CSG (ENXTAM:CSG) Valuation Check After Record Southeast Asia Air Defense Contracts

CSG (ENXTAM:CSG) is in focus after its Excalibur International unit agreed record contracts worth nearly US$2.5b to supply multi layer air defense systems to customers in Southeast Asia.

See our latest analysis for CSG.

Despite the Excalibur International contracts, CSG’s recent momentum has been weak, with a 7 day share price return of 9.56% and a 30 day share price return of 18.63%, contributing to a year to date share price return of 31.34% at around €22.56.

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With revenue growth at 13.26%, net income growth at 21.74% and the share price trading around €22.56 versus an analyst target of €35.40, is CSG offering a value opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 59% Undervalued

CSG’s narrative fair value of €55 sits well above the last close at €22.56, which puts a spotlight on what might be driving such a large gap.

CSG is often compared to Rheinmetall, the German and European leader in armaments. The latter company manufactures a wide range of military equipment for land, air, and sea, as well as defense digitization and heavy ammunition. https://www.rheinmetall.com/en/ products/overview. CSG manufactures a range of armored vehicles and location technology, but above all, it is a world leader in the production of small-caliber and heavy 155 mm ammunition for cannons https://defence.czechoslovakgroup.com/en. Ammunition is a highly valued commodity because European NATO countries already had empty warehouses before the war in Ukraine and now export a significant part of their production to Ukraine. Due to legislative restrictions and environmental regulations, it is not easy to open new production lines for gunpowder and other explosive chemicals in Europe or to increase production capacity (Rheinmetall managed to do both in 2025, but this is an exception).

Read the complete narrative.

Want to see what kind of earnings profile and profit multiple justify that higher fair value, according to Marek_Trnka? The narrative leans on ambitious profitability and a premium valuation framework that goes well beyond current pricing.

Result: Fair Value of €55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on continued ammunition demand and current margins. A sharp drop in Ukraine related orders or pressure on defence budgets could easily challenge that thesis.

Find out about the key risks to this CSG narrative.

Next Steps

With such a strong split between risks and rewards in this story, it makes sense to check the data yourself and move quickly to shape your own view by reviewing the 4 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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