Heineken underperformed beer sector past year, dividends huge support for investors

Heineken underperformed sector past year

The stock was the past 1 year with a huge profit of 6 percent one of the best stocks in the brewery sector. Over the past 1 year the average stock in the brewery sector had a profit of 13 percent. Other strong performing stocks of the sector are Constellation Brands , AB AB InBev and SABMiller.

Historiscal prices Heineken past 10 years

The stock delivered over the past 12 months a profit of 8 percent. The brewery sector delivered in the same period a profit of 13 percent. On a 5-years basis the stock outperformed her sector with a profit of 111 percent.Over the past 12 months the average Dutch stock has a profit of 5 percent.

Analysts expect more revenue

For this year most of the analyst expect a total sales of 20,75 billion euros. The expectations of the revenue would mean a record revenue for the company. This is slightly more than the revenue over 2015 of 20,51 billion euros.

Historical revenues and results Heineken plus taxations 2016

The analysts estimate for 2016 a net profit of 2,09 billion euros. For this year most of the analysts expect a profit per share of 3,69 euros. Based on the analyst's expectations the price/earnings-ratio is 21,79.

2010 best year, 2009 worst year

The matrix above shows Heineken 's historical returns expressed in the different entry years in the left axis.

The year 2009 is (measured since 2008) with a price loss of 50 percent the worst year. 2010 is till now with a gain of 52 percent the best year for the stock. The stock's total return since 2008 till now equals plus 82 percent.

Per share a dividend of 1,41 euros is expected. The dividend return consequently equals 1,75 percent. The average dividend of the brewery sector equals 1,68 percent.

Historical dividends and dividend returns Heineken

The graph above shows the different returns since 2008. The green line is the total return of the reinvested dividends, the blue line is the price return and the red part is the total return: price returns plus dividend returns.

Dividends rather big support for investors

The past year's dividend payments yielded in an even higher total return for the investors. The investor who bought the share since 2008 and still has it now has a profit of around 82 percent.

Last year's dividends were with 2,2 percent per year below average. The total dividend return since 2008 is a quite moderate 19 percent extra return for the investors. The influence of the received and reinvested dividends on the total return is for the buy & hold investor not so significant.

Core figures sector brewery sector

Heineken 's book to market ratio is currently around 0,29. The brewery sector now trades with an average Shiller PE (CAPE) of 40.49. Based on the number of outstanding shares Heineken 's market capitalization equals 45,81 billion euros.

Heineken is being covered by 22 analysts (only based on fundamental analysis). The average target price for the stock is at 86,67 euros. This is around 8 percent more than the current stock price of 80,41 euros.

Historiscal prices Heineken past 10 years

The stock traded at 12.55 0,61 percent higher at 80,41 euros.

This equals around 28 times the 2015's earnings per share.

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