BN · rank #9 · 2026-10-21
R3NK
XETRA · EUR · $4.19B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.20 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +18.0% |
| 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. | +65.1% |
| Last EPS surprise Most recent reported EPS versus consensus. | -38% |
| Market cap (USD) | $4.19B |
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 (R3NK@XETRA) supplies mission-critical military vehicle transmissions, naval gearboxes and propulsion systems for platforms like Leopard 2-family vehicles and Patria TRACKX, with additional growth tied to David Brown Defence.
Rationale
The signal looks plausible because RENK has a real bottleneck-solver profile: qualified, integrated drivetrain hardware on long-life defense platforms, plus strong order intake, guided revenue growth and margin expansion that support visible earnings upside.
Material risks
- 1The key thesis-breaker is customer/prime-contractor substitution risk, where Leopard, naval or other platform owners shift transmission work to in-house solutions or alternative suppliers, eroding RENK’s qualified-supplier advantage.
- 2The balance-sheet and deal overhang is material, with debt-to-FCF elevated and the David Brown Defence acquisition still pending regulatory approval and integration, which could dilute returns if execution slips.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.