutral. The current price of 249 is above the 20-day moving average (MA) of 248.56, above the 50-day MA of 233.97, and above the 200-day MA of 178.95, indicating a neutral trend. The MACD of 6.85 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 17.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:HOT.

Hochtief Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€3.50B18.9115.17%2.19%11.94%-14.70%
68
Neutral
€18.36B22.84108.18%2.10%25.95%17.64%
66
Neutral
€9.92B25.4617.92%1.83%1.93%2.27%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
€9.27B47.356.30%1.16%-0.29%-41.38%
54
Neutral
€7.19B31.963.89%1.50%-2.50%-32.31%
51
Neutral
€6.05B-12.35%1.27%-4.77%49.72%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:HOT
Hochtief
249.00
137.93
124.18%
DE:GBF
Bilfinger
95.25
52.54
123.01%
DE:G1A
GEA Group AG
62.90
17.33
38.04%
DE:HLE
Hella KGaA Hueck & Co
81.60
-5.04
-5.82%
DE:KGX
KION GROUP AG
56.05
21.40
61.75%
DE:TKA
thyssenkrupp
8.89
6.50
271.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025