EDAG Engineering Group AG

ED4.DE

Auto - Parts · Consumer Cyclical

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Weak

Stability

Mixed

Valuation

Data not available

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Winston Score History

The full picture

EDAG Engineering Group AG is a German company that helps automakers design and build new vehicles. It provides engineering services — like vehicle development, production planning, and software integration — to car manufacturers such as Volkswagen, BMW, Mercedes-Benz, and other major European and global automakers. EDAG does not make cars itself; instead, it acts as an outside engineering partner that automakers hire when they need extra technical expertise.

The company earns money by charging fees for its engineering and consulting services, rather than selling physical products. It operates mainly in Europe, with a significant presence in Germany, but also has offices in Asia and the Americas to serve global clients. Its long-standing relationships with major automakers give it a stable customer base, though this also creates concentration risk. The biggest challenge EDAG faces is the automotive industry's shift toward electric vehicles and software-defined cars, which forces the company to constantly retrain its workforce and expand into new technical areas to stay relevant.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-12.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+8.5% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

74.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€59M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

EDAG Engineering Group AG's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

11.8%

Thin — 11.8% gross margin

Profit after running costs

Operating Margin

0.8%

Thin — 0.8% operating margin

Return on the money invested

ROCE

22.4%

Exceptional — 22.4% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

-10.5%

Shrinking sales (-10.5% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-3.1%

Burning cash (-3.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

1.33

Elevated debt (1.33)

Covers its interest

Interest Cover

3.02x

Tight — interest eats into profit (3.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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