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    CSG (ENXTAM:CSG) Expands Drone Engine Push As Valuation Debate Heats Up

    Simply Wall St·07/23/2026 06:32:40
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    CSG (ENXTAM:CSG) is in focus after announcing plans to build jet engine production for drones and unmanned systems in Wisconsin through Firecrest Aerospace, a joint venture backed by a multi million dollar investment.

    See our latest analysis for CSG.

    Alongside the Firecrest Aerospace announcement, CSG has been active across its defence businesses, including the Future Artillery Complex project in Iowa and recent technology transfers in Poland. Yet the share price shows mixed momentum, with a 7 day share price return of 18.10% but a year to date share price return that is down 50.75% from a last close of €16.18.

    If this kind of defence and aerospace activity has your attention, it could be a good time to see what else is on the move in related technologies through our 33 robotics and automation stocks

    After CSG’s sharp rebound but steep year-to-date decline, the real tension now sits between a short squeeze that may have already played out and further upside still on the table, which is where the valuation work starts to matter.

    Most Popular Narrative: 70.6% Undervalued

    According to the most followed narrative on CSG, the gap between the current share price of €16.18 and an assessed fair value of €55 is wide, which is why many investors are watching how the valuation case holds up against the recent volatility.

    CSG is often compared to Rheinmetall, the German and European leader in armaments. The latter company manufactures a wide range of military equipment for land, air, and sea, as well as defense digitization and heavy ammunition. https://www.rheinmetall.com/en/ products/overview. CSG manufactures a range of armored vehicles and location technology, but above all, it is a world leader in the production of small-caliber and heavy 155 mm ammunition for cannons https://defence.czechoslovakgroup.com/en. Ammunition is a highly valued commodity because European NATO countries already had empty warehouses before the war in Ukraine and now export a significant part of their production to Ukraine.

    Read the complete narrative.

    Want to understand why this narrative pushes CSG’s fair value so far above today’s price? The entire case leans on ammunition focused revenues, strong margins and an earnings profile that applies a premium future multiple more often associated with larger defence groups, all wired into one concentrated set of assumptions that serious investors will want to unpack in full.

    Result: Fair Value of €55 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, CSG’s narrative could be tested if ammunition demand normalises faster than expected or if margins compress, which would challenge the case for a premium earnings multiple.

    Find out about the key risks to this CSG narrative.

    Next Steps

    With such a split narrative around CSG’s risks and rewards, do not wait on the sidelines; weigh the trade offs for yourself with the 4 key rewards and 2 important warning signs

    Looking for more investment ideas beyond CSG?

    If CSG has you thinking more broadly about opportunities, do not stop here; diversify your watchlist with a few focused stock ideas built from clear fundamentals.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.