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Anticipated significant leap in earnings by 70%

Undervalued airplane manufacturing stock, boasting a robust financial structure and promising development prospects, is currently seen as more attractive than its counterpart Airbus.

Anticipated surge in earnings: a 70% hike predicted
Anticipated surge in earnings: a 70% hike predicted

Anticipated significant leap in earnings by 70%

In the world of aerospace manufacturing, one company stands out for its potential growth and current undervalued status - Hensoldt. Based in Taufkirchen near Munich, this sensor solutions specialist has a market capitalization of nearly 10 billion euros.

Hensoldt, which emerged from a spin-off from Airbus, is partly owned by the German government and Italian defense company Leonardo SpA. The company's business is growing, and analysts predict that earnings per share could increase by around 70 percent by 2026.

The stock of this aerospace manufacturer is trading at 15 times earnings, which, based on the expected earnings for this year, is considered low. Interestingly, there is no debt for Hensoldt, and at least 1.5 billion euros of cash, about a tenth of the market capitalization, is likely without obligations. The largest part of the market capitalization of the company is covered by substance.

The balance sheet of Hensoldt has no weaknesses, which is a testament to its financial health. Moreover, the company has high deposits on the book, more than half of the market capitalization, indicating strong customer confidence.

For those interested in investing in Hensoldt, 'The Euro' magazine offers a trial subscription for 3 digital issues at 15.99 € instead of the regular 23.97 €. The magazine focuses on economic developments, company reports, and provides balanced investment recommendations.

While the article in 'The Euro' also discusses other topics such as the new election trade between Donald Trump and Kamala Harris (p.14), the need for more quality controls in digitalization and sustainability (p.66), the fight against money laundering, with a focus on Germany being at risk of stagnation (p.120), and five stock picks for a portfolio with a focus on high raw material margin (p.76), it is Hensoldt that steals the spotlight as a promising investment opportunity in the aerospace sector.

For those seeking a quality investment in the aerospace industry, Hensoldt could be a compelling choice due to its strong financial position, growth potential, and deeply discounted stock market valuation.

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