DB:ED4

Stock Analysis Report

EDAG Engineering Group

Executive Summary

EDAG Engineering Group AG, an engineering service provider, develops vehicles, derivatives, modules, and production facilities for the automotive and commercial vehicle industries worldwide.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has EDAG Engineering Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

ED4

7.7%

DE Auto Components

4.1%

DE Market


1 Year Return

-42.9%

ED4

-15.5%

DE Auto Components

2.4%

DE Market

Return vs Industry: ED4 underperformed the German Auto Components industry which returned -15.5% over the past year.

Return vs Market: ED4 underperformed the German Market which returned 2.4% over the past year.


Shareholder returns

ED4IndustryMarket
7 Day0%7.7%4.1%
30 Day-3.5%-4.2%1.7%
90 Day-14.1%4.8%3.7%
1 Year-39.5%-42.9%-11.9%-15.5%5.6%2.4%
3 Year-17.8%-29.1%-23.8%-30.2%19.2%8.9%
5 Yearn/a-17.2%-25.7%43.2%23.7%

Price Volatility Vs. Market

How volatile is EDAG Engineering Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EDAG Engineering Group undervalued compared to its fair value and its price relative to the market?

25.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ED4 (€9.86) is trading below our estimate of fair value (€13.31)

Significantly Undervalued: ED4 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ED4 is poor value based on its PE Ratio (13.2x) compared to the Auto Components industry average (12.8x).

PE vs Market: ED4 is good value based on its PE Ratio (13.2x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ED4 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: ED4 is overvalued based on its PB Ratio (1.7x) compared to the DE Auto Components industry average (1.1x).


Next Steps

Future Growth

How is EDAG Engineering Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

38.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ED4's forecast earnings growth (38.4% per year) is above the savings rate (0.2%).

Earnings vs Market: ED4's earnings (38.4% per year) are forecast to grow faster than the German market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ED4's revenue (4.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: ED4's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ED4's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has EDAG Engineering Group performed over the past 5 years?

-30.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ED4's earnings have declined by -30.4% per year over the past 5 years.

Accelerating Growth: ED4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ED4 had negative earnings growth (-6.1%) over the past year, making it difficult to compare to the Auto Components industry average (-6.3%).


Return on Equity

High ROE: ED4's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: ED4's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: ED4's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is EDAG Engineering Group's financial position?


Financial Position Analysis

Short Term Liabilities: ED4's short term assets (€283.9M) exceeds its short term liabilities (€198.5M)

Long Term Liabilities: ED4's short term assets (283.9M) do not cover its long term liabilities (298.6M)


Debt to Equity History and Analysis

Debt Level: ED4's debt to equity ratio (126.2%) is considered high

Reducing Debt: ED4's debt to equity ratio has reduced from 181.5% to 126.2% over the past 5 years.

Debt Coverage: ED4's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: ED4's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: ED4 has a high level of physical assets or inventory.

Debt Coverage by Assets: ED4's debt is covered by short term assets (assets are 1.778970x debt).


Next Steps

Dividend

What is EDAG Engineering Group's current dividend yield, its reliability and sustainability?

7.52%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ED4's dividend (7.52%) is higher than the bottom 25% of dividend payers in the German market (1.45%).

High Dividend: ED4's dividend (7.52%) is in the top 25% of dividend payers in the German market (3.78%)

Stable Dividend: Whilst dividend payments have been stable, ED4 has been paying a dividend for less than 10 years.

Growing Dividend: ED4 has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99%), ED4's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ED4's dividends in 3 years are forecast to be covered by earnings (52.3% payout ratio).


Next Steps

Management

What is the CEO of EDAG Engineering Group's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average board tenure


CEO

Cosimo De Carlo 0

1.5yrs

Tenure

€144,548

Compensation

Mr. Cosimo De Carlo has been Chief Executive Officer and Member of Executive Board of EDAG Engineering Group AG since April 15, 2018. Mr. De Carlo has been Group Vice President of Automotive Business at Al ...


CEO Compensation Analysis

Compensation vs. Market: Cosimo has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Insufficient data to compare Cosimo's compensation with company performance.


Board Age and Tenure

1.2yrs

Average Tenure

54yo

Average Age

Experienced Board: ED4's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Christoph Horvath

    Director of PR-Communication

    • Tenure: 0yrs
  • Reinhard Bolz

    Head of Fairs and Exhibitions

    • Tenure: 0yrs
  • Johannes Barckmann

    Chief Designer

    • Tenure: 0yrs
  • Cosimo De Carlo

    CEO & Member of Executive Board

    • Tenure: 1.5yrs
    • Compensation: €144.55k
  • Martin Hillebrecht

    Head of Competence Centre for Lightweight Construction

    • Tenure: 0yrs
  • Heiko Herchet

    Chief Executive Electrifier of Trive.Me

    • Tenure: 0yrs
  • Bernd Waterkamp

    Head of Product Reliability & Documentation

    • Tenure: 0yrs
  • Michael Pollner

    Head of Marketing & Editor-In-Chief

    • Tenure: 0yrs
  • Sebastian Lehmann

    Head of Investor Relations

    • Tenure: 0yrs
  • Holger Merz

    COO & CFO

    • Tenure: 0.3yrs

Board Members

  • Georg Johannes Denoke (54yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: €277.00k
  • Manfred Hahl (56yo)

    Director

    • Tenure: 0.3yrs
  • Philippe Weber (54yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: €178.00k
  • Sylvia Schorr (39yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: €150.00k
  • Clemens Prändl

    Director

    • Tenure: 0.3yrs

Company Information

EDAG Engineering Group AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EDAG Engineering Group AG
  • Ticker: ED4
  • Exchange: DB
  • Founded: 1969
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €249.250m
  • Shares outstanding: 25.00m
  • Website: https://www.edag.de

Number of Employees


Location

  • EDAG Engineering Group AG
  • Schlossgasse 2
  • Arbon
  • 9320
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ED4DB (Deutsche Boerse AG)YesShare CapitalDEEURDec 2015
ED4XTRA (XETRA Trading Platform)YesShare CapitalDEEURDec 2015
0RCXLSE (London Stock Exchange)YesShare CapitalGBEURDec 2015
ED4DBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURDec 2015

Biography

EDAG Engineering Group AG, an engineering service provider, develops vehicles, derivatives, modules, and production facilities for the automotive and commercial vehicle industries worldwide. The company op ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:38
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.