TKMS: Estimates Rise While Shares Fall Creating A Buying Opportunity

Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryTKMS remains a buy, with financial expectations rising even as the stock has declined over 15% since January.TKMS is a leader in conventional submarines and surface combatants, offering vertical integration across ships, subsystems, and electronics.Despite recent price weakness, TKMS trades at a discount to peers, with 8–27% upside potential and no bank debt.EBITDA margins and sales are projected to grow 13% annually through 2028, with dividend initiation expected next year.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » razihusin/iStock via Getty Images In January, I added TKMS AG & Co KGaA (TKMSF, TKMCY) to my coverage with a buy rating. In my view, the company is positioned well for increased demand from European militaries, including demand for surface combatants and submersibles asThis article was written byDhierin Bechai23.47K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.