Enero Group Limited (EGG) AI Stock Analysis

• Market Cap: €86.20M
• Dividend Yield: 3.16%
• Average Volume (3M): 182.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: -0.43%
• EPS Growth: -208.98%
• Country: AU
• Employees: 650
• Sector: Communication Services
• Sector Strength: 83
• Industry: Advertising Agencies
• EPS (TTM): -0.36
• Shares Outstanding: 90,735,120
• 10 Day Avg. Volume: 373,465
• 30 Day Avg. Volume: 182,834
• PEG Ratio: 0.02
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.24
• 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: €0.50
• Price Target Upside: -48.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: AU$1.00 ▲(2.04%Upside)

Enero Group Limited's stock is influenced by challenging profitability and valuation concerns. Strong revenue growth and a solid balance sheet are positive, but the stock is overbought, and the negative P/E ratio highlights financial stress. The attractive dividend yield is tempered by sustainability questions.

Enero Group Limited Business Overview & Revenue Model

Company Description

Enero Group Limited provides integrated marketing and communication services in Australia, the United States, the United Kingdom, and rest of Europe. Its services include strategy, market research and insights, advertising, public relations, communications planning, designing, events management, direct marketing, and programmatic media. The company was incorporated in 2000 and is based in Pyrmont, Australia.

How the Company Makes Money

Enero Group Limited generates revenue primarily through its portfolio of marketing and communication services provided by its network of agencies. The company's key revenue streams include fees for advertising services, public relations consultancy, digital marketing strategies, and market research analysis. Enero Group benefits from both long-term contracts and project-based work with a diverse range of clients across different industries. Significant partnerships with global brands and businesses enhance its market position and contribute to its earnings. Additionally, the company may engage in strategic acquisitions to expand its service offerings and geographical reach, thereby driving further revenue growth.

Enero Group Limited Financial Statement Overview

Summary

Enero Group Limited shows potential with consistent revenue growth, yet struggles with profitability due to declining EBITDA and net income margins. The balance sheet is strong with low leverage, but there is a need for improved cash flow generation.

Income Statement

Enero Group Limited has shown a pattern of revenue growth over the years, with the latest annual revenue at AUD 804.47 million, up from AUD 740.21 million the previous year, indicating a positive growth trend. However, the company reported a net loss in the latest period, primarily due to a significant drop in EBITDA and net income margins, which have negatively impacted profitability.

Balance Sheet

The company's balance sheet reflects a solid equity base with a low debt-to-equity ratio. Stockholders' equity increased over the years, providing a stable financial foundation. However, the decrease in total assets and liabilities suggests a need for cautious management of resources, especially in maintaining liquidity.

Cash Flow

Operating cash flow remains positive, and the company has maintained a healthy free cash flow, which is crucial for sustaining operations without heavy reliance on external financing. Although free cash flow decreased compared to the previous year, it still reflects strong cash management relative to net income.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	785.07M	804.47M	740.21M	522.12M	402.48M	268.74M
Gross Profit	177.56M	189.71M	89.93M	74.77M	55.19M	33.92M
EBITDA	28.17M	-18.67M	110.44M	64.49M	26.71M	27.32M
Net Income	-32.66M	-44.19M	56.47M	25.39M	-402.00K	10.71M
Balance Sheet
Total Assets	306.94M	300.89M	387.96M	300.16M	239.75M	218.66M
Cash, Cash Equivalents and Short-Term Investments	48.34M	46.70M	52.43M	98.74M	50.72M	47.58M
Total Debt	17.05M	18.75M	22.88M	44.87M	11.85M	16.91M
Total Liabilities	131.82M	137.81M	169.14M	144.83M	107.67M	93.69M
Stockholders Equity	168.43M	157.19M	211.65M	147.14M	128.32M	122.62M
Cash Flow
Free Cash Flow	16.56M	26.22M	60.39M	47.67M	52.21M	29.59M
Operating Cash Flow	17.54M	26.96M	61.48M	48.82M	53.20M	31.00M
Investing Cash Flow	-4.86M	-4.56M	-35.75M	-11.12M	-21.18M	-13.32M
Financing Cash Flow	-22.63M	-28.09M	-73.92M	8.43M	-26.65M	-14.03M

Enero Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EGG, the sentiment is Positive. The current price of 0.98 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.73, and above the 200-day MA of 0.95, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 82.19 is Negative, neither overbought nor oversold. The STOCH value of 94.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EGG.

