Helma Eigenheimbau

DB: H5E

€132m market cap

€33 last close

Helma Eigenheimbau provides development, planning, sales, finance advisory and construction services for turnkey, low rise, domestic properties. It uses solid construction techniques, usually block and render. It operates mainly in cities in middle and north Germany and in Munich.

Investment summary

Helma’s decision to maximise margins at the expense of top-line growth amid the present market constraints seems to be bearing fruit, as illustrated by the solid earnings momentum in H118. Residential demand in Germany remains buoyant against the backdrop of a structural housing shortage. In the longer term, Helma’s robust land bank (representing a revenue potential of c €1.2bn according to management) should allow the company to benefit from these fundamentals. Helma’s shares trade at a P/E ratio for FY19e of 8.7x, which is a 17% discount to peer average.

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual (2.7) 12.1 (15.4)
Relative* (5.1) 10.3 (7.6)
52-week high/low €40.1/€29.4
*% relative to local index
Key management
Gerrit Janssen CFO
Elaine Hirsch CFO Assistant