One-glance verdict
Within fair range
$49.03 our estimate vs market $42.95
Wall Street consensus: $49.50 (1.0% higher than our fair-value estimate)
12% below our estimate
Fundamentals snapshot
Heineken N.V.
HEINY · OQX · Consumer Defensive · Beverages - Brewers
Current price
$42.95
52-week range
$37.03 - $47.63
Market cap
$47.52B
Balance sheet
Watch
5.17x Adequate
Net debt $19.93B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 12.1% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 6.6% over 3 years.
- Risk Operating margin compressed from 14.7% to 10.5% over 3 years.
What this company does
Heineken N.V.
Heineken N.V. makes and sells a lot of different beers and ciders around the world, with their main money coming from selling these drinks to places like grocery stores, bars, and restaurants. This matters because their sales numbers show how well they are doing at getting people to buy their beverages, impacting the profits they have left over after paying for things like brewing and distribution.
How the company got here
Heineken N.V. has a long history, starting in 1864 when Gerard Adriaan Heineken bought a brewery in Amsterdam. The company grew steadily over the decades, expanding its reach both within the Netherlands and internationally. A key turning point was its focus on building a global brand, making the Heineken name recognizable worldwide. Over time, it acquired numerous other breweries and brands, diversifying its portfolio and strengthening its market position. Today, it's a subsidiary of Heineken Holding N.V., continuing its legacy as a major player in the global beverage industry.
What it actually does
Heineken N.V. is primarily known for brewing and selling beer, but it also produces and distributes cider and soft drinks. You'd recognize their products in supermarkets and bars, from the flagship Heineken brand to others like Amstel, Tiger, and Strongbow. They sell these beverages to a wide range of customers, including grocery stores, restaurants, and pubs, making their drinks accessible to consumers around the world. The company operates across multiple continents, ensuring their products are available in diverse markets.
Beer and Cider
This is the core of Heineken's business, where they brew and sell a vast array of beer and cider brands. This segment includes well-known names like Heineken, Amstel, and Tiger, as well as cider brands such as Strongbow and Orchard Thieves. These products are sold to retailers, wholesalers, and directly to hospitality venues like bars and restaurants. This segment represents the largest portion of Heineken's revenue, as beer and cider are their most popular and widely distributed offerings.
Soft Drinks
Beyond alcoholic beverages, Heineken also offers a selection of soft drinks. While this is a smaller part of their overall business compared to beer and cider, it allows them to cater to a broader range of consumer preferences and occasions. These non-alcoholic options provide an alternative for those who choose not to consume alcohol. This segment contributes to their total sales, though it is not the primary driver of their revenue.
Other Activities
Heineken also engages in related activities that support its main beverage business. This includes the rental of pubs and bars, which provides a direct channel for selling their products and maintaining brand presence. They also conduct wholesale activities, distributing their own and potentially other brands to various outlets. Additionally, they offer pub management and technical services, leveraging their expertise in the hospitality sector. These activities, while not as significant in revenue as brewing, are important for their overall market strategy and reach.
What management is betting on now
Heineken's management is focused on growing its global presence and strengthening its brand portfolio. A key priority is expanding its reach in emerging markets, where there's significant potential for growth in beer and cider consumption. They are also investing in innovation, particularly with the expansion of their non-alcoholic offerings like Heineken 0.0, to meet changing consumer demands. Furthermore, the company is committed to sustainability initiatives, aiming to reduce its environmental impact throughout its operations and supply chain (the network involved in producing and delivering its products).
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $49.03 vs current price $42.95
Wall Street consensus is the average analyst price target: $49.50 (1.0% higher than our fair-value estimate).
Our most-likely fair value is $49.03 a share — about 14.2% away from today's price of $42.95, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $19.9B. Interest coverage 5.2x.
Net debt
$19.93B
Interest coverage
5.17x
Heineken N.V.'s profit covers its interest bill about 5.2 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
HEINY
BASELINE
Heineken N.V.
Total debt $23.09B Interest coverage 5.17x This is the baseline the peer rows are being compared against.
Total debt $72.73B Interest coverage 4.05x -22% vs HEINY Carries about 1.3x less debt cushion than HEINY.
Total debt $22.20B Interest coverage 2.94x -43% vs HEINY Carries about 1.8x less debt cushion than HEINY.
Total debt $10.32B Interest coverage 7.92x +53% vs HEINY Carries about 1.5x more debt cushion than HEINY.
Total debt $7.91B Interest coverage 6.58x +27% vs HEINY Carries about 1.3x more debt cushion than HEINY.
Total debt $8.99B Interest coverage 4.32x -16% vs HEINY Carries about 1.2x less debt cushion than HEINY.
What you should know
The case for and against HEINY
3 Rewards
3 Risks
Rewards
-
Returns 12.1% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 2.6% with 26-year payout history.
Risks
-
Net debt grew 6.6% over 3 years.
-
Operating margin compressed from 14.7% to 10.5% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.97x
Forward P/E
13.23x
P/B
10.96x
P/S
1.62x
EV/EBITDA
46.60x
PEG ratio
1.32x
Profitability
How much profit each dollar creates
Gross margin
37.0%
Operating margin
10.5%
Net margin
7.7%
ROE
12.1%
ROA
4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.95x
Current ratio
0.75x
Quick ratio
0.51x
Total debt
$23.09B
Total cash
$3.17B
Growth
How the business has been compounding
Revenue TTM
$32.90B
Revenue 5Y CAGR
0.0%
EPS TTM
2.39
EPS 5Y CAGR
-10.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.61B
Free CF TTM
$2.92B
FCF margin
8.9%
Dividend
Shareholder payout
Yield
2.6%
Payout ratio
47.2%
Last ex-div date
2026-08-10