HENSOLDT AG (HAG) AI Stock Analysis

• Market Cap: €11.45B
• Dividend Yield: 0.52%
• Average Volume (3M): 978.86K
• Price to Earnings (P/E): 123.1
• Beta (1Y): 1.16
• Revenue Growth: 25.46%
• EPS Growth: 41.26%
• Country: DE
• Employees: 8,986
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): -0.26
• Shares Outstanding: 115,500,000
• 10 Day Avg. Volume: 1,339,391
• 30 Day Avg. Volume: 978,860
• PEG Ratio: 0.20
• Price to Book (P/B): 13.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 102.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €83.33
• Price Target Upside: -13.74% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: €109.00 ▲(12.84%Upside)

HENSOLDT AG's strong financial performance and promising growth outlook from the earnings call are major strengths. However, the overvaluation indicated by the high P/E ratio and overbought technical indicators pose risks. The stock's overall score reflects a balance of these factors, suggesting cautious optimism.

Positive Factors

Business Growth

The sale of a lower margin activity could be well-received and enable stronger growth in Optronics.

Revenue Ambition

Longer-term, the increase in the 2030 revenue ambition will be welcomed, based on a modest 2.5% of GDP defense spend assumption.

Negative Factors

Financial Performance

EBITDA margins were weaker than expected, dropping 240 basis points year over year.

Production Challenges

Hensoldt posted a soft Q1 performance, with a weaker performance in Sensors due to the new logistics center ramp-up interrupting production.

HENSOLDT AG Business Overview & Revenue Model

Company Description

Hensoldt AG, together with its subsidiaries, provides defense and security electronic sensor solutions worldwide. It offers air surveillance, airborne, ground based, security, naval and coastal, and space radars; identification friend or foe and secure data links; and commercial shipping solutions. The company also provides airborne, vehicle, surveillance, and maritime optronics; space optics; optronic sensor devices; and sights, scopes, and night-vision attachments. In addition, it offers electronic support/SIGINT products, receivers, direction finders, electronic attackers/jammers, self-protection EW software suites and ground support stations, and electronic warfare systems. Further, the company provides avionics, including airborne computing, flight and mission data recording and management, connectivity, mission management/pilot assistance, video management, unmanned, mission planning support, data analysis and evaluation, and cloud solutions, as well as integrated airborne solutions; and counter UAV solutions, and command and control software products. Additionally, it offers products and system support, simulation, and training services; and antenna, cabling, shelter, and tester solutions. The company is headquartered in Taufkirchen, Germany.

How the Company Makes Money

HENSOLDT AG generates revenue primarily through the development, manufacturing, and sale of advanced sensor solutions and systems. The company's key revenue streams include contracts with government defense departments, international military organizations, and commercial entities seeking state-of-the-art electronic systems for security and surveillance applications. HENSOLDT also engages in strategic partnerships and collaborations that enhance its technological offerings and market reach, contributing to its earnings. Additionally, the company provides maintenance, repair, and upgrade services for its products, ensuring ongoing customer support and additional income.

HENSOLDT AG Financial Statement Overview

Summary

HENSOLDT AG demonstrates strong revenue and profit growth, with a 21.3% increase in revenue and improved net profit margin at 4.8%. However, the 0% EBIT margin and high leverage with a debt-to-equity ratio of 1.58 are concerns that need addressing for long-term stability.

Income Statement

HENSOLDT AG shows strong revenue growth with a 21.3% increase from 2023 to 2024. Gross profit margin is at 22.7%, indicating efficient cost management. However, the EBIT margin is 0% for 2024, which is a concern despite a solid EBITDA margin of 16.9%. The net profit margin improved to 4.8%, reflecting better profitability.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.58, indicating significant leverage, which could pose future financial risks. However, the equity ratio is 18.6%, showing moderate reliance on equity financing. Return on equity is 12.4%, suggesting effective use of equity to generate profits.

Cash Flow

Operating cash flow increased to €311 million, showing robust cash-generating ability. However, free cash flow declined by 26.8% from 2023 to 2024. The ratio of operating cash flow to net income is strong at 2.88, indicating good cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.24B	1.85B	1.71B	1.47B	1.21B
	Gross Profit
509.00M	416.00M	394.00M	329.80M	270.80M
	EBIT
185.00M	157.00M	174.00M	116.50M	62.50M
	EBITDA
379.00M	293.00M	267.00M	249.00M	156.60M
	Net Income Common Stockholders
108.00M	54.00M	78.00M	63.00M	-64.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
734.00M	803.00M	462.00M	534.00M	657.80M
	Total Assets
4.70B	3.84B	2.98B	2.95B	2.95B
	Total Debt
1.38B	854.00M	789.00M	943.90M	1.12B
	Net Debt
642.00M	52.00M	329.00M	414.60M	473.10M
	Total Liabilities
3.81B	3.02B	2.36B	2.54B	2.60B
	Stockholders Equity
872.00M	808.00M	604.00M	399.30M	333.90M
Cash Flow		Free Cash Flow
112.00M	153.00M	149.00M	197.20M	99.50M
	Operating Cash Flow
311.00M	267.00M	244.00M	299.20M	196.90M
	Investing Cash Flow
-745.00M	-122.00M	-101.00M	-117.10M	-95.00M
	Financing Cash Flow
367.00M	197.00M	-214.00M	-297.20M	411.00M

HENSOLDT AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HAG, the sentiment is Positive. The current price of 96.6 is above the 20-day moving average (MA) of 86.70, above the 50-day MA of 73.54, and above the 200-day MA of 47.50, indicating a bullish trend. The MACD of 7.65 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 42.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HAG.

HENSOLDT AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAG	70 Outperform	€11.45B	123.08	10.95%	0.52%	25.46%	41.26%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
EADSF		$149.16B	31.37	21.75%	1.14%	―	―
0R3U		€9.67B	31.47	10.12%	1.08%	―	―
0FC9		€19.11B	30.05	20.33%	0.62%	―	―
0NI1		€80.99B	103.24	21.45%	0.45%	―	―
0P6M		€171.36B	17.50	15.14%	2.38%	―	―