Maschinenfabrik Berthold Hermle (MBH3) AI Stock Analysis

2 Followers

Maschinenfabrik Berthold Hermle

(Frankfurt:MBH3)

Select Model

Rating:66Neutral

Price Target:EUR 199.00▲(2.58% Upside)

Action:downgraded

Date:11/07/26

The overall score of 66 reflects a company with a world-class balance sheet and a high dividend yield, which are its primary strengths. These are offset by weakening operational momentum, as seen in declining margins and a significant drop in cash flow, along with a cautious near-term technical outlook. The company is a stable, low-debt entity, but it is currently navigating a cyclical slowdown.

Positive Factors

Conservative Balance SheetHermle’s negligible leverage provides substantial financial flexibility and keeps solvency risk low. A strong equity base should help the company withstand weaker industrial demand, maintain investment capacity, and preserve strategic options without relying heavily on external financing.

Negative Factors

Weak Cash ConversionWeak and volatile cash generation reduces the conversion of accounting profits into funds available for reinvestment, dividends, or resilience. The recent decline in operating and free cash flow could constrain capital allocation flexibility if it persists through the next business cycle.

Maschinenfabrik Berthold Hermle (MBH3) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 970.00M
Dividend Yield: 4.92%
Average Volume (3M): 124
Price to Earnings (P/E): 18.7
Beta (1Y): 0.50
Revenue Growth: 8.93%
EPS Growth: 21.86%
Country: Germany
Employees: 1,636
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Maschinenfabrik Berthold Hermle Business Overview & Revenue Model

Company Description

Maschinenfabrik Berthold Hermle AG manufactures and sells milling machines worldwide. The company provides a portfolio of machining centre C product series use in space mouse, saw handle, milling tools, bone plate, soft ice cream, propeller, heavy-du...

How the Company Makes Money

Hermle primarily makes money by selling CNC machining centers and related machine-tool equipment to industrial customers. A second, recurring source of revenue typically comes from after-sales activities tied to the installed base of machines, such a...

Maschinenfabrik Berthold Hermle Financial Statement Overview

Summary

The company's financial health is a tale of two halves. The balance sheet is exceptional (97/100) with virtually no debt, providing a fortress-like foundation. However, profitability and cash flow have weakened, with declining margins and a sharp drop in operating cash flow pulling the Income Statement (65) and Cash Flow (52) scores lower. The overall financial position is solid but facing cyclical headwinds.

Income Statement

65Positive

Balance Sheet

97Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	491.89M	487.93M	532.32M	474.06M	375.98M
Gross Profit	293.87M	290.52M	316.62M	280.74M	221.01M
EBITDA	87.16M	103.64M	130.12M	111.13M	85.98M
Net Income	51.38M	65.92M	87.57M	71.78M	54.91M
Balance Sheet
Total Assets	486.75M	484.57M	506.40M	467.75M	415.03M
Cash, Cash Equivalents and Short-Term Investments	100.28M	141.37M	160.03M	157.90M	120.45M
Total Debt	1.35M	982.00K	1.06M	573.00K	696.00K
Total Liabilities	133.82M	125.71M	139.51M	132.99M	109.82M
Stockholders Equity	352.93M	358.85M	366.88M	334.75M	305.20M
Cash Flow
Free Cash Flow	15.30M	51.66M	59.87M	80.39M	28.75M
Operating Cash Flow	38.11M	102.49M	92.05M	90.52M	36.38M
Investing Cash Flow	-7.13M	-31.32M	-39.08M	-41.44M	-6.78M
Financing Cash Flow	-55.58M	-75.60M	-55.44M	-45.42M	-25.45M

Maschinenfabrik Berthold Hermle Technical Analysis

Technical Analysis SentimentPositive

Last Price194.00

Price Trends

50DMA185.71Positive

100DMA181.34Positive

200DMA166.91Positive

Market Momentum

MACD1.95Negative

RSI64.22Neutral

STOCH96.55Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MBH3, the sentiment is Positive. The current price of 194.00 is above the 20-day moving average (MA) of 184.65, above the 50-day MA of 185.71, and above the 200-day MA of 166.91, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 96.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:MBH3.

Maschinenfabrik Berthold Hermle Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:MBH3 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:AAG	69Neutral	EUR 151.57M	12.62	6.84%	10.15%	-40.42%	-24.77%
DE:MBH3	66Neutral	EUR 970.00M	18.71	14.44%	4.92%	8.93%	21.86%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DE:MXHN	48Neutral	EUR 92.38M	-44.53	-1.09%	―	-8.60%	-107.57%
DE:LPK	46Neutral	EUR 219.98M	-9.25	-33.16%	―	-26.24%	-2180.10%

* General Sector Average

Performance Comparison

DE:MBH3 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:MBH3	Maschinenfabrik Berthold Hermle	194.00	54.05	38.62%
DE:AAG	Aumann AG	12.75	1.85	16.98%
DE:LPK	LPKF Laser & Electronics	8.60	3.00	53.57%
DE:MXHN	MAX Automation	2.28	-3.10	-57.62%
DE:HG1	Homag Group AG	22.60	-4.12	-15.41%
DE:DAR	Datron AG	11.10	3.80	51.99%

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: Nov 07, 2026

Maschinenfabrik Berthold Hermle AI Stock Analysis