BN · rank #7 · 2026-10-22
R3NK
XETRA · EUR · $4.19B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.18 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +17.8% |
| 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. | +65.2% |
| 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 designs and manufactures mission-critical military vehicle transmissions and naval propulsion systems integrated into major European defense platforms such as the Leopard 2 and Patria TRACKX.
Rationale
Renk fits the bottleneck-solver strategy due to 17.77% forward revenue growth and multi-year visibility backed by a record €1.195 billion H1 2026 order intake and expanded contracts with KNDS and Patria.
Material risks
- 1Technological displacement or commoditization of mechanical transmissions through alternative hybrid-electric or modular drivetrains by prime defense contractors.
- 2High debt-to-free-cash-flow leverage of 4.57x alongside regulatory clearance and execution risks tied to the pending David Brown Defence acquisition.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.