EDAG Engineering (ED4) AI Stock Analysis

• Market Cap: €125.00M
• Dividend Yield: 10.38%
• Average Volume (3M): 6.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -13.53%
• EPS Growth: -394.79%
• Country: DE
• Employees: 9,133
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.87
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 4,222
• 30 Day Avg. Volume: 6,015
• PEG Ratio: 0.08
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.47
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €5.50 ▲(10.00% Upside)

EDAG Engineering's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis further indicates bearish momentum with oversold conditions. While the high dividend yield is a positive aspect, the negative P/E ratio raises valuation concerns.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance service offerings and expand market reach, contributing to long-term revenue growth and competitive positioning.

Innovation in Electric Vehicles

Focus on electric and hybrid vehicle innovation positions EDAG for growth in the evolving automotive sector, aligning with industry trends towards sustainability.

High Gross Profit Margin

A strong gross profit margin indicates efficient cost management in core operations, providing a buffer against revenue declines and supporting long-term profitability.

Negative Factors

Declining Revenue

Declining revenues can hinder growth and limit the ability to invest in new projects, impacting long-term competitiveness and financial health.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to weather economic downturns or invest in growth opportunities.

Negative Profitability

Negative profitability indicates challenges in covering costs and generating returns, which can strain resources and impact long-term sustainability.

EDAG Engineering Business Overview & Revenue Model

Company Description

EDAG Engineering (ED4) is a global engineering services provider specializing in the automotive and mobility sectors. The company offers a comprehensive range of services including product development, vehicle design, and manufacturing engineering. EDAG focuses on innovation in areas such as electric and hybrid vehicles, autonomous driving technologies, and digitalization in automotive production processes.

How the Company Makes Money

EDAG makes money primarily through its engineering and consulting services provided to automotive manufacturers and suppliers. The company's revenue model is based on project-based contracts, where it earns fees for its expertise in vehicle development and related engineering services. Key revenue streams include design and development projects, prototype construction, and advisory services for manufacturing processes. Additionally, EDAG has formed strategic partnerships with various automotive companies and technology firms, enhancing its service offerings and expanding its market reach, which contributes significantly to its earnings.

EDAG Engineering Financial Statement Overview

Summary

EDAG Engineering faces challenges in revenue growth and profitability, with strong gross margins but negative net profit margins. The balance sheet shows high leverage, raising financial stability concerns. Cash flow generation is moderate, but declining free cash flow growth is a concern. Overall, the company needs to address profitability and leverage issues to improve its financial health.

Income Statement

EDAG Engineering's income statement shows a declining trend in revenue with a negative revenue growth rate of -3.36% TTM. The company has a high gross profit margin of 88.73% TTM, indicating strong cost management. However, the net profit margin is negative at -4.58% TTM, reflecting challenges in achieving profitability. The EBIT margin is also negative, suggesting operational inefficiencies. Overall, the income statement reflects strong gross margins but significant profitability challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.61 TTM, indicating significant leverage and potential financial risk. Return on equity is negative at -25.51% TTM, highlighting challenges in generating returns for shareholders. The equity ratio stands at 17.37% TTM, suggesting a moderate level of equity financing. Overall, the balance sheet shows high leverage and negative returns, posing potential financial stability concerns.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -25.52% TTM, indicating reduced cash generation. The operating cash flow to net income ratio is 0.23 TTM, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.74 TTM, indicating that free cash flow covers a significant portion of net income. Overall, cash flow performance is moderate, with concerns about declining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	742.16M	821.91M	844.78M	821.92M	710.09M	653.46M
Gross Profit	653.17M	728.56M	746.28M	707.25M	622.69M	569.87M
EBITDA	-22.17M	47.55M	99.48M	91.23M	66.34M	24.64M
Net Income	-61.92M	-14.36M	28.90M	28.86M	11.42M	-23.40M
Balance Sheet
Total Assets	657.30M	734.15M	730.58M	721.66M	694.22M	620.08M
Cash, Cash Equivalents and Short-Term Investments	47.89M	125.50M	107.29M	122.72M	151.23M	156.32M
Total Debt	192.32M	344.98M	342.70M	321.45M	285.96M	260.54M
Total Liabilities	557.07M	601.09M	568.05M	572.74M	578.80M	518.24M
Stockholders Equity	100.12M	132.88M	162.53M	148.92M	115.42M	101.84M
Cash Flow
Free Cash Flow	21.89M	71.21M	10.55M	3.92M	4.86M	134.39M
Operating Cash Flow	33.56M	94.08M	40.74M	34.00M	23.59M	150.11M
Investing Cash Flow	-12.92M	-23.95M	-29.78M	-29.72M	-18.37M	-15.49M
Financing Cash Flow	-75.12M	-51.58M	-26.27M	-33.03M	-10.55M	-47.17M

EDAG Engineering Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.00
• 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 is below the 20-day moving average (MA) of 5.72, below the 50-day MA of 6.29, and below the 200-day MA of 6.36, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 26.44 is Positive, neither overbought nor oversold. The STOCH value of 11.35 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
PWO	72 Outperform	€91.25M	8.01	7.17%	5.99%	-4.01%	-10.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NVM	59 Neutral	€119.19M	6.81	19.67%	―	-9.08%	-34.48%
ED4	46 Neutral	€125.00M	-2.02	-47.18%	10.38%	-13.53%	-394.79%
GMM	46 Neutral	€80.46M	5.20	9.81%	―	-10.08%	―
ZIL2	46 Neutral	€274.98M	-2.35	-16.55%	3.51%	-6.21%	-995.53%
BDT	45 Neutral	€182.91M	-3.40	-16.04%	1.38%	-17.63%	30.27%