Download PDF

1. Company Snapshot

1.a. Company Description

HORNBACH Holding AG & Co. KGaA, through its subsidiaries, develops and operates do-it-yourself (DIY) megastores with garden centers in Germany and other European countries.Its stationary stores offer approximately 50,000 articles in various divisions, including hardware/electrical, paint/wallpaper/flooring, construction materials/timber/prefabricated components, sanitary/tiles, and garden hardware/plants.The company also provides a range of construction materials and tools stocked and supply services, as well as professional advice for various product ranges and lines of trade, including shell construction and roofing; interior fittings and facades; and civil engineering, and garden and landscape construction materials for construction, conversion, or refurbishment projects.


In addition, it develops and rents retail real estate properties.As of February 28, 2022, the company operated 165 DIY megastores and garden centers, including 98 stores in Germany; and 14 stores in Austria, 16 stores in the Netherlands, 1 store in Luxembourg, 10 stores in the Czech Republic, 8 stores in Switzerland, 8 stores in Sweden, 4 stores in Slovakia, and 8 stores in Romania, as well as 36 builders' merchant outlets in south-western Germany, and two specialist stores in France.It also operates HORNBACH online stores.


The company was founded in 1877 and is based in Bornheim, Germany.

Show Full description

1.b. Last Insights on HBH

The recent earnings release of HORNBACH Holding KGaA revealed a decline in EPS to €1.06, down from €1.76 in the same quarter last year. Revenue growth was modest, up 1.3% to €1.51b. The company's ownership structure, with private companies holding 37% of shares, may limit individual investors' influence. The decline in EPS and modest revenue growth may be weighing on the company's prospects, as individual investors own only 27% of shares.

1.c. Company Highlights

2. HORNBACH Holding's Q3 Results: Steady Performance Amidst Challenging Environment

HORNBACH Holding reported a net sales figure of EUR 5.1 billion for the nine-month period, representing a 3.8% increase from the previous year. The company's like-for-like sales rose by 2.6%, with Germany recording 0.7% growth and other European countries growing 4.3% on a like-for-like basis. The gross margin was slightly higher than last year, amounting to 34.7%. Earnings per share (EPS) came in at EUR 1.75, marginally below analyst estimates of EUR 1.76. Adjusted EBIT after 9 months was at the previous year's level, and the company maintained its guidance for the full year adjusted EBIT to be at the previous year's level.

Publication Date: Dec -20

📋 Highlights
  • Net Sales Growth:: Achieved EUR 5.1 billion in net sales, a 3.8% year-over-year increase with Baumarkt subgroup sales up 4%.
  • Like-for-Like Sales Momentum:: Like-for-like sales rose 2.6% (9-months), driven by 4.3% growth in Europe excluding Germany and 10% in the Netherlands.
  • E-commerce Expansion:: Online sales accounted for 12.9% of total sales, growing 8.1% year-over-year with strong Q3 performance.
  • Margin Stability:: Gross margin held at 34.7%, while adjusted EBIT matched prior-year levels despite EUR 6 million higher preopening costs.
  • Capital Investment Strategy:: CapEx reached EUR 167 million (9-months), with full-year guidance up to EUR 230 million for expansion, including 6–8 new stores in Serbia.

Segment Performance

The Baumarkt subgroup grew sales by 4%, gaining market share in Germany and across Europe. The Netherlands and Sweden were strong with nearly 10% and 4% growth, respectively. E-commerce sales rose by 8.1%, driven by strong growth in the first 6 months and a solid performance in Q3. As Antje Kelbert mentioned, "E-commerce accounted for 12.9% of total sales in the last 9 months and is growing."

Expansion Strategy

HORNBACH is continuing its expansion strategy, with capital expenditure reaching EUR 167 million, up from EUR 107 million last year. The company has secured 3-4 store locations in Serbia and plans to open 6-8 stores in the country. Capital expenditure is expected to remain elevated in the coming years, with a forecasted EUR 230 million for this year.

Valuation

With a P/E Ratio of 9.6 and an EV/EBITDA of 4.92, HORNBACH's valuation appears reasonable. The company's ROE stands at 6.91%, and ROIC is at 5.19%. The dividend yield is 2.85%, providing a relatively stable return for investors. Analysts estimate next year's revenue growth at 2.7%, which is slightly above the current year's performance.

Outlook

The full-year outlook remains unchanged, with adjusted EBIT expected to be at the level of the previous year. HORNBACH is confident in its long-term opportunities and is committed to price leadership and being a trusted partner for its customers. As Joanna Kowalska stated, "We're committed to price leadership and being a trusted partner for our customers."

3. NewsRoom

Card image cap

HORNBACH Holding AG & Co. KGaA (ETR:HBH) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Dec -24

Source:

Card image cap

Is Now The Time To Look At Buying HORNBACH Holding AG & Co. KGaA (ETR:HBH)?

