(ZIL2) Elringklinger NA O.N. - Ratings and Ratios

ElringKlinger AG, a leading automotive parts manufacturer, specializes in developing, producing, and distributing components, modules, and systems for the automotive sector. With a global presence spanning Germany, Asia-Pacific, North America, Europe, South America, and international markets, the company operates through four distinct segments: Original Equipment, Aftermarket, Engineered Plastics, and Other.

The Original Equipment segment is integral to ElringKlingers operations, focusing on innovative solutions such as metal sealing systems and drivetrain components. Notably, the segment has been expanding its electric vehicle offerings, including battery and fuel cell components, aligning with industry trends towards electrification. Additionally, the segment provides thermal and acoustic shielding systems, crucial for reducing noise and heat in vehicles, enhancing passenger comfort and efficiency.

The Aftermarket segment offers a comprehensive range of gaskets and service parts under the Elring Das Original brand, catering to engine, transmission, and exhaust system repairs. This segment has established a robust distribution network, partnering with wholesalers and purchasing organizations to ensure wide availability and reliability, which is essential for maintaining customer trust and loyalty.

Engineered Plastics segment showcases the companys versatility, producing customized plastic products for various industries beyond automotive, including medical, chemical, and energy sectors. Recent developments in this segment include exploring new materials to meet the growing demand for lightweight and durable components, reflecting the companys commitment to innovation and sustainability.

The Other segment contributes to ElringKlingers diversified portfolio by providing engine and transmission testing services, as well as logistics and catering operations. This diversification not only strengthens the companys financial stability but also positions it as a one-stop solution provider in the automotive industry.

Founded in 1879 and headquartered in Dettingen an der Erms, Germany, ElringKlinger AG has established a strong reputation for quality and innovation. The companys dedication to R&D and its strategic expansion into emerging markets underscore its commitment to long-term growth and sustainability.

Looking ahead, the 3-month forecast for ElringKlinger AG (XETRA:ZIL2) is based on the provided technical and fundamental data. The stocks price of 4.22 EUR, with SMA 20 at 4.30, SMA 50 at 4.36, and SMA 200 at 4.52, indicates a potential downtrend. The ATR of 0.13 suggests moderate volatility. Fundamentally, with a market cap of 255.34M EUR, P/E of 4.74, and forward P/E of 22.08, the stock may appear undervalued, but investors should consider the broader market conditions and industry trends. The low P/S ratio of 0.14 reflects undervaluation, while the P/B ratio of 0.30 indicates undervaluation relative to book value. RoE of 6.36% suggests modest profitability. Overall, the stock may experience sideways movement with potential downside risks, making it a cautious hold for investors.