hGears AG (HGEA) AI Stock Analysis

• Market Cap: €15.81M
• Dividend Yield: N/A
• Average Volume (3M): 18.96K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.49
• Revenue Growth: -14.90%
• EPS Growth: -53.45%
• Country: DE
• Employees: 647
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 10,400,000
• 10 Day Avg. Volume: 4,045
• 30 Day Avg. Volume: 18,956
• PEG Ratio: 0.66
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.26
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: €1.50 ▼(-1.32%Downside)

The overall stock score is primarily impacted by the company's poor financial performance and unfavorable technical indicators. The valuation metrics further underscore the company's challenges, with significant risks to profitability and cash generation.

hGears AG Business Overview & Revenue Model

Company Description

hGears AG (HGEA) is a prominent global manufacturer specializing in the production of high-precision gears and components. The company serves a diverse range of sectors, including automotive, e-mobility, and industrial applications. With a focus on innovation and quality, hGears provides a comprehensive array of gear solutions that cater to the evolving needs of its clients worldwide.

How the Company Makes Money

hGears AG generates revenue through the design, manufacture, and sale of high-precision gears and components. The company's key revenue streams include supplying these products to the automotive industry, particularly in the e-mobility sector, where there is a growing demand for efficiency and lightweight solutions. Additionally, hGears serves industrial applications, providing parts and components essential for various machinery and equipment. Significant partnerships with leading automotive and industrial manufacturers enhance hGears' market presence and contribute to its earnings by securing long-term contracts and fostering technological collaboration.

hGears AG Financial Statement Overview

Summary

hGears AG is experiencing financial difficulties with declining revenues, persistent losses, and negative cash flows. While leverage has been reduced, profitability and cash generation are weak, necessitating strategic adjustments.

Income Statement

The company has experienced a significant decline in revenue from $135.3M in 2022 to $95.7M in 2024, reflecting a negative growth trend. The net profit margin is also negative, with a net loss of $21.2M in 2024. Gross profit margin stands at 43.8%, indicating some level of profitability in core operations, but overall profitability is hampered by high operating expenses and negative EBIT and EBITDA margins.

Balance Sheet

The debt-to-equity ratio has improved from 1.35 in 2020 to 0.50 in 2024, indicating reduced leverage. However, return on equity is negative due to persistent net losses. Equity ratio remains stable at around 50%, suggesting a balanced capital structure. The reduction in stockholders' equity from $88.2M in 2022 to $52.9M in 2024 raises concerns about the company's financial stability.

Cash Flow

The company has transitioned from positive to negative operating cash flow, reaching -$4.9M in 2024, indicating operational challenges. Free cash flow has also deteriorated, with no significant growth, and is currently negative, reflecting the company's inability to generate cash after covering capital expenditures. The cash flow to net income ratios highlight inefficiencies in converting income into cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.71M	112.47M	135.33M	134.91M	126.26M
Gross Profit	41.92M	3.56M	69.78M	76.39M	72.26M
EBITDA	-3.71M	923.00K	12.00M	19.08M	19.35M
Net Income	-21.17M	-13.79M	-841.00K	2.35M	6.71M
Balance Sheet
Total Assets	107.02M	136.75M	157.01M	156.38M	124.85M
Cash, Cash Equivalents and Short-Term Investments	17.13M	26.60M	36.28M	47.25M	23.43M
Total Debt	26.32M	29.82M	34.35M	35.79M	69.83M
Total Liabilities	54.14M	63.00M	68.87M	67.72M	99.30M
Stockholders Equity	52.88M	73.74M	88.14M	88.66M	25.55M
Cash Flow
Free Cash Flow	-6.31M	-4.13M	-5.68M	-4.04M	9.24M
Operating Cash Flow	-4.86M	4.11M	7.42M	10.15M	17.27M
Investing Cash Flow	-641.00K	-8.10M	-14.10M	-13.90M	-8.03M
Financing Cash Flow	-4.13M	-5.43M	-4.20M	27.19M	-3.40M

hGears AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HGEA, the sentiment is Negative. The current price of 1.52 is above the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.67, and below the 200-day MA of 1.86, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HGEA.

hGears AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWO	69 Neutral	€91.25M	8.35	6.72%	5.12%	-2.91%	-33.41%
PWO	69 Neutral	€91.25M	8.35	6.72%	5.12%	-2.91%	-33.41%
Sector *	60 Neutral	€5.76B	12.60	-9.84%	4.05%	3.79%	-34.20%
MSAG	49 Neutral	€44.86M	21.89	-5.76%	―	-30.62%	-188.35%
MSAG	49 Neutral	€44.86M	21.89	-5.76%	―	-30.62%	-188.35%
IS7	45 Neutral	€9.33M	―	-16.98%	―	-18.72%	-121.04%
IS7	45 Neutral	€9.33M	―	-16.98%	―	-18.72%	-121.04%
SF3	45 Neutral	€20.12M	―	-1.31%	1.31%	11.95%	50.00%
SF3	45 Neutral	€20.12M	―	-1.31%	1.31%	11.95%	50.00%
HGEA	41 Neutral	€15.81M	―	-33.44%	―	-14.90%	-53.45%
GMM	41 Neutral	€96.11M	―	-15.91%	―	-18.47%	-892.72%
GMM	41 Neutral	€96.11M	―	-15.91%	―	-18.47%	-892.72%