Is Hensoldt AG (ETR:HAG) Delivering Value to Its Shareholders?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 20 2025
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Source: Yahoo Finance
Understanding Return on Equity (ROE): ROE is a profitability ratio that measures how effectively a company generates returns on shareholder investments, calculated as Net Profit divided by Shareholders' Equity. Hensoldt AG has an ROE of 10%, indicating it generates €0.10 profit for every €1 invested by shareholders.
Debt's Impact on ROE: Hensoldt uses a significant amount of debt (debt to equity ratio of 1.20) to enhance returns, but its low ROE raises concerns about financial risk. A high-quality business typically achieves high ROE without relying heavily on debt, making it a more favorable investment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
