HeidelbergCement AG
HeidelbergCement AG Fundamental Analysis
HeidelbergCement AG (HLBZF) shows weak financial fundamentals with a PE ratio of 15.15, profit margin of 8.75%, and ROE of 10.52%. The company generates $21.6B in annual revenue with weak year-over-year growth of 1.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HLBZF's fundamental strength across five key dimensions:
Efficiency Score
WeakHLBZF struggles to generate sufficient returns from assets.
Valuation Score
ModerateHLBZF shows balanced valuation metrics.
Growth Score
ModerateHLBZF shows steady but slowing expansion.
Financial Health Score
ExcellentHLBZF maintains a strong and stable balance sheet.
Profitability Score
WeakHLBZF struggles to sustain strong margins.
Key Financial Metrics
Is HLBZF Expensive or Cheap?
P/E Ratio
HLBZF trades at 15.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HLBZF's PEG of 5.16 indicates potential overvaluation.
Price to Book
The market values HeidelbergCement AG at 1.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.38 times EBITDA. This is generally considered low.
How Well Does HLBZF Make Money?
Net Profit Margin
For every $100 in sales, HeidelbergCement AG keeps $8.75 as profit after all expenses.
Operating Margin
Core operations generate 14.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.52 in profit for every $100 of shareholder equity.
ROA
HeidelbergCement AG generates $5.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HeidelbergCement AG produces operating cash flow of $3.28B, showing steady but balanced cash generation.
Free Cash Flow
HeidelbergCement AG produces free cash flow of $1.96B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $11.16 in free cash annually.
FCF Yield
HLBZF converts 6.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How HLBZF Stacks Against Its Sector Peers
| Metric | HLBZF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.15 | 24.98 | Better (Cheaper) |
| ROE | 10.52% | 907.00% | Weak |
| Net Margin | 8.75% | -105736.00% (disorted) | Weak |
| Debt/Equity | 0.50 | 0.56 | Neutral |
| Current Ratio | 1.15 | 5.08 | Neutral |
| ROA | 5.46% | -10264.00% (disorted) | Weak |
HLBZF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HeidelbergCement AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.15%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
215.81%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Commodity, Value
Declining