Colt CZ Group SE

Colt CZ Group SE maintains a capital structure characterized by significant leverage, with long-term debt of CZK 21.4 billion against total equity of CZK 21.2 billion, resulting in a debt-to-equity ratio of 1.01. The balance sheet shows total assets of CZK 55.6 billion and total liabilities of CZK 34.4 billion. Despite the high debt load, the company exhibits strong short-term liquidity, evidenced by a current ratio of 2.35. Operating cash flow stands at CZK 7.1 billion, which comfortably covers capital expenditures of CZK 1.0 billion, yielding free cash flow of CZK 1.7 billion. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, highlighting the reliance on debt financing for its asset base.

Profitability metrics indicate a gross profit of CZK 10.3 billion on revenue of CZK 23.4 billion, implying a gross margin of approximately 44%. Operating income is CZK 3.3 billion, leading to a net income of CZK 2.0 billion. The return on equity is 9.65%, while return on assets is 3.68%. These returns are generated against a market capitalization of CZK 55.9 billion, with a price-to-earnings ratio of 27.32 and an EV/EBITDA of 23.68. The price-to-book ratio is 2.64, suggesting the market values the company's tangible assets at a premium, likely reflecting the defensive nature of its aerospace and defense contracts.

The company operates within the Aerospace & Defense industry, a sector typically characterized by long-term contracts and high barriers to entry. While specific segment and geographic revenue breakdowns are not provided in the current data, the classification as an aerospace and defense manufacturer suggests exposure to both commercial and government clients. The absence of detailed segment data limits the ability to assess revenue concentration risks, but the industry context implies a diversified customer base typical of major defense contractors.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to quantify recent growth rates or volatility. The current financial snapshot provides a static view of performance, but the lack of historical context prevents a robust assessment of momentum or cyclical positioning.

Risk factors include medium liquidity risk and low dilution risk. The key flag regarding negative net cash after debt subtraction underscores the importance of maintaining strong operating cash flows to service debt obligations. The low dilution risk suggests that the company is not currently relying on equity issuance to fund operations, which is positive for existing shareholders. The debt-to-equity ratio of 1.01 is a critical metric to monitor, as any deterioration in cash flow could impact the company's ability to manage its leverage.

Recent events and analyst sentiment indicate a positive outlook, with a mean price target of CZK 1,136.40 and a median target of CZK 1,050.00. The mean recommendation is 1.83, leaning towards a buy, with two strong-buy and three buy ratings. The high price target of CZK 1,445.00 and low of CZK 976.00 suggest a range of expectations among analysts. The current market price of CZK 892.00 is below the mean and median targets, indicating potential upside according to analyst consensus.

Revenue grew at a 21.6% CAGR from 2022 to 2026, demonstrating strong top-line expansion over the four-year period.

Analysts project 27.4% upside to a mean price target of 1,136.4 CZK, reflecting positive market sentiment.

Net income surged 95.8% year-over-year in 2026, reaching 2.04 billion CZK, highlighting accelerating earnings growth.

Cash conversion ratio of 3.47 ranks best-in-class within the Aerospace & Defense cohort, signaling efficient cash generation.

Debt-to-equity ratio of 1.01 places the company in the bottom quartile of its cohort, indicating high leverage risk.

Long-term debt increased to 17.9 billion CZK in 2025, raising concerns about financial flexibility and credit risk.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations or refinancing debt.

Revenue CZK 7.33B, −1,0% YoY; Operating income +30,5% YoY.

• ▍Revenue CZK 7.33B, −1,0% YoY
• ▍Operating income +30,5% YoY
• ▍Net income +113,7% YoY
• ▍Free cash flow −30,4% YoY
• ▍Net margin 9.8%

Revenue CZK 5.06B, −4,3% YoY; Operating income +99,5% YoY.

• ▍Revenue CZK 5.06B, −4,3% YoY
• ▍Operating income +99,5% YoY
• ▍Net income +311,8% YoY
• ▍Free cash flow +539,2% YoY
• ▍Net margin 8.1%

Revenue CZK 5.50B, −8,6% YoY; Operating income +13,3% YoY.

• ▍Revenue CZK 5.50B, −8,6% YoY
• ▍Operating income +13,3% YoY
• ▍Net income +29,1% YoY
• ▍Free cash flow +146,7% YoY
• ▍Net margin 7.2%

Revenue CZK 5.51B; Operating income CZK 819.5M.

• ▍Revenue CZK 5.51B
• ▍Operating income CZK 819.5M
• ▍Net margin 9.5%

Revenue CZK 7.40B; Operating income CZK 760.0M.

• ▍Revenue CZK 7.40B
• ▍Operating income CZK 760.0M
• ▍Net margin 4.5%

Revenue CZK 5.28B; Operating income CZK 342.2M.

• ▍Revenue CZK 5.28B
• ▍Operating income CZK 342.2M
• ▍Net margin 1.9%

Revenue CZK 6.02B; Operating income CZK 678.0M.

• ▍Revenue CZK 6.02B
• ▍Operating income CZK 678.0M
• ▍Net margin 5.1%

Revenue CZK 23.40B, +4,6% YoY; Operating income +63,0% YoY.

• ▍Revenue CZK 23.40B, +4,6% YoY
• ▍Operating income +63,0% YoY
• ▍Net income +95,8% YoY
• ▍Free cash flow +27,2% YoY
• ▍Net margin 8.7%

Revenue CZK 22.38B, +50,6% YoY; Operating income −10,9% YoY.

• ▍Revenue CZK 22.38B, +50,6% YoY
• ▍Operating income −10,9% YoY
• ▍Net income −48,9% YoY
• ▍Free cash flow +27,2% YoY
• ▍Net margin 4.7%

Revenue CZK 14.86B, +1,8% YoY; Operating income +2,2% YoY.

• ▍Revenue CZK 14.86B, +1,8% YoY
• ▍Operating income +2,2% YoY
• ▍Net income +0,4% YoY
• ▍Free cash flow −25,7% YoY
• ▍Net margin 13.7%

Revenue CZK 14.59B, +36,5% YoY; Operating income +117,4% YoY.

• ▍Revenue CZK 14.59B, +36,5% YoY
• ▍Operating income +117,4% YoY
• ▍Net income +167,5% YoY
• ▍Free cash flow +121,0% YoY
• ▍Net margin 13.9%

Revenue CZK 10.69B; Operating income CZK 1.01B.

• ▍Revenue CZK 10.69B
• ▍Operating income CZK 1.01B
• ▍Net margin 7.1%