Maschinenfabrik Berthold Hermle (MBH3) AI Stock Analysis

• Market Cap: €787.50M
• Dividend Yield: N/A
• Average Volume (3M): 230.00
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.47
• Revenue Growth: -8.85%
• EPS Growth: -40.33%
• Country: DE
• Employees: 1,607
• Sector: General
• Sector Strength: N/A
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 1,000,000
• 10 Day Avg. Volume: 117
• 30 Day Avg. Volume: 230
• PEG Ratio: -0.50
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 1.67
• P/FCF Ratio: 15.73
• 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: 78 Outperform
• Price Target: €189.00 ▲(25.58% Upside)

Maschinenfabrik Berthold Hermle's strong financial performance, characterized by robust profitability and a stable balance sheet, is the most significant factor driving the score. The technical analysis shows neutral trends, and the valuation is attractive with a reasonable P/E ratio and high dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Balance sheet strength

Low leverage and a strong equity ratio reduce financial risk, allowing MBH3 to fund R&D, sustain capital allocation and absorb cyclical downturns. This balance sheet strength supports long-term resilience and flexibility in capital-intensive machining markets.

Sustained profitability and margins

Consistent gross and healthy net margins reflect efficient manufacturing and pricing power in high-precision equipment. Robust profitability helps sustain reinvestment in product development, supports service gross margins, and buffers earnings through top-line volatility.

Diversified revenue streams & R&D focus

Recurring after-sales services, spare parts and software, plus strategic partnerships and ongoing R&D, diversify revenue beyond one-off machine sales. This increases customer stickiness, stabilizes margins and strengthens long-term competitive differentiation.

Negative Factors

Declining revenue trend

Trailing revenue contraction of roughly 8.8% signals weakening demand for capital equipment. Prolonged top-line declines can erode scale economics, pressure margins and constrain investment capacity in a capital-intensive business serving cyclical end markets.

Sharp EPS contraction

A roughly 40% decline in EPS indicates material earnings stress beyond revenue weakness, potentially from mix or cost pressures. Sustained earnings compression limits internally generated funds for R&D, automation projects and shareholder returns, risking strategic momentum.

Decreased free cash flow

Although operating cash is positive, recent declines in free cash flow reduce capacity to fund capex, software integration and automation initiatives. Lower FCF constrains long-term investment pace and may delay upgrades that sustain competitive positioning.

Maschinenfabrik Berthold Hermle Business Overview & Revenue Model

Company Description

Maschinenfabrik Berthold Hermle AG manufactures and sells milling machines worldwide. The company provides a portfolio of machining centre C product series use in space mouse, saw handle, milling tools, bone plate, soft ice cream, propeller, heavy-duty machining, steering knuckle, pipe die, engine housing, skiving/fir tree, pipe support, power skiving, pelton wheel, sledge, fan module, spiral funnel, railway wheel, rocker box, die mould, downhill bike pedal, moulding plate, sailboat, model making, and connecting rod applications. It also offers industries solution for model making, shut-off valve, dough tray, stator ring, drone, bone plate, motor housing, structured part, connecting panel, tool and mould making, fan impeller tool mould, broaching cycle, pipe die, pipe support, and sledge applications. In addition, the company provides support and training services. Maschinenfabrik Berthold Hermle AG was founded in 1938 and is headquartered in Gosheim, Germany.

How the Company Makes Money

MBH3 generates revenue through the sale of its CNC milling machines, which are equipped with state-of-the-art technology and customization options. Key revenue streams include direct machine sales, after-sales services such as maintenance and spare parts, and software solutions that enhance machine performance and integration. The company also benefits from strategic partnerships with key players in various industries, enabling it to expand its market reach. Additionally, MBH3 invests in research and development to continually innovate its product offerings, which helps maintain a competitive edge and attract new customers.

Maschinenfabrik Berthold Hermle Financial Statement Overview

Summary

Maschinenfabrik Berthold Hermle demonstrates strong financial health with robust profitability and a stable balance sheet. While revenue growth has faced challenges, the company's low leverage and strong equity position provide a solid foundation for future resilience.

Income Statement

The company shows strong profitability with a consistent gross profit margin and a healthy net profit margin. Revenue growth has been volatile, with a decline in the most recent year, but overall margins remain robust, indicating efficient operations.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, indicating minimal leverage and financial stability. The equity ratio is strong, reflecting a high proportion of equity financing, which reduces financial risk.

Cash Flow

Cash flow generation is strong, with a positive operating cash flow to net income ratio. However, free cash flow has decreased recently, which could impact future investments or debt repayment capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	487.93M	532.32M	474.06M	375.98M
Gross Profit	290.52M	316.62M	280.74M	221.01M
EBITDA	103.64M	130.12M	111.13M	85.98M
Net Income	65.92M	87.57M	71.78M	54.91M
Balance Sheet
Total Assets	484.57M	506.40M	467.75M	415.03M
Cash, Cash Equivalents and Short-Term Investments	141.37M	160.03M	157.90M	120.45M
Total Debt	982.00K	1.06M	573.00K	696.00K
Total Liabilities	125.71M	139.51M	132.99M	109.82M
Stockholders Equity	358.85M	366.88M	334.75M	305.20M
Cash Flow
Free Cash Flow	51.66M	59.87M	80.39M	28.75M
Operating Cash Flow	102.49M	92.05M	90.52M	36.38M
Investing Cash Flow	-31.32M	-39.08M	-41.44M	-6.78M
Financing Cash Flow	-75.60M	-55.44M	-45.42M	-25.45M

Maschinenfabrik Berthold Hermle Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 150.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MBH3, the sentiment is Negative. The current price of 150.5 is below the 20-day moving average (MA) of 158.68, below the 50-day MA of 153.27, and below the 200-day MA of 160.07, indicating a neutral trend. The MACD of 3.37 indicates Negative momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 52.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:MBH3.

Maschinenfabrik Berthold Hermle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBH3	78 Outperform	€787.50M	16.45	12.51%	―	-8.85%	-40.33%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%