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hGears AG (DE:HGEA)
XETRA:HGEA
Germany Market
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hGears AG (HGEA) AI Stock Analysis

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DE:HGEA

hGears AG

(XETRA:HGEA)

Rating:46Neutral
Price Target:
€1.50
▼(-13.79%Downside)
The overall score for hGears AG reflects significant financial challenges, including declining revenues and negative cash flows, which are compounded by a bearish technical outlook. Valuation concerns due to the negative P/E ratio and lack of dividend yield further impact the stock's attractiveness.

hGears AG (HGEA) vs. iShares MSCI Germany ETF (EWG)

hGears AG Business Overview & Revenue Model

Company DescriptionhGears AG develops, manufactures, and supplies precision components and sub-systems, and system solutions worldwide. The company offers gears, sprockets, shafts, structural components, complete gearboxes, and other components. Its products are used in e-bikes, and electric and hybrid vehicles, as well as e-drive power and gardening tools. The company was founded in 1958 and is headquartered in Schramberg, Germany.
How the Company Makes MoneyhGears 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 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
45
Neutral
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
55
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue95.71M112.47M135.33M134.91M126.26M
Gross Profit41.92M3.56M69.78M76.39M72.26M
EBITDA-3.71M923.00K12.00M19.08M19.35M
Net Income-21.17M-13.79M-841.00K2.35M6.71M
Balance Sheet
Total Assets107.02M136.75M157.01M156.38M124.85M
Cash, Cash Equivalents and Short-Term Investments17.13M26.60M36.28M47.25M23.43M
Total Debt26.32M29.82M34.35M35.79M69.83M
Total Liabilities54.14M63.00M68.87M67.72M99.30M
Stockholders Equity52.88M73.74M88.14M88.66M25.55M
Cash Flow
Free Cash Flow-6.31M-4.13M-5.68M-4.04M9.24M
Operating Cash Flow-4.86M4.11M7.42M10.15M17.27M
Investing Cash Flow-641.00K-8.10M-14.10M-13.90M-8.03M
Financing Cash Flow-4.13M-5.43M-4.20M27.19M-3.40M

hGears AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.74
Price Trends
50DMA
1.56
Positive
100DMA
1.71
Positive
200DMA
1.78
Negative
Market Momentum
MACD
0.05
Negative
RSI
64.34
Neutral
STOCH
84.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HGEA, the sentiment is Positive. The current price of 1.74 is above the 20-day moving average (MA) of 1.55, above the 50-day MA of 1.56, and below the 200-day MA of 1.78, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.34 is Neutral, neither overbought nor oversold. The STOCH value of 84.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HGEA.

hGears AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
£1.75B11.252.35%3.21%0.29%-37.72%
46
Neutral
€18.10M-33.44%-14.90%-53.45%
€96.85M-15.91%
€8.91M-16.98%
€44.56M21.26-5.76%
€90.00M8.356.72%6.12%
53
Neutral
€20.90M-1.31%1.27%11.95%50.00%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:HGEA
hGears AG
1.74
-0.54
-23.68%
GB:0OQX
Grammer
6.55
-1.45
-18.13%
GB:0J9S
InTiCa Systems
2.08
-2.54
-54.98%
GB:0N2B
MS Industrie
1.63
-0.17
-9.44%
GB:0NHL
Progress Werk Oberkirch
29.20
1.10
3.91%
DE:SF3
STS Group AG
3.24
-1.76
-35.20%
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.Date of analysis: Jul 26, 2025