ElringKlinger (ZIL2) AI Stock Analysis

• Market Cap: €293.67M
• Dividend Yield: 3.2%
• Average Volume (3M): 16.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -4.26%
• EPS Growth: -412.06%
• Country: DE
• Employees: 9,078
• Sector: Industrials
• Sector Strength: 74
• Industry: Auto - Parts
• EPS (TTM): -0.15
• Shares Outstanding: 63,359,993
• 10 Day Avg. Volume: 12,405
• 30 Day Avg. Volume: 16,937
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €4.15
• Price Target Upside: -11.51% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: €4.50 ▼(-4.05% Downside)

The overall stock score of 51 reflects significant financial challenges, including declining revenues and cash flow issues, which weigh heavily on the score. Positive technical indicators provide some support, but the negative P/E ratio and financial difficulties limit the stock's attractiveness. The dividend yield offers a slight positive, but sustainability is questionable.

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 primarily through the sale of its automotive components, with key revenue streams including the production of sealing systems, thermal management products, and electric vehicle components. The company serves a diverse client base, including major automotive manufacturers and suppliers, which contributes to stable and recurring revenue. Strategic partnerships with automotive OEMs and Tier 1 suppliers enhance its market presence and facilitate joint development projects, further driving sales. Additionally, ElringKlinger invests in research and development to innovate new products that meet the evolving needs of the automotive industry, particularly in the areas of electrification and sustainable mobility, thus expanding its revenue potential.

ElringKlinger Financial Statement Overview

Summary

ElringKlinger is facing financial headwinds with declining revenues and profitability, as well as challenges in cash flow generation. While the balance sheet shows moderate leverage, the negative return on equity and cash flow issues indicate underlying financial difficulties. The company needs to focus on improving operational efficiency and cash flow management to enhance its financial health.

Income Statement

ElringKlinger has faced challenges with declining revenue and profitability. The TTM data shows a negative revenue growth rate of -2.08% and a net profit margin of -8.39%, indicating significant losses. While the gross profit margin remains stable at around 22%, the company struggles with operational efficiency as reflected in negative EBIT and net profit margins.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.07 in the TTM period, which is a positive sign of financial stability. However, the return on equity is negative at -20.38%, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is relatively healthy, suggesting a strong equity base compared to total assets.

Cash Flow

Cash flow analysis reveals challenges in generating free cash flow, with a negative free cash flow growth rate of -37.26% in the TTM period. The operating cash flow to net income ratio is low at 0.14, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, highlighting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.80B	1.85B	1.80B	1.62B	1.48B
Gross Profit	378.51M	399.13M	402.81M	338.50M	351.01M	284.91M
EBITDA	195.42M	183.96M	204.04M	62.83M	216.84M	144.07M
Net Income	-166.76M	-137.85M	39.31M	-89.11M	55.73M	-40.80M
Balance Sheet
Total Assets	1.79B	1.76B	2.01B	2.05B	2.09B	1.96B
Cash, Cash Equivalents and Short-Term Investments	73.72M	137.10M	131.58M	142.64M	127.20M	142.49M
Total Debt	60.25M	58.40M	449.94M	106.21M	90.57M	108.97M
Total Liabilities	1.13B	1.07B	1.10B	1.15B	1.11B	1.15B
Stockholders Equity	608.74M	636.86M	843.13M	823.96M	903.73M	777.27M
Cash Flow
Free Cash Flow	-47.93M	38.13M	30.73M	9.60M	68.19M	146.78M
Operating Cash Flow	108.88M	168.02M	129.70M	101.28M	156.11M	217.79M
Investing Cash Flow	-114.15M	-109.61M	-90.15M	-95.49M	-73.04M	-60.61M
Financing Cash Flow	18.44M	-59.25M	-39.73M	4.98M	-106.80M	-155.77M

ElringKlinger Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4.69 is above the 20-day moving average (MA) of 4.64, above the 50-day MA of 4.52, and above the 200-day MA of 4.40, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.71 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 *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
ZIL2	51 Neutral	€293.67M	―	-23.03%	3.20%	-4.26%	-412.06%
0R3U	―	€9.00B	46.71	6.30%	―	―	―
0O4N	―	€704.52M	14.12	10.72%	―	―	―
0RBK	―	€5.29B	21.23	-24.27%	―	―	―
KBX	57 Neutral	€13.80B	32.70	14.67%	2.04%	-1.78%	-30.46%
CTTAF	―	$17.02B	10.60	14.83%	3.49%	―	―