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DGL Group Limited (AU:DGL)
:DGL
Australian Market

DGL Group Limited (DGL) AI Stock Analysis

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AU

DGL Group Limited

(Sydney:DGL)

Rating:60Neutral
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 (DGL) vs. iShares MSCI Australia ETF (EWA)

DGL Group Limited Business Overview & Revenue Model

Company DescriptionDGL 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 MoneyDGL 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
75
Positive
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
70
Positive
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
65
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
536.89M492.48M501.05M402.81M164.43M109.17M
Gross Profit
229.18M204.05M180.77M145.67M63.78M43.80M
EBIT
63.05M17.49M38.42M48.82M55.81M13.80M
EBITDA
43.91M66.71M64.22M66.74M66.12M6.98M
Net Income Common Stockholders
6.76M15.66M20.94M30.93M50.68M4.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.89M21.45M40.18M28.22M47.09M3.08M
Total Assets
641.16M662.03M620.14M562.57M298.20M160.97M
Total Debt
149.32M197.66M189.56M123.48M48.37M114.12M
Net Debt
126.43M176.21M149.38M95.26M1.28M112.28M
Total Liabilities
275.20M288.11M257.06M223.52M88.39M138.36M
Stockholders Equity
365.96M373.92M363.08M339.05M209.81M22.61M
Cash FlowFree Cash Flow
25.11M9.01M36.43M-9.75M
Operating Cash Flow
39.75M40.88M64.49M26.92M20.45M16.28M
Investing Cash Flow
2.39M-26.03M
Financing Cash Flow
-23.92M24.11M65.75M74.10M11.91M

DGL Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.41
Price Trends
50DMA
0.44
Negative
100DMA
0.48
Negative
200DMA
0.51
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
31.79
Neutral
STOCH
4.76
Positive
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 0.41 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.44, and below the 200-day MA of 0.51, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.79 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNHC
75
Outperform
$3.13B5.5422.35%9.71%-1.17%-14.64%
AUAMC
68
Neutral
AU$32.15B16.3920.24%5.61%-1.42%25.16%
AUORI
67
Neutral
$9.21B93.752.30%3.60%4.50%-81.89%
66
Neutral
$4.48B12.265.32%248.53%4.10%-12.36%
AUDGL
60
Neutral
AU$116.94M17.891.83%4.83%-57.83%
AUMIN
59
Neutral
$4.52B50.78-33.95%4.54%2.22%-411.10%
AUDNL
54
Neutral
$4.92B-3.14%4.14%-13.30%-419.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DGL
DGL Group Limited
0.39
-0.17
-30.36%
AU:MIN
Mineral Resources Limited
23.71
-42.80
-64.35%
AU:DNL
Incitec Pivot
2.63
-0.21
-7.39%
AU:ORI
Orica Limited
18.87
1.23
6.98%
AU:NHC
New Hope Corporation Limited
3.75
-0.63
-14.31%
AU:AMC
Amcor PLC Shs Chess Depository Interests
13.98
-0.36
-2.51%

DGL Group Limited Corporate Events

DGL Group Director Increases Stake with New Share Acquisition
Apr 4, 2025

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
Apr 1, 2025

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
Mar 31, 2025

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
Mar 28, 2025

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
Mar 17, 2025

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
Mar 11, 2025

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
Mar 4, 2025

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
Feb 27, 2025

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
Feb 27, 2025

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
Feb 27, 2025

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
Feb 26, 2025

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
Feb 21, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.