Bottleneck Solvers

BN · rank #10 · 2026-09-04

HAG

XETRA · EUR · $10.98B (USD)

SignalBuy1.5strength 1.5 / 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.
-0.44
Forward revenue growth
Consensus forward revenue growth.
+16.6%
Forward net margin
Consensus forward net margin.
+5.1%
Net margin TTM
Trailing twelve month net margin.
+4.5%
Margin expansion
Forward minus trailing net margin (percentage points).
+0.6%
Forward PEG
Forward P/E to growth. Below 1 is cheap for the growth.
1.06
Debt / FCF
Net debt relative to free cash flow. Lower is safer.
5.45×
Analyst upside
Spread between the consensus 12m target and the current price.
+13.3%
Last EPS surprise
Most recent reported EPS versus consensus.
-3%
Market cap (USD)$10.98B

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 German defense electronics provider specializing in military sensor, optronics, and radar systems for air defense, ground, and naval platforms [1, 2].

Rationale

The company fits the bottleneck-solver strategy through its high-end niche technologies, driving a record €10.3bn backlog and 2.4x book-to-bill ratio as European nations rearm [1, 3].

Material risks

  • 1The sudden termination of the German Navy's F126 frigate program in June 2026, which threatens near-term backlog expectations and major naval contract revenue [1].
  • 2Elevated operational execution and working capital pressure, highlighted by a negative €136m free cash flow in H1 2026 and a high debt-to-FCF ratio of 5.45x [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