EDAG Engineering (ED4) AI Stock Analysis

• Market Cap: €134.50M
• Dividend Yield: 10.22%
• Average Volume (3M): 12.53K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.09
• Revenue Growth: -6.39%
• EPS Growth: -181.07%
• Country: DE
• Employees: 9,133
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Auto - Parts
• EPS (TTM): -0.04
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 20,944
• 30 Day Avg. Volume: 12,531
• PEG Ratio: 0.10
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.17
• 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: €6.50
• Price Target Upside: 17.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: €5.50 ▼(-0.72%Downside)

The most significant factors affecting EDAG Engineering's stock score are its mixed financial performance and bearish technical indicators. The financials highlight strong gross profit margins but also reveal profitability challenges due to declining revenues and increased leverage. The technical analysis supports a bearish outlook with prices falling below key moving averages. Although the high dividend yield is notable, it is overshadowed by the negative P/E ratio, indicating profitability issues.

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 exhibits stable revenue with high gross profit margins, indicating efficient cost management. However, the negative net profit margin due to declining EBIT and increased net losses presents profitability challenges. The balance sheet shows high leverage, which could pose risks, although there is consistent growth in total assets. Operating cash flow has increased significantly, demonstrating strong cash management, but growth has been somewhat volatile.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	792.82M	821.91M	844.78M	821.92M	710.09M	653.46M
Gross Profit	543.94M	728.56M	746.28M	707.25M	622.69M	569.87M
EBITDA	29.56M	47.55M	98.28M	91.23M	65.74M	24.64M
Net Income	-22.34M	-14.36M	28.90M	28.86M	11.42M	-23.40M
Balance Sheet
Total Assets	719.95M	734.15M	730.58M	721.66M	694.22M	620.08M
Cash, Cash Equivalents and Short-Term Investments	135.77M	125.50M	107.29M	122.72M	151.23M	156.32M
Total Debt	184.75M	344.98M	342.70M	321.45M	285.96M	260.54M
Total Liabilities	587.13M	601.09M	568.05M	572.74M	578.80M	518.24M
Stockholders Equity	132.67M	132.88M	162.53M	148.92M	115.42M	101.84M
Cash Flow
Free Cash Flow	61.12M	71.21M	10.55M	3.92M	4.86M	134.39M
Operating Cash Flow	79.36M	94.08M	40.74M	34.00M	23.59M	150.11M
Investing Cash Flow	-19.37M	-23.95M	-29.78M	-29.72M	-18.37M	-15.49M
Financing Cash Flow	-51.10M	-51.58M	-26.27M	-33.03M	-10.55M	-47.17M

EDAG Engineering Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.54 is above the 20-day moving average (MA) of 5.36, below the 50-day MA of 5.90, and below the 200-day MA of 6.89, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 73.13 is Neutral, 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 *	68 Neutral	¥197.20B	21.21	8.29%	2.33%	4.99%	3.07%
ED4	55 Neutral	€134.50M	8.20	-14.80%	10.22%	-6.39%	-181.07%
0NYZ		€220.81M	―	-26.01%	1.14%	―	―
0MG5		€278.15M	―	-19.89%	2.94%	―	―
0OQX		€96.11M	―	-15.91%	―	―	―
0NHL		€91.87M	8.18	6.72%	5.09%	―	―
NVM	60 Neutral	€178.58M	16.02	12.22%	8.87%	-14.80%	-67.71%