| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 6.70 | 2128 |
| Graham Formula | n/a |
HELMA Eigenheimbau AG is a Germany-based company specializing in residential property development and construction services. Founded in 1980 and headquartered in Lehrte, the company operates through three key segments: Building Services Business, Property Development Business, and Other. The Building Services segment focuses on turnkey detached and semi-detached houses, offering end-to-end solutions from planning to construction management. The Property Development segment targets holiday homes, apartments, and multi-storey residential buildings, catering to diverse housing needs. Additionally, the Other segment provides financing and insurance brokerage services related to construction. HELMA Eigenheimbau AG plays a significant role in Germany's consumer cyclical sector, particularly in residential real estate, leveraging its expertise in sustainable and customized housing solutions. With a market capitalization of approximately €1.2 million, the company remains a niche player in the German construction and property development market.
HELMA Eigenheimbau AG presents a mixed investment profile. The company operates in Germany's competitive residential construction sector, with a modest market cap of €1.2 million and a low beta of 0.42, indicating lower volatility compared to the broader market. While revenue stood at €302.45 million in FY 2022, net income was a modest €2.1 million, reflecting thin margins. The company's operating cash flow of €10.47 million and cash reserves of €18.76 million provide some financial stability, but high total debt of €231.05 million raises concerns about leverage. The absence of dividends may deter income-focused investors. Given its niche focus and regional operations, HELMA's growth prospects depend on Germany's housing demand and economic conditions. Investors should weigh its established market presence against sector competition and financial constraints.
HELMA Eigenheimbau AG competes in Germany's fragmented residential construction market, where regional players and large developers vie for market share. The company's competitive advantage lies in its integrated service model, offering turnkey solutions from planning to construction, which appeals to customers seeking convenience. Its focus on detached and semi-detached houses, as well as holiday properties, differentiates it from mass-market developers. However, HELMA's small scale limits its ability to compete on cost efficiency compared to larger firms. The company's property development segment faces stiff competition from both local builders and national players with stronger financial resources. While HELMA's broking services for financing and insurance add value, they are not a significant differentiator. The firm's low beta suggests resilience to market swings, but its high debt load could constrain flexibility in a rising interest rate environment. Overall, HELMA's regional expertise and customer-centric approach provide a niche positioning, but scalability and financial leverage remain key challenges.