| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 67.31 | 193 |
| Intrinsic value (DCF) | 3.45 | -85 |
| Graham-Dodd Method | 6.01 | -74 |
| Graham Formula | 7.43 | -68 |
Daldrup & Söhne AG (4DS.DE) is a Germany-based drilling and environmental services company specializing in geothermal energy, water procurement, and environmental remediation. Founded in 1946 and headquartered in Grünwald, the company operates in the energy sector, focusing on sustainable drilling solutions for geothermal heat recovery, water wells, and fossil fuel exploration. Daldrup & Söhne provides critical infrastructure services, including hydraulic clean-up of contaminated sites, gas extraction wells, and groundwater quality monitoring. With a strong emphasis on renewable energy, the company supports Germany’s transition to geothermal and sustainable water management solutions. Its diversified service portfolio positions it as a key player in the European energy and environmental services market, catering to both industrial and municipal clients. The company’s expertise in deep and near-surface geothermal drilling aligns with global decarbonization trends, making it a relevant player in the green energy transition.
Daldrup & Söhne AG presents a niche investment opportunity in the geothermal and environmental drilling sector, benefiting from Europe’s push toward renewable energy. The company’s FY 2023 financials show modest profitability (net income of €889,839, EPS of €0.15) and positive operating cash flow (€4.37M), though high total debt (€76.81M) raises leverage concerns. Its low beta (0.446) suggests lower volatility relative to the broader market, appealing to risk-averse investors. However, the lack of dividends and capital-intensive operations may deter income-focused investors. Growth prospects hinge on increased demand for geothermal energy and environmental remediation services, but competition and regulatory risks in the energy sector could pressure margins.
Daldrup & Söhne AG competes in a specialized segment of the drilling and environmental services industry, with a focus on geothermal energy and water management. Its competitive advantage lies in its long-standing expertise (since 1946) and diversified service offerings, including deep geothermal drilling and contaminated site remediation. The company’s positioning in Germany, a leader in renewable energy adoption, provides regulatory and market tailwinds. However, its small market cap (~€64.7M) limits scale compared to multinational drilling firms. The company’s reliance on European energy policies and municipal contracts introduces revenue concentration risks. While its niche focus differentiates it from broader oilfield service providers, it faces competition from larger firms with greater financial resources and global reach. Its ability to secure long-term geothermal projects and expand into adjacent markets (e.g., carbon capture) will be critical to maintaining competitiveness.