This return on investment is unbeatable.

Last Updated: 23. November 2023By

Edding is a cult brand. Whoever needs to label or mark things reaches for the famous waterproof pens. What else the company has in its portfolio and what makes the stock so interesting, you can find out in our analysis. The edding Group is the leading German manufacturer of writing instruments and organizational tools. The range includes felt and fiber pens, ballpoint pens, matching refills, planning and organizational tools, abrasion labels and symbols. edding is often one of the trendsetters in the writing instruments industry through its innovative products.

Rising costs burden, but… edding has presented solid figures for 2022 with a delay. The reason for this was that an electronic identification of the group annex according to ESEF standard was necessary for the group closing for the first time and edding had problems to meet these conditions on time. The turnover increased by 7.1% to a record high of 159 million euros. However, the profit fell by 57.1% to 0.9 million euros. edding had to accept a decrease in the operating result due to inflation and the associated price increases of its suppliers. The group EBIT was 4 million euros and thus clearly below the previous year’s figure of 6.9 million euros. Nevertheless, it was in the upper third of the forecast corridor for 2022. The company could not pass on the cost increases to the market in all areas due to existing contracts.

Why waiting might pay off However, significant price increases were implemented at the start of the current financial year. The effect is still pending. In the first half of the year, turnover increased slightly by 1.4% to 78.3 million euros. However, edding made a loss of 4.90 euros per share. This result was significantly influenced by the deconsolidation effect from the sale of edding Argentina S.A. to a local entrepreneur, which amounted to -6.2 million euros. Without this effect, the group EBIT would have been positive at 0.6 million euros. Opportunities and risks currently balance each other out. The dividend yield is decent at 2.2%. The investments in the lifestyle sector are inspiring. Stay tuned for this stock!