H&K AG (MLHK) AI Stock Analysis

• Market Cap: €1.56B
• Dividend Yield: 0.14%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 46.0
• Beta (1Y): 0.44
• Revenue Growth: 8.61%
• EPS Growth: 110.91%
• Country: FR
• Employees: 1,299
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.17
• Shares Outstanding: 35,482,784
• 10 Day Avg. Volume: 1,309
• 30 Day Avg. Volume: 1,592
• PEG Ratio: 5.25
• Price to Book (P/B): 30.58
• Price to Sales (P/S): 11.88
• P/FCF Ratio: 52.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €47.00 ▲(6.82% Upside)

H&K AG's strong financial performance is the primary driver of its stock score, supported by robust cash flow and improved profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of recent earnings call insights and notable corporate events limits additional context.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for H&K AG's products and services, supporting long-term business expansion and market presence.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and cushioning against economic downturns.

Leverage Management

Effective leverage management reduces financial risk, ensuring sustainable growth and stability in the company's capital structure.

Negative Factors

Operational Margin Pressure

Decreasing operational margins could impact profitability, indicating potential inefficiencies or rising costs that need addressing.

Equity Ratio Concerns

A moderate equity ratio may limit the company's ability to leverage assets for growth, potentially affecting long-term strategic initiatives.

Margin Sustainability

Slightly lower gross margins may indicate challenges in maintaining cost efficiencies, affecting long-term profitability if not addressed.

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 primarily through the sale of its engineering products and services, which includes custom manufacturing solutions and standard components. The company capitalizes on long-term contracts with major automotive manufacturers and industrial companies, ensuring a steady stream of income. Key revenue streams include direct sales of manufactured goods, consulting services for process optimization, and maintenance contracts for machinery. Additionally, strategic partnerships with technology firms enhance H&K's product offerings, allowing the company to tap into new markets and drive innovation, thereby contributing to its overall earnings.

H&K AG Financial Statement Overview

Summary

H&K AG demonstrates strong revenue growth and profitability, with effective leverage management. However, declining free cash flow and slightly reduced profit margins warrant attention. The company is positioned well in the Aerospace & Defense industry, but should focus on improving cash flow stability to support long-term growth.

Income Statement

H&K AG shows a strong revenue growth trajectory with a 42.9% increase in TTM, indicating robust demand. The gross profit margin is healthy at 32.8%, though it has slightly decreased from previous periods. Net profit margin is stable at 7.36%, but has declined from prior years, suggesting increased costs or competitive pressures. EBIT and EBITDA margins are solid, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.67, indicating better leverage management compared to previous years. Return on equity is strong at 19.27%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, which could pose risks if asset values fluctuate.

Cash Flow

Operating cash flow remains positive, but free cash flow has seen a significant decline of 44.3% in TTM, which could impact future investments. The operating cash flow to net income ratio is moderate, suggesting reasonable cash generation relative to profits. The free cash flow to net income ratio indicates a decent conversion of profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	368.88M	343.38M	301.43M	305.11M	290.21M	274.98M
Gross Profit	129.58M	114.08M	115.94M	121.85M	97.06M	87.55M
EBITDA	70.25M	61.85M	59.30M	76.27M	57.12M	44.59M
Net Income	35.38M	26.98M	19.21M	50.64M	21.84M	13.48M
Balance Sheet
Total Assets	502.60M	457.73M	353.94M	328.19M	309.33M	274.87M
Cash, Cash Equivalents and Short-Term Investments	51.90M	69.62M	20.62M	6.44M	4.42M	-1.24M
Total Debt	91.50M	100.13M	105.92M	108.35M	243.56M	241.79M
Total Liabilities	347.80M	324.29M	249.51M	257.88M	394.58M	383.14M
Stockholders Equity	154.80M	133.44M	104.44M	70.31M	-85.25M	-108.27M
Cash Flow
Free Cash Flow	73.37M	78.37M	-13.97M	34.84M	37.62M	18.69M
Operating Cash Flow	94.51M	100.51M	8.40M	54.80M	56.48M	41.53M
Investing Cash Flow	-30.86M	-30.76M	-19.78M	-10.88M	-28.29M	-22.45M
Financing Cash Flow	-20.17M	-19.77M	-5.27M	-54.74M	-15.74M	-8.56M

H&K AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 44 is below the 20-day moving average (MA) of 45.42, below the 50-day MA of 45.79, and below the 200-day MA of 88.69, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, 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
HO	73 Outperform	€46.98B	68.74	14.51%	1.66%	11.16%	-50.57%
AM	71 Outperform	€21.22B	27.19	12.93%	1.74%	29.91%	-2.24%
AIR	68 Neutral	$155.10B	30.55	22.66%	1.53%	7.05%	54.98%
SAF	67 Neutral	€123.15B	28.96	35.36%	0.97%	14.19%	161.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MLHK	61 Neutral	€1.56B	45.97	―	0.14%	8.61%	110.91%