EDAG Engineering (ED4) AI Stock Analysis

• Market Cap: €170.00M
• Dividend Yield: 8.46%
• Average Volume (3M): 6.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• 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: €9.00
• Price Target Upside: 38.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: €7.00 ▲(7.69% Upside)

The overall stock score is primarily influenced by financial performance challenges, including negative profitability and high leverage. Technical analysis provides some positive momentum, but valuation concerns due to a negative P/E ratio offset this. The high dividend yield is a positive aspect, but it is overshadowed by financial and valuation issues.

EDAG Engineering Business Overview & Revenue Model

Company Description

EDAG Engineering (ED4) is a leading independent engineering service provider based in Germany, specializing in the automotive and mobility sectors. The company offers a wide range of services, including product development, vehicle engineering, and production planning, as well as digital solutions such as software development and data analytics. EDAG's core products and services are aimed at enhancing the efficiency, sustainability, and innovation of automotive design and manufacturing processes.

How the Company Makes Money

EDAG Engineering generates revenue primarily through project-based contracts with automotive manufacturers and suppliers, providing engineering services throughout the vehicle development lifecycle. Key revenue streams include design and engineering services, consulting on production processes, and software solutions for automotive applications. The company also engages in long-term partnerships with major automotive OEMs (Original Equipment Manufacturers), which provide a stable income source through ongoing contracts. Additionally, EDAG may earn revenue from technology licensing and collaborative projects with other firms in the mobility sector, enhancing its market position and financial stability.

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	766.19M	821.91M	844.78M	821.92M	710.09M	653.46M
Gross Profit	679.82M	728.56M	746.28M	707.25M	622.69M	569.87M
EBITDA	16.68M	47.55M	99.48M	91.23M	66.34M	24.64M
Net Income	-35.07M	-14.36M	28.90M	28.86M	11.42M	-23.40M
Balance Sheet
Total Assets	700.26M	734.15M	730.58M	721.66M	694.22M	620.08M
Cash, Cash Equivalents and Short-Term Investments	97.05M	125.50M	107.29M	122.72M	151.23M	156.32M
Total Debt	296.38M	344.98M	342.70M	321.45M	285.96M	260.54M
Total Liabilities	578.52M	601.09M	568.05M	572.74M	578.80M	518.24M
Stockholders Equity	121.59M	132.88M	162.53M	148.92M	115.42M	101.84M
Cash Flow
Free Cash Flow	45.53M	71.21M	10.55M	3.92M	4.86M	134.39M
Operating Cash Flow	61.29M	94.08M	40.74M	34.00M	23.59M	150.11M
Investing Cash Flow	-16.91M	-23.95M	-29.78M	-29.72M	-18.37M	-15.49M
Financing Cash Flow	-36.90M	-51.58M	-26.27M	-33.03M	-10.55M	-47.17M

EDAG Engineering Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 6.5 is below the 20-day moving average (MA) of 6.89, below the 50-day MA of 6.91, and above the 200-day MA of 6.49, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 34.26 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 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	69 Neutral	€91.87M	8.21	7.01%	6.12%	-4.25%	-22.32%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NVM	60 Neutral	€128.23M	5.18	26.85%	―	-11.68%	4.45%
BDT	56 Neutral	€204.64M	-1.96	-26.01%	1.32%	-11.16%	-463.07%
ED4	53 Neutral	€170.00M	-4.84	-47.18%	8.46%	-13.53%	-394.79%
GMM	45 Neutral	€92.38M	5.55	9.81%	―	-10.08%	―
ZIL2	43 Neutral	€255.34M	-1.53	―	3.59%	-4.26%	-412.06%