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HENSOLDT AG Unsponsored ADR (HAGHY)
:HAGHY
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HENSOLDT AG Unsponsored ADR
(OTC:HAGHY)
Select Model
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Rating:63Neutral
Price Target:
$42.00
▼(-25.73% Downside)
HENSOLDT AG's overall stock score is driven by strong financial performance and positive earnings call insights, which highlight robust order intake and future growth potential. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which tempers the overall score.
Positive Factors
Strong Order Backlog
A record order backlog ensures sustained revenue streams and operational stability, enhancing long-term growth prospects and market confidence.
Revenue Growth
Consistent revenue growth indicates strong demand for products and services, supporting the company's market position and financial health.
Optronics Segment Performance
The Optronics segment's robust growth underscores the company's innovation and competitive edge in high-demand technology sectors.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.
Working Capital Investment Impact
Negative free cash flow due to high working capital investment may strain liquidity, affecting short-term financial operations and growth initiatives.
Logistical Challenges
Logistical challenges can disrupt operations and efficiency, potentially affecting the company's ability to meet demand and maintain profitability.
HENSOLDT AG Unsponsored ADR (HAGHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.21B
Dividend Yield0.57%
Average Volume (3M)907.00
Price to Earnings (P/E)69.2
Beta (1Y)0.50
Revenue Growth17.21%
EPS Growth643.48%
CountryUS
Employees8,986
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.06
Shares Outstanding231,000,000
10 Day Avg. Volume0
30 Day Avg. Volume907
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)4.57
Price to Sales (P/S)1.78
P/FCF Ratio35.59
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue6.96
Enterprise Value/Gross Profit32.27
Enterprise Value/Ebitda45.68
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
HENSOLDT AG Unsponsored ADR Business Overview & Revenue Model
Company DescriptionHENSOLDT AG is a German electronics company specializing in sensor solutions for defense and security applications. The company operates primarily in the sectors of defense technology, aerospace, and security. HENSOLDT provides advanced technologies in radar, optronics, electronic warfare, and cyber security. Its core products include airborne and ground-based radar systems, command and control systems, and intelligence, surveillance, and reconnaissance (ISR) solutions.
How the Company Makes MoneyHENSOLDT AG generates revenue through the sale of its defense and security products and services, primarily to government and military clients. Key revenue streams include contracts for the development and production of radar systems, electronic warfare solutions, and surveillance systems. The company also earns income from maintenance and support services for its products. Significant partnerships with defense ministries and defense contractors enhance its market reach and provide stable income through long-term contracts and projects.
HENSOLDT AG Unsponsored ADR Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong order intake, revenue growth, and increased guidance, particularly in the Optronics and Sensors segments. However, logistical challenges and working capital investments impacted short-term cash flow and margins.Q3-2025 Updates
Positive Updates
Strong Order Intake and Revenue Growth
Order intake reached over EUR 2 billion, exceeding the previous year's figure by 9%. Revenue increased to EUR 1.5 billion, with core revenue growing by 14%.
Record Order Backlog
Order backlog reached a new record level of EUR 7.1 billion, providing excellent visibility for future growth.
Increased Book-to-Bill Guidance
Book-to-bill guidance raised from 1.2x to a range of 1.6x to 1.9x, reflecting strong order intake expectations.
Optronics Segment Performance
Optronics segment showed strong performance with a book-to-bill ratio of 1.4x and revenue growth of 27% in the first 9 months.
Adjusted EBITDA and Margin Improvement
Adjusted EBITDA increased to EUR 211 million with a margin of 13.7%, driven by higher volumes in the German Optronics business.
Negative Updates
Logistical Ramp-up Impact
The logistical ramp-up of the new logistics center temporarily moderated revenue growth and impacted margins in the Sensors segment.
Working Capital Investment
Continued investment in working capital impacted free cash flow, which remained negative at minus EUR 119 million for the first 9 months.
