BN · rank #6 · 2026-09-08
R3NK
XETRA · EUR · $4.95B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.04 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +18.2% |
| Forward net margin Consensus forward net margin. | +7.7% |
| Net margin TTM Trailing twelve month net margin. | +7.2% |
| 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. | 4.57× |
| Analyst upside Spread between the consensus 12m target and the current price. | +53.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | -38% |
| Market cap (USD) | $4.95B |
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 German defense drivetrain specialist supplying transmissions and gearboxes for heavy armored vehicles and naval vessels, operating against a ~€7.4 billion order backlog that provides multi-year revenue visibility.
Rationale
The bottleneck-solver thesis is directly reinforced by RENK's sole-supplier position in European heavy armor and naval propulsion drivetrains, record H1 2026 order intake of €1.2 billion (+30% YoY), a backlog roughly 5x trailing revenue, and active capacity expansion at Rheine to relieve a structural delivery constraint.
Material risks
- 1Major defense OEMs or national ministries accelerating in-house drivetrain development would erode RENK's single-source position on future platform generations, the one disqualifier that would structurally break the bottleneck thesis.
- 2The -38% last EPS surprise and debt-to-FCF of 4.6x signal execution risk on margin conversion as RENK scales capacity, and the David Brown Defence acquisition adds integration complexity at a moment when delivery credibility is critical.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.