Daldrup & Soehne AG (4DS) AI Stock Analysis

Daldrup & Soehne AG

(XETRA:4DS)

Select Model

Rating:64Neutral

Price Target:EUR 24.50▼(-2.00% Downside)

Action:reiterated

Date:09/19/26

The score is driven primarily by solid financial fundamentals: a materially improved profit profile (net margin ~15%, ROE 25.4%) and a very conservative balance sheet with debt-to-equity of only 0.14 give the company strong financial flexibility. Offsetting this is weaker cash flow quality, with free cash flow down roughly 51% year-over-year on higher capital spending, plus exposure to a cyclical drilling industry and a history of volatile revenue. Technically, the shares are range-bound — hovering around all major moving averages with a neutral RSI — offering little directional conviction. Valuation is fair at a P/E of 17.2 with a small 0.78% dividend yield. The result is an above-average but not outstanding profile, where fundamental improvement must prove sustainable to justify a higher rating.

Positive Factors

Margin ExpansionThe sharp improvement in net and operating profitability indicates stronger earnings power from the company’s drilling and environmental services. If maintained, higher margins can improve resilience, support reinvestment in operations, and provide greater flexibility across project cycles.

Negative Factors

Free Cash Flow WeaknessThe steep free-cash-flow decline and coverage of only about 46% of net income point to weaker cash conversion and greater reinvestment or working-capital demands. Persistent pressure could limit internally funded growth and reduce flexibility for equipment or project spending.

Daldrup & Soehne AG (4DS) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 149.66M
Dividend Yield: 0.72%
Average Volume (3M): 2,283
Price to Earnings (P/E): 17.6
Beta (1Y): 0.49
Revenue Growth: 34.62%
EPS Growth: 225.48%
Country: Germany
Employees: 180
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Drilling

Daldrup & Soehne AG Business Overview & Revenue Model

Company Description

Daldrup & Söhne Aktiengesellschaft, founded in 1946 and based in Grünwald, Germany, offers a broad spectrum of drilling and environmental services. The company's drilling capabilities extend to various applications: from near-surface geothermal energ...

How the Company Makes Money

Daldrup & Söhne AG primarily makes money by executing drilling and related service contracts for third-party clients. Its key revenue streams typically come from: (1) Geothermal drilling services: planning support and the execution of deep drilling f...

Daldrup & Soehne AG Financial Statement Overview

Summary

Daldrup & Söhne has delivered a clear financial turnaround. The income statement (68) shows revenue rising from €26.2M in 2020 to €54.1M in 2024, sharply expanding gross margins and net income jumping from €2.5M to €7.7M, lifting net margin to ~15%. The balance sheet (72) is the standout strength, with debt-to-equity at just 0.14, equity growing to €30.4M and return on equity surging to 25.4%. Cash flow (58) is the weak link: operating cash flow remains healthy at €10.7M, but free cash flow halved to €4.9M on elevated capital spending, and historical cash generation has been volatile. Cyclicality of the drilling sector and past revenue swings temper the score.

Income Statement

68Positive

Balance Sheet

72Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	54.22M	41.18M	54.11M	49.12M	38.18M	78.06M
Gross Profit	19.09M	31.69M	29.89M	23.66M	11.11M	12.15M
EBITDA	10.32M	10.84M	8.89M	4.17M	4.08M	4.05M
Net Income	8.49M	7.70M	2.49M	889.84K	851.72K	784.75K
Balance Sheet
Total Assets	51.10M	46.50M	34.21M	41.55M	40.16M	38.64M
Cash, Cash Equivalents and Short-Term Investments	11.03M	12.96M	6.36M	3.55M	3.12M	3.03M
Total Debt	4.27M	4.40M	1.63M	14.61M	7.79M	7.76M
Total Liabilities	17.73M	16.13M	10.69M	20.54M	20.18M	19.60M
Stockholders Equity	33.36M	30.37M	23.52M	21.01M	19.97M	19.04M
Cash Flow
Free Cash Flow	2.83M	4.94M	9.58M	1.22M	17.15K	-2.38M
Operating Cash Flow	7.63M	10.66M	12.13M	4.37M	993.33K	-1.15M
Investing Cash Flow	-4.78M	-5.44M	-2.48M	-2.96M	-930.87K	1.30M
Financing Cash Flow	468.85K	1.39M	-971.20K	-909.50K	-971.78K	856.73K

Daldrup & Soehne AG Technical Analysis

Technical Analysis SentimentPositive

Last Price25.00

Price Trends

50DMA23.22Positive

100DMA22.94Positive

200DMA23.65Positive

Market Momentum

MACD0.46Negative

RSI64.74Neutral

STOCH59.83Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:4DS, the sentiment is Positive. The current price of 25.00 is above the 20-day moving average (MA) of 23.83, above the 50-day MA of 23.22, and above the 200-day MA of 23.65, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 59.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:4DS.

Daldrup & Soehne AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

DE:4DS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:DR0	81Outperform	EUR 444.17M	2.94	54.84%	2.47%	-5.55%	271.30%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DE:4DS	64Neutral	EUR 149.64M	17.61	26.65%	0.72%	34.62%	225.48%
DE:HMU	46Neutral	EUR 146.28M	2.23	69.14%	3.42%	33.00%	383.79%

* Energy Sector Average

Performance Comparison

DE:4DS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:4DS	Daldrup & Soehne AG	25.00	8.58	52.28%
DE:DR0	Deutsche Rohstoff AG	91.20	44.47	95.17%
DE:HMU	HMS Bergbau AG	32.20	-18.88	-36.97%
DE:REL	Ichor Coal NV	0.02	0.00	5.00%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 19, 2026

Daldrup & Soehne AG AI Stock Analysis