BN · rank #6 · 2026-07-22
R3NK
XETRA · EUR · $5.06B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.09 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +17.8% |
| Forward net margin Consensus forward net margin. | +8.9% |
| Net margin TTM Trailing twelve month net margin. | +8.3% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.5% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | — |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 4.72× |
| Analyst upside Spread between the consensus 12m target and the current price. | +48.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | -83% |
| Market cap (USD) | $5.06B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
RENK Group AG is a specialized defense sub-system supplier providing mission-critical transmissions, gearboxes, and drive systems for tracked military vehicles across NATO and U.S. Army armored platforms.
Rationale
The bottleneck-solver signal is directly reinforced by RENK's sole-supplier position on platform-specific programs like the Puma IFV transmission, a €6.7bn order backlog providing multi-year delivery visibility, and record Q1 2026 order intake of €582m confirming accelerating European defense re-armament demand.
Material risks
- 1Customer concentration on a handful of large defense programs (Puma IFV, NATO armored fleets) means a single in-sourcing decision or competing transmission qualification by a prime like Rheinmetall could materially erode RENK's bottleneck moat.
- 2The last EPS surprise of -82.6% signals meaningful execution or cost variance risk beneath the adjusted EBIT narrative, and a debt-to-FCF of 4.7x limits financial flexibility if conversion from backlog to free cash flow disappoints.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.