Heineken Holding NV (HEIO) AI Stock Analysis

• Market Cap: €17.45B
• Dividend Yield: 3.14%
• Average Volume (3M): 193.22K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.76
• Revenue Growth: -4.84%
• EPS Growth: 76.70%
• Country: NL
• Employees: 88,497
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Beverages - Alcoholic
• EPS (TTM): 2.08
• Shares Outstanding: 288,030,180
• 10 Day Avg. Volume: 170,532
• 30 Day Avg. Volume: 193,223
• PEG Ratio: -0.57
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 5.39
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: €69.00 ▲(11.92% Upside)

Heineken Holding NV's overall stock score is primarily driven by its strong financial performance and solid cash flow management. The technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable, supported by a decent dividend yield. The absence of debt further enhances the company's financial stability.

Heineken Holding NV Business Overview & Revenue Model

Company Description

Heineken Holding NV (HEIO) is a leading global brewer headquartered in Amsterdam, Netherlands. The company operates in the beverage sector, primarily focusing on the production and distribution of beer. Heineken is renowned for its flagship product, Heineken lager, along with a diverse portfolio of over 300 international, regional, and specialty beers and ciders, such as Amstel, Desperados, and Strongbow. As one of the largest beer producers in the world, Heineken plays a significant role in shaping the global beer market through its extensive distribution networks and marketing strategies.

How the Company Makes Money

Heineken generates revenue primarily through the sale of its beer and cider products to consumers and businesses across various channels, including retail, on-trade (bars and restaurants), and e-commerce. The company's revenue model is supported by several key streams: first, direct sales of alcoholic beverages, which contribute the majority of its earnings; second, partnerships with distributors and retailers that enhance market reach; and third, premium pricing strategies for its flagship and specialty products. Additionally, Heineken invests in marketing and brand development, cultivating strong consumer loyalty and driving repeat purchases. Collaborations with local breweries and participation in sponsorships and events also enhance brand visibility, contributing to overall sales growth.

Heineken Holding NV Financial Statement Overview

Summary

Heineken Holding NV demonstrates solid financial health with strong operational efficiency and cash flow management. Despite a slight revenue decrease, profitability is maintained through efficient operations and cost management. The absence of debt in 2024 further strengthens financial stability, though improvement in return on equity is needed.

Income Statement

Heineken Holding NV shows stable profitability with a gross profit margin of 35.24% and a net profit margin of 1.67% in 2024. The revenue decreased by 1.78% from the previous year, indicating a slight decline. EBIT and EBITDA margins are healthy at 11.79% and 17.74% respectively, demonstrating efficient cost management despite the revenue drop.

Balance Sheet

The balance sheet reflects strong equity with a debt-to-equity ratio of 0.00 due to no debt in 2024, enhancing financial stability. The return on equity is lower at 5.22%, suggesting limited profitability relative to shareholder equity, while the equity ratio is 17.85%, indicating a modest portion of assets financed by equity.

Cash Flow

Cash flow from operations increased, with a robust operating cash flow to net income ratio of 11.05. The free cash flow grew by 73.25% year-over-year, signifying effective cash management and reinvestment capability. The free cash flow to net income ratio is notably high, showing strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.18B	29.82B	30.36B	28.72B	21.94B	19.71B
Gross Profit	3.31B	10.51B	10.70B	10.10B	8.41B	7.26B
EBITDA	5.99B	5.29B	5.82B	6.42B	6.38B	2.56B
Net Income	926.00M	498.00M	1.17B	3.04B	3.54B	-88.00M
Balance Sheet
Total Assets	51.32B	54.77B	54.76B	52.41B	48.85B	42.63B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.35B	2.38B	2.77B	3.25B	4.00B
Total Debt	17.59B	17.05B	18.24B	16.38B	16.87B	18.20B
Total Liabilities	31.40B	32.67B	32.36B	30.49B	29.15B	28.24B
Stockholders Equity	8.56B	9.55B	9.73B	9.69B	8.59B	6.60B
Cash Flow
Free Cash Flow	2.99B	3.04B	1.75B	2.48B	2.58B	1.50B
Operating Cash Flow	5.25B	5.50B	4.43B	4.50B	4.18B	3.14B
Investing Cash Flow	-2.63B	-2.44B	-3.58B	-2.29B	-2.28B	-1.44B
Financing Cash Flow	-2.58B	-2.57B	-816.00M	-3.13B	-2.88B	1.24B

Heineken Holding NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:HEIO, the sentiment is Neutral. The current price of 61.65 is above the 20-day moving average (MA) of 59.26, above the 50-day MA of 59.43, and below the 200-day MA of 62.90, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 76.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:HEIO.

Heineken Holding NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEIO	76 Outperform	€17.45B	18.16	10.30%	3.14%	-4.84%	76.70%
HEIA	71 Outperform	€39.82B	21.81	9.79%	2.72%	-4.84%	73.54%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%