Gross Margin StrengthA 43.8% gross margin indicates the core manufacturing business retains substantial value per unit sold. This durable cost structure provides buffer against demand swings, supports reinvestment in tooling/R&D, and helps preserve operating leverage even if top-line growth is uneven over months.

Improved LeverageSubstantially lower leverage reduces financial risk and interest burden, increasing flexibility to fund operations or strategic initiatives. This balance-sheet repair strengthens resilience to cyclical auto demand and preserves optionality for capex or restructuring over the next several quarters.

Contracted Revenue & R&DLong-term contracts with OEMs and sustained R&D investment create durable demand visibility and technical differentiation. Economies of scale in production lower unit costs as volumes recover, supporting competitive positioning and the ability to secure future program awards over the medium term.

Bears Say

Declining Revenue TrendA steep multi-year revenue decline reduces scale benefits and weakens negotiating leverage with suppliers and OEM customers. Lower volumes can raise unit costs, pressure margins, and make it harder to absorb fixed overhead, creating persistent headwinds for profitability in coming quarters.

Negative Operating Cash FlowNegative operating and free cash flow signals the core business currently cannot self-fund operations or required capex. Over several months this forces reliance on external financing or asset draws, increasing refinancing risk and constraining strategic investments or recovery initiatives.

Persistent Losses & Equity ErosionSustained net losses and a sharp drop in equity erode capital cushions and reduce financial flexibility. This depletes reserves used to fund turnaround efforts, can impair credit metrics, and increases risk of covenant pressure or dilutive financing if profitability doesn't recover within several quarters.

HGEA FAQ

What was hGears AG’s price range in the past 12 months?

hGears AG lowest stock price was €1.30 and its highest was €2.26 in the past 12 months.

What is hGears AG’s market cap?

hGears AG’s market cap is €15.29M.

When is hGears AG’s upcoming earnings report date?

hGears AG’s upcoming earnings report date is Mar 25, 2026 which is in 48 days.

How were hGears AG’s earnings last quarter?

Currently, no data Available

Is hGears AG overvalued?

According to Wall Street analysts hGears AG’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does hGears AG pay dividends?

hGears AG does not currently pay dividends.

What is hGears AG’s EPS estimate?

hGears AG’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does hGears AG have?

hGears AG has 10,400,000 shares outstanding.

What happened to hGears AG’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of hGears AG?

Currently, no hedge funds are holding shares in DE:HGEA

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

hGears AG Stock Smart Score

Neutral

Technicals

Fundamentals

Return on Equity

-35.15%

Trailing 12-Months

Asset Growth

-23.04%

Trailing 12-Months

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Company Description

hGears AG

hGears AG develops, manufactures, and supplies precision components and sub-systems, and system solutions worldwide. The company offers gears, sprockets, shafts, structural components, complete gearboxes, and other components. Its products are used in e-bikes, and electric and hybrid vehicles, as well as e-drive power and gardening tools. The company was founded in 1958 and is headquartered in Schramberg, Germany.