Heineken Holding N.V.
Heineken Holding N.V. Fundamental Analysis
Heineken Holding N.V. (HKHHF) shows weak financial fundamentals with a PE ratio of 18.12, profit margin of 3.31%, and ROE of 11.07%. The company generates $30.4B in annual revenue with weak year-over-year growth of -1.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HKHHF's fundamental strength across five key dimensions:
Efficiency Score
WeakHKHHF struggles to generate sufficient returns from assets.
Valuation Score
ModerateHKHHF shows balanced valuation metrics.
Growth Score
WeakHKHHF faces weak or negative growth trends.
Financial Health Score
WeakHKHHF carries high financial risk with limited liquidity.
Profitability Score
WeakHKHHF struggles to sustain strong margins.
Key Financial Metrics
Is HKHHF Expensive or Cheap?
P/E Ratio
HKHHF trades at 18.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HKHHF's PEG of 2.74 indicates potential overvaluation.
Price to Book
The market values Heineken Holding N.V. at 2.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.60 times EBITDA. This is generally considered low.
How Well Does HKHHF Make Money?
Net Profit Margin
For every $100 in sales, Heineken Holding N.V. keeps $3.31 as profit after all expenses.
Operating Margin
Core operations generate 11.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.07 in profit for every $100 of shareholder equity.
ROA
Heineken Holding N.V. generates $1.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heineken Holding N.V. produces operating cash flow of $5.30B, showing steady but balanced cash generation.
Free Cash Flow
Heineken Holding N.V. generates strong free cash flow of $3.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.96 in free cash annually.
FCF Yield
HKHHF converts 15.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HKHHF Stacks Against Its Sector Peers
| Metric | HKHHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.12 | 22.56 | Better (Cheaper) |
| ROE | 11.07% | 1288.00% | Weak |
| Net Margin | 3.31% | -5952.00% (disorted) | Weak |
| Debt/Equity | 2.23 | 0.81 | Weak (High Leverage) |
| Current Ratio | 0.93 | 2.41 | Weak Liquidity |
| ROA | 1.78% | -197304.00% (disorted) | Weak |
HKHHF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Heineken Holding N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.38%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-78.69%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
28.89%
Industry Style: Defensive, Dividend, Low Volatility
High Growth