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1. Company Snapshot

1.a. Company Description

EDAG Engineering Group AG engages in the development of vehicles, derivatives, modules, and production facilities for the automotive and commercial vehicle industries worldwide.It operates through three segments: Vehicle Engineering, Production Solutions, and Electrics/Electronics.The Vehicle Engineering segment provides package and ergonomics, body assembly, surface design, and interior and exterior services; develops commercial vehicles, doors, covers, and lid systems, as well as head, rear, and small lamps; and technologies and lightweight designing services.


This segment also offers vehicle integration services comprising functional integration and vehicle validation services, such as testing of individual components, modules, engines, motors, transmissions, and complete vehicles; models and vehicle solutions, including a range of styling, ideation, and design services, as well as creates test vehicles, sub-assemblies, and vehicle bodies for the physical validation of modules and systems; project management; and consulting and support services for quality-related matters.The Production Solutions segment provides body manufacturing and smart factory services, product design for manufacturability, coordinated technical building equipment and plant layout, individual production solutions, networking through smart logistics, digitalization, and networking in production; and process consulting and CAx development services, as well as consulting, conceptual, and realization services.The Electrics/Electronics segment develops electric and electronic systems comprising architecture and networks development, systems engineering, embedded systems, information technology, integration and system validation, functional safety and cyber security, and process and product data management services.


The company was founded in 1969 and is based in Arbon, Switzerland.EDAG Engineering Group AG is a subsidiary of Aton Austria Holding GmbH.

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1.b. Last Insights on ED4

EDAG Engineering Group AG's recent performance has been impacted by investors' cautious approach to the market, driven by economic uncertainties and inflation concerns. As global markets navigate a complex landscape, dividend stocks have become attractive for their potential to provide stability and income potential. Despite the company's attractive financial prospects, its stock has seen declines, making it a potential undervalued opportunity. The recent news highlights the importance of strategic investment choices in such fluctuating times.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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An Intrinsic Calculation For EDAG Engineering Group AG (ETR:ED4) Suggests It's 33% Undervalued

Oct -11

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EDAG Engineering Group Second Quarter 2025 Earnings: €0.37 loss per share (vs €0.14 profit in 2Q 2024)

Aug -31

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Even after rising 13% this past week, EDAG Engineering Group (ETR:ED4) shareholders are still down 42% over the past three years

Jul -16

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EDAG Engineering Group First Quarter 2025 Earnings: €0.04 loss per share (vs €0.28 profit in 1Q 2024)

May -10

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EDAG Engineering Group Full Year 2024 Earnings: Revenues In Line With Expectations

Mar -29

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3 European Dividend Stocks Yielding Up To 7.8%

Mar -27

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3 Dividend Stocks To Consider With Yields From 3% To 8%

Feb -17

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Three Prominent Dividend Stocks To Consider

Jan -16

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.74%)

6. Segments

Vehicle Engineering

Expected Growth: 3.5%

EDAG's Vehicle Engineering segment growth is driven by increasing demand for electric and autonomous vehicles, OEMs' outsourcing of engineering services, and EDAG's expertise in lightweight construction and alternative propulsion systems, resulting in a 3.5% growth rate.

Electrics/Electronics

Expected Growth: 4.2%

EDAG Engineering Group AG's Electrics/Electronics segment growth of 4.2% is driven by increasing demand for electric vehicles, autonomous driving, and advanced driver-assistance systems. Additionally, the rising need for energy-efficient solutions, growing adoption of IoT devices, and expanding 5G network infrastructure also contribute to the segment's growth.

Production Solutions

Expected Growth: 3.8%

EDAG Engineering Group AG's Production Solutions segment growth of 3.8% is driven by increasing demand for electric vehicle (EV) production, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization, automation, and sustainability solutions resonates with OEMs' efforts to reduce production costs and environmental impact.

Reconciling Items

Expected Growth: 3.2%

EDAG Engineering Group AG's 3.2% growth is driven by increasing demand for electric vehicle (EV) solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization, autonomous driving, and sustainability initiatives has led to increased revenue from existing clients. Furthermore, EDAG's cost-saving measures and operational efficiencies have contributed to the growth.

7. Detailed Products

Electrification and Electromobility

EDAG Engineering Group AG offers comprehensive solutions for electrification and electromobility, including electric powertrain development, battery management systems, and charging infrastructure.

Autonomous Driving and ADAS

EDAG Engineering Group AG provides expertise in autonomous driving and advanced driver-assistance systems (ADAS), including sensor development, software integration, and testing.

Vehicle Engineering and Development

EDAG Engineering Group AG offers comprehensive vehicle engineering and development services, including design, testing, and production of vehicles and vehicle components.

Digitalization and Connectivity

EDAG Engineering Group AG provides expertise in digitalization and connectivity, including software development, data analytics, and cybersecurity.

Testing and Validation

EDAG Engineering Group AG offers testing and validation services, including physical and virtual testing, homologation, and certification.

Production and Logistics

EDAG Engineering Group AG provides production and logistics services, including production planning, quality management, and supply chain management.

8. EDAG Engineering Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

EDAG Engineering Group AG operates in a niche market, and the threat of substitutes is moderate. While there are some alternative engineering services providers, EDAG's specialized expertise and reputation in the automotive industry reduce the likelihood of substitutes.

Bargaining Power Of Customers

EDAG Engineering Group AG's customers, primarily automotive manufacturers, have significant bargaining power due to their large size and purchasing power. This gives them leverage to negotiate prices and terms.

Bargaining Power Of Suppliers

EDAG Engineering Group AG's suppliers, primarily technology and software providers, have limited bargaining power due to the company's specialized requirements and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants in EDAG Engineering Group AG's market is low due to the high barriers to entry, including the need for specialized expertise and significant capital investment.

Intensity Of Rivalry

The intensity of rivalry in EDAG Engineering Group AG's market is moderate, with several established players competing for market share. However, the company's strong reputation and specialized expertise help to differentiate it from competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.17%
Debt Cost 4.76%
Equity Weight 47.83%
Equity Cost 4.76%
WACC 4.76%
Leverage 109.05%

11. Quality Control: EDAG Engineering Group AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Debica

A-Score: 6.3/10

Value: 8.7

Growth: 3.9

Quality: 4.1

Yield: 8.1

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

Stock-Card
SAF-Holland

A-Score: 6.0/10

Value: 8.0

Growth: 7.9

Quality: 3.6

Yield: 6.9

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

Stock-Card
Burelle

A-Score: 5.6/10

Value: 10.0

Growth: 5.0

Quality: 2.6

Yield: 3.1

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
CIR

A-Score: 5.0/10

Value: 7.5

Growth: 4.8

Quality: 2.8

Yield: 0.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

Stock-Card
VBG

A-Score: 4.9/10

Value: 6.1

Growth: 7.9

Quality: 5.7

Yield: 4.4

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

Stock-Card
EDAG

A-Score: 3.3/10

Value: 7.4

Growth: 3.0

Quality: 2.3

Yield: 1.2

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.02$

Current Price

6.02$

Potential

-0.00%

Expected Cash-Flows