RENK Group AG (R3NK) AI Stock Analysis

• Market Cap: €5.63B
• Dividend Yield: 0.8%
• Average Volume (3M): 877.28K
• Price to Earnings (P/E): 53.4
• Beta (1Y): 1.38
• Revenue Growth: 22.71%
• EPS Growth: 396.57%
• Country: DE
• Employees: 3,674
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.46
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 844,810
• 30 Day Avg. Volume: 877,280
• PEG Ratio: 0.60
• Price to Book (P/B): 11.06
• Price to Sales (P/S): 3.92
• P/FCF Ratio: 57.27
• 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: €70.75
• Price Target Upside: 25.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.71
• Revenue Forecast (FY): €1.55B

• Rating: 54 Neutral
• Price Target: €55.00 ▼(-2.33% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held up by improving profitability and margin expansion in the financials, but is weighed down by a technically weak setup (below major moving averages with negative MACD) and an expensive valuation (very high P/E with a low yield). Balance-sheet leverage and softer recent free-cash-flow performance add further risk.

Positive Factors

Diversified product & services mix

RENK's mix of defense, marine and industrial drivetrain products plus after‑sales MRO and lifecycle contracts creates durable recurring revenue. Long asset lifecycles in defense/naval markets mean multi‑year service windows and retention, reducing cyclicality and supporting steady mid‑term cash and margins.

Improving profitability and margins

Material margin expansion and higher net income reflect operational leverage and pricing or mix improvements. Sustained margins near current levels would fund reinvestment and support earnings durability across program cycles, strengthening cash generation and shareholder returns over the coming months.

Stronger capitalization and returns

Rising equity and a falling leverage trend improve financial resilience and optionality for bidding or funding projects. A materially higher ROE indicates more efficient capital deployment, which supports sustainable investment in product development and aftermarket capability over the medium term.

Negative Factors

Meaningful balance‑sheet leverage

Elevated debt relative to equity constrains financial flexibility and raises refinancing and interest coverage risk if margins or cash flow weaken. For a capital‑intensive, program‑driven business, sustained leverage can limit the company's ability to absorb contract timing shocks or pursue strategic investments without raising cost of capital.

Volatile cash generation / falling FCF

A sharp year‑over‑year fall in free cash flow and modest operating cash flow relative to revenue signals sensitivity to working capital and program timing. Persistent volatility reduces capacity to deleverage, invest, or fund dividends consistently, increasing execution risk over the next few quarters.

Program‑driven revenue volatility

Heavy reliance on large contracts and customer procurement cycles makes revenue and margins lumpy. That program timing means earnings and cash can swing materially between periods; sustaining current profitability requires winning and executing successive programs, a structural risk to durability.

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 primarily makes money by selling engineered drivetrain products and related services across defense, marine, and industrial end-markets. (1) Product sales (core): A significant portion of revenue comes from designing and manufacturing transmissions, gear units, and propulsion gearboxes that are delivered as part of OEM programs or directly to end customers. In defense, this typically includes vehicle transmissions and drivetrain components supplied into new-build programs and modernization/upgrade efforts for existing fleets. In marine, revenue is generated from propulsion gearboxes and system components supplied to shipbuilders and naval customers for new vessels and refits. In industrial markets, RENK sells gear units and drive solutions for demanding applications where reliability and performance are critical. (2) Aftermarket and services: RENK also earns recurring revenue from maintenance, repair and overhaul (MRO), spare parts, refurbishment, upgrades, engineering services, and technical support tied to its installed base of equipment. These services can span multi-year lifecycle support and availability contracts, particularly relevant for defense and naval customers with long asset lifetimes. (3) Program-driven and contract-based earnings: Revenue timing is influenced by large project/production contracts, delivery milestones, and customer procurement cycles—especially in defense and naval markets—while services and spares provide additional recurring and countercyclical income. (4) Partnerships and channels: Specific significant partnerships are null.

