hGears AG (HGEA) AI Stock Analysis

hGears AG

(XETRA:HGEA)

Select Model

Rating:43Neutral

Price Target:EUR 0.26▼(-7.50% Downside)

Action:reiterated

Date:10/09/26

The score is primarily weighed down by weak financial performance (negative gross profit in 2025, widening net losses, equity erosion and higher leverage, and negative operating cash flow). Technicals also remain bearish with price below key moving averages and negative MACD. Valuation offers limited support because the company is loss-making (negative P/E) and no dividend yield is provided.

Positive Factors

Program-Based Revenue ModelThe combination of engineering work, industrialization support, and subsequent series production can create customer-program continuity. Once components are integrated into a drivetrain, recurring deliveries over the program lifecycle may provide a more durable revenue base than purely transactional manufacturing.

Negative Factors

Severe Profitability DeteriorationThe move from healthy historical gross margins to negative gross profit signals severe cost, pricing, or product-mix pressure. With EBIT heavily negative and net losses widening, the business is not currently earning its cost base, making a durable recovery dependent on substantial operational improvement.

hGears AG (HGEA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.91M
Dividend Yield: ―
Average Volume (3M): 8,561
Price to Earnings (P/E): -0.1
Beta (1Y): 0.33
Revenue Growth: -6.08%
EPS Growth: -37.43%
Country: Germany
Employees: 562
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

hGears AG Business Overview & Revenue Model

Company Description

Operating as a global specialist, hGears AG excels in the development, manufacturing, and provision of precision components, sub-systems, and comprehensive system solutions. Its portfolio encompasses a wide array of items, such as gears, sprockets, s...

How the Company Makes Money

hGears makes money primarily by manufacturing and selling precision gear and drivetrain components to business customers (B2B), including automotive and e-mobility supply chains and other industrial equipment manufacturers. Revenue is generated throu...

hGears AG Financial Statement Overview

Summary

Financial statements indicate significant stress: revenue has declined, 2025 gross profit turned negative (implying severe cost/price pressure), and net losses widened to about -27.8M with a ~-30% net margin. Equity fell sharply (to ~24.4M from ~52.9M), pushing debt-to-equity to ~1.12 and increasing balance-sheet risk. Operating cash flow remains negative in 2024–2025, though the 2025 cash burn improved versus 2024.

Income Statement

18Very Negative

Balance Sheet

22Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	89.03M	91.82M	95.71M	112.47M	135.33M	134.91M
Gross Profit	-14.87M	-16.63M	41.92M	55.96M	70.68M	76.39M
EBITDA	1.08M	1.11M	-3.71M	923.00K	12.00M	19.08M
Net Income	-26.87M	-27.84M	-21.17M	-13.79M	-841.00K	2.35M
Balance Sheet
Total Assets	71.76M	76.27M	107.02M	136.75M	157.01M	156.38M
Cash, Cash Equivalents and Short-Term Investments	7.24M	8.68M	17.13M	26.60M	37.28M	47.25M
Total Debt	26.03M	27.17M	26.32M	29.82M	34.35M	35.79M
Total Liabilities	52.38M	51.91M	54.14M	63.00M	68.87M	67.72M
Stockholders Equity	19.39M	24.36M	52.88M	73.74M	88.14M	88.66M
Cash Flow
Free Cash Flow	1.57M	-2.77M	-6.31M	-4.13M	-5.68M	-4.04M
Operating Cash Flow	1.09M	-2.77M	-4.86M	4.11M	7.42M	10.15M
Investing Cash Flow	-3.33M	-2.97M	-641.00K	-8.10M	-14.10M	-13.90M
Financing Cash Flow	-157.00K	-2.33M	-4.13M	-5.43M	-4.20M	27.19M

hGears AG Technical Analysis

Technical Analysis SentimentNegative

Last Price0.28

Price Trends

50DMA0.48Negative

100DMA0.66Negative

200DMA0.88Negative

Market Momentum

MACD-0.05Negative

RSI35.21Neutral

STOCH73.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HGEA, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.48, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 35.21 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HGEA.

hGears AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:HGEA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DE:ZIL2	57Neutral	EUR 335.17M	13.10	4.13%	2.84%	-0.34%	―
DE:CON	53Neutral	EUR 13.32B	-50.25	-6.46%	4.06%	-40.61%	-117.79%
DE:BDT	51Neutral	EUR 82.06M	-1.70	-16.20%	―	-14.82%	44.17%
DE:SHA0	44Neutral	EUR 5.49B	-14.88	-12.76%	5.16%	7.15%	67.32%
DE:ED4	43Neutral	EUR 126.00M	-1.87	-36.96%	―	-10.23%	-8.88%
DE:HGEA	43Neutral	EUR 2.91M	-0.11	-122.86%	―	-6.08%	-37.43%

* Consumer Cyclical Sector Average

Performance Comparison

DE:HGEA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:HGEA	hGears AG	0.28	-1.55	-84.69%
DE:BDT	Bertrandt AG	8.12	-12.03	-59.70%
DE:ED4	EDAG Engineering	2.88	-4.12	-58.86%
DE:ZIL2	ElringKlinger AG	5.29	1.34	34.06%
DE:SHA0	Schaeffler AG	5.81	-1.00	-14.73%
DE:CON	Continental Ag (OTC)	66.58	2.69	4.21%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 09, 2026

hGears AG AI Stock Analysis