BN · rank #5 · 2026-07-23
R3NK
XETRA · EUR · $5.12B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.25 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +17.7% |
| 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. | +46.9% |
| Last EPS surprise Most recent reported EPS versus consensus. | -83% |
| Market cap (USD) | $5.12B |
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 NATO tracked armored vehicles, naval platforms, and industrial customers.
Rationale
With a €6.7bn order backlog, sole-supplier positions on platform-specific programs like the Puma IFV, and 2026 guidance targeting the upper end of €255–285m adjusted EBIT, RENK directly embodies the european_defense_ammunition_bottleneck theme as an irreplaceable mobility-solutions bottleneck for European and NATO armored fleets.
Material risks
- 1Platform concentration risk — loss of the Puma IFV transmission contract or a German/NATO decision to qualify a competing transmission supplier would disproportionately impair volumes given RENK's dependence on a small number of large program-specific customers.
- 2The last EPS surprise of -82.6% is a sharp negative outlier that warrants scrutiny for execution or cost-absorption issues beneath the adjusted EBIT headline, and debt-to-FCF of 4.7x limits financial flexibility if defense budget cycles turn.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.