ELMA.RO·Industrials

Electromagnetica

I · AI Analysis

The brief

Electromagnetica manufactures LED lighting products for residential, commercial, and industrial use, produces electric vehicle charging stations and power supply equipment, and rents office space, warehouses, and land logistics facilities in Romania and internationally. The company also provides fire prevention services, emergency response, and metal subassemblies for rail traffic safety.

Electromagnetica S.A. is a Romanian industrial company focused on LED lighting, electric vehicle charging equipment, and real estate rental, founded in 1930 and employing only 36 people. The company shows severe operational stress: revenue fell 8.2% year-over-year to RON 25.8M through June 2026, trailing earnings are negative at RON -0.01 per share, and return on invested capital is -6.3% [Yahoo Finance]. Despite strong free cash flow of RON 19.2M and a comfortable Altman Z-score of 4.8, the combination of shrinking sales, negative earnings, and extremely thin staffing raises fundamental questions about business viability.

The company is cash-rich but operationally troubled, with shrinking revenue, negative earnings, and a workforce of just 36 people.

The brief AI analysisConfidence 3/10

Sentinellis health

Moderate concerns

4.4/10

7.5+ strong · 4.5–7.5 moderate · under 4.5 weak

Profitability

17% of score3.3/10

Net margin+4.8%· need > 5%Gross margin+93.1%

Returns on capital

17% of score0.0/10

ROIC-6.3%· need > 10%Return on equity+0.3%· need > 12%

Growth & momentum

11% of score0.0/10

Revenue growth-8.2%· need > +5% YoYOperating margin trend—· no data

Balance sheet

28% of score8.0/10

Current ratio17.3xNet debt / EBITDA-31.3xInterest coverage-713.3x· need > 3.0xDebt / equity—· no data

Cash generation

17% of score10.0/10

Free cash flowRON 19.2MCash vs reported profitRON 19.3M vs RON 1.2M

Value creation

11% of score0.0/10

ROIC vs cost of capital-17.1pp· need ROIC above WACC

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

RON 187.9M

Revenue (TTM)

RON 25.8M

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Revenue contracted 8.2% year-over-year while operating in fragmented markets (LED lighting, EV charging, real estate rental), with no news coverage to explain the decline or management's response [Yahoo Finance].

1 of 4 risks in this report

Risks

Opportunities

Red flags

Leadership

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