ENXTPA:MLHK

Stock Analysis Report

Executive Summary

H&K AG, together with its subsidiary, develops, manufactures, markets, and distributes infantry and sidearms for federal, state, or local governmental agencies in NATO countries and the European Union.

Risk Analysis

Earnings have declined by -47.96% per year over past 5 years

Interest payments are not well covered by earnings

Shares are highly illiquid

Shareholders have been diluted in the past year



Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has H&K's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MLHK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

MLHK

1.7%

FR Aerospace & Defense

-1.4%

FR Market


1 Year Return

3.2%

MLHK

30.7%

FR Aerospace & Defense

21.1%

FR Market

Return vs Industry: MLHK underperformed the French Aerospace & Defense industry which returned 29.2% over the past year.

Return vs Market: MLHK underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

MLHKIndustryMarket
7 Day0%1.7%-1.4%
30 Day6.7%4.1%0.3%
90 Dayn/a8.4%5.8%
1 Year3.2%3.2%32.7%30.7%25.4%21.1%
3 Year128.8%40.3%95.7%86.7%43.2%29.6%
5 Yearn/a166.7%143.4%63.1%39.5%

Price Volatility Vs. Market

How volatile is H&K's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is H&K undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether H&K is trading at an attractive price based on the cash flow it is expected to produce in the future. But as H&K has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of MLHK’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through H&K regulatory filings.
  • Explore potentially undervalued companies in the Capital Goods industry.

Future Growth

How is H&K forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as H&K has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has H&K performed over the past 5 years?

-48.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLHK is currently unprofitable.

Growing Profit Margin: MLHK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MLHK is unprofitable, and losses have increased over the past 5 years at a rate of -48% per year.

Accelerating Growth: Unable to compare MLHK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MLHK is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (20.7%).


Return on Equity

High ROE: MLHK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is H&K's financial position?


Financial Position Analysis

Short Term Liabilities: MLHK has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MLHK has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MLHK has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MLHK's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MLHK's debt is not well covered by operating cash flow (5.6%).

Interest Coverage: MLHK is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: MLHK has a high level of physical assets or inventory.

Debt Coverage by Assets: MLHK has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is H&K's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%4.5%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MLHK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MLHK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MLHK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MLHK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MLHK's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

What is the CEO of H&K's salary, the management and board of directors tenure and is there insider trading?


CEO

Jens Koch (46yo)

1.7yrs

Tenure

0

Dr.-Ing. Jens Bodo Koch serves as Chairman of Executive Board & CEO at H&K AG since May 01, 2018. He has served as Managing Director of Heckler & Koch GmbH since May 1, 2018. He serves as a Member of Manag ...


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Management Team

  • Jens Koch (46yo)

    Chairman of Executive Board & CEO

    • Tenure: 1.7yrs
  • Björn Krönert

    Chief Financial Officer

    • Tenure: 1.3yrs

Board Members

  • Dieter John

    Chairman of Supervisory Board

    • Tenure: 3.9yrs
  • Nicolaus Bocklandt

    Deputy Chairman of Supervisory Board

    • Tenure: 3.9yrs
  • Jean-Christoph Arntz

    Member of Supervisory Board

    Company Information

    H&K AG's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: H&K AG
    • Ticker: MLHK
    • Exchange: ENXTPA
    • Founded: 1949
    • Industry: Aerospace and Defense
    • Sector: Capital Goods
    • Market Cap: €4.423b
    • Shares outstanding: 27.64m
    • Website: https://www.heckler-koch.com

    Number of Employees


    Location

    • H&K AG
    • Heckler & Koch-Street 1
    • Oberndorf am Neckar
    • Baden-Württemberg
    • 78727
    • Germany

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    MLHKENXTPA (Euronext Paris)YesShare CapitalFREURJul 2015

    Biography

    H&K AG, together with its subsidiary, develops, manufactures, markets, and distributes infantry and sidearms for federal, state, or local governmental agencies in NATO countries and the European Union. It offers a range of small arms for military and law enforcement, and civil markets, such as pistols, submachine guns and pistols, assault rifles, precision rifles, machine guns, training systems, 40 MM systems, grenade launchers, and specialist equipment, as well as provides related accessories and services. The company was founded is 1949 and is based in Oberndorf am Neckar, Germany. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 22:26
    End of Day Share Price2020/01/16 00:00
    Earnings2019/06/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.