hGears AG (HGEA) AI Stock Analysis

• Market Cap: €17.99M
• Dividend Yield: N/A
• Average Volume (3M): 1.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.63
• Revenue Growth: -10.38%
• EPS Growth: -19.93%
• Country: DE
• Employees: 647
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.62
• Shares Outstanding: 10,400,000
• 10 Day Avg. Volume: 2,159
• 30 Day Avg. Volume: 1,272
• PEG Ratio: -0.02
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -2.80
• 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: €1.50
• Price Target Upside: -13.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: €1.50 ▼(-13.29% Downside)

The overall stock score of 43 reflects significant financial challenges, including declining revenues and negative cash flows. Technical analysis indicates bearish momentum, and valuation metrics highlight unprofitability. These factors collectively suggest a cautious outlook for hGears AG.

hGears AG Business Overview & Revenue Model

Company Description

hGears AG (HGEA) is a leading provider in the manufacturing sector, specializing in the production of precision components and systems for the automotive, e-mobility, and industrial sectors. The company is known for its innovative gear solutions and high-quality engineering capabilities, serving a diverse range of clients around the globe.

How the Company Makes Money

hGears AG generates revenue primarily through the sale of its precision components and gear systems, which are integral to various automotive and industrial applications. The company has a strong presence in the e-mobility sector, providing essential components for electric and hybrid vehicles. Revenue streams include direct sales to automotive manufacturers, industrial clients, and partnerships with leading companies in the e-mobility industry. hGears also leverages its advanced manufacturing techniques and engineering expertise to offer customized solutions, further enhancing its revenue potential. Strategic partnerships and long-term contracts with major clients contribute significantly to its financial performance.

hGears AG Financial Statement Overview

Summary

hGears AG is facing financial difficulties, characterized by declining revenues, persistent losses, and negative cash flows. Although leverage has been reduced, the company's profitability and cash generation remain weak. The auto parts industry presents both opportunities and challenges, but the current financial trajectory suggests a need for strategic adjustments to stabilize and improve financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.84M	95.71M	112.47M	135.33M	134.91M	126.26M
Gross Profit	17.73M	41.92M	55.96M	70.68M	76.39M	72.26M
EBITDA	-1.95M	-3.71M	923.00K	12.00M	19.08M	19.62M
Net Income	-19.55M	-21.17M	-13.79M	-841.00K	2.35M	6.71M
Balance Sheet
Total Assets	95.32M	107.02M	136.75M	157.01M	156.38M	124.85M
Cash, Cash Equivalents and Short-Term Investments	9.38M	17.13M	26.60M	37.28M	47.25M	23.43M
Total Debt	23.98M	26.32M	29.82M	34.35M	35.79M	69.83M
Total Liabilities	49.78M	54.14M	63.00M	68.87M	67.72M	99.30M
Stockholders Equity	45.54M	52.88M	73.74M	88.14M	88.66M	25.55M
Cash Flow
Free Cash Flow	-2.29M	-6.31M	-4.13M	-5.68M	-4.04M	9.24M
Operating Cash Flow	-4.40M	-4.86M	4.11M	7.42M	10.15M	17.27M
Investing Cash Flow	-1.84M	-641.00K	-8.10M	-14.10M	-13.90M	-8.03M
Financing Cash Flow	-5.85M	-4.13M	-5.43M	-4.20M	27.19M	-3.40M

hGears AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.73 is below the 20-day moving average (MA) of 1.82, below the 50-day MA of 1.83, and below the 200-day MA of 1.77, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 3.92 is Positive, 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	€92.50M	8.27	7.73%	5.91%	-4.25%	-22.32%
SF3	51 Neutral	€22.83M	-54.84	-1.41%	0.98%	4.55%	45.49%
IS7	49 Neutral	€8.53M	-2.17	-12.96%	―	-18.91%	-171.87%
MSAG	47 Neutral	€43.06M	-5.91	-6.44%	―	-40.37%	-406.54%
GMM	45 Neutral	€94.62M	-1.32	-31.85%	―	-21.63%	-6045.90%
HGEA	43 Neutral	€17.99M	―	-35.15%	―	-10.38%	-19.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%