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RENK Group AG (DE:R3NK)
XETRA:R3NK
Germany Market
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RENK Group AG (R3NK) AI Stock Analysis

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DE:R3NK

RENK Group AG

(XETRA:R3NK)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
€68.00
▲(8.44% Upside)
RENK Group AG's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators and a high P/E ratio suggesting overvaluation. The lack of earnings call data and corporate events means these factors do not impact the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and demand for RENK's products, supporting long-term business expansion.
Cash Generation
Robust cash generation enhances financial flexibility, allowing RENK to invest in growth opportunities and manage debt effectively.
Profitability Margins
Improved profitability margins suggest efficient cost management and pricing power, contributing to sustainable financial health.
Negative Factors
Operational Efficiency
Decreasing margins indicate potential inefficiencies in operations, which could impact profitability if not addressed.
Equity Ratio
A moderate equity ratio may limit RENK's ability to leverage equity financing for growth, potentially constraining expansion.
Cash Flow Conversion
While stable, the low cash flow conversion ratio indicates room for improvement in turning income into cash, crucial for liquidity.

RENK Group AG (R3NK) vs. iShares MSCI Germany ETF (EWG)

RENK Group AG Business Overview & Revenue Model

Company DescriptionRENK Group AG (R3NK) is a global leader in the manufacturing of high-precision drive systems and transmission systems. The company operates primarily in the sectors of mobility, energy, and defense, providing innovative solutions that cater to a diverse range of applications including rail vehicles, marine propulsion, and military equipment. RENK's core products include gear units, couplings, and complete drive systems designed to enhance performance and reliability in demanding environments.
How the Company Makes MoneyRENK Group AG generates revenue through the sale of its specialized products and services across several key segments. The company benefits from a diversified revenue model that includes direct sales of gear and transmission systems, after-sales services, and maintenance contracts. Significant revenue streams come from long-term contracts and partnerships with major industrial clients, particularly in the defense and transportation sectors. Additionally, RENK capitalizes on its expertise in engineering and technology by providing customized solutions, which allows for premium pricing. The company also sees revenue from international markets, leveraging its global presence to tap into emerging economies and sectors that require advanced mobility solutions.

RENK Group AG Financial Statement Overview

Summary
RENK Group AG exhibits strong financial performance with impressive revenue growth and operational efficiency. The balance sheet reflects adequate leverage with strong equity support. Cash flow generation is robust, but a decline in free cash flow growth needs attention. Continuous improvement in profitability margins and debt reduction could further enhance financial stability.
Income Statement
75
Positive
RENK Group AG has demonstrated strong revenue growth with a 38.9% increase from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin stands at 25.2%, and the net profit margin is 4.8%, showing stable profitability. The EBIT and EBITDA margins are 10.9% and 16.3%, respectively, indicating efficient operational management. However, there is room to improve the net profit margin to enhance overall profitability.
Balance Sheet
68
Positive
The company maintains a healthy balance sheet with a debt-to-equity ratio of 1.21 and an equity ratio of 27.7%, indicating a robust equity base relative to assets. The return on equity (ROE) is 12.9%, showcasing reasonable profitability on shareholders' equity. The leverage is manageable, but further reduction in debt could strengthen the financial position.
Cash Flow
72
Positive
RENK Group AG shows a healthy cash flow position, with a strong operating cash flow to net income ratio of 2.16 and a free cash flow to net income ratio of 1.66, demonstrating effective cash generation relative to earnings. The free cash flow growth rate is -31.4% from 2023 to TTM, indicating a decline, but the overall cash flow management remains solid.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.25B1.14B925.50M848.97M697.66M154.97M
Gross Profit311.11M279.71M208.69M164.80M124.54M37.47M
EBITDA202.18M188.40M164.36M159.76M112.23M12.78M
Net Income76.86M53.32M32.31M16.12M-878.00K-20.32M
Balance Sheet
Total Assets1.62B1.59B1.53B1.48B1.42B1.22B
Cash, Cash Equivalents and Short-Term Investments97.79M164.31M102.22M158.68M97.55M186.88M
Total Debt533.25M533.55M546.09M635.41M629.87M511.38M
Total Liabilities1.21B1.14B1.12B1.16B1.11B1.02B
Stockholders Equity409.25M440.91M403.82M324.51M308.29M202.26M
Cash Flow
Free Cash Flow136.65M137.75M48.11M61.92M46.73M-877.00K
Operating Cash Flow165.40M168.63M76.16M87.90M79.54M14.69M
Investing Cash Flow-57.53M-23.73M-57.20M-28.89M-372.43M-536.92M
Financing Cash Flow-106.51M-88.97M-80.02M55.00K202.46M709.51M

RENK Group AG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price62.71
Price Trends
50DMA
70.18
Negative
100DMA
69.98
Negative
200DMA
55.55
Positive
Market Momentum
MACD
-1.56
Positive
RSI
39.70
Neutral
STOCH
11.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:R3NK, the sentiment is Negative. The current price of 62.71 is below the 20-day moving average (MA) of 78.10, below the 50-day MA of 70.18, and above the 200-day MA of 55.55, indicating a neutral trend. The MACD of -1.56 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 11.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:R3NK.

RENK Group 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
66
Neutral
€19.57B22.9724.74%0.60%45.24%
65
Neutral
€7.21B31.373.89%1.49%-2.50%-32.31%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
€10.49B115.3111.52%0.55%18.53%73.20%
60
Neutral
€76.23B88.4221.91%0.46%31.24%52.48%
56
Neutral
€6.27B81.5919.17%0.67%21.91%125.93%
55
Neutral
€2.17B376.451.42%0.53%1.67%-91.60%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:R3NK
RENK Group AG
62.71
43.85
232.50%
DE:KGX
KION GROUP AG
55.00
20.48
59.35%
DE:MTX
MTU Aero Engines
363.90
56.49
18.37%
DE:OHB
OHB SE
113.50
68.55
152.52%
DE:RHM
Rheinmetall
1,759.50
1,271.57
260.61%
DE:HAG
HENSOLDT AG
98.00
67.18
217.98%
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: Oct 16, 2025