RENK Group AG (R3NK) AI Stock Analysis

• Market Cap: €6.52B
• Dividend Yield: 0.81%
• Average Volume (3M): 877.28K
• Price to Earnings (P/E): 84.8
• Beta (1Y): 1.26
• Revenue Growth: 22.71%
• EPS Growth: 396.57%
• Country: DE
• Employees: 3,674
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.24
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 844,810
• 30 Day Avg. Volume: 877,280
• PEG Ratio: 0.53
• Price to Book (P/B): 4.18
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 13.39
• 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: €69.00
• Price Target Upside: 33.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €51.00 ▼(-1.37% Downside)

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 valuation. The company's robust revenue growth and cash generation capabilities are positive, but the current market momentum and valuation metrics suggest caution for potential investors.

Positive Factors

Revenue Growth

RENK's 22.71% revenue growth indicates robust demand for its products, supporting long-term expansion and market presence.

Cash Generation

Strong cash generation enhances RENK's ability to reinvest in growth opportunities and maintain financial flexibility.

Profitability Margins

Enhanced profitability margins reflect operational efficiency and the ability to sustain competitive pricing strategies.

Negative Factors

Leverage Management

While leverage management has improved, a moderate equity ratio may limit aggressive asset financing and expansion.

Operational Efficiency

Decreased EBIT and EBITDA margins suggest potential inefficiencies that could impact profitability if not addressed.

Valuation Concerns

High valuation metrics could deter long-term investors, impacting stock performance and capital raising ability.

RENK Group AG Business Overview & Revenue Model

Company Description

RENK 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 Money

RENK 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 notable revenue growth and improved profitability margins. The balance sheet reflects prudent leverage management, while cash flow metrics indicate robust cash generation. Continued focus on operational efficiencies and cash utilization could further enhance financial stability and growth prospects.

Income Statement

RENK Group AG has demonstrated strong revenue growth with a 6.37% increase in TTM, supported by a solid gross profit margin of 25.18%. The net profit margin has improved to 4.83%, indicating enhanced profitability. However, the EBIT and EBITDA margins have slightly decreased compared to the previous year, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.21, reflecting better leverage management compared to previous years. Return on equity has increased to 13.66%, showcasing improved profitability for shareholders. However, the equity ratio remains moderate, indicating a balanced but cautious approach to asset financing.

Cash Flow

RENK Group AG's free cash flow growth rate of 44.73% in TTM is a positive indicator of cash generation capabilities. The operating cash flow to net income ratio of 0.26 suggests a stable conversion of income into cash. The free cash flow to net income ratio of 0.77 indicates efficient cash utilization, although there is potential for further improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.14B	925.50M	848.97M	697.66M	154.97M
Gross Profit	311.11M	279.71M	208.69M	164.80M	124.54M	37.47M
EBITDA	202.18M	206.32M	164.36M	159.76M	112.23M	12.78M
Net Income	76.86M	53.32M	32.31M	16.12M	-878.00K	-20.32M
Balance Sheet
Total Assets	1.62B	1.59B	1.53B	1.48B	1.42B	1.22B
Cash, Cash Equivalents and Short-Term Investments	97.79M	164.31M	102.22M	158.68M	97.55M	186.88M
Total Debt	533.25M	533.55M	546.09M	635.41M	629.87M	511.38M
Total Liabilities	1.21B	1.14B	1.12B	1.16B	1.11B	1.02B
Stockholders Equity	409.25M	440.91M	403.82M	324.51M	308.29M	202.26M
Cash Flow
Free Cash Flow	136.65M	137.75M	48.11M	61.92M	46.73M	-877.00K
Operating Cash Flow	165.40M	168.63M	76.16M	87.90M	79.54M	14.69M
Investing Cash Flow	-57.53M	-23.73M	-57.20M	-28.89M	-372.43M	-536.92M
Financing Cash Flow	-106.51M	-88.97M	-80.02M	55.00K	202.46M	709.51M

RENK Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.71
• 50DMA: Negative
• 100DMA: Negative
• 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:R3NK, the sentiment is Negative. The current price of 51.71 is below the 20-day moving average (MA) of 55.73, below the 50-day MA of 65.62, and below the 200-day MA of 61.62, indicating a bearish trend. The MACD of -4.51 indicates Negative momentum. The RSI at 38.03 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTX	76 Outperform	€19.86B	23.31	24.74%	0.63%	45.24%	―
HAG	64 Neutral	€10.62B	116.70	15.96%	0.73%	14.89%	619.09%
OHB	64 Neutral	€2.03B	351.58	1.49%	0.53%	10.80%	-91.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KGX	60 Neutral	€8.12B	29.88	4.56%	1.26%	-2.20%	-18.16%
RHM	58 Neutral	€79.33B	92.01	21.48%	0.53%	24.61%	45.20%
R3NK	52 Neutral	€6.52B	84.82	24.75%	0.81%	22.71%	396.57%