EDAG Engineering (ED4) AI Stock Analysis

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EDAG Engineering

(XETRA:ED4)

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Rating:43Neutral

Price Target:EUR 2.50▼(-11.35% Downside)

Action:reiterated

Date:08/28/26

The score is held down primarily by weakened financial performance: shrinking revenue, a shift to losses with negative EBIT, high leverage, and recently negative free cash flow. Technicals add a modest drag with the stock trading below key moving averages and slightly negative MACD. Valuation does not provide support because the company is loss-making (negative P/E) and no dividend yield is available in the data.

Positive Factors

Broad engineering service offeringEDAG’s coverage of the full product lifecycle and multiple engineering disciplines supports relevance to customers from vehicle concept through industrialization and optimization. This breadth can enable cross-selling, diversify project opportunities, and make the company a more integrated technical partner over the next several quarters.

Negative Factors

Revenue contraction and lossesShrinking revenue combined with a move from prior profits to substantial net losses signals weakening operating performance rather than merely slower growth. Persistent pressure on project volume, pricing, or cost absorption could reduce reinvestment capacity and make a return to sustainable profitability more difficult over the next several quarters.

EDAG Engineering (ED4) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 123.38M
Dividend Yield: ―
Average Volume (3M): 1,709
Price to Earnings (P/E): -4.9
Beta (1Y): 0.19
Revenue Growth: -10.23%
EPS Growth: -8.88%
Country: Germany
Employees: 7,800
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

EDAG Engineering Business Overview & Revenue Model

Company Description

EDAG Engineering Group AG is a global engineering firm dedicated to the conceptualization and development of automobiles, their variants, sub-assemblies, and manufacturing plants for the automotive and heavy-duty vehicle sectors. The company is struc...

How the Company Makes Money

EDAG primarily makes money by selling engineering and consulting services to corporate customers on a project basis and/or through longer-term service engagements. Its core revenue streams typically consist of (1) vehicle development engineering serv...

EDAG Engineering Financial Statement Overview

Summary

Financials show a clear deterioration versus 2022–2023: revenue is shrinking (TTM -3.23%), profitability has turned to losses (TTM net income -40.2M; net margin -6.1%), and EBIT is negative in 2025/TTM. Leverage is elevated (debt-to-equity ~2.86 TTM) with sharply negative ROE (TTM ~-37%). Cash flow also weakened materially, with free cash flow negative in 2025 and TTM after a strong 2024.

Income Statement

34Negative

Balance Sheet

38Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	686.35M	713.60M	821.91M	844.78M	821.92M	710.09M
Gross Profit	214.18M	63.23M	728.56M	746.28M	707.25M	622.69M
EBITDA	2.89M	23.58M	47.55M	99.48M	91.96M	68.23M
Net Income	-40.17M	-43.60M	-14.36M	28.90M	28.86M	11.42M
Balance Sheet
Total Assets	618.06M	587.23M	734.15M	730.58M	721.66M	694.22M
Cash, Cash Equivalents and Short-Term Investments	88.85M	42.98M	125.50M	107.29M	122.72M	151.23M
Total Debt	249.48M	259.27M	344.98M	342.70M	321.45M	285.96M
Total Liabilities	460.48M	498.64M	601.09M	568.05M	572.74M	578.80M
Stockholders Equity	157.44M	88.46M	132.88M	162.53M	148.92M	115.42M
Cash Flow
Free Cash Flow	-10.26M	-22.91M	71.21M	10.55M	3.92M	4.86M
Operating Cash Flow	1.44M	-11.02M	94.08M	40.74M	34.00M	23.59M
Investing Cash Flow	-12.30M	-13.21M	-23.95M	-29.78M	-29.72M	-18.37M
Financing Cash Flow	5.38M	-57.41M	-51.58M	-26.27M	-33.03M	-10.55M

EDAG Engineering Technical Analysis

Technical Analysis SentimentNegative

Last Price2.82

Price Trends

50DMA2.97Negative

100DMA3.06Negative

200DMA3.35Negative

Market Momentum

MACD-0.02Negative

RSI37.92Neutral

STOCH43.75Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ED4, the sentiment is Negative. The current price of 2.82 is below the 20-day moving average (MA) of 2.92, below the 50-day MA of 2.97, and below the 200-day MA of 3.35, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ED4.

EDAG Engineering Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:ED4 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:ZIL2	67Neutral	EUR 391.56M	11.38	5.53%	2.42%	5.65%	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DE:CON	56Neutral	EUR 14.70B	17.68	19.60%	3.63%	-34.96%	238.70%
DE:HLE	52Neutral	EUR 7.32B	66.20	3.53%	0.33%	-1.09%	-30.43%
DE:BDT	51Neutral	EUR 80.44M	-1.63	-16.20%	―	-14.82%	44.17%
DE:GMM	51Neutral	EUR 126.65M	6.38	9.76%	―	1.82%	13.67%
DE:ED4	43Neutral	EUR 122.06M	-4.89	-12.07%	―	-10.23%	-8.88%

* Consumer Cyclical Sector Average

Performance Comparison

DE:ED4 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:ED4	EDAG Engineering	2.82	-3.64	-56.35%
DE:BDT	Bertrandt AG	7.76	-11.24	-59.16%
DE:ZIL2	ElringKlinger AG	6.19	2.23	56.47%
DE:GMM	Grammer AG	8.20	1.95	31.20%
DE:HLE	Hella KGaA Hueck & Co	66.20	-13.65	-17.10%
DE:CON	Continental Ag (OTC)	74.36	12.88	20.95%

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: Aug 28, 2026

EDAG Engineering AI Stock Analysis