Hydratec Industries NV (HYDRA) AI Stock Analysis

• Market Cap: €283.37M
• Dividend Yield: 3.43%
• Average Volume (3M): 46.00
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.21
• Revenue Growth: -9.19%
• EPS Growth: -0.59%
• Country: NL
• Employees: 989
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 1,299,848
• 10 Day Avg. Volume: 2
• 30 Day Avg. Volume: 46
• PEG Ratio: 0.29
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.84
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €244.00 ▲(37.08% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by solid financial performance (improving profitability and a much stronger balance sheet), supported by reasonable valuation and dividend yield. Technicals are positive but overextended, which tempers the overall rating due to near-term pullback risk.

Positive Factors

Improving Profitability and Margins

Sustained improvement in net and EBIT margins over successive years indicates the company is extracting meaningful operational leverage from its cost base and pricing. Higher margins support durability of earnings through cycles and increase capacity to fund capex, dividends, or targeted investments.

Strengthening Balance Sheet (Lower Debt)

Material debt reduction alongside equity growth meaningfully improves financial flexibility and lowers interest burden. A conservative balance sheet increases resilience to downturns, enables opportunistic investment or M&A, and reduces refinancing risk over the medium term.

Consistent Cash Generation & Free Cash Flow

Strong recent operating and free cash flows provide durable funding for working capital, maintenance capex and shareholder returns. Reliable cash conversion in 2024-25 underpins balance sheet strengthening and gives management optionality for reinvestment or smoothing dividends.

Negative Factors

Two-Year Revenue Contraction

A persistent top-line decline over multiple years suggests structural demand weakness or share loss in core markets. Without revenue stabilisation, margin gains may be harder to sustain long-term and limit scalability, investment capacity, and long-term growth prospects.

Cash-Flow Volatility / Working Capital Swings

Large year-to-year swings in cash generation point to working-capital sensitivity and timing issues tied to project deliveries. This volatility undermines forecastability of funding needs and can force reactive financing or constrain consistent reinvestment and shareholder distributions.

Lumpy Order-Driven Business Model

Engineered-to-order projects create lumpy, timing-sensitive revenue and longer sales cycles, increasing sensitivity to macro capex cycles. This structural profile makes growth and planning more uncertain and can amplify near-term volatility in results and backlog realization.

Hydratec Industries NV Business Overview & Revenue Model

Company Description

Hydratec Industries NV (HYDRA) is a diversified industrial company based in the Netherlands, specializing in the development and production of advanced technologies and solutions for the manufacturing and processing industries. The company operates in several sectors, including plastics, food processing, and machinery, providing a range of core products such as automated systems, custom machinery, and high-performance materials. Hydratec is known for its innovative approach, leveraging technology to enhance efficiency and sustainability in various industrial applications.

How the Company Makes Money

Hydratec Industries NV generates revenue primarily through the sale of its specialized machinery and technology solutions to various industries. The company has a multi-faceted revenue model that includes direct sales of equipment, long-term contracts for maintenance and support services, and revenue from customized engineering projects. Key revenue streams include the provision of automated production systems, custom machinery design, and the sales of high-performance materials. Additionally, Hydratec benefits from strategic partnerships with other technology firms and industry leaders, which enhance its market reach and capabilities, allowing it to tap into new customer segments and geographic markets.

Hydratec Industries NV Financial Statement Overview

Summary

Strong and improving profitability (net income up to 24.1m in 2025 with expanding net and EBIT margins) and a strengthening balance sheet (debt reduced to 12.4m while equity rose to 117.3m). Offsetting this are a two-year revenue decline and notable cash-flow volatility (weak/negative FCF in 2023), with some 2025 ratio data missing/zeroed.

Income Statement

Profitability is solid and improving: net income rose to 24.1m in 2025 from 18.2m in 2024 and 15.7m in 2023, with net margin expanding to ~9.2% (vs ~6.7% in 2024). Operating profitability also strengthened (EBIT margin ~11.6% in 2025 vs ~9.4% in 2024). The main weakness is growth: revenue declined from 282.7m (2023) to 270.2m (2024) to 263.1m (2025), indicating a shrinking top line despite higher profits. Reported 2025 gross margin is unavailable/likely inconsistent (shown as 0), so margin quality at the gross level can’t be fully assessed for the latest year.

Balance Sheet

The balance sheet looks conservative and strengthening. Debt has been reduced materially over time (51.1m in 2020 to 12.4m in 2025) while equity has grown (63.1m in 2020 to 117.3m in 2025), supporting improving financial flexibility. Assets also increased to 227.5m in 2025. A limitation is that some key ratios for 2025 are missing/zeroed (debt-to-equity and return on equity), but the direction of debt reduction and equity build is clearly favorable.

Cash Flow

Cash generation is generally strong recently: operating cash flow was 33.5m in 2025 and 37.5m in 2024, with healthy free cash flow of ~29.6m (2025) and ~30.7m (2024). However, cash flow volatility is a key risk—2023 saw very weak operating cash flow (4.7m) and negative free cash flow (-6.9m) despite positive earnings, suggesting working-capital or timing swings. Several 2025 cash conversion ratios are missing/zeroed, limiting the ability to judge how well cash flow tracks earnings in the latest year.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	260.22M	263.10M	270.20M	282.75M	283.26M	257.30M
Gross Profit	87.55M	61.47M	139.70M	136.47M	127.78M	123.03M
EBITDA	36.08M	30.40M	35.38M	33.20M	32.84M	33.71M
Net Income	20.05M	24.10M	18.22M	15.69M	15.93M	15.12M
Balance Sheet
Total Assets	210.27M	227.45M	216.42M	220.92M	240.32M	213.59M
Cash, Cash Equivalents and Short-Term Investments	11.18M	24.87M	9.15M	11.14M	25.20M	5.20M
Total Debt	1.56M	12.39M	14.78M	24.49M	22.92M	31.37M
Total Liabilities	104.49M	110.20M	111.63M	126.89M	154.23M	137.33M
Stockholders Equity	105.56M	117.25M	104.58M	93.82M	85.99M	76.08M
Cash Flow
Free Cash Flow	27.66M	29.59M	30.70M	-6.89M	32.63M	26.96M
Operating Cash Flow	32.30M	33.55M	37.53M	4.74M	43.46M	33.66M
Investing Cash Flow	-17.99M	-5.29M	-19.97M	-11.29M	-8.68M	-6.66M
Financing Cash Flow	-11.66M	-11.86M	-19.12M	-7.41M	-14.58M	-26.57M

Hydratec Industries NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 178.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:HYDRA, the sentiment is Positive. The current price of 178 is below the 20-day moving average (MA) of 196.40, below the 50-day MA of 186.34, and above the 200-day MA of 176.61, indicating a bullish trend. The MACD of 5.94 indicates Negative momentum. The RSI at 77.52 is Negative, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:HYDRA.

Hydratec Industries NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEIJM	77 Outperform	€2.29B	17.63	25.34%	2.44%	11.67%	36.03%
HYDRA	74 Outperform	€283.37M	11.75	―	3.43%	-9.19%	-0.59%
KENDR	66 Neutral	€241.99M	12.39	6.36%	3.06%	-14.95%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FUR	55 Neutral	€1.13B	-56.33	9.91%	8.99%	-7.57%	-51.86%
ALFEN	50 Neutral	€188.09M	-963.33	-10.80%	―	-13.84%	-286.67%
NXFIL	44 Neutral	€120.75M	-4.70	-22.44%	―	13.09%	7.16%