Heidelberg Materials AG

Heidelberg Materials maintains a balanced capital structure with a debt-to-equity ratio of 0.45 and a current ratio of 1.24, indicating adequate short-term liquidity coverage. The balance sheet shows total assets of €36.14 billion against total liabilities of €17.97 billion, resulting in total equity of €18.16 billion. Long-term debt stands at €8.11 billion, while cash and equivalents total €2.54 billion, leading to a net cash position that is negative after subtracting total debt, as flagged in the risk assessment. Operating cash flow is robust at €3.25 billion, supporting a free cash flow of €1.72 billion after capital expenditures of €1.41 billion.

Profitability metrics show a return on equity of 10.69% and a return on assets of 5.37%, reflecting efficient use of capital to generate net income of €1.94 billion on revenue of €21.46 billion. The gross profit of €13.78 billion suggests strong pricing power or cost management within the construction materials value chain, yielding an operating income of €3.12 billion. Without cohort median data for direct comparison, these returns are evaluated against the backdrop of a capital-intensive industry where maintaining double-digit ROE is a key performance indicator.

Revenue concentration and geographic exposure details are absent from the provided data, preventing a specific analysis of segment mix or regional risk. The company’s activity is broadly defined as exploration and production in the conflicting classification, but the sector classification code confirms its primary business is construction materials. The lack of segment data limits the ability to assess diversification benefits or specific growth drivers within product lines such as cement versus aggregates.

Growth trajectory analysis is constrained by the absence of historical period data, including five-year annual or eight-quarter quarterly trends. Consequently, the revenue history and net income trends cannot be evaluated for momentum or cyclicality. The current revenue figure of €21.46 billion serves as the sole data point for scale, without context on year-over-year changes or long-term growth rates.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. This implies reliance on operating cash flow to service debt obligations rather than holding significant liquid reserves. The absence of significant dilution risk is supported by the identical basic and diluted share counts of 176.37 million, indicating no immediate options or convertible securities impacting share count.

Recent events are reflected in analyst estimates, with a mean price target of €225.10 and a median of €226.00, suggesting a consensus view on fair value. The mean recommendation of 2.00 (on a scale where 1 is strong buy) indicates a generally positive sentiment, with 8 strong buys and 11 buys outweighing 3 holds. The high price target of €292.00 and low of €140.00 show a wide dispersion in analyst views, potentially reflecting uncertainty in the construction materials market or company-specific factors.

Analysts project 33.1% upside to a mean price target of 225.10, reflecting strong consensus buy ratings from 24 analysts.

Free cash flow is projected to grow 16.8% year-over-year to 1.72 billion euros in fiscal 2026.

Revenue growth is modest, with a four-year CAGR of only 3.5% projected through fiscal 2026.

The company faces medium liquidity risk, which could constrain financial flexibility during periods of market stress.

Long-term debt remains elevated at 8.11 billion euros in fiscal 2026, limiting balance sheet agility.

Net income growth is sluggish, with a four-year CAGR of just 2.5% projected through fiscal 2026.

Debt-to-equity ratio of 0.45 is below the cohort median, suggesting higher leverage relative to peers.

Revenue €4.54B, −3,8% YoY.

• ▍Revenue €4.54B, −3,8% YoY

Revenue €5.81B, +0,9% YoY.

• ▍Revenue €5.81B, +0,9% YoY

Revenue €4.71B.

• ▍Revenue €4.71B

Revenue €5.76B; Net margin 100.0%.

• ▍Revenue €5.76B
• ▍Net margin 100.0%

Revenue €21.46B, +1,4% YoY; Operating income +12,6% YoY.

• ▍Revenue €21.46B, +1,4% YoY
• ▍Operating income +12,6% YoY
• ▍Net income +8,9% YoY
• ▍Free cash flow +16,8% YoY
• ▍Net margin 9.0%

Revenue €21.16B, −0,1% YoY; Operating income −8,4% YoY.

• ▍Revenue €21.16B, −0,1% YoY
• ▍Operating income −8,4% YoY
• ▍Net income −7,6% YoY
• ▍Free cash flow −20,4% YoY
• ▍Net margin 8.4%

Revenue €21.18B, +0,4% YoY; Operating income +32,5% YoY.

• ▍Revenue €21.18B, +0,4% YoY
• ▍Operating income +32,5% YoY
• ▍Net income +20,8% YoY
• ▍Free cash flow +28,3% YoY
• ▍Net margin 9.1%

Revenue €21.10B, +12,7% YoY; Operating income −26,3% YoY.

• ▍Revenue €21.10B, +12,7% YoY
• ▍Operating income −26,3% YoY
• ▍Net income −9,2% YoY
• ▍Free cash flow −9,7% YoY
• ▍Net margin 7.6%

Revenue €18.72B; Operating income €3.10B.

• ▍Revenue €18.72B
• ▍Operating income €3.10B
• ▍Net margin 9.4%