Dr. Hoenle AG (HNL) AI Stock Analysis

• Market Cap: €59.16M
• Dividend Yield: N/A
• Average Volume (3M): 6.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -2.20%
• EPS Growth: -153.32%
• Country: DE
• Employees: 585
• Sector: General
• Sector Strength: N/A
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.25
• 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): 0.03
• Revenue Forecast (FY): €100.27M

• Rating: 54 Neutral
• Price Target: €9.50 ▲(33.80% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by improving but still unprofitable financial performance (ongoing net loss despite revenue growth and positive cash flow). Technicals add moderate support with price above key moving averages and a positive MACD, while valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Cash generation

Positive trailing‑12‑month operating cash flow (~€5.2m) and free cash flow (~€3.2m) provide internal funding for operations and selective investments. Sustained FCF reduces reliance on external financing, supports aftermarket product support, and cushions near‑term earnings volatility while management executes recovery.

Manageable leverage

Debt around 0.63x equity suggests the balance sheet is not overly stretched, giving the company financial flexibility to fund working capital and capex without acute refinancing stress. This improves resilience to cyclical downturns and supports medium‑term investments in product development and aftermarket capabilities.

Revenue recovery trend

A TTM revenue uptick (+6.8%) and narrowing losses indicate the company is emerging from prior contraction. Stabilizing top‑line demand underpins recurring aftermarket sales (lamps, components, services) and offers potential operating leverage, which can sustainably improve margins if the growth trend persists.

Negative Factors

Ongoing unprofitability

The company still reports net losses and negative EBIT, showing earnings power has not been reestablished. Persistent unprofitability limits retained earnings, constrains reinvestment capacity, and means that operational improvements must be sustained to convert positive cash flow into durable profit margins.

Negative return on equity

A TTM ROE near -4% indicates the business is currently destroying equity value rather than creating it. Continued negative ROE undermines investor confidence, hampers ability to raise equity on favorable terms, and signals that profitability must improve materially to justify reinvestment.

Historic cash/margin volatility

Prior episodes of negative operating and free cash flow demonstrate that cash generation and margins are cyclical and can reverse. This volatility raises execution and liquidity risk: weaker industrial capex or aftermarket demand could quickly erode recent gains and force financing or cost cuts.

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

Results show a recovery-in-progress: revenue is back to growth and losses have narrowed, and cash flow is currently positive. However, profitability remains weak with a net loss and negative EBIT, and ROE is still negative, keeping the score below average despite manageable leverage.

Income Statement

TTM (Trailing-Twelve-Months) revenue improved (+6.8%), but profitability remains weak with a net loss (net margin about -3.4%) and negative EBIT. The positive shift versus 2023–2024 (when losses were much larger and revenue was contracting) is a constructive trend, but margins are still not consistently healthy and earnings power has not stabilized.

Balance Sheet

Leverage appears manageable with debt at roughly 0.63x equity in TTM (Trailing-Twelve-Months), suggesting the balance sheet is not overly stretched. However, shareholder returns are negative (TTM return on equity around -4%), indicating equity is not currently generating profits and the company remains exposed if losses persist.

Cash Flow

Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow (~€5.2m) and free cash flow (~€3.2m) are positive, and free cash flow growth is strong versus the prior period. That said, cash flow relative to debt looks modest, and the business has shown volatility historically (including negative operating and free cash flow in 2022).

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	93.75M	93.68M	98.73M	106.34M	116.09M	115.17M
Gross Profit	12.43M	12.47M	60.07M	53.35M	69.28M	69.34M
EBITDA	5.42M	6.00M	3.02M	539.00K	20.41M	14.02M
Net Income	-4.11M	-3.17M	-13.28M	-11.01M	-13.36M	-4.82M
Balance Sheet
Total Assets	142.00M	145.52M	155.38M	176.16M	195.46M	202.91M
Cash, Cash Equivalents and Short-Term Investments	6.71M	7.75M	7.51M	9.32M	7.13M	12.07M
Total Debt	47.80M	48.25M	53.24M	56.89M	59.53M	53.64M
Total Liabilities	66.31M	68.48M	75.70M	80.02M	88.22M	91.78M
Stockholders Equity	75.54M	76.87M	79.42M	95.82M	106.88M	110.72M
Cash Flow
Free Cash Flow	3.20M	3.17M	3.44M	209.00K	-11.71M	-15.96M
Operating Cash Flow	5.16M	5.06M	5.53M	3.14M	-7.41M	1.13M
Investing Cash Flow	1.40M	1.49M	-2.37M	2.65M	-1.69M	-24.50M
Financing Cash Flow	-7.41M	-6.44M	-4.90M	-3.42M	3.73M	1.25M

Dr. Hoenle AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HNL, the sentiment is Positive. The current price of 7.1 is below the 20-day moving average (MA) of 9.21, below the 50-day MA of 8.74, and below the 200-day MA of 8.51, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 35.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€37.48M	-5.17	4.28%	3.62%	76.29%	347.70%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
HNL	54 Neutral	€59.16M	-6.85	-15.84%	―	-2.20%	-153.32%
MSAG	43 Neutral	€38.28M	-102.37	-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.