ElringKlinger AG Fundamental Analysis (XETRA: ZIL2.DE)
ElringKlinger AG (XETRA: ZIL2.DE) shows weak financial fundamentals with a PE ratio of 11.38, profit margin of 1.95%, and ROE of 5.53%. The company generates $1.7B in annual revenue with weak year-over-year growth of -9.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ZIL2.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakZIL2.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentZIL2.DE trades at attractive valuation levels.
Growth Score
ModerateZIL2.DE shows steady but slowing expansion.
Financial Health Score
ExcellentZIL2.DE maintains a strong and stable balance sheet.
Profitability Score
WeakZIL2.DE struggles to sustain strong margins.
Key Financial Metrics
Is ZIL2.DE Expensive or Cheap?
P/E Ratio
ZIL2.DE trades at 11.38 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ZIL2.DE's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values ElringKlinger AG at 0.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.38 times EBITDA. This is generally considered low.
How Well Does ZIL2.DE Make Money?
Net Profit Margin
For every $100 in sales, ElringKlinger AG keeps $1.95 as profit after all expenses.
Operating Margin
Core operations generate 5.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.53 in profit for every $100 of shareholder equity.
ROA
ElringKlinger AG generates $1.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ElringKlinger AG produces operating cash flow of $179.70M, showing steady but balanced cash generation.
Free Cash Flow
ElringKlinger AG produces free cash flow of $79.74M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.26 in free cash annually.
FCF Yield
ZIL2.DE converts 21.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ZIL2.DE Stacks Against Its Sector Peers
| Metric | ZIL2.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.38 | 24.94 | Better (Cheaper) |
| ROE | 5.53% | 965.00% | Weak |
| Net Margin | 1.95% | -2081.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 1.30 | 2.36 | Neutral |
| ROA | 1.79% | 364.00% | Weak |
ZIL2.DE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ElringKlinger AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.84%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
84.94%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-17.66%
Industry Style: Cyclical, Growth, Discretionary
Declining