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HeidelbergCement

DB:HEI
Snowflake Description

6 star dividend payer and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HEI
DB
€8B
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

HeidelbergCement AG produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. The last earnings update was 19 days ago. More info.


Add to Portfolio Compare Print
  • HeidelbergCement has significant price volatility in the past 3 months.
HEI Share Price and Events
7 Day Returns
9.1%
DB:HEI
6.6%
Europe Basic Materials
2.1%
DE Market
1 Year Returns
-38.9%
DB:HEI
-26.7%
Europe Basic Materials
-16.6%
DE Market
HEI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HeidelbergCement (HEI) 9.1% -16.8% -36.4% -38.9% -51.7% -44.5%
Europe Basic Materials 6.6% -18.2% -32.2% -26.7% -36.7% -34%
DE Market 2.1% -12.6% -22.9% -16.6% -21.9% -27.8%
1 Year Return vs Industry and Market
  • HEI underperformed the Basic Materials industry which returned -26.7% over the past year.
  • HEI underperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
HEI
Industry
5yr Volatility vs Market

HEI Value

 Is HeidelbergCement undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HeidelbergCement to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HeidelbergCement.

DB:HEI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HEI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.817 (1 + (1- 30%) (151.51%))
1.459
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.46
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.459 * 5.44%)
7.54%

Discounted Cash Flow Calculation for DB:HEI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HeidelbergCement is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:HEI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.54%)
2020 1,245.53 Analyst x7 1,158.15
2021 1,447.69 Analyst x7 1,251.69
2022 1,556.33 Analyst x3 1,251.23
2023 1,577.11 Est @ 1.33% 1,178.98
2024 1,590.00 Est @ 0.82% 1,105.23
2025 1,597.24 Est @ 0.46% 1,032.37
2026 1,600.46 Est @ 0.2% 961.88
2027 1,600.85 Est @ 0.02% 894.62
2028 1,599.25 Est @ -0.1% 831.02
2029 1,596.25 Est @ -0.19% 771.28
Present value of next 10 years cash flows €10,436.00
DB:HEI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,596.25 × (1 + -0.39%) ÷ (7.54% – -0.39%)
€20,038.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €20,038.90 ÷ (1 + 7.54%)10
€9,682.41
DB:HEI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €10,436.00 + €9,682.41
€20,118.41
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €20,118.41 / 198.42
€101.39
DB:HEI Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HEI represents 1.00239x of XTRA:HEI
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00239x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 101.39 x 1.00239
€101.64
Value per share (EUR) From above. €101.64
Current discount Discount to share price of €42.02
= -1 x (€42.02 - €101.64) / €101.64
58.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HeidelbergCement is available for.
Intrinsic value
>50%
Share price is €42.02 vs Future cash flow value of €101.64
Current Discount Checks
For HeidelbergCement to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HeidelbergCement's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HeidelbergCement's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HeidelbergCement's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HeidelbergCement's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HEI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €5.66
XTRA:HEI Share Price ** XTRA (2020-04-07) in EUR €41.92
Europe Basic Materials Industry PE Ratio Median Figure of 33 Publicly-Listed Basic Materials Companies 9.52x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 16.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HeidelbergCement.

DB:HEI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= XTRA:HEI Share Price ÷ EPS (both in EUR)

= 41.92 ÷ 5.66

7.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HeidelbergCement is good value based on earnings compared to the Europe Basic Materials industry average.
  • HeidelbergCement is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does HeidelbergCement's expected growth come at a high price?
Raw Data
DB:HEI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
5.1%per year
Europe Basic Materials Industry PEG Ratio Median Figure of 17 Publicly-Listed Basic Materials Companies 1.67x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:HEI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.4x ÷ 5.1%

1.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HeidelbergCement is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HeidelbergCement's assets?
Raw Data
DB:HEI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €85.61
XTRA:HEI Share Price * XTRA (2020-04-07) in EUR €41.92
Europe Basic Materials Industry PB Ratio Median Figure of 39 Publicly-Listed Basic Materials Companies 0.85x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.45x
DB:HEI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= XTRA:HEI Share Price ÷ Book Value per Share (both in EUR)

= 41.92 ÷ 85.61

0.49x

* Primary Listing of HeidelbergCement.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HeidelbergCement is good value based on assets compared to the Europe Basic Materials industry average.
X
Value checks
We assess HeidelbergCement's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. HeidelbergCement has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HEI Future Performance

