Hochtief AG

HOT.DE

Engineering & Construction · Industrials

Price

€427.60

+1.40 (+0.33%)

Market Cap

€32.18B

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Good

Cash Flow

Strong

Stability

Weak

Valuation

Good

Dividends

Good

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Share count rising — dilution

+10.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 68.2M (2021) → 75.2M (2025)

Winston Score History

The full picture

Hochtief is a large German construction and infrastructure company. It builds and manages major projects like highways, bridges, airports, tunnels, and large buildings for governments and private clients around the world. It is one of the largest construction groups in the world and owns a majority stake in CIMIC Group in Australia and controls Turner Construction, one of the biggest building contractors in the United States.

Hochtief earns money by winning contracts to design, build, and sometimes operate large infrastructure projects, collecting fees and a share of revenues over the life of those contracts. The company operates across Europe, the Americas, and Asia-Pacific, generating tens of billions in annual revenue. Its main competitive advantage is its scale and long track record winning complex, high-value public contracts. The key risk is that construction is a low-margin business heavily dependent on government spending cycles, and cost overruns on large fixed-price contracts can quickly erase profits.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+48.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

€0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

80.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€11.7B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Hochtief AG is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

7.1%

Thin — 7.1% gross margin

Profit after running costs

Operating Margin

3.9%

Thin — 3.9% operating margin

Return on the money invested

ROCE

15.2%

Strong — 15.2% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+8.1%

Steady sales growth (+8.1% YoY)

Profit growth

EPS YoY

+8.3%

Earnings growing (+8.3% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

261%

Turns 261% of profit into real cash

Spare cash per sale

FCF Margin

4.7%

Thin free cash flow (4.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

7.29

Heavy debt load (7.29)

Covers its interest

Interest Cover

3.22x

Tight — interest eats into profit (3.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

36.2x

Pricey — P/E 36.2

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+15.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (36.2 → 21.0)

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Dividends

Dividend

Dividend Yield

1.49%

Small dividend — 1.49% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+21.7%

Dividend growing fast (21.7% YoY)

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