hGears AG (HGEA) Fair Value & Analysis

Consumer Cyclical · DE · Market cap €9.6M

Below-average quality, screening 93% undervalued on our models.

What matters now

• The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
• The price is below even our cautious bear case (€1.17). The market is more pessimistic than our downside scenario.
• The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
• A fairly wide model range (€1.17 to €2.34) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range €0.7850 – €26.80 · fair‑value band €1.17 – €2.34 · the €0.8150 price screens below the €1.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

hGears AG (HGEA) currently trades at €0.8150, while our model-based Fair Value estimate is €1.57, implying the stock looks roughly 92.6% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Over the trailing twelve months, hGears AG generated revenue of €91.9M at a net margin of -30.3%. Revenue declined 6.6% year over year. It earns a return on equity of -72.1%. Net debt stands at €18.5M. Fundamentals as of Jul 15, 2026

Our scenario range runs from €1.17 (bear case) to €2.34 (bull case); at €0.8150, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 64% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at 93%, HGEA screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Asset-Based (€1.57) versus Multiples (€1.17). Highest evidence: EV/EBITDA (54).

Key figures & financial health

Quality Score breakdown

About the company

hGears AG, together with its subsidiaries, develops, manufactures, distributes, and supplies precision components and subsystems, and system solutions in European Union, the United States, China, and internationally.

Full company description

hGears AG, together with its subsidiaries, develops, manufactures, distributes, and supplies precision components and subsystems, and system solutions in European Union, the United States, China, and internationally. The company offers gears, sprockets, shafts, structural components, complete transmissions, and other mission-critical components used primarily in combustion-free electric or battery-powered applications. Its products are used in areas, such as e-bikes, electric and hybrid vehicles (EHV), electric power-tools, and gardening equipment. hGears AG was founded in 1958 and is headquartered in Schramberg, Germany.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

hGears AG reported revenue of €91.8M in FY2025 versus €135M in FY2021, a compound −9.2%/yr. Reported net income was −€27.8M in FY2025.

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Peer Group

Auto Parts · 641 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Auto Parts median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.