Hella KGaA Hueck & Co (HLE) AI Stock Analysis

• Market Cap: €8.18B
• Dividend Yield: 1.17%
• Average Volume (3M): 9.95K
• Price to Earnings (P/E): 110.2
• Beta (1Y): 0.42
• Revenue Growth: <0.01%
• EPS Growth: -50.97%
• Country: DE
• Employees: 35,697
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.17
• Shares Outstanding: 111,111,115
• 10 Day Avg. Volume: 7,142
• 30 Day Avg. Volume: 9,949
• PEG Ratio: -1.44
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 16.56
• 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: €65.00
• Price Target Upside: -11.68% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.92
• Revenue Forecast (FY): €7.67B

• Rating: 54 Neutral
• Price Target: €75.00 ▲(1.90% Upside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is held up by improved financial resilience (much lower leverage and stronger free cash flow), but pressured by very weak technicals (broad downtrend and bearish momentum) and limited valuation support due to a high P/E and modest yield.

Positive Factors

Improved leverage

Material deleveraging (debt down to ~€0.30bn with solid equity) meaningfully strengthens financial flexibility. A lower leverage profile reduces refinancing and covenant risk, supports multi-year OEM program commitments, and gives capacity for strategic capex or acquisitions over the medium term.

Strong recent cash generation

A substantial step-up in operating and free cash flow provides durable internal funding for R&D, tooling and platform ramps. Reliable cash generation supports execution on multi-year vehicle programs, underpins dividend and debt reduction strategies, and cushions cyclical downturns.

Stable OEM-facing business model

Hella's product mix—exterior/interior lighting and vehicle electronics—paired with multi-year OEM supply agreements creates recurring revenue tied to vehicle platforms. Technology content (LED, adaptive lighting, control electronics) drives per-vehicle value and supports defendable program positions over multiple model lifecycles.

Negative Factors

Earnings weakness

A sharp drop in reported net income signals persistent margin pressure or cost shocks that can erode return on capital. Lower earnings reduce the company's ability to finance growth internally, limit shareholder returns, and raise execution risk for sustaining higher-margin technology initiatives.

Cash flow volatility historically

Although recent free cash flow improved markedly, historical swings (including a negative year) indicate cash conversion can be uneven across cycles. This variability complicates multi-year planning, makes funding of long lead-time program investments less predictable, and can constrain returns in weaker years.

Exposure to OEM program cycles

Revenue sensitivity to OEM nominations and global vehicle production creates structural cyclicality. Loss of platform awards or lower production volumes can materially reduce sales; competition for content and pricing pressure on high-value technologies can further depress margins across multiyear model cycles.

Hella KGaA Hueck & Co Business Overview & Revenue Model

Company Description

HELLA GmbH & Co. KGaA, together with its subsidiaries, develops, manufactures, and sells lighting systems and electronic components for automotive industry worldwide. It operates through three segments: Automotive, Aftermarket, and Special Applications. The Automotive segment offers headlamps, rear combination lamps, car body and interior lighting products, and radomes; and body electronics, energy management, lighting electronics, and power steering solutions, as well as driver assistance systems and components, including sensors and engine compartment actuators. The Aftermarket segment produces and sells automotive parts and accessories primarily in the areas of lighting, electrics, and electronics; and provides workshop solutions in the areas of diagnostics and calibration, as well as various services for wholesalers and workshops. The Special Applications segment develops, manufactures, and markets lighting technology and electronic products for special vehicles comprising construction and agricultural machinery, buses, caravans, and marine vessels. The company was formerly known as HELLA KGaA Hueck & Co. and changed its name to HELLA GmbH & Co. KGaA in October 2017. HELLA GmbH & Co. KGaA was founded in 1899 and is headquartered in Lippstadt, Germany. HELLA GmbH & Co. KGaA is a subsidiary of Faurecia S.E.

How the Company Makes Money

Hella primarily makes money by selling automotive components and systems to vehicle manufacturers (OEMs) under multi-year supply agreements and platform-based vehicle programs. The largest revenue streams historically come from (1) Lighting: sales of exterior and interior lighting modules and full lighting systems (e.g., headlamp and rear lamp assemblies and related control electronics), where revenues are driven by vehicle production volumes, model mix, and technology content per vehicle (such as LED and adaptive lighting features); and (2) Electronics: sales of electronic control units and modules used in vehicle body functions and energy management, where revenues depend on OEM program wins, content per vehicle, and production ramp-ups over a vehicle model lifecycle. In addition to OEM business, Hella also generates revenue from the independent aftermarket by selling replacement parts and related products through distributors and retail channels; this stream is generally smaller than OEM sales and is influenced by vehicle parc size and replacement cycles. Across its businesses, earnings are affected by long-term customer relationships with major global automakers, competitive program awards (nominations) for new vehicle platforms, and the ability to price and deliver higher-value technologies integrated into vehicle architectures. Specific partnership details and segment-level revenue breakdowns are null.

