Daldrup & Soehne AG (4DS) AI Stock Analysis

• Market Cap: €116.12M
• Dividend Yield: 0.78%
• Average Volume (3M): 5.20K
• Price to Earnings (P/E): 45.4
• Beta (1Y): 0.57
• 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: 71 Outperform
• Price Target: €21.50 ▲(37.38% Upside)

Daldrup & Soehne AG's stock is supported by strong financial performance and positive technical indicators, suggesting a promising outlook. However, the high P/E ratio indicates potential overvaluation, warranting cautious optimism. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strategic positioning in geothermal energy

Specialization in deep geothermal drilling and environmental services aligns Daldrup with the structural energy transition. This niche expertise creates higher barriers to entry, supports long-term contract demand from municipalities and energy firms, and underpins sustainable revenue streams over years.

Balance sheet strength and low leverage

A strong equity base and low financial leverage reduce refinancing and solvency risk through project cycles. This financial flexibility enables competitive bidding on large engineering projects, supports capex for drilling equipment, and preserves resilience against cyclical downturns in project timing.

Improving free cash flow generation

Rising free cash flow enhances the company’s ability to self-fund maintenance and selective growth investments in drilling assets. Consistent operating cash conversion increases financial autonomy, allowing steadier investment in capabilities and reducing reliance on external capital over the medium term.

Negative Factors

Recent revenue decline

A sharp recent revenue decline signals project timing volatility or contract gaps that can persist across quarters. For a project-based drilling firm, such drops erode utilization and predictability, complicate fixed-cost coverage, and can delay needed reinvestment in equipment and capacity expansion.

Low net profit margin

Despite gross and EBITDA margin improvements, a persistently low net margin limits retained earnings and reduces the buffer against cost inflation or project overruns. Over time this constrains reinvestment capacity and lowers the company’s ability to build reserves for uneven project cycles.

Inconsistent cash conversion

Variability in converting accounting profits into free cash flow increases operational financing risk during long project cycles. Inconsistent cash conversion can force reliance on working capital facilities or opportunistic financing, undermining the advantage of low leverage and complicating stable investment planning.

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

Daldrup & Soehne AG has demonstrated solid revenue growth and improving operational margins, suggesting enhanced profitability potential. The balance sheet reflects a healthy equity position with low leverage, which is positive for financial stability. Cash flow generation has improved, though some inconsistencies remain. Overall, the company is on a positive trajectory with opportunities for further profitability improvements.

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: Positive
• RSI: Neutral
• 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 19.09, below the 50-day MA of 18.30, and above the 200-day MA of 14.04, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 88.93 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	71 Outperform	€116.12M	45.40	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	€229.39M	6.22	17.70%	4.20%	-10.71%	-37.67%
HRPK	61 Neutral	€124.49M	-31.99	-1.85%	3.86%	4.52%	-263.49%
HMU	58 Neutral	€212.60M	15.89	28.07%	2.25%	―	―