HENSOLDT AG (HAG) AI Stock Analysis

• Market Cap: €11.08B
• Dividend Yield: 0.54%
• Average Volume (3M): 685.26K
• Price to Earnings (P/E): 117.1
• Beta (1Y): 1.06
• Revenue Growth: 18.53%
• EPS Growth: 73.20%
• Country: DE
• Employees: 8,986
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.10
• Shares Outstanding: 115,500,000
• 10 Day Avg. Volume: 510,472
• 30 Day Avg. Volume: 685,260
• PEG Ratio: 0.45
• Price to Book (P/B): 4.59
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 35.73
• 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: €92.89
• Price Target Upside: -0.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 64 Neutral
• Price Target: €95.00 ▲(1.82% Upside)

HENSOLDT AG's overall score reflects strong financial performance and positive earnings call sentiment, offset by high valuation concerns and mixed technical indicators. The company's strategic positioning and robust order intake are significant strengths, while high leverage and valuation pose risks.

Positive Factors

Strong Order Backlog

A robust order backlog provides excellent visibility for future growth, ensuring sustained revenue streams and strategic stability in the defense market.

Strategic Positioning

Strategic alignment with defense spending trends enhances Hensoldt's market position, securing long-term contracts and supporting revenue growth.

Cash Flow Generation

Strong cash flow generation supports financial health, enabling strategic investments and debt management, crucial for long-term sustainability.

Negative Factors

High Leverage

High leverage poses financial risks, potentially straining cash flow and limiting flexibility, which could impact the company's long-term stability.

Profit Margin Decline

Declining profit margins may affect profitability, necessitating efficiency improvements to maintain competitive advantage and financial health.

Free Cash Flow Decline

Negative free cash flow indicates cash management challenges, potentially affecting the ability to fund operations and strategic initiatives.

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 sale of its highly specialized sensor technologies and integrated solutions to defense and security clients. Key revenue streams include contracts with government defense departments for products such as radar systems, electronic warfare equipment, and avionics solutions. Additionally, HENSOLDT engages in partnerships with other defense companies and leverages its research and development capabilities to innovate and expand its product offerings, contributing to its earnings. The company's revenue is also supported by maintenance, repair, and upgrade services for its products, ensuring ongoing customer engagement and recurring income.

HENSOLDT AG Financial Statement Overview

Summary

HENSOLDT AG demonstrates strong financial health with robust revenue growth, effective cost management, and operational efficiency. Despite high leverage, the company maintains a solid return on equity. However, the decline in free cash flow growth is a potential concern.

Income Statement

HENSOLDT AG has demonstrated strong revenue growth over the past years, with a notable TTM revenue growth rate of approximately 2.90% and a significant increase from 2023. The company maintains healthy gross and net profit margins at 21.89% and 4.03% respectively in the TTM period, indicating effective cost management and profitability. EBITDA margin remains robust at 15.87%, showcasing operational efficiency. However, EBIT margin has slightly decreased from 8.26% in 2024 to 7.59% in the TTM, suggesting a need for closer monitoring of operating expenses.

Balance Sheet

The balance sheet reveals a solid equity position with an equity ratio of 18.89% in the TTM. The debt-to-equity ratio is relatively high at 1.69, indicating leverage that could pose a risk if interest rates rise or cash flows decrease. However, the return on equity remains strong at 10.33%, reflecting efficient use of shareholders' capital. The company shows a consistent ability to maintain its asset base and equity levels, which is crucial for long-term stability.

Cash Flow

HENSOLDT AG exhibits a dependable cash flow position with an operating cash flow to net income ratio of 3.15 in the TTM, suggesting strong cash conversion from profits. Free cash flow has decreased in the TTM period, leading to a negative free cash flow growth rate of -23.21%, which could be a concern if the trend continues. Nonetheless, the free cash flow to net income ratio of 0.92 indicates that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.34B	2.24B	1.85B	1.71B	1.47B	1.21B
Gross Profit	503.00M	509.00M	416.00M	394.00M	329.80M	270.80M
EBITDA	356.00M	379.00M	293.00M	267.00M	249.00M	156.60M
Net Income	91.00M	108.00M	54.00M	78.00M	63.00M	-64.50M
Balance Sheet
Total Assets	4.65B	4.70B	3.84B	2.98B	2.95B	2.95B
Cash, Cash Equivalents and Short-Term Investments	326.00M	734.00M	803.00M	462.00M	534.00M	657.80M
Total Debt	1.44B	1.38B	854.00M	789.00M	943.90M	1.12B
Total Liabilities	3.80B	3.81B	3.02B	2.36B	2.54B	2.60B
Stockholders Equity	836.00M	872.00M	808.00M	604.00M	399.30M	333.90M
Cash Flow
Free Cash Flow	111.00M	112.00M	153.00M	149.00M	197.20M	99.50M
Operating Cash Flow	317.00M	311.00M	267.00M	244.00M	299.20M	196.90M
Investing Cash Flow	-232.00M	-745.00M	-122.00M	-101.00M	-117.10M	-95.00M
Financing Cash Flow	-159.00M	367.00M	197.00M	-214.00M	-297.20M	411.00M

HENSOLDT AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.30
• 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 93.3 is above the 20-day moving average (MA) of 88.73, above the 50-day MA of 93.04, and above the 200-day MA of 68.53, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 76.57 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
Sector *	65 Neutral	$2.69B	14.97	12.10%	3.43%	2.94%	43.39%
HAG	64 Neutral	€11.08B	117.15	11.52%	0.54%	18.53%	73.20%
0ZPV	―	€926.69M	12.01	7.86%	1.45%	―	―
0FC9	―	€19.41B	22.77	24.74%	―	―	―
0FH7	―	€1.28B	215.59	1.42%	0.90%	―	―
0NI1	―	€86.28B	97.28	21.91%	―	―	―
R3NK	64 Neutral	€7.09B	90.07	19.17%	0.59%	21.91%	125.93%