Enero Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IGL	76 Outperform	AU$451.75M	10.86	20.66%	6.48%	0.18%	176.90%
OML	74 Outperform	AU$942.87M	25.58	4.91%	4.00%	0.27%	6.59%
GTN	70 Outperform	AU$122.03M	20.58	2.80%	7.84%	2.57%	55.50%
PPL	66 Neutral	AU$52.37M	34.29	27.08%	―	23.76%	―
Sector *	61 Neutral	$40.40B	-0.91	-12.15%	3.89%	2.03%	-69.70%
EGG	55 Neutral	€86.20M	―		3.16%	-0.43%	-208.98%
MXO	53 Neutral	AU$13.65M	―	-18.57%	―	33.99%	64.89%

Enero Group Limited Corporate Events

Enero Group Issues Share Performance Rights to Boost Employee Engagement

Enero Group Limited has announced the issuance of 7,124,638 share performance rights as part of an employee incentive scheme. These unquoted securities are intended to enhance employee engagement and align their interests with the company’s growth objectives, potentially impacting the company’s operational dynamics and stakeholder interests.

The most recent analyst rating on (AU:EGG) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Enero Group Limited stock, see the AU:EGG Stock Forecast page.

Enero Group Appoints Ian Ball as New CEO

Enero Group Limited has announced the promotion of Ian Ball to Group CEO, effective July 2, 2025. Ball, who joined as Chief Operating Officer earlier in 2025, has been instrumental in leading significant initiatives such as refinancing the business, restructuring OBMedia, and making key senior appointments. His leadership has been pivotal in developing Enero’s FY26 growth plan and repositioning the company as a focused three-agency business. The Board is confident that under Ball’s leadership, Enero is well-positioned for long-term growth and performance.

The most recent analyst rating on (AU:EGG) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Enero Group Limited stock, see the AU:EGG Stock Forecast page.

Enero Group Sells OBMedia Stake, Focuses on Core Agencies

Enero Group Limited has sold its 51% stake in AdTech business OBMedia to the existing minority shareholders, aligning with its strategy to focus on its high-performing agencies such as Hotwire Global, BMF, and Orchard. This divestment is expected to result in a non-cash loss of A$14 million – A$16 million. Despite this, Enero anticipates delivering an EBITDA at the upper end of its guidance range, driven by new client wins and operational improvements, reflecting a solid foundation for future growth.

The most recent analyst rating on (AU:EGG) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Enero Group Limited stock, see the AU:EGG Stock Forecast page.

Enero Group Secures New $15 Million Bank Facility

Enero Group Limited has secured a new $15 million revolving bank facility with National Australia Bank, replacing a previous $50 million facility. This adjustment reflects the company’s reduced capital needs and is intended to support short-term working capital and general corporate requirements, aligning with market standards for such facilities.

The most recent analyst rating on (AU:EGG) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Enero Group Limited stock, see the AU:EGG Stock Forecast page.

Enero Group Limited Announces Cessation of Share Rights

Enero Group Limited announced the cessation of 328,334 share rights due to the lapse of conditional rights that could not be satisfied. This development may impact the company’s capital structure and reflects the challenges in meeting certain conditions tied to these securities, potentially affecting stakeholder confidence.

The most recent analyst rating on (AU:EGG) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Enero Group Limited stock, see the AU:EGG Stock Forecast page.

Enero Group Director Increases Shareholding

Enero Group Limited announced a change in the director’s interest as Ian Rowden acquired a total of 35,000 fully paid ordinary shares through on-market acquisitions. This increase in shareholding reflects a significant investment in the company, potentially signaling confidence in its future performance and stability, which may positively influence stakeholders’ perception.