Bottleneck Solvers

BN · rank #13 · 2026-07-24

HAG

XETRA · EUR · $10.25B (USD)

SignalBuy2.3strength 2.3 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Bottleneck themes
The structural shortage this name supplies into.
European defense ammunition bottleneck
Factor scores and the inputs behind this pick.
Composite score
Z-score blend of the factors below; drives the rank.
-0.28
Forward revenue growth
Consensus forward revenue growth.
+17.3%
Forward net margin
Consensus forward net margin.
+4.4%
Net margin TTM
Trailing twelve month net margin.
+3.9%
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.
1.34
Debt / FCF
Net debt relative to free cash flow. Lower is safer.
6.12×
Analyst upside
Spread between the consensus 12m target and the current price.
+14.0%
Last EPS surprise
Most recent reported EPS versus consensus.
-0%
Market cap (USD)$10.25B

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

Hensoldt AG is a specialist German defense company supplying advanced sensors, optronics, and electronic warfare systems for land, air, and naval platforms [1].

Rationale

The stock screens well as a European defense bottleneck solver due to its record €9.8 billion order backlog, 3.0x book-to-bill ratio, and 17.25% forward revenue growth [1].

Material risks

  • 1Execution and capacity expansion failure that could prevent timely delivery of the massive €9.8 billion backlog, which is already causing negative free cash flow and net losses [1].
  • 2High customer concentration with the German Bundeswehr, exposure to program-specific setbacks like the F126, and near-term volatility from H1 2026 earnings on July 31, 2026 [1].

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Proceed