HEI:XETRHeidelberg Materials AG Analysis
Data as of 2026-05-26 - not real-time
$310.01
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
HEICO is trading at $310, just below the recent resistance of $311.9, with a bullish MACD histogram (+2.53) and an RSI of 65 indicating near‑overbought conditions. The 20‑day SMA ($287) sits well below the current price, while volume has been trending down, suggesting limited short‑term buying pressure.
Fundamentally, the company posted 14% revenue growth, maintains a solid gross margin of 39.6% and operating margin of 22.2%, and generates robust free cash flow (~$690 M). However, the forward PE of 48.6 and trailing PE of 61.3 are more than double the aerospace & defense industry average (≈30), and the DCF fair‑value estimate of $101 highlights a significant valuation premium. The dividend yield is modest at 0.08% with a low payout ratio (~5%), indicating sustainability but limited income appeal.
Fundamentally, the company posted 14% revenue growth, maintains a solid gross margin of 39.6% and operating margin of 22.2%, and generates robust free cash flow (~$690 M). However, the forward PE of 48.6 and trailing PE of 61.3 are more than double the aerospace & defense industry average (≈30), and the DCF fair‑value estimate of $101 highlights a significant valuation premium. The dividend yield is modest at 0.08% with a low payout ratio (~5%), indicating sustainability but limited income appeal.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bullish MACD but RSI approaching overbought territory
- Price hovering just below resistance with decreasing volume
- Neutral trend direction despite short‑term technical momentum
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Strong revenue growth and high operating margins
- Robust free cash flow supporting dividend sustainability
- Analyst consensus (20 analysts) with a median target of $361.5 indicating upside potential
Long Term
> 3 yearsNeutral
Model confidence: 5/10
Key Factors
- Defensive aerospace & defense exposure with durable contract base
- High valuation multiples relative to peers and DCF fair value
- Sustainable but low‑yield dividend providing modest income
Key Metrics & Analysis
Financial Health
Revenue Growth14.40%
Profit Margin15.38%
P/E Ratio61.3
ROE16.57%
ROA7.85%
Debt/Equity49.70
P/B Ratio9.6
Op. Cash Flow$909.8M
Free Cash Flow$690.8M
Industry P/E30.1
Technical Analysis
TrendNeutral
RSI65.2
Support$256.11
Resistance$311.90
MA 20$287.17
MA 50$283.31
MA 200$311.91
MACDBullish
VolumeDecreasing
Fear & Greed Index91.39
Valuation
Fair Value$101.18
Target Price$353.15
Upside/Downside13.92%
GradeOvervalued
TypeGrowth
Dividend Yield0.08%
Risk Assessment
Beta1.17
Volatility38.96%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.