| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 320.24 | 20041 |
| Intrinsic value (DCF) | 0.87 | -45 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 12.66 | 696 |
hGears AG is a Germany-based precision engineering company specializing in the development and manufacturing of high-precision components and sub-systems for various industries, including e-bikes, electric and hybrid vehicles, and power tools. Founded in 1958 and headquartered in Schramberg, Germany, hGears AG provides a range of products such as gears, sprockets, shafts, structural components, and complete gearboxes. The company operates in the Auto - Parts sector, catering to the growing demand for e-mobility solutions and energy-efficient mechanical components. With a strong focus on innovation and quality, hGears AG serves a global clientele, positioning itself as a key player in the precision components market. The company's expertise in e-drive systems and commitment to sustainability aligns with the increasing shift toward electrification in transportation and industrial applications.
hGears AG presents a mixed investment profile. The company operates in the high-growth e-mobility and precision components sector, benefiting from the global shift toward electrification. However, its financials reveal challenges, including a net income loss of €21.17 million in the latest fiscal year and negative operating cash flow of €4.86 million. The company's market capitalization of €20.28 million reflects its small-cap status, which may entail higher volatility, as indicated by a beta of 0.992. While hGears AG has a solid cash position (€17.13 million) and manageable total debt (€26.32 million), its negative EPS (-€2.04) and lack of dividend payouts may deter income-focused investors. The company's future hinges on its ability to capitalize on e-mobility trends and improve profitability.
hGears AG competes in the precision components and e-drive systems market, where differentiation is driven by technological expertise, manufacturing efficiency, and customer relationships. The company's strengths lie in its long-standing industry presence (since 1958) and specialization in high-precision gears and gearboxes for e-mobility applications. However, its financial struggles, including negative net income and operating cash flow, suggest operational inefficiencies or pricing pressures. The competitive landscape includes larger, more diversified auto parts suppliers with greater R&D budgets and global reach. hGears AG's niche focus on e-bikes and small e-drive systems could be an advantage as these markets expand, but it faces stiff competition from established players with stronger balance sheets. The company's ability to innovate and reduce costs will be critical to maintaining its market position.