EDAG Engineering (ED4) AI Stock Analysis

• Market Cap: €135.50M
• Dividend Yield: 10.15%
• Average Volume (3M): 7.88K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.15
• Revenue Growth: -6.39%
• EPS Growth: -181.07%
• Country: DE
• Employees: 9,133
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Auto - Parts
• EPS (TTM): -0.04
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 9,435
• 30 Day Avg. Volume: 7,882
• PEG Ratio: 0.06
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 64.40
• 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: €7.50
• Price Target Upside: 34.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: €6.50 ▲(16.91%Upside)

The overall stock score reflects strong operational efficiency and cash management but is weighed down by negative earnings, high leverage, and bearish technical indicators. The high dividend yield offers a positive aspect, but the negative P/E ratio and oversold conditions highlight significant risks.

EDAG Engineering Business Overview & Revenue Model

Company Description

EDAG Engineering Group AG engages in the development of vehicles, derivatives, modules, and production facilities for the automotive and commercial vehicle industries worldwide. It operates through three segments: Vehicle Engineering, Production Solutions, and Electrics/Electronics. The Vehicle Engineering segment provides package and ergonomics, body assembly, surface design, and interior and exterior services; develops commercial vehicles, doors, covers, and lid systems, as well as head, rear, and small lamps; and technologies and lightweight designing services. This segment also offers vehicle integration services comprising functional integration and vehicle validation services, such as testing of individual components, modules, engines, motors, transmissions, and complete vehicles; models and vehicle solutions, including a range of styling, ideation, and design services, as well as creates test vehicles, sub-assemblies, and vehicle bodies for the physical validation of modules and systems; project management; and consulting and support services for quality-related matters. The Production Solutions segment provides body manufacturing and smart factory services, product design for manufacturability, coordinated technical building equipment and plant layout, individual production solutions, networking through smart logistics, digitalization, and networking in production; and process consulting and CAx development services, as well as consulting, conceptual, and realization services. The Electrics/Electronics segment develops electric and electronic systems comprising architecture and networks development, systems engineering, embedded systems, information technology, integration and system validation, functional safety and cyber security, and process and product data management services. The company was founded in 1969 and is based in Arbon, Switzerland. EDAG Engineering Group AG is a subsidiary of Aton Austria Holding GmbH.

How the Company Makes Money

EDAG Engineering generates revenue primarily through its engineering services, which are offered to a wide array of industries, most notably the automotive sector. The company earns money by providing design, development, and consultancy services for vehicle and production plant engineering projects. It also generates income from strategic partnerships and collaborations with major automotive manufacturers and other industrial clients. These partnerships often involve long-term contracts and collaborative projects that leverage EDAG's expertise in technology integration and process optimization. Additionally, the company may receive revenue from licensing its proprietary technologies and solutions. The combination of project-based fees, strategic partnerships, and potential technology licensing constitutes the core of EDAG's revenue model.

EDAG Engineering Financial Statement Overview

Summary

EDAG Engineering shows strong operational efficiency with solid gross margins and positive cash flow. However, the negative net income and high leverage present potential risks. Continued focus on profitability and debt management will be crucial for future stability and growth.

Income Statement

EDAG Engineering exhibits stable revenue with a slight decrease in 2024. Gross profit margins remain high, indicating efficient cost management. However, net profit margin has turned negative in 2024 due to declining EBIT and increased net losses, signaling profitability challenges.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, reflecting significant leverage, which could pose risks in a challenging economic environment. Despite this, equity ratio remains stable, and there is a consistent growth in total assets, indicating some balance sheet strength.

Cash Flow

Operating cash flow has increased significantly, and free cash flow remains positive, demonstrating strong cash management. The company efficiently converts operating cash into free cash flow, although free cash flow growth has been somewhat volatile.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
821.91M	844.78M	821.92M	710.09M	653.46M
	Gross Profit
728.56M	746.28M	707.25M	622.69M	569.87M
	EBIT
15.61M	136.20M	54.00M	30.85M	13.73M
	EBITDA
47.55M	98.28M	91.23M	65.74M	24.64M
	Net Income Common Stockholders
-14.36M	28.90M	28.86M	11.42M	-23.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
125.50M	107.29M	122.72M	151.23M	156.32M
	Total Assets
734.15M	730.58M	721.66M	694.22M	620.08M
	Total Debt
344.98M	342.70M	321.45M	285.96M	260.54M
	Net Debt
219.51M	235.44M	198.76M	134.87M	104.25M
	Total Liabilities
601.09M	568.05M	572.74M	578.80M	518.24M
	Stockholders Equity
132.88M	162.53M	148.92M	115.42M	101.84M
Cash Flow		Free Cash Flow
71.21M	10.55M	3.92M	4.86M	134.39M
	Operating Cash Flow
94.08M	40.74M	34.00M	23.59M	150.11M
	Investing Cash Flow
-23.95M	-29.78M	-29.72M	-18.37M	-15.49M
	Financing Cash Flow
-51.58M	-26.27M	-33.03M	-10.55M	-47.17M

EDAG Engineering Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ED4, the sentiment is Negative. The current price of 5.56 is below the 20-day moving average (MA) of 5.79, below the 50-day MA of 6.28, and below the 200-day MA of 7.22, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 27.66 is Positive, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ED4.

EDAG Engineering Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$8.73B	15.10	4.69%	4.08%	3.64%	-2.90%
ED4	59 Neutral	€135.50M	8.20	-14.80%	10.15%	-6.39%	-181.07%
0NYZ		€222.83M	―	-26.01%	1.14%	―	―
0MG5		€279.10M	―	-19.89%	3.33%	―	―
0OQX		€99.09M	―	-15.91%	―	―	―
0NHL		€91.25M	8.47	6.72%	5.91%	―	―
NVM	61 Neutral	€183.74M	15.00	14.16%	8.87%	―	―