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Should You Be Holding HeidelbergCement AG (FRA:HEI)?

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HeidelbergCement AG (FRA:HEI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of HEI, it is a well-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on HeidelbergCement here.

Undervalued established dividend payer

HEI's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if HEI's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the basic materials industry, HEI is also trading below its peers, relative to earnings generated. This further reaffirms that HEI is potentially undervalued.

DB:HEI Intrinsic value, June 28th 2019
DB:HEI Intrinsic value, June 28th 2019

HEI is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

DB:HEI Historical Dividend Yield, June 28th 2019
DB:HEI Historical Dividend Yield, June 28th 2019

Next Steps:

For HeidelbergCement, there are three essential aspects you should look at:

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  1. Future Outlook: What are well-informed industry analysts predicting for HEI’s future growth? Take a look at our free research report of analyst consensus for HEI’s outlook.

  2. Historical Performance: What has HEI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HEI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.