What's on your shopping list?
Mine
repeat purchases $CACI (-0,73%)
$HIMS (-7,52%)
$TTD (-5,16%)
Messaggi
6What's on your shopping list?
Mine
repeat purchases $CACI (-0,73%)
$HIMS (-7,52%)
$TTD (-5,16%)
Hello everyone, over the last few days I have been wondering which company could benefit the most from the enormous investments in armaments. Which company is still reasonably fairly valued and where might it still be worth entering?
However, as I have realized that there is not just one company, the question arises as to whether I should add the whole bouquet to my portfolio.
In my search for the bouquet, I looked for an index. And I came across the
MarketVector Global Defense Industry Index
came across. The MarketVector Global Defense Industry Index provides access to companies worldwide that are active in the military or defense industry.
During my further research, I then came across the
VanEck Defense UCITS ETF A. $DFEN (-9,24%) I came across the VanEck Defense UCITS ETF A.
The VanEck Defense UCITS ETF A is the only ETF that replicates the MarketVector Global Defense Industry Index. The ETF replicates the performance of the index through full replication (purchase of all index components). The dividend income in the ETF is accumulated (reinvested in the ETF).
The VanEck Defense UCITS ETF A is a very large ETF with a fund volume of EUR 2,979 million. The ETF was launched in Ireland on March 31, 2023.
Now my question would be to the ETF experts in the community.
What do you think of this ETF?
The TER (total expense ratio) of the ETF is 0.55% p.a. Is it worth these costs, there are also cheaper defense ETFs.
USA 59.33%
France 10.60%
Italy 6.84%
South Korea 4.95%
Israel 4.10%
Singapore 3.22%
Great Britain 3.05
Germany 1.09%
Other countries
The high proportion of US companies could be a disadvantage. However, when I look at the US companies, I see less of a disadvantage.
With 8.53% Palantir, the ETF offers a good opportunity to continue playing the hand and minimize the risk of the high valuation a little.
Palantir Technologies, Inc. 8.53%
Thales SA 8.07%
Booz Allen Hamilton Hldg 7.80%
Leidos Holdings 7.68%
Leonardo SpA 6.84%
Curtiss-Wright 6.78%
BWX Technologies 5.13%
CACI International 4.28%
Elbit Systems 4.10%
SAAB 3.84
The US stocks may even have an advantage now, because they have taken a beating in recent weeks. And should now slowly start to pick up again. As you can already see today
$CACI (-0,73%) and $BAH (-1,84%) recognizable today.
@Memo0606 Perhaps an alternative to Caci!
Furthermore, I still see potential in European stocks. Because Europeans want to pick these companies and it has only just begun.
I also like the fact that through the ETF you can invest in
HANWHA AEROSPA.CO (South Korea)
because unfortunately this is difficult as an individual investment.
Overview of returns
Current year +15.66%
1 month +7.15%
3 months +12.64%
6 months +37.51%
1 year +45.26%
3 years -
5 years -
Since inception (MAX) +117.66%
2024 +52,70%
Please tell me your opinion on my thesis, I look forward to your comments.
https://www.justetf.com/de/etf-profile.html?isin=IE000YYE6WK5
A little update on current events: I took a look at the largest defense companies in Europe and thought it might be of interest to you.
So here's a brief overview of the ten most important players - with a few basics about the companies, their figures (turnover, valuation, etc.) and an assessment of how much potential they still have.
These companies are currently the focus of the armaments boom and are very popular with many investors.
➡️ BAE Systems (UK) $BA. (-9,05%) - British defense technology
📈 Rating:
BAE Systems appears to be fairly valued at the current fairly valued to slightly favorable. The P/E ratio in the low 20s already reflects good business figures, but is in line with the industry as a whole
In view of rising defense spending and a solid order situation, moderate growth is expected, which underpins the valuation. The share is therefore considered neither highly overpriced nor a bargain - with slight upside potential. upside potential thanks to sustained demand in the defense sector.
➡️ Airbus (Defense & Space, EU)
$AIR (-8,31%) - European aerospace group
📈 Valuation:
Airbus is primarily rated as fair to slightly fair to slightly demanding valuation is seen as fair to slightly demanding. The high current P/E ratio ~31 reflects pandemic-related earnings weakness, but should fall significantly in 2025.
