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HENSOLDT AG (DE:HAG)
:HAG
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HENSOLDT AG
(XETRA:HAG)
Rating:79Outperform
Price Target:
€104.00
▲(12.07%Upside)
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 (HAG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€10.72B
Dividend Yield0.54%
Average Volume (3M)1.03M
Price to Earnings (P/E)115.3
Beta (1Y)1.15
Revenue Growth25.46%
EPS Growth41.26%
CountryDE
Employees8,986
SectorIndustrials
Sector Strength90
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.26
Shares Outstanding115,500,000
10 Day Avg. Volume1,327,429
30 Day Avg. Volume1,031,773
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)13.13
Price to Sales (P/S)0.00
P/FCF Ratio102.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€83.33Price Target Upside-10.20% Downside
Rating ConsensusHold
Number of Analyst Covering9
HENSOLDT AG Business Overview & Revenue Model
Company DescriptionHensoldt 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 MoneyHENSOLDT 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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 33.72%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Hensoldt's earnings call highlighted strong growth in order intake, revenue, and strategic partnerships, despite temporary production challenges and muted performance in specific business segments. The company is well-positioned for future growth, supported by a new financing agreement and a record backlog.Q1-2025 Updates
Positive Updates
Strong Order Intake and Backlog
Order intake reached EUR701 million, with a record backlog of over EUR6.9 billion, providing excellent visibility for future growth.
Increased Revenue in Optronics
Revenue for the group increased to EUR395 million, driven by a strong performance in the Optronics business, which saw revenue growth of 45%.
Strategic Partnership with Quantum Systems
Hensoldt entered into a strategic partnership with Quantum Systems, enhancing capabilities in sensors and sensor fusion with Quantum's unmanned aerial platforms.
New Financing Agreement
Hensoldt completed a comprehensive refinancing with a new EUR1.8 billion syndicated loan agreement, enhancing financial independence and flexibility.
Record-breaking Revenue Forecast
Hensoldt forecasts revenue to increase to between EUR2.5 billion and EUR2.6 billion for the fiscal year 2025.
Negative Updates
Temporary Production Challenges
The sensor segment had a slower start due to the ramp-up of a new centralized logistics center, impacting production and revenue temporarily.
Muted Performance in South African Entity
The South African entity of the Optronics business showed muted performance, affected by ongoing technology changes and strategic realignment.
Adjusted EBITDA Margin Impact
Adjusted EBITDA margin of 7.6% was lower due to product mix effects and temporary lower productivity in the sensor segment.
Company Guidance
In the call, Hensoldt provided guidance indicating a strong financial outlook and strategic positioning for future growth. The company reported a robust order intake of EUR701 million in the first quarter of 2025, leading to a record order backlog exceeding EUR6.9 billion and a book-to-bill ratio of 1.8 times. Revenue increased to EUR395 million, driven by a strong performance in the Optronics business, though adjusted EBITDA was temporarily impacted by logistics center ramp-up costs, resulting in a margin of 7.6%. Hensoldt maintained its full-year guidance with expectations of EUR2.5 billion to EUR2.6 billion in revenue, a book-to-bill ratio of around 1.2 times, and an adjusted EBITDA margin of approximately 18%. Looking ahead, Hensoldt anticipates significant growth opportunities, projecting an increase in its order pipeline to around EUR40 billion for 2025-2027 and EUR55 billion by 2030, driven by rising defense budgets in Europe. This is expected to translate into an organic growth rate of 15% CAGR, potentially reaching EUR6 billion in revenue by 2030.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.85
Very Positive
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.75
Positive
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.78
Positive
| 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
Positive
92.80
Price Trends
74.80
Positive
63.52
Positive
48.10
Positive
Market Momentum
6.61
Positive
60.36
Neutral
18.32
Positive
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 92.8 is above the 20-day moving average (MA) of 89.18, above the 50-day MA of 74.80, and above the 200-day MA of 48.10, indicating a bullish trend. The MACD of 6.61 indicates Positive momentum. The RSI at 60.36 is Neutral, neither overbought nor oversold. The STOCH value of 18.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HAG.
HENSOLDT AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | €10.72B | 115.25 | 10.95% | 0.54% | 25.46% | 41.26% | |
75 Outperform | €171.56B | 17.52 | 15.14% | 2.37% | -0.04% | 33.26% | |
74 Outperform | $129.74B | 29.22 | 21.75% | 1.80% | 5.16% | 12.89% | |
70 Outperform | €18.80B | 29.72 | 20.33% | 0.62% | 38.19% | ― | |
69 Neutral | €75.72B | 96.51 | 21.45% | 0.49% | 41.65% | 42.12% | |
66 Neutral | $4.52B | 12.34 | 5.41% | 3.62% | 4.15% | -12.18% |
* Industrials Sector Average
Performance Comparison
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DE:SIE
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217.35
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FR:AIR
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162.80
20.21
14.17%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.