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Is It Too Late To Consider Buying Heidelberg Materials AG (ETR:HEI)?

Simply Wall St · 1d ago

Let's talk about the popular Heidelberg Materials AG (ETR:HEI). The company's shares saw a decent share price growth of 20% on the XTRA over the last few months. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Heidelberg Materials’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What's The Opportunity In Heidelberg Materials?

Great news for investors – Heidelberg Materials is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is €358.13, but it is currently trading at €224 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Heidelberg Materials’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

View our latest analysis for Heidelberg Materials

What kind of growth will Heidelberg Materials generate?

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XTRA:HEI Earnings and Revenue Growth December 16th 2025

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Heidelberg Materials' earnings over the next few years are expected to increase by 50%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since HEI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HEI for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HEI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

So while earnings quality is important, it's equally important to consider the risks facing Heidelberg Materials at this point in time. At Simply Wall St, we found 1 warning sign for Heidelberg Materials and we think they deserve your attention.

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