RENK Group AG Financial Statement Overview

Summary

Income statement strength (revenue higher in TTM vs 2024, materially improved net income, and expanding net margins to 7.9% TTM) is offset by a still-leveraged balance sheet (debt-to-equity ~1.24x TTM) and weaker/volatile cash generation (TTM free cash flow down ~35% vs 2024).

Income Statement

RENK shows a clear profitability and scale-up story: revenue increased from 2022–2024 and is higher again in TTM (Trailing-Twelve-Months) (1.37B vs. 1.14B in 2024), while net income improved materially versus prior years (TTM 100.4M vs. 53.3M in 2024). Margins have strengthened over time (net margin up from 1.9% in 2022 to 4.7% in 2024 and 7.9% in TTM), supporting healthier earnings quality. Offsetting this, growth is not perfectly steady year-to-year, and profitability was weak/negative earlier in the period, indicating the business has had volatility and is still proving durability through a full cycle.

Balance Sheet

Leverage remains meaningful, with debt running above equity across the period (debt-to-equity ~1.21x–1.96x; TTM 1.24x), which can limit flexibility if operating conditions soften. The positive is that the balance sheet trajectory is improving: equity has grown steadily (2022: 324.5M to TTM: 484.7M) and leverage has come down from 2021–2022 highs, while returns on equity have strengthened (TTM 23.6% vs. 12.1% in 2024). Overall, improving capitalization and returns are a plus, but the company still carries above-average balance sheet risk for a steadier score.

Cash Flow

Cash generation is positive and generally supportive of earnings: operating cash flow is solid in TTM (132.3M) and free cash flow remains positive (93.6M), with free cash flow tracking a high share of net income (TTM ~0.87). However, free cash flow declined sharply versus 2024 (TTM free cash flow growth -35.3%), and operating cash flow remains modest relative to revenue (TTM operating cash flow coverage ratio ~0.36), implying working-capital or reinvestment demands can materially affect year-to-year cash outcomes.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.37B	1.14B	925.50M	848.97M	697.66M
Gross Profit	338.86M	279.71M	208.69M	164.80M	124.54M
EBITDA	232.30M	206.32M	164.36M	159.76M	112.23M
Net Income	100.36M	53.32M	32.31M	16.12M	-878.00K
Balance Sheet
Total Assets	1.71B	1.59B	1.53B	1.48B	1.42B
Cash, Cash Equivalents and Short-Term Investments	155.83M	164.31M	102.22M	158.68M	97.55M
Total Debt	535.17M	533.55M	546.09M	635.41M	629.87M
Total Liabilities	1.22B	1.14B	1.12B	1.16B	1.11B
Stockholders Equity	484.75M	440.91M	403.82M	324.51M	308.29M
Cash Flow
Free Cash Flow	93.63M	137.75M	48.11M	61.92M	46.73M
Operating Cash Flow	132.32M	168.63M	76.16M	87.90M	79.54M
Investing Cash Flow	-68.46M	-23.73M	-57.20M	-28.89M	-372.43M
Financing Cash Flow	-74.22M	-88.97M	-80.02M	55.00K	202.46M

RENK Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 56.31 is below the 20-day moving average (MA) of 57.40, below the 50-day MA of 58.11, and below the 200-day MA of 63.84, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 26.63 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	€18.07B	18.80	29.86%	0.62%	45.24%	―
RHM	63 Neutral	€75.37B	68.68	19.04%	0.53%	24.61%	45.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
OHB	63 Neutral	€4.66B	41.39	1.53%	0.51%	10.80%	-91.79%
HAG	59 Neutral	€9.51B	95.25	14.37%	0.68%	14.89%	619.09%
R3NK	54 Neutral	€5.63B	53.43	23.55%	0.80%	22.71%	396.57%
KGX	52 Neutral	€6.02B	38.89	4.56%	1.23%	-2.20%	-18.16%