Hella KGaA Hueck & Co Financial Statement Overview

Summary

Balance sheet strength and cash generation are supportive (debt reduced sharply to ~0.30bn in 2025; operating cash flow ~912m and free cash flow ~554m). However, profitability weakened materially in the latest year (net income fell from ~353m in 2024 to ~83m in 2025) and revenue was slightly down, reducing confidence in near-term earnings stability.

Income Statement

Revenue has been broadly flat to modestly down most recently (2025 annual revenue down ~1.4% vs. 2024), following earlier growth in 2022–2023. Profitability has weakened materially: net income fell from ~353m (2024) to ~83m (2025), and gross profit dollars also dipped, signaling margin pressure and/or higher costs. While the business remains profitable, the sharp drop in earnings in the latest year reduces confidence in near-term earnings stability.

Balance Sheet

Leverage has improved significantly, with total debt declining from ~1.27bn (2023) and ~0.96bn (2024) to ~0.30bn (2025), while equity remains solid at ~3.08bn (2025). The company maintains a sizeable asset base (~7.68bn in 2025) and, historically, debt relative to equity has been moderate (roughly 0.30–0.47 in 2022–2024). A key weakness is that shareholder returns have cooled alongside earnings (e.g., 2024 return on equity ~11% vs higher levels in prior years), and the latest year’s earnings drop is a watch item even with the stronger capital structure.

Cash Flow

Cash generation is a bright spot: operating cash flow increased to ~912m in 2025 from ~854m in 2024, and free cash flow surged to ~554m in 2025 from ~174m in 2024 (very strong growth). The main concern is volatility—free cash flow has been uneven over the years (including a negative period in 2022), and in 2024 free cash flow was relatively low compared with net income. Still, the latest year shows robust cash conversion and a meaningful step-up in free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	May 2022	May 2021
Income Statement
Total Revenue	7.86B	8.02B	7.95B	7.56B	6.33B
Gross Profit	1.78B	1.76B	2.02B	1.75B	1.46B
EBITDA	437.08M	1.06B	1.00B	719.22M	676.13M
Net Income	83.32M	353.10M	263.92M	600.90M	181.26M
Balance Sheet
Total Assets	7.68B	7.48B	7.45B	7.59B	6.44B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.40B	1.19B	1.44B	990.69M
Total Debt	301.31M	958.98M	1.27B	1.43B	1.14B
Total Liabilities	4.56B	4.24B	4.56B	4.53B	3.71B
Stockholders Equity	3.08B	3.20B	2.89B	3.06B	2.74B
Cash Flow
Free Cash Flow	554.30M	173.78M	190.51M	222.24M	-288.01M
Operating Cash Flow	911.86M	854.14M	825.69M	625.52M	292.47M
Investing Cash Flow	-603.64M	-460.39M	-538.50M	127.47M	-562.66M
Financing Cash Flow	-161.42M	-234.47M	-469.26M	-35.19M	-149.25M

Hella KGaA Hueck & Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HLE, the sentiment is Negative. The current price of 73.6 is below the 20-day moving average (MA) of 77.12, below the 50-day MA of 80.22, and below the 200-day MA of 82.58, indicating a bearish trend. The MACD of -2.22 indicates Positive momentum. The RSI at 23.69 is Positive, neither overbought nor oversold. The STOCH value of 6.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HLE.

Hella KGaA Hueck & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFQ	62 Neutral	€779.87M	13.62	11.14%	5.70%	-12.01%	-28.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KBX	60 Neutral	€15.97B	28.57	18.07%	1.85%	-1.77%	-28.68%
HLE	54 Neutral	€8.18B	110.15	5.24%	1.17%	<0.01%	-50.97%
CON	50 Neutral	€11.95B	-82.38	-1.10%	2.88%	-38.10%	-75.32%
SHA0	45 Neutral	€6.54B	-18.63	-34.39%	3.15%	45.16%	-790.24%
ZIL2	44 Neutral	€275.62M	-16.43	-18.51%	3.51%	-6.21%	-995.53%