RENK Group AG (R3NK) AI Stock Analysis

• Market Cap: €5.28B
• Dividend Yield: 0.8%
• Average Volume (3M): 877.28K
• Price to Earnings (P/E): 52.0
• Beta (1Y): 1.39
• 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: 30.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €57.00 ▲(7.97% Upside)

RENK Group AG's strong financial performance is a key strength, driven by consistent revenue growth and improving profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The low dividend yield further limits the stock's attractiveness. Overall, while the company is financially stable, market conditions and valuation concerns weigh on the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for RENK's products and services, supporting long-term business sustainability and market expansion.

Cash Flow Generation

Strong cash flow generation enhances RENK's ability to invest in growth opportunities and maintain financial flexibility, supporting long-term strategic goals.

Profitability Margins

Strong profitability margins reflect efficient operations and pricing power, contributing to RENK's competitive advantage and financial stability.

Negative Factors

Debt Levels

While leverage has improved, the moderate equity ratio suggests room for further reduction in debt levels to enhance financial resilience.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially limiting the stock's attractiveness despite strong fundamentals.

Equity Ratio

A moderate equity ratio indicates potential vulnerability to financial stress, suggesting the need for further strengthening of the capital structure.

RENK Group AG Business Overview & Revenue Model

Company Description

RENK Group AG develops, produces, and sells mission-critical drive solutions across diverse civil and military end markets. Its product portfolio includes gear units, transmissions, power-packs, hybrid propulsion systems, suspension systems, slide bearings, couplings and clutches, and test systems. The company was founded by Johann Julius Renk in 1873 and is headquartered in Augsburg, Germany.

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	1.29B	1.14B	925.50M	848.97M	697.66M	154.97M
Gross Profit	321.23M	279.71M	208.69M	164.80M	124.54M	37.47M
EBITDA	216.97M	206.32M	164.36M	159.76M	112.23M	12.78M
Net Income	101.45M	53.32M	32.31M	16.12M	-878.00K	-20.32M
Balance Sheet
Total Assets	1.66B	1.59B	1.53B	1.48B	1.42B	1.22B
Cash, Cash Equivalents and Short-Term Investments	115.19M	164.31M	102.22M	158.68M	97.55M	186.88M
Total Debt	534.33M	533.55M	546.09M	635.41M	629.87M	511.38M
Total Liabilities	1.22B	1.14B	1.12B	1.16B	1.11B	1.02B
Stockholders Equity	431.75M	440.91M	403.82M	324.51M	308.29M	202.26M
Cash Flow
Free Cash Flow	144.78M	137.75M	48.11M	61.92M	46.73M	-877.00K
Operating Cash Flow	166.03M	168.63M	76.16M	87.90M	79.54M	14.69M
Investing Cash Flow	-50.83M	-23.73M	-57.20M	-28.89M	-372.43M	-536.92M
Financing Cash Flow	-73.86M	-88.97M	-80.02M	55.00K	202.46M	709.51M

RENK Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.79
• 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 52.79 is above the 20-day moving average (MA) of 52.48, below the 50-day MA of 58.84, and below the 200-day MA of 62.80, indicating a neutral trend. The MACD of -1.55 indicates Negative momentum. The RSI at 43.25 is Neutral, neither overbought nor oversold. The STOCH value of 39.90 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	€19.02B	22.33	24.74%	0.62%	45.24%	―
KGX	69 Neutral	€8.77B	32.25	4.56%	1.23%	-2.20%	-18.16%
HAG	68 Neutral	€8.45B	68.18	15.96%	0.68%	14.89%	619.09%
RHM	63 Neutral	€70.70B	81.13	21.48%	0.53%	24.61%	45.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OHB	59 Neutral	€2.26B	367.83	1.49%	0.51%	10.80%	-91.79%
R3NK	55 Neutral	€5.28B	52.04	24.75%	0.80%	22.71%	396.57%