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Heidelberg Materials AG
🇩🇪 HEI.XETRA · Frankfurt · DE0006047004
Materials
EUR 185.60 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
17.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 185.60 ÷ 10.88 = 17.1
TTM period through: 2025-12-31
Forward P/E (estimated): 14.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.7
Net Debt/EBITDA (TTM)
1.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
11.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
8.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
1.94%
TTM: 1.95%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 1.94%
Trailing Yield (TTM, last 12 months): 1.95%
Payout Ratio (Fwd)
33.1%
TTM: 30.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 33.1%
Payout (TTM): 30.3%
Cash Flow Payout (TTM): 18.1%
FCF Coverage (TTM): 3.21x
Growth Streak
5 yrs
Consec. increases
Div. Growth (5Y)
40.6%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Interim | — | 14 May 2027 | — | EUR | 3.6 |
| Paid | Interim | 26 Mar 2026 | 14 May 2026 | 19 May 2026 | EUR | 3.6 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
² Type not provided by EODHD — inferred from historical payment data.
📊 What Changed From Last Analysis?
Moved from WATCH to BELOW THRESHOLD: Applied strategy mismatch penalty reflecting structural energy transition risks (EU ETS phase-out), coupled with a valuation exceeding target multiples and a yield remaining below minimum thresholds.
Summary
Heidelberg Materials is a financially robust industry leader, but its massive structural exposure to carbon transition costs makes it a poor fit for conservative dividend strategies. With the stock trading at a premium valuation (P/E 17.1) and offering a yield below 2%, the long-term execution risks outweigh the attractive balance sheet. Not recommended for new positions given the structural headwinds and sub-target yield.
Sector Context
Heidelberg Materials is a dominant global producer of aggregates, cement, and concrete for the construction industry. While these materials are critical for infrastructure development, the heavy manufacturing process is highly cyclical and increasingly burdened by structural decarbonization mandates, making it a challenging fit for strategies seeking stable, low-risk income.
📊 Strategy Analysis
- • Maintains a highly conservative balance sheet with Net Debt/EBITDA of 1.28x, providing a strong financial buffer against cyclical construction downturns.
- • Exceptional cash flow generation covers the current dividend comfortably, with a FCF dividend coverage ratio of 3.21x and a cash flow payout of just 18.09%.
- • Strong profitability metrics with an EBITDA margin of 19.99% and ROE of 11.07%, demonstrating operational efficiency.
⚠ What to Watch
- • Severe structural energy transition risks: The EU ETS carbon allowance phase-out (2026-2034) and technology obsolescence of traditional clinker kilns will require massive, mandatory CapEx.
- • Current trailing dividend yield of 1.95% is fundamentally incompatible with the strategy's >3.0% minimum income requirement.
- • Elevated valuation with a P/E of 17.06, which sits outside the strategy's ideal 8-15x target range and offers no margin of safety.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-06-27
Disclaimer: This information is for educational purposes only. Not financial advice.