ElringKlinger (OTCPK:ELLR.Y) - Share price, News & Analysis

Q: What is the Fair Price of ELLR.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ELLR.Y ($4.13) is trading below our estimate of [[fair value]] ($7.83)

ELLR.Y fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

ELLR.Y Stock Overview

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.

Rewards

Trading at 47.3% below our estimate of its fair value

Earnings are forecast to grow 43.43% per year

Became profitable this year

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

ElringKlinger Competitors

Modine Manufacturing

NYSE:MOD

US$550.4m

Garrett Motion

NasdaqGS:GTX

US$521.7m

Solid Power

NasdaqGS:SLDP

US$959.2m

Motorcar Parts of America

NasdaqGS:MPAA

US$257.7m

Price History & Performance

Summary of all time highs, changes and price drops for ElringKlinger
Historical stock prices
Current Share Price	€4.13
52 Week High	€8.00
52 Week Low	€3.80
Beta	2.15
1 Month Change	8.68%
3 Month Change	-18.22%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-56.84%

Shareholder Returns

	ELLR.Y	US Auto Components	US Market
7D	-2.4%	-5.1%	-2.5%
1Y	n/a	-38.8%	-21.2%

Return vs Industry: Insufficient data to determine how ELLR.Y performed against the US Auto Components industry.

Return vs Market: Insufficient data to determine how ELLR.Y performed against the US Market.

Price Volatility

Is ELLR.Y's price volatile compared to industry and market?
ELLR.Y volatility
ELLR.Y Average Weekly Movement	n/a
Auto Components Industry Average Movement	8.2%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: Insufficient data to determine ELLR.Y's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine ELLR.Y's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1879	9,400	Stefan Wolf	https://www.elringklinger.com

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.

ElringKlinger Fundamentals Summary

How do ElringKlinger's earnings and revenue compare to its market cap?
ELLR.Y fundamental statistics
Market Cap	€456.83m
Earnings (TTM)	€21.84m
Revenue (TTM)	€1.63b

20.9x

P/E Ratio

0.3x

P/S Ratio

Is ELLR.Y overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELLR.Y income statement (TTM)
Revenue	€1.63b
Cost of Revenue	€1.30b
Gross Profit	€332.62m
Other Expenses	€310.78m
Earnings	€21.84m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	0.34
Gross Margin	20.34%
Net Profit Margin	1.34%
Debt/Equity Ratio	45.6%

How did ELLR.Y perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

44%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ELLR.Y undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ELLR.Y?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ELLR.Y. This is calculated by dividing ELLR.Y's market cap by their current preferred multiple.
What is ELLR.Y's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€456.83m

ELLR.Y key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	5.8x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does ELLR.Y's PE Ratio compare to its peers?

ELLR.Y PE Ratio vs Peers

The above table shows the PE ratio for ELLR.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	36.3x
MOD Modine Manufacturing	6.5x	15.8%	US$550.4m
GTX Garrett Motion	2.2x	n/a	US$521.7m
SLDP Solid Power	101.5x	-6.2%	US$959.2m
MPAA Motorcar Parts of America	35x	65.5%	US$257.7m
ELLR.Y ElringKlinger	20.9x	43.4%	US$456.8m

Forward PE

Price-To-Earnings vs Peers: ELLR.Y is good value based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (36.3x).

Price to Earnings Ratio vs Industry

How does ELLR.Y's PE Ratio compare vs other companies in the US Auto Components Industry?

Price-To-Earnings vs Industry: ELLR.Y is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the US Auto Components industry average (14.1x)

Price to Earnings Ratio vs Fair Ratio

What is ELLR.Y's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ELLR.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ELLR.Y's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ELLR.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELLR.Y ($4.13) is trading below our estimate of fair value ($7.83)

Significantly Below Fair Value: ELLR.Y is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: ELLR.Y is good value based on its PEG Ratio (0.5x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

43.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELLR.Y's forecast earnings growth (43.4% per year) is above the savings rate (1.9%).

Earnings vs Market: ELLR.Y's earnings (43.4% per year) are forecast to grow faster than the US market (13.6% per year).

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

Revenue vs Market: ELLR.Y's revenue (6.1% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: ELLR.Y's revenue (6.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ELLR.Y's Return on Equity is forecast to be low in 3 years time (7.2%).

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Past Performance

How has ElringKlinger performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-37.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ELLR.Y has high quality earnings.

Growing Profit Margin: ELLR.Y became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: ELLR.Y's earnings have declined by 37.6% per year over the past 5 years.

Accelerating Growth: ELLR.Y has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ELLR.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (24.5%).

Return on Equity

High ROE: ELLR.Y's Return on Equity (2%) is considered low.

Discover strong past performing companies

Financial Health

How is ElringKlinger's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ELLR.Y's short term assets (€881.0M) exceed its short term liabilities (€640.2M).

Long Term Liabilities: ELLR.Y's short term assets (€881.0M) exceed its long term liabilities (€509.1M).

Debt to Equity History and Analysis

Debt Level: ELLR.Y's net debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: ELLR.Y's debt to equity ratio has reduced from 68% to 45.6% over the past 5 years.

Debt Coverage: ELLR.Y's debt is well covered by operating cash flow (24.6%).

Interest Coverage: ELLR.Y's interest payments on its debt are well covered by EBIT (8.7x coverage).

Balance Sheet

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Dividend

What is ElringKlinger current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ELLR.Y's dividend (2.08%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: ELLR.Y's dividend (2.08%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

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

Growing Dividend: ELLR.Y's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.5%), ELLR.Y's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (49%), ELLR.Y's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

6.5yrs

Average management tenure

CEO

Stefan Wolf (61 yo)

17.5yrs

Tenure

€2,348,000

Compensation

Dr. Stefan Wolf has been Chairman of the Management Board and Chief Executive Officer of Elringklinger AG since March 2006. Dr. Wolf has been a Member of Management Board at Elringklinger Ag since January...

CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD2.44M) is about average for companies of similar size in the US market ($USD2.92M).

Compensation vs Earnings: Stefan's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ELLR.Y's management team is seasoned and experienced (6.5 years average tenure).

Board Members

Experienced Board: ELLR.Y's board of directors are considered experienced (5 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31