Hensoldt AG (HNSDF)
OvervaluedFundamental
49
Price
$76.24
Market Cap
$8.78B
Part 1 · What the company is worth
Overview
HENSOLDT is a German defense electronics maker: it builds the radars, sensors, cameras and targeting optics that let military platforms see, track and aim, rather than making the aircraft, ships or vehicles themselves. Its equipment goes onto programs like the Eurofighter jet, the P-8 Poseidon patrol aircraft, and Leopard 2 tanks, sold mainly to European and NATO armed forces.
How it makes money
Revenue comes from long-cycle defense contracts: governments order equipment years in advance, HENSOLDT books the order as backlog and recognizes revenue as it develops, produces and delivers the systems, followed by years of maintenance and upgrade work on equipment already in the field. Growth therefore shows up first as order intake, which converts into revenue only gradually as programs move from contract to delivery.
Revenue by segment
Radars, air-defence and reconnaissance sensors used on aircraft, ships and ground-based systems, the core of the business.
Electro-optical sighting, targeting and vision systems mounted on land vehicles such as the Leopard 2 and Puma platforms.
Competitive moat
Switching costs · NarrowOnce HENSOLDT's radar or optronics are integrated into a platform like the Eurofighter or Leopard 2, replacing them mid-program means requalifying a new supplier through years of defense procurement and security clearance processes, which governments rarely choose to do. The trade-off is that this advantage is tied to a small number of large programs, so losing or not winning the next generation of one of them matters a great deal.
What drives demand
Moderately cyclicalOrders follow government defense budgets and multi-year procurement decisions rather than the broader economy, and the company itself credits Germany's elevated defense spending as the main driver of its record 2025 order intake. That makes demand more a function of political and budgetary decisions — which can also reverse or delay — than of a classic economic cycle.
Key risks
- Dependence on German defense spending — The company attributes its record 2025 order intake mainly to elevated German federal procurement, so a change in Germany's defense budget priorities would directly affect future orders.
- Concentration in a few large programs — Order intake growth is driven by specific platforms such as the Eurofighter, Leopard 2 and P-8 Poseidon; a shift in any partner nation's procurement plans away from these platforms would reduce expected orders.
- Export licensing dependency — International sales require export licenses from German and European authorities, whose approval decisions can delay or block contracts that are otherwise ready to proceed.
Customer concentration
HENSOLDT does not disclose an exact percentage, but its own 2025 results credit Germany as the key driver of order intake momentum, indicating heavy reliance on a single national defense customer.
The case for
Buyers argue that a record order backlog built on elevated German and European defense spending gives HENSOLDT years of visible future revenue, and that its equipment being designed into flagship platforms like the Eurofighter and Leopard 2 makes it difficult for those programs to switch suppliers.
The case against
Sellers fear that growth leans heavily on the German government's current appetite for defense spending, which is a political decision that can change, that revenue is concentrated in a handful of flagship programs, and that export contracts remain subject to licensing decisions HENSOLDT does not control.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
Elbit competes for the same optronics, sighting systems and electronic-warfare orders on land vehicles and aircraft, and is an aggressive bidder in the European export tenders Hensoldt targets.
Thales bids against Hensoldt for the same European air-defence radar, naval sensor, optronics and electronic-warfare programmes, with its Ground Master radars competing head-on with Hensoldt's TRML family.
Leonardo sells radars, avionics and electronic-warfare suites to the same European armed forces and airborne platforms, competing with Hensoldt even though it also holds a large stake in it.
Saab's Giraffe and Erieye radar lines and its self-protection systems chase the same ground-based air-defence and airborne surveillance budgets in Europe and in export markets.
Indra supplies radars, electronic-warfare and mission systems to European defence ministries and competes with Hensoldt for the sensor workshare on joint European programmes.
Balance Sheet & Liquidity
Revenue
$2.68B
Trailing 12 months (through 6/30/2026)
Net Income
$120M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$304M
Total Equity
$889M
Total Liabilities
$1.69B
Current Ratio
1.10
Interest Coverage
-
Debt/EBITDA
4.88
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$47.78
Current Price
$76.24
Margin of Safety
-59.5%
Fair Value Range
$31.06 - $64.51
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
73.08
ROE
12.9%
P/B Ratio
9.87
P/FCF
28.88
Gross Margin
21.0%
ROIC
4.3%
Profitability Radar
Value Creation (Economic Moat)
ROIC
4.3%
WACC
14.6%
ROIC − WACC
-10.4 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (11)
- Price CAGR 33.11%
- P/FCF 28.88
- Debt/Equity ratio
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- ROE 11.9%
- Revenue Growth 5Y 15.3%
- Analyst Consensus 50% Buy
- Earnings Surprise avg 35.3%
- Earnings Quality (OCF/NI) 6.37
Failed (7)
- ROIC 4.3%
- Gross Margin 21.0%
- P/B Ratio 9.87
- CapEx intensity
- DCF valuation (Overvalued)
- Net Margin Trend 3.6% vs 4.8%
- Piotroski F-Score 2/9
Unavailable (9)
- EPS data insufficient
- Dividend Payout NaN%
- Operating Margin NaN%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
No institutional filings reported for this company.
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Oliver Dorre | CEO & Chairman of Management Board | - |
| Mr. Christian Ladurner | CFO & Member of Management Board | 48 |
| Dr. Lars Immisch | Executive Officer | 58 |
| Nicolas Debove | Chief Operating Officer | - |
| Ms. Inka Tews | Chief Human Resources Officer, Labour Director & Member of Management Board | 54 |
| Ms. Veronika Endres | Head of Group Reporting & Investor Relations | - |
| Dr. Katja Stadelmann | General Counsel | - |
| Ms. Simona Patap | Marketing Manager | - |
| Mr. Stefan Hess | Head of Group Sales & Account Management | 57 |
| Mr. Temur Karbassioun | Head of Customer Service | - |
Audit Risk
5
Board Risk
6
Compensation Risk
6
Shareholder Rights Risk
9
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for HNSDF, sourced from Markets Gazette.