Intrinsic Value Aumann AG (AAG.DE)

• Previous Close: €14.04
• Intrinsic Value: €8.68
• Upside potential: -38%

Stock Valuation Context

Business Model And Market Position

Aumann AG operates as a specialized machinery manufacturer, focusing on automated production lines for electric and classic drive chain systems. The company serves a global clientele, with segments dedicated to E-Mobility and Classic automotive solutions. Its E-Mobility division caters to the growing demand for electric vehicle components, including e-traction engines, power-on-demand units, and energy storage systems, positioning it as a key supplier in the EV supply chain. The Classic segment supports traditional automotive and industrial applications, offering solutions for drive components and lightweight modules that enhance fuel efficiency. Aumann’s dual-segment approach allows it to balance exposure to both emerging and established markets, leveraging its engineering expertise to serve diverse industrial needs. With a strong presence in Europe, North America, and China, the company benefits from regional diversification while maintaining a competitive edge through technological innovation and precision manufacturing.

Revenue Profitability And Efficiency

Aumann AG reported revenue of €312.3 million for the latest fiscal period, with net income of €21.5 million, reflecting a net margin of approximately 6.9%. Operating cash flow stood at €19.2 million, while capital expenditures were modest at €5.0 million, indicating disciplined investment in growth. The company’s profitability metrics suggest stable operational efficiency, though its beta of 1.76 highlights above-average volatility relative to the market.

Earnings Power And Capital Efficiency

The company’s diluted EPS of €1.47 demonstrates its ability to generate earnings despite macroeconomic uncertainties. With a cash position of €139.2 million and minimal total debt of €6.9 million, Aumann maintains a strong balance sheet, supporting its capacity for reinvestment or strategic acquisitions. Its capital-light model, evidenced by low capex relative to cash flow, enhances return on invested capital.

Balance Sheet And Financial Health

Aumann’s financial health is robust, with €139.2 million in cash and equivalents against €6.9 million in total debt, yielding a net cash position. This liquidity provides flexibility for R&D or market expansion. The low leverage ratio underscores a conservative financial strategy, reducing vulnerability to interest rate fluctuations or economic downturns.

Growth Trends And Dividend Policy

The company’s focus on E-Mobility aligns with secular growth trends in electrification, though its Classic segment remains relevant for legacy automotive demand. Aumann pays a dividend of €0.20 per share, reflecting a commitment to shareholder returns while retaining ample cash for growth initiatives. Its moderate payout ratio suggests room for future dividend increases if profitability improves.

Valuation And Market Expectations

With a market cap of €182.5 million, Aumann trades at a P/E ratio of approximately 8.5x, indicating modest valuation expectations. The high beta suggests investor perception of cyclical risk, but its niche expertise in automotive machinery could justify revaluation if E-Mobility adoption accelerates.

Strategic Advantages And Outlook

Aumann’s dual-segment strategy mitigates reliance on any single market, while its technological expertise in automation and electrification positions it well for long-term growth. Challenges include exposure to automotive cyclicality and supply chain disruptions, but its strong balance sheet and global footprint provide resilience. The outlook remains cautiously optimistic, contingent on EV adoption rates and industrial demand.

Sources

Company filings, market data