DB:EDD3

Stock Analysis Report

Executive Summary

edding AG operates in writing and marking, and visual communication businesses in Germany, other European countries, and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has edding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EDD3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

EDD3

-1.9%

DE Commercial Services

-0.6%

DE Market


1 Year Return

-33.3%

EDD3

-32.9%

DE Commercial Services

-20.9%

DE Market

Return vs Industry: EDD3 matched the German Commercial Services industry which returned -32.9% over the past year.

Return vs Market: EDD3 underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

EDD3IndustryMarket
7 Day1.7%-1.9%-0.6%
30 Day-6.3%-21.9%-16.6%
90 Day-16.7%-35.2%-26.0%
1 Year-31.5%-33.3%-30.5%-32.9%-18.6%-20.9%
3 Year-31.9%-36.4%-30.8%-36.8%-19.0%-25.8%
5 Year2.8%-8.6%-39.4%-47.8%-21.1%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is edding undervalued compared to its fair value and its price relative to the market?

9.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EDD3 (€60) is trading above our estimate of fair value (€28.26)

Significantly Below Fair Value: EDD3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EDD3 is good value based on its PE Ratio (9.9x) compared to the Commercial Services industry average (94.4x).

PE vs Market: EDD3 is good value based on its PE Ratio (9.9x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EDD3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EDD3 is good value based on its PB Ratio (1x) compared to the DE Commercial Services industry average (2.2x).


Next Steps

Future Growth

How is edding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.0%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as edding has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has edding performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDD3 has high quality earnings.

Growing Profit Margin: EDD3's current net profit margins (4.6%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: EDD3's earnings have declined by -8.6% per year over the past 5 years.

Accelerating Growth: EDD3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EDD3 had negative earnings growth (-28.2%) over the past year, making it difficult to compare to the Commercial Services industry average (8.9%).


Return on Equity

High ROE: EDD3's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is edding's financial position?


Financial Position Analysis

Short Term Liabilities: EDD3's short term assets (€83.5M) exceed its short term liabilities (€34.1M).

Long Term Liabilities: EDD3's short term assets (€83.5M) exceed its long term liabilities (€19.5M).


Debt to Equity History and Analysis

Debt Level: EDD3's debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: EDD3's debt to equity ratio has reduced from 13.3% to 7.6% over the past 5 years.

Debt Coverage: EDD3's debt is well covered by operating cash flow (79.4%).

Interest Coverage: EDD3's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet

Inventory Level: EDD3 has a high level of physical assets or inventory.

Debt Coverage by Assets: EDD3's debt is covered by short term assets (assets are 17x debt).


Next Steps

Dividend

What is edding's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EDD3's dividend (2.05%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: EDD3's dividend (2.05%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: EDD3's dividend payments have been volatile in the past 10 years.

Growing Dividend: EDD3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.3%), EDD3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average board tenure


CEO

Per Ledermann

7.25s

Tenure

Mr. Per Ledermann has been the Chairman of Management Board and Chief Executive Officer at Edding AG since January 1, 2013 and served as its Director of Finance, Personnel, Organisation & IT Departments si ...


Board Members

NamePositionTenureCompensationOwnership
Chehab Wahby
Chairperson of Supervisory Board2.83yrsno datano data
Anja Keihani
Member of Supervisory Board7.83yrsno datano data
Michael Rauch
Deputy Chairperson of Supervisory Board2.83yrsno datano data

2.8yrs

Average Tenure

Experienced Board: EDD3's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

edding AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: edding AG
  • Ticker: EDD3
  • Exchange: DB
  • Founded: 1960
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: €57.954m
  • Shares outstanding: 1.07m
  • Website: https://www.edding.com

Number of Employees


Location

  • edding AG
  • Bookkoppel 7
  • Ahrensburg
  • Schleswig-Holstein
  • 22926
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDD3DB (Deutsche Boerse AG)YesPreferential SharesDEEURMar 2000

Biography

edding AG operates in writing and marking, and visual communication businesses in Germany, other European countries, and internationally. It offers markers and writing utensils for commercial applications, such as industry and office solutions; conductive ink for interactive packaging, brand protection, document verification, and marketing and promotion; edding compact printer and printers for industrial marking; household markers; printing products; and decorative cosmetics. The company also provides flip charts, whiteboards, presentation boards, and related accessories; LED screens for schools and conference rooms; and interactive whiteboards under the Legamaster brand. edding AG provides its products to business-to-business sector and private end consumers. The company was founded in 1960 and is headquartered in Ahrensburg, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 22:21
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.