Dec -22

Source:

Card image cap

Allego and HORNBACH to create at least 160 fast-charging stations at 20 DIY stores in 2026

Sep -23

Source:

Card image cap

HORNBACH Holding AG & Co. KGaA's (ETR:HBH) Intrinsic Value Is Potentially 74% Above Its Share Price

Sep -15

Source:

Card image cap

HORNBACH Redefines Retail Innovation with Solace's Real-time, Event-Driven Integration Platform

Sep -09

Source:

Card image cap

HORNBACH Holding AG & Co. KGaA (ETR:HBH) stock most popular amongst private companies who own 37%, while individual investors hold 27%

Aug -05

Source:

Card image cap

Is Now An Opportune Moment To Examine HORNBACH Holding AG & Co. KGaA (ETR:HBH)?

Jul -15

Source:

Card image cap

HORNBACH Holding AG and Co KGaA (WBO:HBH) Q1 2026 Earnings Call Highlights: Strong Sales Growth ...

Jun -25

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

HORNBACH Baumarkt AG

Expected Growth: 4.5%

Growing demand for home improvement and gardening products, increasing popularity of DIY projects, and expansion of online shopping platforms drive the growth of HORNBACH Baumarkt AG's market share.

HORNBACH Baustoff Union GmbH

Expected Growth: 4.5%

The German DIY market is driven by increasing demand for home improvement and renovation, fueled by a growing elderly population and government initiatives promoting energy-efficient renovations. HORNBACH's strong brand presence and wide range of building materials position the company for growth.

Consolidation

Expected Growth: 4.5%

Consolidation of HORNBACH Holding AG & Co. KGaA's subsidiaries drives growth through improved operational efficiency, enhanced financial transparency, and better resource allocation, leading to a forecast CAGR of 4.5%.

HORNBACH Immobilien AG

Expected Growth: 4.5%

Growing e-commerce demand drives logistics property development, while retail property growth is fueled by omnichannel retailing and urbanization. HORNBACH Immobilien AG's diversified portfolio and strategic locations position it for steady growth.

7. Detailed Products

Building Materials

Hornbach offers a wide range of building materials, including lumber, roofing, drywall, and insulation, for construction and renovation projects.

Gardening and Landscaping

Hornbach provides a selection of gardening and landscaping products, including plants, fertilizers, and outdoor furniture, for creating and maintaining outdoor spaces.

Kitchen and Bathroom Fittings

Hornbach offers a range of kitchen and bathroom fittings, including sinks, faucets, and toilets, for renovation and construction projects.

Decorative and DIY Products

Hornbach provides a variety of decorative and DIY products, including paints, wallpapers, and decorative items, for home decoration and renovation.

Tools and Machinery

Hornbach offers a range of tools and machinery, including power tools, hand tools, and machinery, for construction, renovation, and DIY projects.

Sanitary and Heating Products

Hornbach provides a selection of sanitary and heating products, including boilers, radiators, and pipes, for plumbing and heating systems.

8. HORNBACH Holding AG & Co. KGaA's Porter Forces

Forces Ranking

Threat Of Substitutes

HORNBACH's products are moderately substitutable, as customers can opt for alternative home improvement retailers or online marketplaces. However, HORNBACH's strong brand reputation and wide product range mitigate the threat of substitutes.

Bargaining Power Of Customers

HORNBACH's customers have limited bargaining power due to the company's strong market position and wide product range. Additionally, the home improvement market is characterized by a large number of small, independent customers, which further reduces their bargaining power.

Bargaining Power Of Suppliers

HORNBACH's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers for certain products. However, HORNBACH's strong relationships with suppliers and its ability to negotiate prices mitigate the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the home improvement market, including the need for significant capital investment and established supply chains. Additionally, HORNBACH's strong brand reputation and market position make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The home improvement market is highly competitive, with several established players competing for market share. HORNBACH faces intense competition from rivals such as Obi, Max Bahr, and Hornbach Baumax, which drives prices down and increases marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.69%
Debt Cost 4.88%
Equity Weight 70.31%
Equity Cost 10.89%
WACC 9.11%
Leverage 42.22%

11. Quality Control: HORNBACH Holding AG & Co. KGaA passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Debica

A-Score: 6.6/10

Value: 8.7

Growth: 3.9

Quality: 4.2

Yield: 8.1

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Atal

A-Score: 6.2/10

Value: 5.9

Growth: 3.6

Quality: 5.3

Yield: 10.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Wickes

A-Score: 5.9/10

Value: 5.6

Growth: 4.0

Quality: 3.3

Yield: 8.1

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
HORNBACH

A-Score: 5.5/10

Value: 8.7

Growth: 4.1

Quality: 3.6

Yield: 4.4

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Fiskars

A-Score: 4.6/10

Value: 3.5

Growth: 2.4

Quality: 2.8

Yield: 8.1

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Victorian Plumbing

A-Score: 3.2/10

Value: 3.1

Growth: 5.7

Quality: 4.1

Yield: 3.8

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

83.3$

Current Price

83.3$

Potential

-0.00%

Expected Cash-Flows