One-glance verdict
Undervalued
$43.67 our estimate vs market $39.49
Wall Street consensus: $50.50 (15.6% higher than our fair-value estimate)
10% below our estimate, below the bear case
Fundamentals snapshot
Heineken N.V.
HEINY · OQX · Consumer Defensive · Beverages - Brewers
Current price
$39.49
52-week range
$37.03 - $47.63
Market cap
$43.74B
Balance sheet
Watch
5.17x Adequate
Net debt $20.10B. 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 is one of the world's largest brewers, selling famous beers like its namesake Heineken, Amstel, and Dos Equis in nearly every country. The company earns money primarily by selling its wide variety of drinks to stores, restaurants, and bars, and also generates income from renting out pubs it owns. This global presence with many popular brands means its success isn't tied to the economy of just one region.
How the company got here
Heineken started in 1864 when 22-year-old Gerard Adriaan Heineken bought a brewery in Amsterdam. A key early decision was to brew a consistent, high-quality lager-style beer, which was different from the ales and porters common in the Netherlands at the time. This focus on quality, including the development of their unique A-yeast, helped the brand become popular. The company expanded internationally, notably becoming one of the first imported beers in the U.S. after Prohibition ended. Over the decades, it grew by acquiring other breweries, like Amstel in 1968, and expanding its reach into new countries, making it one of the largest brewers in the world.
What it actually does
Heineken is a global company that primarily makes and sells beer and cider. You would recognize their flagship brand, Heineken, with its iconic green bottle, but they own over 300 other brands that are popular in different parts of the world. Their products range from well-known international beers like Amstel and Tiger to local favorites and even non-alcoholic options like Heineken 0.0. They sell these drinks to retailers, bars, and restaurants in over 190 countries.
Europe
This is Heineken's home turf and a major market, where it sells a wide variety of its beers and ciders. In addition to the global Heineken brand, it sells many brands that are local favorites in specific countries, such as Birra Moretti in Italy and Cruzcampo in Spain. This region is a significant contributor to the company's overall sales. Customers here range from individual shoppers in supermarkets to pubs and restaurants that serve the beer on tap.
Americas
In North, Central, and South America, Heineken sells its famous imported beers like Heineken and Dos Equis. The company also owns and markets popular local brands, such as Tecate in Mexico and Amstel in Brazil. This part of the business is very important for growth, especially in emerging markets (countries with developing economies) like Brazil and Mexico. They sell to a vast network of distributors who then supply stores, bars, and restaurants across the continents.
Africa, Middle East & Eastern Europe
This segment covers a diverse and growing set of markets for Heineken. The company operates breweries in many African countries and sells popular local brands like Windhoek and the cider brand Savanna. This region represents a key area for future growth as beer consumption increases. Sales are made to a wide range of customers, from small local shops to larger distributors.
Asia Pacific
In this region, Heineken is known for its premium brands, including the flagship Heineken and Tiger, which is a leading premium beer from Asia. The company also brews and sells local brands like Bintang in Indonesia and Kingfisher in India. This is another important growth area for the company, with a focus on appealing to the rising number of middle-class consumers. They sell their products through various channels, including partnerships with local companies.
What management is betting on now
The company's current strategy, called 'EverGreen', focuses on achieving steady, balanced growth. A major part of this is 'premiumisation' (encouraging customers to choose more expensive, higher-quality brands) and expanding their low and non-alcoholic drinks, like Heineken 0.0, to appeal to changing consumer tastes. They are also investing heavily in digital technology to improve how they sell and market their products and to make their operations more efficient. Management is also focused on sustainability (running the business in an environmentally and socially responsible way) as a core part of their plan.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $43.67 vs current price $39.49
Wall Street consensus is the average analyst price target: $50.50 (15.6% higher than our fair-value estimate).
Our most-likely fair value is $43.67 a share — about 10.6% above today's price of $39.49, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $20.1B. Interest coverage 5.2x.
Net debt
$20.10B
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 $23.30B 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 $10.53B 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 $9.07B 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 2.9% 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)
16.95x
Forward P/E
11.86x
P/B
9.99x
P/S
1.49x
EV/EBITDA
42.13x
PEG ratio
1.18x
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
$23.30B
Total cash
$3.20B
Growth
How the business has been compounding
Revenue TTM
$33.20B
Revenue 5Y CAGR
0.0%
EPS TTM
2.33
EPS 5Y CAGR
-10.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.66B
Free CF TTM
$2.95B
FCF margin
8.9%
Dividend
Shareholder payout
Yield
2.9%
Payout ratio
46.3%
Last ex-div date
2026-08-10