H&K AG

MLHK.PA

Aerospace & Defense · Industrials

Price

€34.70

-0.20 (-0.57%)

Market Cap

€1.23B

Exchange

Euronext Paris

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Strong

Growth

Exceptional

Cash Flow

Good

Stability

Strong

Valuation

Mixed

Dividends

Weak

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Share count rising — dilution

+3.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 34.3M (2021) → 35.5M (2025)

Winston Score History

The full picture

Heckler & Koch (H&K) is a German company that designs and manufactures firearms for military, law enforcement, and security forces around the world. Its most well-known products include rifles like the G36 and HK416, pistols like the USP and VP9, and submachine guns like the MP5. H&K is one of the most recognized small arms manufacturers in the world, with its weapons used by elite military and police units across dozens of countries.

H&K makes money by selling firearms and spare parts directly to government customers, primarily through large defense contracts. The company operates mainly in Europe and North America, with Germany as its home base, and generates roughly $300–400 million in annual revenue. Its main competitive advantage is its strong reputation for reliability and precision, which makes it a trusted supplier to demanding government buyers. The key risk is that revenue depends heavily on government defense budgets and export licenses, which can be restricted or delayed by political decisions.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+57.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+256.2% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

€12M/ year

↑ Rising (+26% vs prior year)

3.0% of revenue

Below sector average (4%)

R&D investment increasing — building for the future

Insider Activity

0.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€53M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

H&K AG grew revenue 57% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

38.4%

Modest — 38.4% gross margin

Profit after running costs

Operating Margin

21.5%

Excellent — 21.5% operating margin

Return on the money invested

ROCE

24.7%

Exceptional — 24.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+25.6%

Fast-growing sales (+25.6% YoY)

Profit growth

EPS YoY

+72.1%

Earnings growing fast (+72.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

92%

Modest — 92% of profit becomes cash

Spare cash per sale

FCF Margin

4.1%

Thin free cash flow (4.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.42

Conservative — low debt load (0.42)

Covers its interest

Interest Cover

13.53x

Comfortably covers interest (13.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

23.4x

Growth-priced — P/E 23.4

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

0.17%

Small dividend — 0.17% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

N/A

Data not available

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