DGL Group Limited (DGL) AI Stock Analysis

• Market Cap: AU$114.09M
• Dividend Yield: N/A
• Average Volume (3M): 195.32K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.38
• Revenue Growth: 4.83%
• EPS Growth: -57.83%
• Country: AU
• Employees: 800
• Sector: Industrials
• Sector Strength: 90
• Industry: Conglomerates
• EPS (TTM): >-0.01
• Shares Outstanding: 285,225,250
• 10 Day Avg. Volume: 206,290
• 30 Day Avg. Volume: 195,319
• PEG Ratio: -0.38
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.45
• Price Target Upside: 12.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: ―

DGL Group Limited's stock score reflects a mixed financial performance with strong profitability but declining revenue and cash flow. The technical indicators suggest downward momentum, and the valuation shows the stock is moderately priced. The lack of dividend yield and weak momentum indicators weigh on the overall score.

DGL Group Limited Business Overview & Revenue Model

Company Description

DGL Group Limited (DGL) is a diversified industrial group operating primarily in the chemical manufacturing, warehousing, and logistics sectors. The company offers a comprehensive range of services, including chemical formulation and manufacturing, warehousing solutions, and transportation logistics. DGL serves various industries such as agriculture, automotive, construction, and mining by providing tailored chemical products and efficient supply chain management solutions.

How the Company Makes Money

DGL Group Limited generates revenue through its diversified operations in chemical manufacturing, warehousing, and logistics. The company earns money by producing and selling chemical products tailored to specific industry needs, including agriculture and construction. Additionally, DGL provides warehousing services, offering storage solutions for various clients, and generates revenue through its logistics operations by managing transportation and supply chain solutions for businesses. Key revenue streams include sales of chemical products, warehousing fees, and logistics service charges. Strategic partnerships with industry players and a strong customer base across multiple sectors contribute significantly to DGL's earnings.

DGL Group Limited Financial Statement Overview

Summary

DGL Group Limited shows a mixed financial performance with strong profitability margins but declining revenue and cash flow. The balance sheet is stable, with a strong equity position, although debt levels have increased. The company should focus on reversing revenue decline and improving cash flow management to support sustainable growth.

Income Statement

DGL Group Limited demonstrated a decline in revenue from the previous year, with a decrease of 1.71%. The gross profit margin stands at 41.43%, which is healthy but slightly lower than the previous year. The net profit margin has decreased significantly, indicating reduced profitability. EBITDA margin remains robust at 13.55%. Overall, while profitability metrics show strength, the revenue contraction may raise concerns about growth momentum.

Balance Sheet

The company's debt-to-equity ratio increased slightly to 0.53, reflecting moderate leverage. Return on equity stands at 4.19%, a decrease from previous years, indicating less efficient use of equity. The equity ratio is 56.47%, suggesting a strong equity position. While the company maintains a stable balance sheet, the increase in debt levels and lower ROE are potential areas of concern.

Cash Flow

Operating cash flow has decreased significantly from the previous year, impacting free cash flow, which dropped by 75.26%. The free cash flow to net income ratio indicates lower cash generation relative to profits. Although the company generates positive operating cash flow, the decline in free cash flow signals potential challenges in cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
536.89M	492.48M	501.05M	402.81M	164.43M	109.17M
	Gross Profit
229.18M	204.05M	180.77M	145.67M	63.78M	43.80M
	EBIT
63.05M	17.49M	38.42M	48.82M	55.81M	13.80M
	EBITDA
43.91M	66.71M	64.22M	66.74M	66.12M	6.98M
	Net Income Common Stockholders
6.76M	15.66M	20.94M	30.93M	50.68M	4.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.81M	21.45M	40.18M	28.22M	47.09M	3.08M
	Total Assets
673.06M	662.03M	620.14M	562.57M	298.20M	160.97M
	Total Debt
203.44M	197.66M	189.56M	123.48M	48.37M	114.12M
	Net Debt
183.20M	176.21M	149.38M	95.26M	1.28M	112.28M
	Total Liabilities
298.48M	288.11M	257.06M	223.52M	88.39M	138.36M
	Stockholders Equity
374.58M	373.92M	363.08M	339.05M	209.81M	22.61M
Cash Flow		Free Cash Flow
25.11M	9.01M	36.43M	―	―	-9.75M
	Operating Cash Flow
39.75M	40.88M	64.49M	26.92M	20.45M	16.28M
	Investing Cash Flow
2.39M	―	―	―	―	-26.03M
	Financing Cash Flow
-23.92M	―	24.11M	65.75M	74.10M	11.91M

DGL Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DGL, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.43, and below the 200-day MA of 0.51, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.95 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DGL.

