Heijmans N.V. (HEIJM) AI Stock Analysis

• Market Cap: €1.61B
• Dividend Yield: 2.61%
• Average Volume (3M): 97.56K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.18
• Revenue Growth: 11.67%
• EPS Growth: 36.03%
• Country: NL
• Employees: 5,650
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.15
• Shares Outstanding: 27,478,006
• 10 Day Avg. Volume: 78,796
• 30 Day Avg. Volume: 97,561
• PEG Ratio: 0.25
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 3.92
• 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: €68.00
• Price Target Upside: 8.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €67.00 ▲(6.69% Upside)

Heijmans N.V. receives a strong overall score driven by its robust financial performance, including revenue growth and cash flow strength. Technical indicators show a positive trend, though caution is advised due to potential overbought conditions. Valuation is reasonable, enhancing the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning Heijmans for sustained expansion.

Cash Flow Strength

Robust cash flow growth enhances financial flexibility, enabling Heijmans to invest in growth opportunities and manage debt effectively.

Profit Margin Improvement

Improved profit margins reflect operational efficiency, enhancing profitability and competitive positioning in the construction industry.

Negative Factors

Debt Management

While leverage is manageable, ongoing focus on debt management is vital to maintain financial stability and reduce risk exposure.

Margin Sustainability

Sustaining current margin levels is challenging, requiring ongoing efficiency improvements to stay ahead of industry peers.

Equity Ratio

While stable, the equity ratio indicates limited buffer against financial shocks, necessitating prudent financial management.

Heijmans N.V. Business Overview & Revenue Model

Company Description

Heijmans N.V. engages in the property development, construction and technical services, and infrastructure businesses in the Netherlands and internationally. The company focuses on the development of large and smaller-scale projects in urban and out-of-town areas, as well as acts as an initiator, developer, and seller of residential properties. It also engages in building homes; and the restoration, redevelopment, renovation, maintenance, and service of existing housing stock. In addition, the company designs, realizes, and maintains electro-technical and mechanical installations; and realizes large-scale and complex construction contracts in the customer and market segments of health care, government and semi-government organizations, commercial property, the high-tech clean industry, and datacenters, as well as provides management and maintenance services. Further, it focuses on the construction, enhancement, and maintenance of road infrastructure and public spaces, including related installations and on-site objects. The company was founded in 1923 and is headquartered in Rosmalen, the Netherlands.

How the Company Makes Money

Heijmans generates revenue primarily through its construction and engineering activities, which encompass residential and non-residential building projects, as well as infrastructure development. The company's revenue model includes contracting and project management for large-scale construction projects, often funded by government contracts or private investments. Key revenue streams include the construction of residential homes, commercial buildings, roads, bridges, and other infrastructure projects. Additionally, Heijmans engages in real estate development, allowing it to sell developed properties or lease them for ongoing cash flow. The company also benefits from significant partnerships with governmental bodies and private sector clients, which contribute to steady project pipeline and revenue stability. Factors such as the overall health of the construction market, investment in infrastructure, and government policies related to housing and urban development play crucial roles in influencing Heijmans' earnings.

Heijmans N.V. Financial Statement Overview

Summary

Heijmans N.V. demonstrates strong financial health with consistent revenue growth, improved profit margins, and robust cash flow generation. The balance sheet is stable with manageable leverage, although maintaining low leverage levels is crucial.

Income Statement

Heijmans N.V. has demonstrated consistent revenue growth, with a notable increase of 22% from 2023 to 2024. The gross profit margin stands at 13.1%, and the net profit margin improved to 3.5% in 2024, indicating efficient cost management. EBIT and EBITDA margins also reflect strong operational efficiency. However, there is a need to maintain this momentum to continue outperforming industry averages.

Balance Sheet

The company exhibits a solid equity ratio of 33.8% in 2024, reflecting a stable capital structure. The debt-to-equity ratio improved to 0.25, indicating manageable leverage levels. Return on equity (ROE) increased to 19.4%, highlighting effective use of shareholders' equity. While the balance sheet is strong, continuous attention to debt management will be crucial.

Cash Flow

Heijmans N.V. shows robust cash flow performance with a substantial free cash flow growth of 441% from 2023 to 2024. The operating cash flow to net income ratio is impressively high at 2.77, indicating strong cash generation relative to net income. The free cash flow to net income ratio also underscores the company's ability to generate cash, supporting future investments and debt management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.58B	2.12B	1.81B	1.75B	1.75B
Gross Profit	380.40M	338.40M	288.75M	239.85M	222.11M	175.61M
EBITDA	180.20M	179.30M	135.30M	117.57M	89.62M	91.15M
Net Income	112.00M	90.00M	59.73M	59.58M	50.30M	40.15M
Balance Sheet
Total Assets	1.47B	1.37B	1.34B	1.10B	1.01B	952.58M
Cash, Cash Equivalents and Short-Term Investments	78.00M	102.60M	37.10M	237.01M	209.57M	175.06M
Total Debt	118.00M	115.20M	177.20M	86.15M	118.88M	137.89M
Total Liabilities	995.00M	905.60M	952.00M	785.25M	744.17M	726.17M
Stockholders Equity	475.00M	463.00M	383.66M	317.02M	267.58M	226.41M
Cash Flow
Free Cash Flow	198.80M	218.80M	40.49M	86.31M	84.58M	113.03M
Operating Cash Flow	229.20M	249.20M	84.50M	110.77M	110.16M	129.40M
Investing Cash Flow	-95.40M	-59.10M	-313.93M	-17.68M	-33.75M	-34.57M
Financing Cash Flow	-116.10M	-125.10M	31.51M	-65.64M	-41.91M	-29.13M

Heijmans N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.80
• 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 NL:HEIJM, the sentiment is Positive. The current price of 62.8 is above the 20-day moving average (MA) of 57.29, above the 50-day MA of 58.87, and above the 200-day MA of 52.24, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 85.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:HEIJM.

Heijmans N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEIJM	74 Outperform	€1.61B	14.35	25.34%	2.61%	11.67%	36.03%
BAMNB	74 Outperform	€2.37B	17.65	11.89%	2.82%	3.64%	-22.13%
VPK	73 Outperform	€4.22B	9.33	15.92%	4.14%	-3.32%	15.52%
FUR	70 Outperform	€938.11M	6.63	9.91%	8.42%	-7.57%	-51.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARCAD	63 Neutral	€3.47B	14.49	21.45%	2.68%	-2.02%	24.14%
AALB	60 Neutral	€2.93B	19.38	6.13%	4.14%	-4.31%	-50.34%