 How is HeidelbergCement expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HeidelbergCement expected to grow at an attractive rate?
  • HeidelbergCement's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • HeidelbergCement's earnings growth is positive but not above the Germany market average.
  • HeidelbergCement's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HEI Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HEI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 5.1%
DB:HEI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 1.5%
Europe Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Europe Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HEI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HEI Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 19,125 3,026 1,258 7
2021-12-31 19,283 2,670 1,227 17
2020-12-31 17,801 2,265 871 14
2020-04-07
DB:HEI Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 18,914 2,664 1,123
2019-09-30 19,043 2,457 1,010
2019-06-30 18,921 2,185 999
2019-03-31 19,119 2,655 1,289
2018-12-31 18,139 1,968 1,157
2018-09-30 17,725 1,827 1,116
2018-06-30 17,390 1,942 1,053
2018-03-31 17,194 1,831 1,022
2017-12-31 17,351 2,038 969
2017-09-30 17,317 1,816 852
2017-06-30 17,230 1,529 687
2017-03-31 16,194 1,650 648

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HeidelbergCement's earnings are expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
  • HeidelbergCement's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HEI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from HeidelbergCement Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HEI Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 6.08 7.83 4.15 6.00
2021-12-31 6.07 7.55 4.23 16.00
2020-12-31 4.19 6.31 1.39 9.00
2020-04-07
DB:HEI Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 5.66
2019-09-30 5.09
2019-06-30 5.03
2019-03-31 6.49
2018-12-31 5.83
2018-09-30 5.62
2018-06-30 5.31
2018-03-31 5.15
2017-12-31 4.88
2017-09-30 4.29
2017-06-30 3.47
2017-03-31 3.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HeidelbergCement is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HeidelbergCement's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HeidelbergCement has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HEI Past Performance

  How has HeidelbergCement performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HeidelbergCement's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HeidelbergCement's year on year earnings growth rate has been positive over the past 5 years.
  • HeidelbergCement's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • HeidelbergCement's 1-year earnings growth is negative, it can't be compared to the Europe Basic Materials industry average.
Earnings and Revenue History
HeidelbergCement's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HeidelbergCement Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HEI Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 18,913.50 1,123.30 3,427.30
2019-09-30 19,042.50 1,009.90 3,555.20
2019-06-30 18,921.40 998.50 3,522.90
2019-03-31 19,119.30 1,288.70 3,500.55
2018-12-31 18,138.50 1,157.20 3,424.20
2018-09-30 17,724.80 1,115.80 3,372.20
2018-06-30 17,389.80 1,053.10 3,355.90
2018-03-31 17,194.10 1,021.90 3,370.00
2017-12-31 17,350.60 968.50 3,387.00
2017-09-30 17,317.00 851.50 3,359.10
2017-06-30 17,229.50 687.30 3,368.10
2017-03-31 16,193.90 648.30 3,191.30
2016-12-31 15,241.60 660.20 3,003.80
2016-09-30 14,384.50 822.50 2,777.80
2016-06-30 13,468.00 934.40 2,568.80
2016-03-31 13,528.10 883.70 2,551.00
2015-12-31 13,531.50 835.80 2,546.90
2015-09-30 13,454.00 881.00 2,455.90
2015-06-30 13,337.90 781.40 2,427.10
2015-03-31 12,997.10 707.90 2,356.20
2014-12-31 12,683.90 664.60 2,284.90
2014-09-30 11,642.50 348.00 2,020.80
2014-06-30 11,829.70 629.40 2,071.10
2014-03-31 12,121.80 694.90 2,124.00
2013-12-31 12,201.80 613.30 2,188.90
2013-09-30 13,430.10 619.60 2,499.80
2013-06-30 13,698.00 266.60 2,540.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HeidelbergCement has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HeidelbergCement used its assets less efficiently than the Europe Basic Materials industry average last year based on Return on Assets.
  • HeidelbergCement has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HeidelbergCement's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HeidelbergCement has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HEI Health

 How is HeidelbergCement's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HeidelbergCement's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HeidelbergCement is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HeidelbergCement's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of HeidelbergCement's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HeidelbergCement Company Filings, last reported 3 months ago.

