RENK Group AG (R3NK) AI Stock Analysis

• Market Cap: €6.08B
• Dividend Yield: 0.68%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 107.0
• Beta (1Y): 1.16
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: DE
• Employees: 3,674
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 0.30
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 907,180
• 30 Day Avg. Volume: 1,026,435
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €73.40
• Price Target Upside: 18.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: €64.00 ▲(3.23% Upside)

RENK Group AG's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators and high valuation metrics. The financial health of the company is solid, but the stock's current market momentum and valuation suggest caution. Investors should monitor technical trends and valuation metrics closely.

Positive Factors

Earnings

RENK's Q2 results are solid, with sales up 27% and adjusted EBIT up 24%.

Future Growth Potential

Future revenue projections for 2030 are now indicated to be between €2.5-3.0bn, including mergers and acquisitions.

Market Opportunity

US operations largely immune to tariffs, with opportunities to expand the Navy business.

Negative Factors

Cash Flow

Free cash flow was driven down significantly by working capital, falling to €(25)m compared to the consensus of €12m.

Profitability Concerns

Stronger VMS performance is offset by a weaker SB margin.

Revenue Impact

Some projects in the Marine business have slipped from Q1 to later in the year, impacting revenue negatively.

RENK Group AG Business Overview & Revenue Model

Company Description

RENK Group AG (R3NK) is a leading global manufacturer specializing in high-performance gear units, transmissions, and related components. The company operates in sectors including defense, marine, and industrial technology, providing innovative solutions that enhance the performance and reliability of various mechanical systems. RENK's core products and services include gear units for naval vessels, industrial gear units for energy and process industries, and transmissions for tracked vehicles.

How the Company Makes Money

RENK Group AG generates revenue through the design, manufacture, and sale of high-precision mechanical components and systems. Key revenue streams include the sale of gear units for marine, defense, and industrial applications. The company also earns income from providing maintenance, repair, and overhaul services, ensuring the longevity and optimal performance of its products. Significant partnerships with defense contractors and industrial companies contribute to its earnings, as these collaborations often lead to long-term supply agreements and contracts, providing a steady flow of revenue.

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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	925.50M	848.97M	697.66M	154.97M
Gross Profit	279.71M	208.69M	164.80M	124.54M	37.47M
EBITDA	188.40M	164.36M	159.76M	112.23M	12.78M
Net Income	53.32M	32.31M	16.12M	-878.00K	-20.32M
Balance Sheet
Total Assets	1.59B	1.53B	1.48B	1.42B	1.22B
Cash, Cash Equivalents and Short-Term Investments	164.31M	102.22M	158.68M	97.55M	186.88M
Total Debt	533.55M	546.09M	635.41M	629.87M	511.38M
Total Liabilities	1.14B	1.12B	1.16B	1.11B	1.02B
Stockholders Equity	440.91M	403.82M	324.51M	308.29M	202.26M
Cash Flow
Free Cash Flow	137.75M	48.11M	61.92M	46.73M	-877.00K
Operating Cash Flow	168.63M	76.16M	87.90M	79.54M	14.69M
Investing Cash Flow	-23.73M	-57.20M	-28.89M	-372.43M	-536.92M
Financing Cash Flow	-88.97M	-80.02M	55.00K	202.46M	709.51M

RENK Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 62 is below the 20-day moving average (MA) of 67.58, below the 50-day MA of 68.94, and above the 200-day MA of 43.26, indicating a neutral trend. The MACD of -2.03 indicates Positive momentum. The RSI at 36.25 is Neutral, neither overbought nor oversold. The STOCH value of 29.11 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	75 Outperform	€20.88B	24.51	24.74%	0.58%	45.24%	―
KGX	65 Neutral	€7.62B	33.13	3.89%	1.43%	-2.50%	-32.31%
Sector *	64 Neutral	$10.83B	16.63	6.52%	2.06%	2.20%	-16.67%
HAG	63 Neutral	€9.92B	109.02	11.52%	0.58%	18.53%	73.20%
OHB	63 Neutral	€1.30B	226.20	1.42%	0.88%	1.67%	-91.60%
RHM	61 Neutral	€71.62B	83.18	21.91%	0.52%	31.24%	52.48%
R3NK	58 Neutral	€6.08B	107.01	13.45%	0.68%	―	―