Dr. Hoenle AG (HNL) AI Stock Analysis

• Market Cap: €51.65M
• Dividend Yield: N/A
• Average Volume (3M): 6.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -2.20%
• EPS Growth: -153.32%
• Country: DE
• Employees: 585
• Sector: General
• Sector Strength: N/A
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.31
• Shares Outstanding: 6,062,930
• 10 Day Avg. Volume: 3,193
• 30 Day Avg. Volume: 6,130
• PEG Ratio: 0.21
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 15.82
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €9.50 ▲(33.80% Upside)

The score is primarily held back by weak financial performance (multi-year revenue decline and ongoing net losses), despite encouraging 2025 operating improvement and better recent free cash flow with manageable leverage. Technical indicators are supportive with the stock above key moving averages and positive momentum, but valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Recurring aftermarket revenue

Dr. Hönle’s business model includes sales of consumable UV lamps, quartz components, measurement instruments and service tied to installed systems. That recurring aftermarket demand creates stable, repeatable cash flows and margin support over the medium term, cushioning capex cyclicality.

Improving cash generation

Operating and free cash flow turning positive across 2023–2025 indicates the company is converting operations into real cash. Sustained FCF enables reinvestment, supports working capital needs and reduces reliance on external financing, improving financial flexibility over the coming months.

Manageable leverage and declining debt

A moderate debt profile and declining total debt since 2023 preserve the company’s ability to fund operations and investments without excessive interest burden. This structural improvement in leverage enhances resilience to cyclical downturns and supports strategic execution over a 2–6 month horizon.

Negative Factors

Multi-year revenue decline

A sustained revenue downtrend erodes scale economies and weakens pricing leverage. If top-line contraction persists, it pressures gross margins, reduces R&D and sales investment capacity, and limits the company’s ability to restore profitable growth over the medium term.

Persistent net losses and weak margins

Recurring net losses and negative margins imply the business has struggled to convert sales into sustainable profits. Continued operating losses risk equity erosion, constrain capital allocation choices, and make long-term returns to shareholders contingent on durable margin recovery.

Historical cash-flow volatility

Despite recent positive cash flow, prior years of negative operating and free cash flow indicate underlying volatility. Such swings can disrupt investment plans, force precautionary financing or cost cuts, and make consistent execution and planning harder over the next several quarters.

Dr. Hoenle AG Business Overview & Revenue Model

Company Description

Dr. Hönle AG supplies industrial UV technologies and systems in Germany and internationally. The company operates through three segments: Adhesives, Equipment & Systems, and Glass & Lamps. The Adhesives segment provides industrial adhesives for applications, such as consumer electronics, medical technology, optics and opto electronics, automotive, and glass processing. The Equipment & Systems segment engages in the drying of inks and coatings, curing of adhesives and plastics, disinfecting surfaces, and solar simulation. The Glass & Lamps segment offers quartz glass tubing and rods for the lamp, automotive, semiconductor, and fibre cable industries, as well as lamps for water disinfection, and the drying of coatings and adhesives. The company was founded in 1976 and is headquartered in Munich, Germany.

How the Company Makes Money

Dr. Hoenle AG generates revenue primarily through the sale of its UV technology products and systems, which include UV lamps, UV curing systems, and disinfection solutions. The company has established key revenue streams from both domestic and international markets, leveraging its expertise to serve various industries. Additionally, HNL may earn income from service contracts, maintenance agreements, and partnerships with manufacturers and distributors that enhance market reach. Strategic alliances with companies in related sectors also contribute to its earnings by facilitating technology integration and expanding product applications.

Dr. Hoenle AG Financial Statement Overview

Summary

Fundamentals are mixed: revenue has been trending down for multiple years and net income has been negative in most recent periods, but 2025 shows a material improvement in operating performance (narrower EBIT loss, better EBITDA margin). Balance-sheet leverage looks manageable and debt has declined since 2023, while operating/free cash flow turned positive in 2023–2025, though cash flow has been historically volatile.

Income Statement

Revenue has trended down over the last several years (2022–2025), and profitability has been weak, with net losses in most periods and negative net margins through 2021–2025. A key positive is the sharp improvement in operating performance in 2025 (EBIT loss narrowed materially versus 2024, and EBITDA margin improved), suggesting restructuring or mix benefits. However, margins remain pressured overall and the revenue trajectory is still negative, keeping the income statement quality below average.

