Hochtief (HOT) AI Stock Analysis

• Market Cap: €17.47B
• Dividend Yield: 2.09%
• Average Volume (3M): 53.45K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.09
• Revenue Growth: 25.95%
• EPS Growth: 17.64%
• Country: DE
• Employees: 54,035
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 4.72
• Shares Outstanding: 77,711,300
• 10 Day Avg. Volume: 64,280
• 30 Day Avg. Volume: 53,446
• 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: €203.50
• Price Target Upside: -18.53% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: €216.00 ▼(-13.53% Downside)

Hochtief's stock is supported by strong technical indicators, reflecting positive market momentum. Financial performance is solid, with effective cost management and revenue growth, though profitability and leverage remain concerns. Valuation metrics suggest the stock is fairly priced, with a reasonable P/E ratio and a moderate dividend yield.

Positive Factors

Negative Factors

Hochtief Business Overview & Revenue Model

Company Description

Hochtief AG is a leading global construction company based in Germany, specializing in infrastructure, building construction, and project development. As a subsidiary of the ACS Group, Hochtief operates through various segments including Construction, Concessions, and PPP (Public-Private Partnership) projects. The company is involved in a wide range of projects, from transportation infrastructure such as roads and airports to commercial and residential buildings, ensuring a strong presence in both domestic and international markets.

How the Company Makes Money

Hochtief 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.02B	33.30B	27.76B	26.22B	21.38B	22.95B
Gross Profit	9.83B	8.78B	6.85B	6.32B	5.29B	5.55B
EBITDA	2.33B	2.03B	1.07B	968.99M	747.04M	1.67B
Net Income	820.32M	775.63M	522.75M	481.77M	293.40M	427.24M
Balance Sheet
Total Assets	23.11B	24.65B	19.01B	18.30B	16.24B	16.98B
Cash, Cash Equivalents and Short-Term Investments	5.83B	6.25B	5.78B	4.94B	4.57B	5.14B
Total Debt	667.98M	8.20B	5.50B	5.67B	4.83B	5.33B
Total Liabilities	22.32B	23.46B	17.74B	17.07B	15.15B	16.02B
Stockholders Equity	720.68M	1.07B	1.24B	1.13B	801.00M	669.61M
Cash Flow
Free Cash Flow	1.45B	1.66B	1.12B	863.28M	307.96M	310.07M
Operating Cash Flow	1.98B	2.13B	1.34B	1.05B	387.20M	707.33M
Investing Cash Flow	-1.88B	-1.49B	-249.67M	-484.59M	-220.00M	647.75M
Financing Cash Flow	-284.41M	346.11M	-583.61M	-167.20M	-1.08B	-632.14M

Hochtief Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 249.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 249.8 is above the 20-day moving average (MA) of 228.88, above the 50-day MA of 217.40, and above the 200-day MA of 169.78, indicating a bullish trend. The MACD of 4.48 indicates Negative momentum. The RSI at 69.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 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
GBF	76 Outperform	€3.57B	18.72	14.87%	2.18%	11.94%	-14.70%
HOT	73 Outperform	€17.47B	20.89	108.18%	2.09%	25.95%	17.64%
G1A	67 Neutral	€10.17B	26.10	17.78%	1.81%	1.93%	2.27%
KGX	65 Neutral	€7.74B	33.56	3.92%	1.39%	-2.50%	-32.31%
HLE	55 Neutral	€9.08B	47.18	11.03%	1.15%	-0.29%	-41.38%
TKA	47 Neutral	€7.37B	-5.97	-15.72%	1.27%	-4.77%	49.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%