| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 31.81 | -30 |
| Intrinsic value (DCF) | 3918.97 | 8532 |
| Graham-Dodd Method | 10.64 | -77 |
| Graham Formula | 37.87 | -17 |
HMS Bergbau AG (HMU.DE) is a Germany-based company specializing in the global trading and distribution of coal and other energy raw materials. Founded in 1995 and headquartered in Berlin, HMS Bergbau serves electricity producers, cement manufacturers, and industrial consumers worldwide. The company offers a diversified portfolio of energy resources, including steam coal, coking coal, and petcoke, alongside metals and minerals like iron ores, copper, and lithium. Additionally, HMS Bergbau provides renewable and complementary products such as wood pellets, biomass, and hydrogen, positioning itself as a versatile player in the energy and raw materials sector. The company also offers value-added services like port management, chartering, quality assessment, and inland transportation, ensuring efficient supply chain solutions. With a strong presence in Europe and beyond, HMS Bergbau AG is a key intermediary in the global energy commodities market, catering to power plants, steel producers, and industrial clients. Its diversified product range and logistical expertise make it a resilient player in the volatile energy trading landscape.
HMS Bergbau AG presents a mixed investment profile. On the positive side, the company operates in a niche but essential segment of the energy supply chain, with diversified revenue streams from coal, metals, and renewable products. Its FY 2023 financials show solid revenue (€1.3B) and net income (€12.4M), with a healthy diluted EPS of €2.72. The company maintains a strong cash position (€36M) and manageable debt (€16.5M), supporting its dividend payout (€0.92 per share). However, the coal trading industry faces long-term risks due to global decarbonization trends, which could pressure demand. Additionally, the company's low beta (0.161) suggests limited correlation with broader markets, which may appeal to risk-averse investors but could also indicate lower growth potential. Investors should weigh HMS Bergbau's stable cash flows against sector-wide regulatory and environmental risks.
HMS Bergbau AG competes in the fragmented global coal and energy commodities trading market. Its competitive advantage lies in its diversified product portfolio, which spans traditional coal products, metals, and emerging renewable energy solutions like biomass and hydrogen. This diversification helps mitigate risks associated with coal market volatility. The company's logistical capabilities, including port management and inland transportation services, add value for clients by ensuring reliable supply chain execution. However, HMS Bergbau operates in a highly competitive space dominated by larger players with greater scale and financial resources. Unlike integrated mining companies, HMS Bergbau's pure-trading model exposes it to margin compression during periods of price volatility. Its focus on Europe and selected global markets provides regional expertise but limits diversification compared to global giants. The company's ability to navigate regulatory changes, particularly in the EU's energy transition policies, will be critical to maintaining its competitive position. Its smaller size allows for agility in niche markets but may restrict access to large-scale contracts secured by multinational competitors.