ElringKlinger: E-Mobility, Transformation, And Quite Cheap

2025-07-11 08:03:57 ET

ElringKlinger AG ( EGKLF ) is making significant investments in the e-mobility industry, which could accelerate revenue growth in the near future. The company is also going through large transformations and reorganization plans that include the sale of entities all over the world. I believe that ongoing reorganization could increase the company's FCF margins in the coming years. Finally, EGKLF is targeting significant reductions in revenue coming from combustion engines, which could be appreciated by ESG investors. There are a number of risks out there; however, the company, in my opinion, appears significantly undervalued. ElringKlinger trades at 3.8x TTM cash flow and 4.3x FWD EBITDA. Seeking Alpha notes that peers trade at 10x FWD EBITDA and 11x cash flow....

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