At a P/E ratio of ~1.8, the sales valuation is moderate. As production and profits are likely to increase in the coming years, the share appears reasonably valued. Greater share price potential depends on growth (e.g. higher jet deliveries); if this is successfully realized, the valuation could prove to be justified be justified.
➡️ Leonardo S.p.A. (Italy)
$LDO (-14,89%) - Italian defense and aerospace group
📈 Valuation:
Leonardo appears favorably valued compared to the industry favorably to fairly valued. With a P/E ratio of around 20 and a P/E ratio of ~1.3, the valuation is below that of many Western European peers. The low dividend yield reflects a strategy focused more on reinvestment.
In view of double-digit growth (share price +~100 % YoY), there could still be upside potential upside potential if margins continue to rise. Overall, the moderate valuation level suggests that Leonardo is rather slightly undervalued provided that growth in defense electronics and aerospace continues.
➡️ Thales S.A. (France) $THALES (+1,44%) - Defense Electronics, Aeronautics & Security
📈Valuation:
With a P/E ratio close to 28, Thales is listed at the upper end of the industry scale, but this is partly justified by the stable earnings situation and growth in the civil electronics business. The P/E ratio of ~2 signals that investors are paying slightly more for sales than for pure defense companies - a premium for the profitable cyber/digital business. Overall, the share appears fairly valuedalthough not cheap.
Since Thales, as a broad-based technology group, is benefiting from rising defense budgets, the current valuation seems justifiable; there is further growth potential. growth potential growth potential exists, but larger share price gains are likely to be linked to higher-than-expected earnings growth.
➡️ Rheinmetall AG (Germany)
$RHM (-10,98%) - Vehicle and weapon systems, ammunition
📈Valuation:
After the rapid rise in the share price, Rheinmetall appears very ambitiously valued. Although the current P/E ratio (>75) is not very meaningful due to extraordinary costs, even the forward P/E ratio of around 52 signals high expectations
The low dividend yield and P/E ratio of ~5 underline that the share is already anticipating a major future jump in sales and earnings. If Rheinmetall achieves its optimistic growth targets (keyword: special assets of the German armed forces, NATO orders), the key figures could fall in the future. Until then, however, the share is considered overvalued - Investors are paying a high price for the growth potential. The upside potential is therefore subject to risks; setbacks in major orders could lead to corrections.
➡️ Dassault Aviation (France) $DAU - Fighter aircraft (Rafale) & business jets
📈Valuation:
Dassault Aviation appears to be moderately valued. The current P/E ratio of ~24 is in the mid-range and the company has little debt, which puts the higher P/E ratio (~3.8) into perspective. Investors are paying a premium for the high net cash position and future major orders (fighter jets).
Overall, the share is considered fairly valued - neither obviously undervalued nor too expensive. In view of the stable margins and special role (high-end military aircraft), a slightly higher sales multiple is justifiable. The growth potential (e.g. through defense projects and new Falcon business jets) could provide medium-term share price momentum without the valuation getting out of hand.
➡️ Saab AB (Sweden)
$SAAB B (-11,16%) - Defense systems, aircraft (Gripen) & security
📈Valuation:
Saab is currently quite highly valuedwhich reflects the future opportunities. A P/E ratio of ~41 is above average for defense companies and signals that current profits are (still) low - in fact, Saab invests heavily in development, which squeezes margins. The price/sales ratio of ~2.7, on the other hand, is roughly comparable with other aerospace companies. Should the envisaged double-digit growth materialize and profitability increase, the valuation will be put into perspective (forward P/E ~32).
However, the company is currently paying an advance on future profits, so that Saab is rather slightly overvalued is slightly overvalued. The growth potential (in particular through higher defence spending in Scandinavia and new Gripen export orders) is high - if it is realized, the valuation should return to a normal range in a few years.
➡️ Rolls-Royce Holdings (UK) $RR. (-15,21%) - Engines for civil aviation & military, energy
📈Valuation:
After the share price multiplier in 2023 (share price +~245 % in 2023), Rolls-Royce is now no longer clearly undervalued. The P/E ratio of ~25 looks moderate, but it should be borne in mind that this is based on the recently positive earnings - margins are still low.
The sales valuation at approx. 3.3 times sales is in the midfield between classic defense and civil aircraft manufacturers. Without a dividend and with a debt burden, Rolls must first prove that the turnaround is sustainable. Overall, the share is currently fair to slightly overvalued as there is a lot of future potential (e.g. new generations of engines, small modular reactors) in the share price. If the hoped-for jump in profits is achieved in the next few years, Rolls-Royce could catch up further - however, the current upside potential is rather limited. limitedas long as tangible results are awaited.
