EDAG Engineering Group Ltd (DE:ED4)
XETRA:ED4
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EDAG Engineering
(XETRA:ED4)
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Rating:41Neutral
Price Target:
€3.50
▼(-29.44% Downside)
Action:Upgraded
Date:05/09/26
The score is primarily weighed down by weak financial performance (losses, negative cash flow, and elevated leverage), reinforced by bearish technicals (price below major moving averages with negative MACD and low RSI/Stoch). Valuation is difficult to justify positively due to the negative P/E tied to losses and no dividend yield data.
Positive Factors
Aligned service mix with vehicle electrification and software
EDAG’s service portfolio explicitly spans electrification, electronics/embedded systems and software-related engineering. These capabilities map to structural secular shifts in mobility toward EVs and software-defined vehicles, positioning the firm to capture higher-value, longer-duration programs and premium billing over the medium term.
Negative Factors
High leverage limits flexibility
Debt-to-equity near 2.9x leaves limited balance-sheet flexibility in a cyclical auto-services industry. Elevated leverage constrains the company’s ability to invest in growth, fund R&D or absorb program delays, and increases refinancing and interest-rate sensitivity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Aligned service mix with vehicle electrification and software
EDAG’s service portfolio explicitly spans electrification, electronics/embedded systems and software-related engineering. These capabilities map to structural secular shifts in mobility toward EVs and software-defined vehicles, positioning the firm to capture higher-value, longer-duration programs and premium billing over the medium term.
Read all positive factors
EDAG Engineering (ED4) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€83.75M
Dividend Yield10.96%
Average Volume (3M)6.01K
Price to Earnings (P/E)―
Beta (1Y)0.17
Revenue Growth-12.94%
EPS Growth-94.55%
CountryDE
Employees9,133
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-1.75
Shares Outstanding25,000,000
10 Day Avg. Volume4,222
30 Day Avg. Volume6,015
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)1.42
Price to Sales (P/S)0.18
P/FCF Ratio-5.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€5.00Price Target Upside0.81% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)€715.20M
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 S...
How the Company Makes Money
EDAG primarily makes money by selling engineering services to corporate customers on a business-to-business basis. Revenue is generated through billable project work (e.g., development and design engineering, validation/testing support, systems en...
EDAG Engineering Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
38
Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 709.26M | 713.60M | 821.91M | 844.78M | 821.92M | 710.09M |
| Gross Profit | 361.39M | 63.23M | 728.56M | 746.28M | 707.25M | 622.69M |
| EBITDA | -56.00K | 23.58M | 47.55M | 99.48M | 91.23M | 66.34M |
| Net Income | -43.50M | -43.60M | -14.36M | 28.90M | 28.86M | 11.42M |
Balance Sheet | ||||||
| Total Assets | 568.00M | 587.23M | 734.15M | 730.58M | 721.66M | 694.22M |
| Cash, Cash Equivalents and Short-Term Investments | 38.99M | 42.98M | 125.50M | 107.29M | 122.72M | 151.23M |
| Total Debt | 253.90M | 259.27M | 344.98M | 342.70M | 321.45M | 285.96M |
| Total Liabilities | 479.12M | 498.64M | 601.09M | 568.05M | 572.74M | 578.80M |
| Stockholders Equity | 88.76M | 88.46M | 132.88M | 162.53M | 148.92M | 115.42M |
Cash Flow | ||||||
| Free Cash Flow | -22.07M | -22.91M | 71.21M | 10.55M | 3.92M | 4.86M |
| Operating Cash Flow | -9.13M | -11.02M | 94.08M | 40.74M | 34.00M | 23.59M |
| Investing Cash Flow | -13.41M | -13.21M | -23.95M | -29.78M | -29.72M | -18.37M |
| Financing Cash Flow | -70.91M | -57.41M | -51.58M | -26.27M | -33.03M | -10.55M |
EDAG Engineering Technical Analysis
Negative
4.96
Price Trends
3.68
Negative
3.82
Negative
5.14
Negative
Market Momentum
-0.10
Negative
39.04
Neutral
50.54
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 4.96 is above the 20-day moving average (MA) of 3.41, above the 50-day MA of 3.68, and below the 200-day MA of 5.14, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 39.04 is Neutral, neither overbought nor oversold. The STOCH value of 50.54 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | €381.43M | 75.05 | 0.83% | 3.51% | -6.42% | ― | |
61 Neutral | €14.27B | -432.50 | -0.76% | 2.88% | -44.98% | -102.56% | |
57 Neutral | €123.67M | 5.35 | 11.78% | ― | -3.07% | ― | |
54 Neutral | €8.08B | 85.20 | 3.07% | 1.17% | -2.77% | -69.52% | |
47 Neutral | €102.57M | -1.94 | -16.41% | 1.38% | -14.82% | 44.17% | |
41 Neutral | €83.75M | -1.93 | -43.62% | 10.96% | -12.94% | -94.55% |
* Consumer Cyclical Sector Average
DE:ED4
EDAG Engineering
3.35
-2.51
-42.83%
DE:BDT
Bertrandt
10.15
-9.55
-48.48%
DE:ZIL2
ElringKlinger
6.02
1.67
38.55%
DE:GMM
Grammer
8.30
0.85
11.41%
DE:HLE
Hella KGaA Hueck & Co
72.70
-13.93
-16.08%
DE:CON
Continental Aktiengesellschaft
71.36
16.06
29.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.