Company Guidance
During the Hensoldt 9M 2025 Results Call, the company provided updated guidance reflecting strong performance and future prospects. The book-to-bill ratio guidance for 2025 was significantly raised from around 1.2x to a range of 1.6x to 1.9x, driven by anticipated key orders like the Eurofighter and Luchs II. Revenue guidance was specified at approximately EUR 2.5 billion, with an adjusted EBITDA margin expected to be 18% or higher. The company also maintained its adjusted free cash flow guidance with a target cash conversion rate of 50% to 60% and a net leverage target of around 1.5x. Hensoldt's robust order intake and revenue performance were highlighted, with an order backlog reaching a record EUR 7.1 billion, offering excellent visibility for the future. The Optronics segment showed significant growth, with a projected EBITDA margin increase to 14% by year-end. Overall, the company remains well-positioned for continued growth amid increasing defense investments.HENSOLDT AG Unsponsored ADR Financial Statement Overview
Summary
HENSOLDT AG exhibits strong revenue growth and improving profitability, with stable cash flow generation. However, the high leverage poses a potential risk, which needs careful management. Overall, the financial health is solid, with opportunities for further margin improvements and debt reduction.Income Statement
HENSOLDT AG has demonstrated solid revenue growth with a TTM increase of 1.3% and consistent annual growth. Gross profit margins have remained stable around 22-23%, while net profit margins have improved over time, reaching 3.9% in the TTM. EBIT and EBITDA margins show healthy profitability, although there is room for improvement in EBIT margins.75
Positive
Balance Sheet
The company has a relatively high debt-to-equity ratio of 1.72 in the TTM, indicating significant leverage. However, return on equity has improved to 10.9% in the TTM, reflecting better profitability. The equity ratio is moderate, suggesting a balanced asset structure.68
Positive
Cash Flow
Free cash flow has shown positive growth, particularly in the TTM with a 29% increase. The operating cash flow to net income ratio is stable, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is healthy, supporting the company's ability to generate cash from operations.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.34B | 2.24B | 1.85B | 1.71B | 1.47B | 1.21B |
| Gross Profit | 504.00M | 509.00M | 416.00M | 394.00M | 329.80M | 270.80M |
| EBITDA | 356.00M | 379.00M | 293.00M | 267.00M | 253.00M | 156.60M |
| Net Income | 91.00M | 108.00M | 54.00M | 78.00M | 63.00M | -64.50M |
Balance Sheet | ||||||
| Total Assets | 4.65B | 4.70B | 3.84B | 2.98B | 2.95B | 2.95B |
| Cash, Cash Equivalents and Short-Term Investments | 326.00M | 734.00M | 803.00M | 462.00M | 534.00M | 657.80M |
| Total Debt | 1.44B | 1.38B | 854.00M | 789.00M | 943.90M | 1.12B |
| Total Liabilities | 3.80B | 3.81B | 3.02B | 2.36B | 2.54B | 2.60B |
| Stockholders Equity | 836.00M | 872.00M | 808.00M | 604.00M | 399.30M | 333.90M |
Cash Flow | ||||||
| Free Cash Flow | 111.00M | 112.00M | 153.00M | 149.00M | 197.20M | 99.50M |
| Operating Cash Flow | 317.00M | 311.00M | 267.00M | 244.00M | 299.20M | 196.90M |
| Investing Cash Flow | -232.00M | -745.00M | -122.00M | -101.00M | -117.10M | -95.00M |
| Financing Cash Flow | -159.00M | 367.00M | 197.00M | -214.00M | -297.20M | 411.00M |
HENSOLDT AG Unsponsored ADR Technical Analysis
Negative
56.55
Price Trends
55.73
Negative
55.01
Negative
47.51
Negative
Market Momentum
-3.70
Positive
24.21
Positive
0.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAGHY, the sentiment is Negative. The current price of 56.55 is above the 20-day moving average (MA) of 49.80, above the 50-day MA of 55.73, and above the 200-day MA of 47.51, indicating a bearish trend. The MACD of -3.70 indicates Positive momentum. The RSI at 24.21 is Positive, neither overbought nor oversold. The STOCH value of 0.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAGHY.
HENSOLDT AG Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $15.96B | 52.23 | 26.69% | 0.57% | 14.01% | 10.92% | |
68 Neutral | $8.95B | 34.11 | 10.35% | 1.07% | 12.27% | 33.16% | |
67 Neutral | $14.52B | 18.12 | 11.46% | 0.10% | 1.83% | -0.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $9.21B | 69.23 | 14.92% | 0.57% | 17.21% | 643.48% | |
61 Neutral | $12.51B | 603.50 | 1.20% | ― | 14.00% | 23.78% | |
58 Neutral | $13.83B | ― | -1.70% | ― | 44.04% | -129.81% |
* Industrials Sector Average
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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.