DB:HEI Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 18,504.40 10,742.10 3,558.60
2019-09-30 18,185.60 11,314.80 2,746.50
2019-06-30 17,024.00 11,123.90 1,883.00
2019-03-31 17,024.00 11,123.90 1,883.00
2018-12-31 16,821.70 10,968.00 2,599.30
2018-09-30 16,521.10 11,427.30 1,879.70
2018-06-30 15,977.70 11,594.80 1,586.60
2018-03-31 15,458.80 11,486.70 1,586.10
2017-12-31 15,987.30 10,807.40 2,120.00
2017-09-30 16,260.10 11,269.00 1,561.90
2017-06-30 16,283.10 11,840.80 1,654.90
2017-03-31 17,842.50 11,503.10 1,845.50
2016-12-31 17,791.60 11,028.60 2,033.30
2016-09-30 16,592.20 10,635.30 1,744.70
2016-06-30 15,377.10 8,519.80 2,598.40
2016-03-31 15,208.80 7,976.60 2,046.30
2015-12-31 15,976.30 6,699.40 1,425.60
2015-09-30 15,302.40 7,002.20 973.20
2015-06-30 15,453.70 7,637.60 1,263.50
2015-03-31 15,895.60 7,743.50 1,559.60
2014-12-31 14,245.00 8,210.30 1,265.00
2014-09-30 13,934.00 8,926.60 1,167.60
2014-06-30 12,623.70 9,440.50 1,349.50
2014-03-31 12,423.00 9,315.70 1,287.60
2013-12-31 12,513.70 8,719.20 1,361.80
2013-09-30 12,998.10 9,235.70 1,211.30
2013-06-30 13,279.80 9,645.00 1,423.30
  • HeidelbergCement's level of debt (58.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (57.5% vs 58.1% today).
  • Debt is well covered by operating cash flow (24.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).
X
Financial health checks
We assess HeidelbergCement's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HeidelbergCement has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HEI Dividends

 What is HeidelbergCement's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.25%
Current annual income from HeidelbergCement dividends. Estimated to be 5.8% next year.
If you bought €2,000 of HeidelbergCement shares you are expected to receive €105 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HeidelbergCement's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.67%).
  • HeidelbergCement's dividend is above the markets top 25% of dividend payers in Germany (4.71%).
Upcoming dividend payment

Purchase HeidelbergCement before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HEI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Europe Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HEI Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.49 8.00
2021-12-31 2.55 19.00
2020-12-31 2.21 13.00
2020-04-07
DB:HEI Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-03-19 2.200 5.963
2019-03-21 2.100 3.292
2018-03-22 1.900 2.855
2018-02-20 1.900 2.314
2017-03-17 1.600 1.858
2016-05-04 1.300 1.600
2015-03-19 0.750 1.066
2014-03-19 0.600 0.999
2013-03-14 0.470 0.839
2012-07-31 0.350 0.802
2012-03-15 0.350 0.911
2011-03-17 0.250 0.688
2010-03-18 0.120 0.288
2010-02-10 0.120 0.298
2009-04-30 0.120 0.319

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of HeidelbergCement's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess HeidelbergCement's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HeidelbergCement afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HeidelbergCement has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HEI Management

 What is the CEO of HeidelbergCement's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dominik von Achten
COMPENSATION €3,595,000
AGE 54
TENURE AS CEO 0.2 years
CEO Bio

Dr. Dominik von Achten has been Chairman of Managing Board at HeidelbergCement AG (a/k/a HeidelbergCement Group) since February 1, 2020 and served as its Vice Chairman of Management Board since February 1, 2015 until February 1, 2020 and serves as its Member of Managing Board since October 1, 2007. Dr. von Achten served as Chief Digital Officer until January 31, 2020 and was an In charge of the Western and Southern Europe Group area and Competence Center Materials at HeidelbergCement AG. Dr. von Achten has been a Member of Managing Board of HeidelbergCement Ukraine since October 1, 2007 and responsible for its North America since January 1, 2009. He served as the Head of Integration & Purchasing for Worldwide Coordination of Competence Center Materials at HeidelbergCement AG since July 2007. He was in charge of the United Kingdom and Hanson integration until the end 2008. From 1996 to September 2007, Dr. von Achten worked for The Boston Consulting Group, where he held various management roles, including two abroad - in New York and Helsinki. He served as a Partner and Managing Director of The Boston Consulting Group. Following the Second State Exam, he worked at the Munich Higher Regional Court and the Traunstein Regional Court. He has been Executive Deputy Chairman of Italcementi SpA since July 4, 2016. Dr. von Achten studied law and economics at the Universities of Freiburg and Munich. In 1996, he earned a PhD in Economic Policy.

