EDAG Engineering (ED4) AI Stock Analysis

• Market Cap: €98.50M
• Dividend Yield: 10.96%
• Average Volume (3M): 6.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -13.53%
• EPS Growth: -394.79%
• Country: DE
• Employees: 9,133
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.47
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 4,222
• 30 Day Avg. Volume: 6,015
• 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 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): €712.58M

• Rating: 40 Underperform
• Price Target: €3.50 ▼(-29.44% Downside)
• Action: Downgraded Date: 03/28/26
• Date: Action: Downgraded 03/28/26

The score is primarily weighed down by deteriorating financial performance (losses, negative EBIT, and a sharp swing to cash burn) alongside high leverage and a shrinking equity cushion. Technicals add modest pressure given the longer-term downtrend and slightly negative momentum. Valuation provides limited support because earnings are negative and no dividend yield is available.

Positive Factors

Recurring B2B engineering contracts

EDAG's core model of billable project work plus multi-year framework engagements creates recurring, contract-backed revenue streams. That structure supports utilization stability and predictable staffing demand, helping sustain revenue and margins over a multi-quarter horizon if program continuity holds.

Negative Factors

Revenue and profit deterioration

Consecutive revenue declines and a swing from profit to negative EBIT indicate weakening demand or margin pressure on core services. Persistent top-line contraction reduces operating leverage and undermines long-term earnings visibility, making recovery dependent on sustained wins or pricing improvements.

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...

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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...

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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

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	713.60M	821.91M	844.78M	821.92M	710.09M
Gross Profit	63.23M	728.56M	746.28M	707.25M	622.69M
EBITDA	23.58M	47.55M	99.48M	91.23M	66.34M
Net Income	-43.60M	-14.36M	28.90M	28.86M	11.42M
Balance Sheet
Total Assets	587.23M	734.15M	730.58M	721.66M	694.22M
Cash, Cash Equivalents and Short-Term Investments	42.98M	125.50M	107.29M	122.72M	151.23M
Total Debt	259.27M	344.98M	342.70M	321.45M	285.96M
Total Liabilities	498.64M	601.09M	568.05M	572.74M	578.80M
Stockholders Equity	88.46M	132.88M	162.53M	148.92M	115.42M
Cash Flow
Free Cash Flow	-22.91M	71.21M	10.55M	3.92M	4.86M
Operating Cash Flow	-11.02M	94.08M	40.74M	34.00M	23.59M
Investing Cash Flow	-13.21M	-23.95M	-29.78M	-29.72M	-18.37M
Financing Cash Flow	-57.41M	-51.58M	-26.27M	-33.03M	-10.55M

EDAG Engineering Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.96
• 50DMA: Positive
• 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 Positive. The current price of 4.96 is above the 20-day moving average (MA) of 3.86, above the 50-day MA of 3.82, and below the 200-day MA of 5.56, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 60.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ED4.

EDAG Engineering Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GMM	60 Neutral	€113.24M	3.81	10.71%	―	-10.08%	―
ZIL2	55 Neutral	€350.38M	-44.43	-18.51%	3.51%	-6.21%	-995.53%
HLE	54 Neutral	€8.08B	110.15	5.24%	1.17%	<0.01%	-50.97%
BDT	52 Neutral	€146.53M	-16.95	-15.50%	1.38%	-17.63%	30.27%
CON	50 Neutral	€12.97B	-82.38	-1.10%	2.88%	-38.10%	-75.32%
ED4	40 Underperform	€98.50M	-2.89	-39.31%	10.96%	-13.53%	-394.79%