Balance Sheet

Leverage appears manageable, with debt-to-equity generally in the ~0.4–0.7 range and declining total debt since 2023, which supports balance-sheet flexibility. Equity remains sizable relative to assets, but persistent losses are weighing on returns (return on equity negative in 2021–2025), implying limited value creation and potential longer-term pressure if profitability doesn’t stabilize. Overall: adequate balance-sheet support, but earnings-driven equity erosion risk.

Cash Flow

Cash generation has improved recently, with positive operating cash flow and free cash flow in 2023–2025 and solid free-cash-flow growth in 2024–2025. That said, cash flow has been volatile (notably negative operating and free cash flow in 2022, and consistently negative free cash flow in 2020–2021). With net income negative in recent years, cash flow quality is better than reported earnings, but variability remains a key risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	93.68M	93.68M	98.73M	106.34M	116.09M	115.17M
Gross Profit	47.18M	12.47M	60.07M	53.35M	69.28M	69.34M
EBITDA	6.00M	6.00M	3.02M	539.00K	20.41M	14.02M
Net Income	-3.17M	-3.17M	-13.28M	-11.01M	-13.36M	-4.82M
Balance Sheet
Total Assets	145.52M	145.52M	155.38M	176.16M	195.46M	202.91M
Cash, Cash Equivalents and Short-Term Investments	7.75M	7.75M	7.51M	9.32M	7.13M	12.07M
Total Debt	49.25M	49.25M	53.24M	56.89M	59.53M	53.64M
Total Liabilities	68.48M	68.48M	75.70M	80.02M	88.22M	91.78M
Stockholders Equity	76.87M	76.87M	79.42M	95.82M	106.88M	110.72M
Cash Flow
Free Cash Flow	3.09M	3.17M	3.44M	209.00K	-11.71M	-15.96M
Operating Cash Flow	4.99M	5.06M	5.53M	3.14M	-7.41M	1.13M
Investing Cash Flow	1.56M	1.49M	-2.37M	2.65M	-1.69M	-24.50M
Financing Cash Flow	-6.44M	-6.44M	-4.90M	-3.42M	3.73M	1.25M

Dr. Hoenle AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.10
• 50DMA: Positive
• 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:HNL, the sentiment is Neutral. The current price of 7.1 is below the 20-day moving average (MA) of 8.96, below the 50-day MA of 7.76, and below the 200-day MA of 8.57, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 7.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:HNL.

Dr. Hoenle AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
S188	68 Neutral	€30.92M	7.91	4.50%	3.62%	76.29%	347.70%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
HNL	54 Neutral	€51.65M	-16.30	-15.84%	―	-2.20%	-153.32%
MSAG	43 Neutral	€37.98M	-5.21	-11.55%	―	-40.37%	-406.54%

Dr. Hoenle AG Corporate Events

Hoenle AG Confirms CEO Franz Richter as Management Board Chairman to Drive Profit Turnaround

Hoenle AG has strengthened its top management by confirming Dr. Franz Richter as a member and chairman of the Management Board for a three-year term, extending his contract as CEO until February 28, 2029. Having already taken over the CEO role on October 1, 2025, with his Supervisory Board mandate suspended since then, Richter will formally resign from the Supervisory Board at the end of February 2026 and focus on steering the Hoenle Group back to a trajectory of profitable growth, signaling a strategic push to reinforce leadership stability and improve the company’s operational and financial performance.

The most recent analyst rating on (DE:HNL) stock is a Sell with a EUR7.00 price target. To see the full list of analyst forecasts on Dr. Hoenle AG stock, see the DE:HNL Stock Forecast page.

Dr. Hoenle AG Announces Managerial Share Purchase

Dr. Hoenle AG announced a managerial transaction involving the purchase of shares by Dr. Richter Vermögens- und Beteiligungsverwaltung GmbH, a member of the managing body. The transaction, which took place outside a trading venue, involved a total volume of 385,426.33 EUR at an aggregated price of 6.8035 EUR per share. This move could indicate confidence in the company’s future prospects and may impact stakeholder perceptions positively.

The most recent analyst rating on (DE:HNL) stock is a Hold with a EUR7.00 price target. To see the full list of analyst forecasts on Dr. Hoenle AG stock, see the DE:HNL Stock Forecast page.