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TKMS AG & Co. KGaA
(XETRA:TKMS)
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Rating:78Outperform
Price Target:
€93.00
Action:Upgraded
Date:07/07/26
The score is driven primarily by strong financial performance (rapid growth, improving profitability, very low leverage, and robust cash generation) and a strong technical setup (price above key moving averages with positive momentum). These positives are tempered by valuation risk, as the P/E is very high and no dividend yield data is available to offset the premium.
Positive Factors
Revenue Growth
A 46.5% revenue jump in 2025 reflects successful contract execution or program ramp-ups, expanding scale and backlog predictability. Durable top-line expansion improves fixed-cost absorption, supports margin recovery and strengthens long-term cash generation in a project-driven defense business.
Negative Factors
Free Cash Flow Volatility
A 24% drop in FCF in 2025 highlights timing-driven volatility common in milestone billing businesses. Such swings can stress liquidity during peak working-capital needs, complicate multi-year contract financing and make capital allocation and sustained reinvestment decisions more uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
A 46.5% revenue jump in 2025 reflects successful contract execution or program ramp-ups, expanding scale and backlog predictability. Durable top-line expansion improves fixed-cost absorption, supports margin recovery and strengthens long-term cash generation in a project-driven defense business.
Read all positive factors
TKMS AG & Co. KGaA (TKMS) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€5.16B
Dividend YieldN/A
Average Volume (3M)126.43K
Price to Earnings (P/E)54.3
Beta (1Y)2.33
Revenue GrowthN/A
EPS GrowthN/A
CountryDE
Employees8,810
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.33
Shares Outstanding63,523,647
10 Day Avg. Volume167,885
30 Day Avg. Volume126,430
Financial Highlights & Ratios
PEG Ratio2.04
Price to Book (P/B)4.82
Price to Sales (P/S)2.38
P/FCF Ratio6.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€84.00Price Target Upside― Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)2.05
Revenue Forecast (FY)€2.29B
TKMS AG & Co. KGaA Business Overview & Revenue Model
Company Description
TKMS AG & Co KGaA, together with its subsidiaries, provides maritime technologies and solutions in Germany, Norway, Brazil, Israel, and internationally. It operates through three segments: Submarines, Surface Vessels, and Atlas Electronics. The co...
How the Company Makes Money
TKMS makes money primarily through long-term government and defense-industry contracts tied to naval procurement and sustainment programs. Its key revenue streams typically include: (1) New-build naval platforms: payments from contracts to design ...
TKMS AG & Co. KGaA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.28B | 2.17B | 1.99B | 1.95B | 1.70B |
| Gross Profit | 426.11M | 383.11M | 313.06M | 307.94M | 238.52M |
| EBITDA | 237.82M | 182.49M | 153.20M | 153.71M | 90.12M |
| Net Income | 84.01M | 105.01M | 84.49M | 56.97M | 11.05M |
Balance Sheet | |||||
| Total Assets | 5.14B | 5.40B | 4.93B | 4.96B | 4.70B |
| Cash, Cash Equivalents and Short-Term Investments | 1.36B | 1.72B | 122.05M | 150.97M | 265.34M |
| Total Debt | 32.00M | 32.70M | 32.74M | 31.75M | 35.01M |
| Total Liabilities | 4.14B | 4.31B | 3.33B | 2.89B | 2.75B |
| Stockholders Equity | 1.01B | 1.07B | 1.59B | 2.06B | 1.95B |
Cash Flow | |||||
| Free Cash Flow | -41.66M | 827.07M | 373.88M | 195.24M | 295.05M |
| Operating Cash Flow | 139.08M | 948.08M | 457.56M | 304.50M | 404.55M |
| Investing Cash Flow | 860.65M | 942.70M | 170.26M | -425.42M | -279.87M |
| Financing Cash Flow | -722.37M | -285.86M | -641.24M | 9.50M | 47.53M |
TKMS AG & Co. KGaA Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | €5.16B | 54.27 | 6.44% | ― | ― | ― | |
72 Outperform | €19.51B | 17.83 | 24.91% | 0.62% | 18.24% | 60.48% | |
64 Neutral | €4.35B | 38.12 | 25.11% | 0.80% | 17.16% | 102.59% | |
61 Neutral | €46.28B | 62.51 | 14.85% | 0.53% | -8.66% | -8.96% | |
61 Neutral | €8.58B | 85.43 | 10.96% | 0.68% | 10.84% | 7.53% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | €5.62B | 93.90 | 12.99% | 0.51% | 22.46% | 1398400.00% |
* General Sector Average
DE:TKMS
TKMS AG & Co. KGaA
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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.