Heineken (HEINY) AI Stock Analysis

• Market Cap: $44.53B
• Dividend Yield: 2.35%
• Average Volume (3M): 5.97K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.47
• Revenue Growth: -1.73%
• EPS Growth: -57.46%
• Country: US
• Employees: 89,264
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Beverages - Alcoholic
• EPS (TTM): 1.21
• Shares Outstanding: 1,152,005,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 5,967
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 6.64
• Enterprise Value/Ebitda: 13.19
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ―

Heineken's stock benefits from strong financial performance and positive technical indicators, though a high P/E ratio suggests potential overvaluation. The balance sheet strength and cash flow generation are key positives, despite challenges in net income and profitability margins.

Heineken Business Overview & Revenue Model

Company Description

Heineken N.V. engages in the brewing and selling of beer and cider. It also provides soft drinks and water. It offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Birra Moretti, Affligem, Lagunitas, and Mort Subite brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Follow The Fox, Cidrerie Stassen, Bulmers, Old Mout, and Blind Pig brands. The company offers its products to retailers, bars, pubs, hotels, and restaurants in Europe, Americas, Africa, the Middle East, Eastern Europe, and the Asia Pacific markets. The company was founded in 1864 and is based in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V.

How the Company Makes Money

Heineken makes money primarily through the production and sale of its beer and cider products. Its revenue model is based on selling these beverages to retailers, bars, restaurants, and directly to consumers through various distribution channels. Key revenue streams include the sale of its core brand, Heineken, as well as other popular brands such as Amstel, Desperados, and Strongbow. The company also benefits from strategic partnerships and joint ventures with local breweries around the world, which help expand its market reach and increase brand visibility. Additionally, Heineken invests in marketing and sponsorships to enhance brand recognition and consumer loyalty, further driving sales. Revenue is also supported by diversification into non-alcoholic beverages and premiumization strategies that encourage higher-margin product sales.

Heineken Financial Statement Overview

Summary

Heineken demonstrates strong financial metrics with consistent revenue growth and effective debt management, resulting in a robust balance sheet. However, a decline in net income affects profitability margins, indicating areas for improvement.

Income Statement

Heineken shows a strong financial performance with a consistent revenue growth trajectory over the past years, despite a slight revenue drop in the latest period. The gross profit margin is healthy, and the company maintains strong EBIT and EBITDA margins, indicating effective cost management and operational efficiency. However, a noteworthy decline in net income affects the net profit margin, suggesting potential challenges in the bottom-line profitability.

Balance Sheet

The balance sheet is robust with a high level of cash and equivalents, and the total debt has been significantly reduced to zero, enhancing the company's financial stability. The equity ratio is solid, reflecting a strong capital structure. However, the return on equity has seen a downturn due to lower net income, which could impact investor returns.

Cash Flow

Heineken's cash flow position is strong, with operating cash flow increasing, indicating good cash generation from operations. The free cash flow has grown significantly, reflecting effective capital expenditure management. However, the operating cash flow to net income ratio indicates that cash generation is outpacing net income, which might suggest non-cash adjustments affecting profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.82B	30.36B	28.72B	22.14B	19.71B
Gross Profit	10.51B	10.70B	11.36B	8.57B	7.15B
EBITDA	5.29B	5.15B	6.41B	6.39B	2.59B
Net Income	978.00M	2.30B	2.68B	3.32B	-204.00M
Balance Sheet
Total Assets	53.77B	55.15B	53.42B	49.82B	43.52B
Cash, Cash Equivalents and Short-Term Investments	2.35B	2.38B	2.77B	3.25B	4.00B
Total Debt	0.00	18.24B	16.38B	16.87B	18.20B
Total Liabilities	31.37B	32.36B	31.50B	30.12B	29.12B
Stockholders Equity	19.58B	20.06B	19.55B	17.36B	13.39B
Cash Flow
Free Cash Flow	3.04B	1.75B	2.48B	2.58B	1.50B
Operating Cash Flow	5.50B	4.43B	4.50B	4.18B	3.14B
Investing Cash Flow	-2.44B	-3.58B	-2.68B	-2.29B	-1.44B
Financing Cash Flow	-2.57B	-816.00M	-2.74B	-2.87B	1.24B

Heineken Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEINY, the sentiment is Negative. The current price of 39.91 is below the 20-day moving average (MA) of 42.61, below the 50-day MA of 43.66, and below the 200-day MA of 40.43, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 32.33 is Neutral, neither overbought nor oversold. The STOCH value of 14.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HEINY.

Heineken Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEINY	77 Outperform	$44.53B	22.39	9.49%	2.35%	-1.73%	-57.46%
BUD	71 Outperform	$122.52B	17.22	8.97%	1.69%	-2.06%	21.03%
CCU	71 Outperform	$2.20B	14.20	10.15%	3.80%	6.18%	61.39%
TAP	67 Neutral	$20.25B	9.89	7.79%	3.59%	-5.48%	-6.99%
ABEV	66 Neutral	$35.88B	13.79	15.08%	1.96%	-0.79%	-10.83%
STZ	65 Neutral	$29.82B	49.10	-5.05%	2.38%	-0.47%	-117.62%
Sector *	63 Neutral	$20.37B	12.71	-7.34%	3.15%	2.86%	-10.22%