Structurally High Gross MarginsA sustained ~77% gross margin offers durable operating leverage and pricing flexibility across recorded music, publishing and services. High gross margins help absorb distribution costs, fund catalog investment, and preserve profitability even if top-line growth moderates.

Improving Operating And Net MarginsSustained margin expansion since 2020 indicates better cost control, more efficient catalog monetization and improved mix toward higher-margin activities. Durable margin improvement strengthens earnings quality and increases resilience to cyclical dips in revenue.

Diversified Revenue ModelMultiple revenue pillars—recorded music, publishing royalties and fee-based logistics/services—reduce reliance on any single income stream. Recurring publishing income and long-term service contracts smooth cyclicality and make cash flows more predictable over time.

Bears Say

Volatile And Weak Cash GenerationLarge FCF swings and low cash conversion (FCF only ~23% of net income in 2025) reduce financial predictability and limit capacity to fund catalog acquisitions, dividends or debt reduction. Persistent volatility raises liquidity and refinancing risk over a multi-quarter horizon.

Meaningful LeverageDebt exceeding equity increases sensitivity to earnings volatility and interest costs, constraining strategic flexibility. Elevated leverage limits the firm's ability to pursue acquisitions or absorb downturns without raising funding costs or cutting investment in catalogs and services.

Modest Net Profitability Despite High Gross MarginsDespite very high gross margins, net margin in mid-single digits leaves a narrow buffer for shocks and reduces retained cash for reinvestment. Limited net profitability constrains capacity to scale catalog purchases or expand service capabilities without adding leverage.

Edel SE & Co. KGAA News

Edel SE & Co. KGAA (EDL) Declares Q2 Dividend: Important Details for Shareholders

Edel SE & Co. KGAA (XETRA: EDL) has declared, under its dividend policy, a yearly cash dividend in...

1y ago

EDL

Edel SE & Co. KGAA (EDL) Unveils Dividend Details for Q2: Mark Your Calendar!

Edel SE & Co. KGAA (XETRA: EDL) has declared, under its dividend policy, a yearly cash dividend in...

2y ago

EDL

EDL FAQ

What was Edel SE & Co. KGAA’s price range in the past 12 months?

Edel SE & Co. KGAA lowest stock price was €3.74 and its highest was €5.30 in the past 12 months.

What is Edel SE & Co. KGAA’s market cap?

Edel SE & Co. KGAA’s market cap is €111.42M.

When is Edel SE & Co. KGAA’s upcoming earnings report date?

Edel SE & Co. KGAA’s upcoming earnings report date is Jun 26, 2026 which is in 126 days.

How were Edel SE & Co. KGAA’s earnings last quarter?

Edel SE & Co. KGAA released its earnings results on Feb 03, 2026. The company reported €0.348 earnings per share for the quarter, beating the consensus estimate of N/A by €0.348.

Is Edel SE & Co. KGAA overvalued?

According to Wall Street analysts Edel SE & Co. KGAA’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Edel SE & Co. KGAA pay dividends?

Edel SE & Co. KGAA pays a Annually dividend of €0.3 which represents an annual dividend yield of 6.85%. See more information on Edel SE & Co. KGAA dividends here

What is Edel SE & Co. KGAA’s EPS estimate?

Edel SE & Co. KGAA’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Edel SE & Co. KGAA have?

Edel SE & Co. KGAA has 22,734,512 shares outstanding.

What happened to Edel SE & Co. KGAA’s price movement after its last earnings report?

Edel SE & Co. KGAA reported an EPS of €0.348 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.961%.

Which hedge fund is a major shareholder of Edel SE & Co. KGAA?

Currently, no hedge funds are holding shares in DE:EDL

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Edel SE & Co. KGAA Stock Smart Score

Neutral

News Sentiment

Neutral

Bullish news 50%
Bearish news 50%

Technicals

Fundamentals

Return on Equity

18.72%

Trailing 12-Months

Asset Growth

6.42%

Trailing 12-Months

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Company Description

Edel SE & Co. KGAA

Edel SE & Co. KGaA operates as a music company in Europe. The company produces, markets, and distributes CDs, DVDs, Blu-rays, vinyl records, and LPs. It also publishes and distributes guidebooks, non-fiction, and children's books, as well as magazines, brochures, catalogues, commercial, and multi-media print products and packaging. In addition, the company offers various TV series and film entertainment. Edel SE & Co. KGaA was founded in 1986 and is based in Hamburg, Germany.