ElringKlinger (ZIL2) AI Stock Analysis

• Market Cap: €284.80M
• Dividend Yield: 3.31%
• Average Volume (3M): 21.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -3.49%
• EPS Growth: -421.15%
• Country: DE
• Employees: 9,078
• Sector: Industrials
• Sector Strength: 90
• Industry: Auto - Parts
• EPS (TTM): 0.06
• Shares Outstanding: 63,359,993
• 10 Day Avg. Volume: 19,803
• 30 Day Avg. Volume: 21,589
• PEG Ratio: 0.29
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.21
• 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: €3.75
• Price Target Upside: -16.67% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: €4.50 ▲(0.00%Upside)

The overall stock score reflects significant financial challenges, particularly in profitability and cash flow. Technical analysis shows a lack of strong momentum, while valuation is hindered by negative earnings. The dividend yield is a positive aspect, but caution is advised given the financial context.

ElringKlinger Business Overview & Revenue Model

Company Description

ElringKlinger AG develops, manufactures, and sells systems and components for the automotive industry in Germany, the Asia-Pacific, North America, rest of Europe, and internationally. It operates through four segments: Original Equipment, Aftermarket, Engineered Plastics, and Other. The Original Equipment segment is involved in the development, manufacture, and sale of products and assemblies, such as metal sealing systems and drive train components; thermoplastics for drivetrains, body, and underbody applications; hybrid technologies; thermal, acoustic, and aerodynamic shielding systems; cylinder-head and specialty gaskets; battery and fuel cell components and systems; electric drive units; and exhaust gas purification. This segment serves passenger car and commercial vehicle sectors. The Aftermarket segment offers a range of gaskets, gasket sets, and service parts for the repair of engines, transmissions, exhaust systems, and auxiliary units in cars and commercial vehicles under the Elring – Das Original brand. This segment serves a network of wholesalers and purchasing organizations. The Engineered Plastics segment develops, manufactures, and markets customized products made from various plastics for the mechanical engineering sector, as well as in medical, chemical, energy, and vehicle industries. The Other segment operates engine test benches and measuring equipment for testing engines, transmissions, and exhaust systems for vehicle manufacturers and automotive suppliers; and offers logistics and catering services. ElringKlinger AG was founded in 1879 and is headquartered in Dettingen an der Erms, Germany.

How the Company Makes Money

ElringKlinger generates revenue through the sale of its advanced sealing and thermal management products, which are essential components in modern vehicles. The company supplies these products to major automotive manufacturers worldwide, leveraging long-term partnerships and contracts. Key revenue streams include sales of cylinder-head gaskets, specialty gaskets, and shielding parts. Additionally, ElringKlinger is expanding its portfolio in the growing markets of e-mobility and alternative drive technologies, including battery and fuel cell solutions, which contribute to its earnings. The company's focus on innovation and technological advancement helps maintain its competitive position and drive revenue growth.

ElringKlinger Financial Statement Overview

Summary

ElringKlinger is facing financial headwinds with profitability challenges as seen in negative net income and free cash flow, despite maintaining a stable debt profile. The company shows operational efficiency but needs to address profitability and cash flow concerns to improve its financial health.

Income Statement

ElringKlinger has shown consistent revenue over the past few years, though recent figures indicate a decline. The TTM data shows a negative net income, resulting in a negative net profit margin. Despite a healthy gross profit margin of 22.28% for TTM, the company is struggling with profitability as indicated by negative net income. The EBIT and EBITDA margins for TTM are 6.51% and 11.35%, respectively, which suggests some operational efficiency but not enough to offset overall losses.

Balance Sheet

The company's balance sheet demonstrates moderate stability with a debt-to-equity ratio of 0.07, indicating manageable leverage. The equity ratio for TTM stands at 35.47%, suggesting a solid foundation. However, the return on equity is negative due to the loss in net income, which is a concern for long-term growth. The company maintains a reasonable level of cash and cash equivalents relative to its total liabilities.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow for TTM, indicating cash outflows exceeding inflows from operations and investments. The operating cash flow to net income ratio is negative due to the losses, highlighting inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, underscoring ongoing challenges in cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.76B	1.80B	1.85B	1.80B	1.62B	1.48B
	Gross Profit
392.47M	399.13M	402.81M	338.50M	351.01M	284.91M
	EBIT
114.70M	59.62M	82.91M	-42.23M	102.03M	27.74M
	EBITDA
199.89M	183.96M	204.04M	62.83M	216.84M	144.07M
	Net Income Common Stockholders
-147.70M	-137.85M	39.31M	-89.11M	55.73M	-40.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
126.69M	137.10M	131.58M	142.64M	127.20M	142.49M
	Total Assets
2.08B	1.76B	2.01B	2.05B	2.09B	1.96B
	Total Debt
449.94M	58.40M	449.94M	106.21M	90.57M	108.97M
	Net Debt
336.23M	-53.30M	336.23M	-12.89M	-19.33M	-18.88M
	Total Liabilities
1.17B	1.07B	1.10B	1.15B	1.11B	1.15B
	Stockholders Equity
843.13M	636.86M	843.13M	823.96M	903.73M	777.27M
Cash Flow		Free Cash Flow
-76.39M	38.13M	30.73M	9.60M	68.19M	146.78M
	Operating Cash Flow
78.72M	168.02M	129.70M	101.28M	156.11M	217.79M
	Investing Cash Flow
-125.01M	-109.61M	-90.15M	-95.49M	-73.04M	-60.61M
	Financing Cash Flow
22.68M	-59.25M	-39.73M	4.98M	-106.80M	-155.77M

ElringKlinger Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ZIL2, the sentiment is Positive. The current price of 4.5 is below the 20-day moving average (MA) of 4.63, below the 50-day MA of 4.64, and above the 200-day MA of 4.25, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 23.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ZIL2.

ElringKlinger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
ZIL2	49 Neutral	€284.80M	―	-19.89%	3.31%	-3.49%	-421.15%
0R3U		€9.67B	31.47	10.12%	1.08%	―	―
0O4N		€744.47M	11.57	12.40%	5.20%	―	―
0RBK		€3.95B	21.23	-19.48%	5.99%	―	―
KBX	71 Outperform	€14.31B	33.58	13.95%	1.96%	-1.57%	-26.71%
CTTAF		$17.33B	12.68	10.07%	3.02%	―	―