CEO Compensation
  • Dominik's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dominik's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the HeidelbergCement management team in years:

0.8
Average Tenure
51
Average Age
  • The average tenure for the HeidelbergCement management team is less than 2 years, this suggests a new team.
Management Team

Dominik von Achten

TITLE
Chairman of Managing Board
COMPENSATION
€4M
AGE
54
TENURE
0.2 yrs

Lorenz Näger

TITLE
CFO, Head of Finance
COMPENSATION
€3M
AGE
59
TENURE
0.2 yrs

Ernest Jelito

TITLE
Member of the Managing Board
COMPENSATION
€2M
AGE
61
TENURE
0.8 yrs

Hakan Gurdal

TITLE
Member of Managing Board
COMPENSATION
€3M
AGE
51
TENURE
4.2 yrs

Kevin Gluskie

TITLE
Member of Managing Board
COMPENSATION
€4M
AGE
51
TENURE
4.2 yrs

Jon Morrish

TITLE
Member of Managing Board
COMPENSATION
€3M
AGE
49
TENURE
4.2 yrs

Chris Ward

TITLE
Member of Management Board
COMPENSATION
€2M
AGE
47
TENURE
0.6 yrs

Anna Toborek

TITLE
Director of Group Corporate Finance

Christoph Beumelburg

TITLE
Head of Group Communication & Investor Relations
AGE
51

Andreas Schnurr

TITLE
Director of Group Human Resources & Group Compliance
Board of Directors Tenure

Average tenure and age of the HeidelbergCement board of directors in years:

13
Average Tenure
74
Average Age
  • The average tenure for the HeidelbergCement board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Fritz-Jürgen Heckmann

TITLE
Chairman of the Supervisory Board
COMPENSATION
€257K
TENURE
15.2 yrs

Heinz Schmitt

TITLE
Deputy Chairman of Employee Representative Supervisory Board
COMPENSATION
€177K
TENURE
10.9 yrs

Ludwig Merckle

TITLE
Member of Supervisory Board
COMPENSATION
€166K
TENURE
20.8 yrs

Luka Mucic

TITLE
Member of Supervisory Board
COMPENSATION
€101K
AGE
48
TENURE
0.9 yrs

Paul Vanfrachem

TITLE
Member of Advisor Council
AGE
74

Marinus Platschorre

TITLE
Member of Advisory Council

Jacques Merceron-Vicat

TITLE
Member of Advisory Council
AGE
81

Karl Kronimus

TITLE
Member of Advisory Council

Friedrich von Metzler

TITLE
Member of Advisory Council

Jochen Kirchhoff

TITLE
Member of Advisory Council
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess HeidelbergCement's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HeidelbergCement has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HEI News

Simply Wall St News

How Do HeidelbergCement AG’s (FRA:HEI) Returns Compare To Its Industry?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for HeidelbergCement:0.058 = €1.7b ÷ (€37b - €7.8b) (Based on the trailing twelve months to June 2019.) Therefore, HeidelbergCement has an ROCE of 5.8%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Do Institutions Own HeidelbergCement AG (FRA:HEI) Shares?

Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Check out our latest analysis for HeidelbergCement DB:HEI Ownership Summary, August 22nd 2019 What Does The Institutional Ownership Tell Us About HeidelbergCement? … Insider Ownership Of HeidelbergCement The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

HeidelbergCement AG's (FRA:HEI) Earnings Dropped -5.2%, Did Its Industry Show Weakness Too?

Below, I assess HEI's latest performance announced on 30 June 2019 and evaluate these figures to its historical trend and industry movements. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 13%, indicating the rate at which HEI is growing has slowed down. … You should continue to research HeidelbergCement to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for HEI’s future growth?

Simply Wall St -

Should You Think About Buying HeidelbergCement AG (FRA:HEI) Now?

The stock’s ratio of 11.9x is currently trading in-line with its industry peers’ ratio, which means if you buy HeidelbergCement today, you’d be paying a relatively fair price for it. … HEI’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Is HeidelbergCement (FRA:HEI) Using Too Much Debt?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … During the last three years, HeidelbergCement produced sturdy free cash flow equating to 55% of its EBIT, about what we'd expect.

Simply Wall St -

Update: HeidelbergCement (FRA:HEI) Stock Gained 17% In The Last Five Years

For example, long term HeidelbergCement AG (FRA:HEI) shareholders have enjoyed a 17% share price rise over the last half decade, well in excess of the market return of around 11% (not including dividends). … There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, HeidelbergCement achieved compound earnings per share (EPS) growth of 12% per year.

