Daldrup & Soehne AG (4DS) AI Stock Analysis

• Market Cap: €144.25M
• Dividend Yield: 0.78%
• Average Volume (3M): 5.20K
• Price to Earnings (P/E): 55.0
• Beta (1Y): 0.47
• Revenue Growth: -33.05%
• EPS Growth: 20.61%
• Country: DE
• Employees: 149
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.36
• Shares Outstanding: 5,989,500
• 10 Day Avg. Volume: 2,245
• 30 Day Avg. Volume: 5,195
• PEG Ratio: 0.12
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 5.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.67
• Revenue Forecast (FY): €40.51M

• Rating: 70 Outperform
• Price Target: €26.00 ▲(66.13% Upside)

The score is driven primarily by solid financial progress (growth and improving margins with low leverage) and strong technical uptrend signals. These positives are partially offset by expensive valuation (high P/E with a low dividend yield) and overbought momentum indicators that increase near-term downside risk.

Positive Factors

Low financial leverage

A low debt-to-equity profile and strong equity position reduce financing risk for multi‑month drilling projects, improving the firm's ability to fund capex, bid competitively, and absorb project delays without relying on external credit, supporting long-term stability.

Improving operating margins

Sustained improvement in gross and EBIT/EBITDA margins indicates better cost control and operational efficiency in drilling operations. Stronger margins enhance resilience to cyclical revenue swings, enabling reinvestment in rigs and skilled crews that underpin long-term service competitiveness.

Stronger cash generation

Rising free cash flow and solid cash conversion from earnings bolster the company's ability to self‑fund working capital and targeted capex for specialized rigs. Reliable cash generation supports sustainable operations and reduces dependence on external financing over the medium term.

Negative Factors

Inconsistent revenue trend

A steep year‑on‑year revenue decline signals volatile project award timing or lower rig utilization. Persistent revenue variability undermines backlog visibility, complicates resource planning and utilization economics for drilling projects, and can depress returns over multiple quarters.

Low net profit margin

Despite margin improvement, a still‑low net profit margin limits the company's ability to convert operational gains into shareholder returns. This constrains retained earnings for reinvestment, leaves less buffer for cost overruns on complex geothermal projects, and slows long‑term value creation.

Inconsistent free cash flow vs. profits

Variability between reported profits and free cash flow raises questions about earnings quality and timing of receipts or capex spending. For project‑based drilling, inconsistent FCF complicates capital allocation and could necessitate external funding during peak investment cycles, raising execution risk.

Daldrup & Soehne AG Business Overview & Revenue Model

Company Description

Daldrup & Soehne AG (4DS) is a leading provider of drilling and environmental services, primarily operating in the field of geothermal energy and site investigation. The company specializes in deep drilling for geothermal energy as well as conventional drilling services, offering tailored solutions for various industrial and energy-related projects. Their core products and services include drilling technology, geothermal energy solutions, and environmental consulting, making them a key player in the transition towards sustainable energy sources.

How the Company Makes Money

Daldrup & Soehne AG generates revenue through several key streams, primarily from drilling contracts and services related to geothermal energy projects. The company secures contracts with municipalities, energy companies, and industrial clients, which provide a consistent flow of income. Additionally, revenue is bolstered by environmental consulting services, site investigations, and the sale of drilling equipment. Significant partnerships with energy providers and public sector entities enhance their project portfolio, ensuring a steady demand for their expertise. The ongoing energy transition towards renewable sources, particularly in geothermal energy, also presents growth opportunities that contribute positively to the company’s financial performance.

Daldrup & Soehne AG Financial Statement Overview

Summary

Financial statements indicate solid revenue growth and improving gross/EBIT/EBITDA margins, supported by a healthy, low-leverage balance sheet. Cash generation has improved, but profitability remains relatively low and free-cash-flow consistency versus reported profits is mixed.

Income Statement

The company has shown strong revenue growth with a notable increase from 2023 to 2024. Gross Profit Margin improved significantly, indicating better cost management. However, the Net Profit Margin remains relatively low, suggesting room for profitability enhancement. EBIT and EBITDA margins have improved, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with improving ROE, signaling effective use of shareholder funds. The Debt-to-Equity ratio is low, indicating low financial leverage, which reduces risk. However, the Equity Ratio has varied over the years, indicating fluctuating asset management.

Cash Flow

The cash flow statements exhibit substantial growth in Free Cash Flow, indicating enhanced cash generation capabilities. The Operating Cash Flow to Net Income ratio is favorable, showing efficient cash conversion from earnings. However, the Free Cash Flow to Net Income ratio indicates some inconsistency in cash generation relative to reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.85M	54.11M	49.12M	38.18M	78.06M	26.19M
Gross Profit	15.40M	29.89M	23.66M	11.11M	12.15M	11.01M
EBITDA	5.22M	8.89M	4.17M	4.08M	4.05M	513.24K
Net Income	2.62M	2.49M	889.84K	851.72K	784.75K	-5.22M
Balance Sheet
Total Assets	37.46M	34.21M	41.55M	40.16M	38.64M	38.47M
Cash, Cash Equivalents and Short-Term Investments	7.71M	6.36M	3.55M	3.12M	3.03M	3.02M
Total Debt	2.90M	1.63M	14.61M	7.79M	7.76M	7.74M
Total Liabilities	11.69M	10.69M	20.54M	20.18M	19.60M	20.26M
Stockholders Equity	25.76M	23.52M	21.01M	19.97M	19.04M	18.20M
Cash Flow
Free Cash Flow	10.03M	9.58M	1.22M	17.15K	-2.38M	313.56K
Operating Cash Flow	12.79M	12.13M	4.37M	993.33K	-1.15M	1.08M
Investing Cash Flow	-2.90M	-2.48M	-2.96M	-930.87K	1.30M	636.95K
Financing Cash Flow	1.03M	-971.20K	-909.50K	-971.78K	856.73K	-2.17M

Daldrup & Soehne AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:4DS, the sentiment is Positive. The current price of 15.65 is below the 20-day moving average (MA) of 21.21, below the 50-day MA of 19.84, and above the 200-day MA of 15.02, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 70.85 is Negative, neither overbought nor oversold. The STOCH value of 80.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:4DS.

Daldrup & Soehne AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4DS	70 Outperform	€144.25M	54.99	10.71%	0.78%	-33.05%	20.61%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DR0	64 Neutral	€280.04M	7.83	17.70%	4.20%	-10.71%	-37.67%
HRPK	61 Neutral	€134.42M	-33.32	-1.85%	3.86%	4.52%	-263.49%
HMU	58 Neutral	€216.24M	16.16	28.07%	2.25%	―	―