➡️ Safran S.A. (France)
$SAF (-7,4%) - Engines (e.g. CFM), aviation supplier
📈Valuation:
Safran appears distorted by the disclosure of a loss (negative TTM P/E ratio), in fact the share is highly valued on the basis of the underlying earnings power. A forward P/E ratio of over 30 and P/E ratio close to 4 are well above the sector average, which anticipates the market position and growth opportunities (increasing aircraft production, maintenance business). The dividend yield is relatively low at <2%.
Overall, Safran is probably rather overvalued investors are paying a premium for quality and market position. The growth potential (recovery in aviation, new engine programs) does exist, but is largely priced into the share price. Setbacks could ease the valuation somewhat; in the long term, however, Safran remains an expensive but very solid value.
➡️ Hensoldt AG (Germany) $HAG (-12,95%) - Specialist for sensor and radar technology
📈Valuation:
After a sharp rise in the share price, Hensoldt is clearly expensive. The current P/E ratio is hardly reasonable (triple-digit due to special effects in the balance sheet); even on a forward basis, it is in the high 30s, which is high even for high-growth tech stocks.
Investors are therefore paying in advance for expected future profits. The KUV ~3 reflects the enormous sales growth, but is not low for a defense electronics specialist. The low dividend yield shows that profits are being retained. Overall, the share seems overvalued - the high momentum (+54 % last year) already largely prices in future growth. Although Hensoldt has excellent growth prospects (digitization of defence, networking), but these would first have to translate into significantly higher profits to justify the current valuation. An entry is therefore considered speculative, as setbacks are possible if expectations are not met.
👉 Conclusion:
Europe's largest defense companies are benefiting from the rearmament cycle, which is reflected in higher valuations in some cases. Undervalued Leonardo appears undervalued in this group (thanks to more favorable ratios), while established companies such as BAE, Airbus, Thales and Dassault are largely fairly valued. fairly valued appear to be fairly valued.
Stocks with a turnaround character (Rolls-Royce) or a high future share (Rheinmetall, Hensoldt, Safran, Saab) show higher multiples and tend to be considered overvalued. overvaluedas a lot of growth is anticipated.
The growth potential is high across the industry - higher defense budgets, technology purchases and retrofitting requirements are keeping order books full. The decisive factor for further share price increases will be whether companies can translate these growth opportunities into rising profits in order to put the ambitious valuations into perspective.
Hello community
does anyone have an opinion on the company in terms of chart and in general?
apparently it is currently correcting
numbers were good $CACI (-0,73%)
$CACI (-0,73%) lost 10% in the last two days. I see a connection with the recently announced savings target of the future "efficiency minister" Musk in Donald Trump's cabinet, as a large proportion of CACI orders come from US authorities and the military.
CACI International raises sales forecast for financial year 2025. $CACI (-0,73%)
CACI International Inc (NYSE: CACI), a leading provider of information technology and professional services, reported strong results for the first quarter of fiscal 2025, with revenue increasing 11% to nearly $2.1 billion. The company also raised its revenue guidance for fiscal 2025 to $8.1 billion to $8.3 billion, with a sizable backlog of $32.4 billion, indicating positive long-term growth prospects. Adjusted earnings per share (EPS) are expected to increase to USD 22.89 to 23.78. These results reflect CACI's strategic acquisitions and robust market performance, while emphasizing the company's focus on national security priorities and shareholder value.
Key Takeaways:
- CACI International reported revenue growth of 11% in the first quarter of fiscal 2025 to nearly $2.1 billion.
The company raised its revenue guidance for FY 2025 to USD 8.1 to 8.3 billion, reflecting strong organic growth and acquisitions.
- Adjusted earnings per share are expected to increase to USD 22.89 to 23.78.
- The order backlog increased to USD 32.4 billion, demonstrating robust long-term visibility.
- Strategic acquisitions of Applied Insight and Azure Summit are key to CACI's growth strategy.
- The company remains focused on national security priorities and increasing shareholder value.
Company Outlook:
- CACI expects approximately 89% of fiscal 2025 revenue to come from existing programs.
- The company is confident about its long-term growth potential, with significant offers under evaluation.
- An investor day is planned for November 8th to provide further updates.