DGL Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	75 Outperform	$3.24B	5.73	22.35%	8.62%	-1.17%	-14.64%
AMC	68 Neutral	AU$32.58B	16.63	20.24%	5.62%	-1.42%	25.16%
ORI	67 Neutral	$9.31B	94.79	2.30%	2.62%	4.50%	-81.89%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
DGL	60 Neutral	AU$114.09M	18.35	1.83%	―	4.83%	-57.83%
MIN	59 Neutral	$5.01B	50.78	-33.95%	4.54%	2.22%	-411.10%
DNL	54 Neutral	AU$5.01B	―	-3.14%	4.82%	-13.30%	-419.73%

DGL Group Limited Corporate Events

DGL Group Director Increases Stake with New Share Acquisition

DGL Group Limited announced a change in the director’s interest, with Simon Henry acquiring an additional 85,263 fully paid ordinary shares, bringing his total to 155,000,000 shares. This acquisition was made through an on-market purchase, and the transaction reflects the director’s increased stake in the company, potentially signaling confidence in the company’s future performance.

DGL Group Announces Executive Director Resignation

DGL Group Limited announced the resignation of Robert Sushames as an Executive Director, effective immediately. Sushames, who has been instrumental in the company’s growth and transition to a listed entity, will continue to support the crop protection division for up to six months to ensure a smooth transition. His departure marks a significant change in the company’s leadership, but his contributions over the past four years have been acknowledged and appreciated by the Board.

DGL Group Director Increases Shareholding

DGL Group Limited has announced a change in the director’s interest notice for Simon Henry, who has acquired an additional 54,709 fully paid ordinary shares, bringing his total to 154,914,737 shares. This acquisition, valued at $27,061.43, was made through an on-market purchase, indicating a potential increase in confidence or strategic positioning by the director within the company.

DGL Group Director Increases Shareholding

DGL Group Limited has announced a change in the director’s interest notice, involving John West, a director of the company. On March 21, 2025, John West, through a company he controls, TLC Properties (Qld) Pty Ltd, acquired 100,000 fully paid ordinary shares on the market, valued at $48,740. This acquisition increases his indirect holdings, reflecting a strategic move that could indicate confidence in the company’s future prospects.

DGL Group Director Increases Shareholding

DGL Group Limited has announced a change in the director’s interest, with Simon Henry acquiring 200,001 fully paid ordinary shares, bringing his total to 154,603,691 shares. This acquisition, valued at $93,088.27, was made through an on-market purchase, indicating a potential vote of confidence in the company’s future performance and stability.

DGL Group Director Increases Shareholding

DGL Group Limited has announced a change in the director’s interest, specifically regarding Simon Henry’s acquisition of additional shares. Between March 4 and March 7, 2025, Simon Henry acquired 70,000 fully paid ordinary shares, increasing his total holdings to 154,403,690 shares. This purchase was conducted on the market and reflects a strategic move by the director, potentially signaling confidence in the company’s future performance.

DGL Group Limited Announces New Director Appointment

DGL Group Limited has announced the appointment of Elizabeth Smith as a new director, effective from March 3, 2025. The initial director’s interest notice indicates that Elizabeth Smith currently holds no relevant interests in securities, either as a registered holder or otherwise, and has no interests in contracts related to the company. This appointment may influence the company’s governance and strategic direction, although no immediate impact on operations or stakeholders is specified in the release.

DGL Group Limited Releases H1 FY25 Results Presentation

DGL Group Limited has released its H1 FY25 results presentation, emphasizing that the document is for general information purposes and not a financial product advice or an invitation to invest. The presentation includes non-IFRS financial information, which may not be comparable to standard measures under Australian Accounting Standards. Stakeholders are advised to exercise independent judgment and not rely solely on the presentation for investment decisions.

DGL Group Limited Shifts Focus Amidst Revenue Growth and Operational Challenges

DGL Group Limited reported a 10.2% increase in sales revenue for H1 FY25, driven by strong demand in manufacturing, despite facing challenges in the mining sector and lead acid battery recycling market. The company is undergoing a strategic shift to focus on operational improvements and cost reductions, aiming to enhance profitability and reduce debt, with significant restructuring initiatives expected to yield benefits in FY26.

DGL Group to Announce H1 FY25 Results in Investor Webinar

DGL Group Limited will release its half-year financial results for the period ending 31 December 2024 on 28 February 2025. The company will host an investor webinar featuring key executives to discuss the results, inviting stakeholders to engage and submit questions, highlighting its commitment to transparency and stakeholder engagement.

DGL Group Appoints Liz Smith as Independent Non-Executive Director

DGL Group Limited has appointed Liz Smith as an Independent Non-Executive Director, effective March 3, 2025. Liz Smith brings extensive experience in finance, accounting, strategy, and governance, having held significant roles at William Buck, Grant Thornton, and EY, and serving on various boards. Her expertise is expected to enhance DGL’s operational efficiencies, integration of acquisitions, and cost reduction efforts, ultimately strengthening performance and creating long-term value for shareholders.

DGL Group to Release Shares from Voluntary Escrow

DGL Group Limited has announced the release of 614,901 fully paid ordinary shares from voluntary escrow on March 3, 2025. These shares were initially issued as part of the acquisition of Enlog Pacific Holdings Pty Ltd. The release of these shares marks a significant step in the integration of the acquisition, potentially impacting the company’s market positioning and shareholder value.