Bottleneck Solvers

BN · rank #10 · 2026-09-07

HAG

XETRA · EUR · $10.69B (USD)

SignalBuy1.6strength 1.6 / 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.
-0.41
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.
+16.2%
Last EPS surprise
Most recent reported EPS versus consensus.
-3%
Market cap (USD)$10.69B

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 group specializing in high-end sensors, radar, and optronics for air defense, naval, and ground platforms.

Rationale

The bottleneck-solver signal is supported by strong 16.55% forward revenue growth and a record-high €10.3bn backlog, validating its critical role in resolving European defense sensor and air-defense shortages.

Material risks

  • 1Contract and revenue loss stemming from the June 2026 termination of the German Navy F126 frigate programme, which management is currently assessing.
  • 2Execution and cash-flow strain from scaling operations while free cash flow remains seasonally negative (-€136m in H1 2026) alongside a high 5.45x debt-to-FCF ratio.

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