Simply Wall St -

What Should We Expect From HeidelbergCement AG's (FRA:HEI) Earnings In The Year Ahead?

Since HeidelbergCement AG (FRA:HEI) released its earnings in December 2018, analyst forecasts appear to be in-line with its track record, as upcoming earnings growth is expected to be 12% next year, similar to the range of average earnings growth for the past five years of 12% per year. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of HEI's earnings growth over these next few years. … DB:HEI Past and Future Earnings, June 20th 2019 This results in an annual growth rate of 11% based on the most recent earnings level of €1.2b to the final forecast of €1.6b by 2022.

Simply Wall St -

Are HeidelbergCement AG's (FRA:HEI) Interest Costs Too High?

View our latest analysis for HeidelbergCement HEI’s Debt (And Cash Flows) Over the past year, HEI has maintained its debt levels at around €11b including long-term debt. … At this current level of debt, the current cash and short-term investment levels stands at €2.6b to keep the business going. … With current liabilities at €6.3b, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.2x.

Simply Wall St -

Why HeidelbergCement AG (FRA:HEI) Is A Dividend Rockstar

Today we'll take a closer look at HeidelbergCement AG (FRA:HEI) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. With a nine-year payment history and a 3.2% yield, many investors probably find HeidelbergCement intriguing. It sure looks interesting on these metrics - but there's always more to the story . Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis DB:HEI Historical Dividend Yield, June 3rd 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, HeidelbergCement paid out 36% of its profit as dividends. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Plus, there is room to increase the payout ratio over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. HeidelbergCement's cash payout ratio in the last year was 42%, which suggests dividends were well covered by cash generated by the business. It's positive to see that HeidelbergCement's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is HeidelbergCement's Balance Sheet Risky? As HeidelbergCement has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Is It Too Late To Buy HeidelbergCement AG (FRA:HEI) At Its May Price?

HeidelbergCement AG (FRA:HEI) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of €67.74 is based on unrealistic expectations. … HeidelbergCement is available at a price-to-earnings ratio of 11.61x, showing us it is undervalued relative to the current DE market average of 20.16x , and undervalued based on its latest annual earnings update compared to the Basic Materials average of 12.22x. … However, to properly examine the value of a high-growth stock such as HeidelbergCement, we must reflect its earnings growth into the valuation.

Simply Wall St -

HEI Company Info

Description

HeidelbergCement AG produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. The company provides cement products, including special cements with targeted characteristics, special geotechnical building materials, and a range of binders. It also offers natural stone aggregates comprising sand and gravel; crushed aggregates, such as stone chippings and crushed stones; and concrete/ready-mixed concrete for the production of precast concrete parts consisting of stairs, ceiling elements, or structural components, as well as for use in the construction of tunnels or bridges, office buildings, or schools. In addition, the company offers asphalt primarily used in the building of traffic infrastructure comprising roads, walkways, and parking lots; and trades in cement, clinker, solid fuels, and other building materials. HeidelbergCement AG was founded in 1873 and is headquartered in Heidelberg, Germany.

Details
Name: HeidelbergCement AG
HEI
Exchange: DB
Founded: 1873
€7,938,643,244
198,416,477
Website: http://www.heidelbergcement.com
Address: HeidelbergCement AG
Berliner Strasse 6,
Heidelberg,
Baden-Württemberg, 69120,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
XTRA HEI Common Shares XETRA Trading Platform DE EUR 02. Jan 1992
OTCPK HLBZ.F Common Shares Pink Sheets LLC US USD 02. Jan 1992
DB HEI Common Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0MG2 Common Shares London Stock Exchange GB EUR 02. Jan 1992
SWX HEID Common Shares SIX Swiss Exchange CH CHF 02. Jan 1992
BIT HEI Common Shares Borsa Italiana IT EUR 02. Jan 1992
WBAG HEI Common Shares Wiener Boerse AG AT EUR 02. Jan 1992
BMV HEI N Common Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE HEID Common Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1992
OTCPK HDEL.Y UNSPON ADR EA REPR 0.20 ORD NPV Pink Sheets LLC US USD 27. May 2010
DB HEIU UNSPON ADR EA REPR 0.20 ORD NPV Deutsche Boerse AG DE EUR 27. May 2010
BST HEIU UNSPON ADR EA REPR 0.20 ORD NPV Boerse-Stuttgart DE EUR 27. May 2010
Number of employees
Current staff
Staff numbers
55,047
HeidelbergCement employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 20:58
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/03/19
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.