Heidelberg Materials AG HEI

Morningstar Rating
€148.40 +2.70 (1.85%)
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Company Report

We Expect That Heidelberg Materials Will Mitigate Higher Transportation and Energy Costs

Heidelberg Materials is one of the largest manufacturers of building materials globally, with the majority of its revenue earned from cement production. The cement industry is a notorious contributor of carbon dioxide emissions, which has made the sector uninvestable for many investors due to environmental concerns. Heidelberg is pioneering investments into carbon capture and storage technologies, along with its peers, to help lower their carbon footprint. Unlike peers CRH and Holcim, there is no indication of Heidelberg diversifying into light building materials.

Price vs Fair Value

HEI is trading at a LOCK|vDk%&b> premium.
Price
€145.70
Fair Value
LOCK|tS
Uncertainty
LOCK|Y#
1-Star Price
LOCK|$.<
5-Star Price
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Economic Moat
LOCK|M#d%
Capital Allocation
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Bulls Say, Bears Say

Bulls

Heidelberg Materials' contribution of profits is concentrated toward upstream activities, such as aggregates and cement, which have high barriers to entry and command strong pricing power in developed markets.

Bears

Heidelberg's earnings are exposed to volatility in energy prices and stringent carbon emissions regulation, given that the majority of its revenue is derived from energy-intensive cement production.

News

Trading Information

Previous Close Price
€145.70
Day Range
€143.80–148.60
52-Week Range
€137.20–239.00
Bid/Ask
€0.00 / €0.00
Shares Outstanding
175.80M
Market Cap
€26.09B
Volume/Avg
475,022 / 416,875

Key Statistics

Price/Earnings (Normalized)
12.68
Price/Sales
1.19
Dividend Yield (Trailing)
2.47%
Dividend Yield (Forward)
2.47%
Dividend Payment Schedule
May
Total Yield
4.15%

Company Profile

Heidelberg Materials is one of the world’s largest building materials companies, with operations in 60 countries. Its core activities include the production of cement and aggregates, which are used to construct houses, infrastructure, and commercial facilities. The sale of cement and aggregates accounts for the majority of group revenue and profits. Europe is the company’s largest market contributing nearly half of group sales. Heidelberg Materials is listed in Germany and has 55,000 employees.
Sector
Basic Materials
Industry
Building Materials
Stock Style Box
Large Value
Total Number of Employees
50,603

Competitors

Valuation

Metric
HEI
AMRZ
HOLN
Price/Earnings (Normalized)
12.6816.0319.69
Price/Book Value
1.371.592.26
Price/Sales
1.191.692.27
Price/Cash Flow
7.618.3111.55
Price/Earnings
HEI
AMRZ
HOLN

Financial Strength

Metric
HEI
AMRZ
HOLN
Quick Ratio
0.950.670.74
Current Ratio
1.371.101.09
Interest Coverage
10.545.563.39
Quick Ratio
HEI
AMRZ
HOLN

Profitability

Metric
HEI
AMRZ
HOLN
Return on Assets (Normalized)
6.31%5.09%5.67%
Return on Equity (Normalized)
12.76%9.54%12.73%
Return on Invested Capital (Normalized)
9.21%7.53%8.33%
Return on Assets
HEI
AMRZ
HOLN

Building Materials Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CRH PLC
CRH
LOCK|#P?Rn?>LOCK|BS%KZ$54B
Holcim Ltd ADR
HCMLY
—LOCK|$<dK$43B
Holcim Ltd
HCMLF
LOCK|PkMsk^LOCK|#q%&$43B
Martin Marietta Materials Inc
MLM
LOCK|>$Xpb%#LOCK|^Mk$34B
Vulcan Materials Co
VMC
LOCK|H$V!!pDLOCK|sH@$32B
Heidelberg Materials AG ADR
HDLMY
LOCK|@>WJl@LOCK|Q!>z<$29B
Heidelberg Materials AG
HLBZF
LOCK|^n&Xb#LOCK|DL?<^$29B
Amrize Ltd Registered Share
AMRZ
LOCK|<!Mk%%$LOCK|#jVZ$20B
James Hardie Industries PLC ADR
JHIUF
LOCK|m#&?M%?LOCK|zT$15B
James Hardie Industries PLC
JHX
LOCK|kTy%<?LOCK|Z<$15B

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