Heineken N.V.
Heineken N.V. Fundamental Analysis
Heineken N.V. (HNK1.DE) shows weak financial fundamentals with a PE ratio of 24.56, profit margin of 6.98%, and ROE of 8.48%. The company generates $21.7B 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 32.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HNK1.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakHNK1.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateHNK1.DE shows balanced valuation metrics.
Growth Score
WeakHNK1.DE faces weak or negative growth trends.
Financial Health Score
WeakHNK1.DE carries high financial risk with limited liquidity.
Profitability Score
WeakHNK1.DE struggles to sustain strong margins.
Key Financial Metrics
Is HNK1.DE Expensive or Cheap?
P/E Ratio
HNK1.DE trades at 24.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HNK1.DE's PEG of 4.51 indicates potential overvaluation.
Price to Book
The market values Heineken N.V. at 2.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.75 times EBITDA. This is generally considered low.
How Well Does HNK1.DE Make Money?
Net Profit Margin
For every $100 in sales, Heineken N.V. keeps $6.98 as profit after all expenses.
Operating Margin
Core operations generate 12.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.48 in profit for every $100 of shareholder equity.
ROA
Heineken N.V. generates $2.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heineken N.V. produces operating cash flow of $4.17B, showing steady but balanced cash generation.
Free Cash Flow
Heineken N.V. generates strong free cash flow of $2.68B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.78 in free cash annually.
FCF Yield
HNK1.DE converts 7.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How HNK1.DE Stacks Against Its Sector Peers
| Metric | HNK1.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.56 | 22.46 | Neutral |
| ROE | 8.48% | 1260.00% | Weak |
| Net Margin | 6.98% | -5313.00% (disorted) | Weak |
| Debt/Equity | 1.14 | 0.84 | Weak (High Leverage) |
| Current Ratio | 0.93 | 2.49 | Weak Liquidity |
| ROA | 2.75% | -193380.00% (disorted) | Weak |
HNK1.DE outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Heineken N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.71%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-53.65%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
30.25%
Industry Style: Defensive, Dividend, Low Volatility
High Growth