H&K AG (MLHK) AI Stock Analysis

• Market Cap: €2.11B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.75K
• Price to Earnings (P/E): 81.6
• Beta (1Y): 0.45
• Revenue Growth: 8.84%
• EPS Growth: 78.33%
• Country: FR
• Employees: 1,299
• Sector: Industrials
• Sector Strength: 75
• Industry: Aerospace & Defense
• EPS (TTM): 0.76
• Shares Outstanding: 35,482,784
• 10 Day Avg. Volume: 1,987
• 30 Day Avg. Volume: 1,754
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €72.00
• Price Target Upside: 22.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: €72.00 ▲(22.03% Upside)

H&K AG's strong financial performance is a key strength, reflecting solid revenue and profit growth along with efficient operations. However, bearish technical indicators and a high P/E ratio contribute to a lower overall score. The high dividend yield is a positive aspect but is outweighed by the significant valuation concerns and negative market momentum.

H&K AG Business Overview & Revenue Model

Company Description

H&K AG, together with its subsidiary, develops, manufactures, markets, and distributes infantry and sidearms for federal, state, or local governmental agencies in NATO countries and the European Union. It offers a range of small arms for military and law enforcement, and civil markets, such as pistols, submachine guns and pistols, assault rifles, precision rifles, machine guns, training systems, 40 MM systems, grenade launchers, and specialist equipment, as well as provides related accessories and services. The company was founded is 1949 and is based in Oberndorf am Neckar, Germany. H&K AG is a subsidiary of Compagnie de Développement de l'Eau S.A.

How the Company Makes Money

H&K AG generates revenue through the sale of its firearms and related products to a diverse range of customers, including military organizations, law enforcement agencies, and civilian markets worldwide. The company's primary revenue streams include government contracts for supplying military and law enforcement agencies with small arms, as well as commercial sales to civilian customers through authorized dealers. Additionally, H&K engages in partnerships and licensing agreements, allowing it to expand its product reach and leverage its brand strength in various international markets. The company's focus on research and development enables it to continuously innovate and introduce new products, which helps maintain its competitive edge and supports sustained revenue growth.

H&K AG Financial Statement Overview

Summary

H&K AG exhibits solid financial health with strong revenue and profit growth, efficient operations, and a well-managed balance sheet. The company displays robust cash flow metrics despite a recent decline in free cash flow growth. Overall, the financial statements reflect a stable and profitable business with manageable leverage, though monitoring cash flow trends will be important.

Income Statement

H&K AG shows strong revenue growth of 16.1% from 2023 to TTM (Trailing-Twelve-Months), indicating robust business momentum. The gross profit margin is healthy at 33.9%, while the net profit margin at 8.6% signifies good profitability. EBIT and EBITDA margins of 15.5% and 19.2% respectively reflect efficient operational management.

Balance Sheet

The company's balance sheet shows improvement with a debt-to-equity ratio of 0.69, indicating manageable leverage. The return on equity (ROE) is strong at 21.8%, but the equity ratio of 31.5% suggests moderate financial stability. Overall, the balance sheet reflects a well-managed financial structure with some leverage.

Cash Flow

H&K AG demonstrates a strong operating cash flow to net income ratio of 2.93, indicating efficient cash generation. The free cash flow to net income ratio is robust at 2.22, showing effective capital management. However, the free cash flow growth rate is a negative 14.2% from 2023 to TTM, suggesting potential challenges in sustaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	349.98M	343.38M	301.43M	305.11M	290.21M	274.98M
Gross Profit	118.98M	114.08M	115.94M	121.85M	97.06M	87.55M
EBITDA	67.05M	61.85M	59.30M	76.27M	54.49M	44.59M
Net Income	30.28M	26.98M	19.21M	50.64M	21.84M	13.48M
Balance Sheet
Total Assets	440.40M	457.73M	353.94M	328.19M	309.33M	274.87M
Cash, Cash Equivalents and Short-Term Investments	44.30M	8.03M	20.62M	6.44M	4.42M	-1.24M
Total Debt	96.10M	100.13M	105.92M	108.35M	243.56M	241.79M
Total Liabilities	301.80M	324.29M	249.51M	257.88M	394.58M	383.14M
Stockholders Equity	138.60M	133.44M	104.44M	70.31M	-85.25M	-108.27M
Cash Flow
Free Cash Flow	67.27M	78.37M	-13.97M	34.84M	37.62M	18.69M
Operating Cash Flow	88.61M	100.51M	8.40M	54.80M	56.48M	41.53M
Investing Cash Flow	-29.56M	-30.76M	-19.78M	-10.88M	-28.29M	-22.45M
Financing Cash Flow	-24.07M	-19.77M	-5.27M	-54.74M	-15.74M	-8.56M

H&K AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.00
• 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 FR:MLHK, the sentiment is Negative. The current price of 59 is below the 20-day moving average (MA) of 63.43, below the 50-day MA of 81.79, and below the 200-day MA of 115.47, indicating a bearish trend. The MACD of -6.35 indicates Negative momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 71.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:MLHK.

H&K AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.66B	15.60	8.14%	2.00%	2.79%	-14.82%
MLHK	56 Neutral	€2.11B	81.62		0.09%	8.84%	78.33%
EADSF	―	$167.53B	30.97	23.80%	1.60%	―	―
0IAX	―	€20.65B	26.45	12.93%	―	―	―
0IU8	―	€116.48B	27.05	35.36%	―	―	―
0IW5	―	€45.25B	65.78	14.51%	2.40%	―	―
MLVER	―	$1.96M	―		―	―	―