tiprankstipranks
Trending News
More News >
EDAG Engineering Group Ltd (DE:ED4)
XETRA:ED4
Germany Market

EDAG Engineering (ED4) AI Stock Analysis

Compare
1 Followers

Top Page

DE

EDAG Engineering

(XETRA:ED4)

Rating:55Neutral
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 (ED4) vs. iShares MSCI Germany ETF (EWG)

EDAG Engineering Business Overview & Revenue Model

Company DescriptionEDAG 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 MoneyEDAG 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
65
Positive
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
70
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue792.82M821.91M844.78M821.92M710.09M653.46M
Gross Profit543.94M728.56M746.28M707.25M622.69M569.87M
EBITDA29.56M47.55M98.28M91.23M65.74M24.64M
Net Income-22.34M-14.36M28.90M28.86M11.42M-23.40M
Balance Sheet
Total Assets719.95M734.15M730.58M721.66M694.22M620.08M
Cash, Cash Equivalents and Short-Term Investments135.77M125.50M107.29M122.72M151.23M156.32M
Total Debt184.75M344.98M342.70M321.45M285.96M260.54M
Total Liabilities587.13M601.09M568.05M572.74M578.80M518.24M
Stockholders Equity132.67M132.88M162.53M148.92M115.42M101.84M
Cash Flow
Free Cash Flow61.12M71.21M10.55M3.92M4.86M134.39M
Operating Cash Flow79.36M94.08M40.74M34.00M23.59M150.11M
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 Price5.54
Price Trends
50DMA
5.90
Negative
100DMA
6.32
Negative
200DMA
6.89
Negative
Market Momentum
MACD
-0.16
Negative
RSI
42.81
Neutral
STOCH
73.13
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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥197.20B21.218.29%2.33%4.99%3.07%
DEED4
55
Neutral
€134.50M8.20-14.80%10.22%-6.39%-181.07%
€220.81M-26.01%1.14%
€278.15M-19.89%2.94%
€96.11M-15.91%
€91.87M8.186.72%5.09%
DENVM
60
Neutral
€178.58M16.0212.22%8.87%-14.80%-67.71%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:ED4
EDAG Engineering
5.54
-5.16
-48.22%
GB:0NYZ
Bertrandt
21.51
-7.22
-25.13%
GB:0MG5
ElringKlinger
4.54
-0.31
-6.39%
GB:0OQX
Grammer
6.50
-2.85
-30.48%
GB:0NHL
Progress Werk Oberkirch
28.60
0.50
1.78%
DE:NVM
Novem Group SA
4.19
-1.05
-20.04%
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.Date of analysis: Jul 09, 2025