Enero Group Limited (EGG) AI Stock Analysis

• Market Cap: AU$55.35M
• Dividend Yield: 4.59%
• Average Volume (3M): 80.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: -0.43%
• EPS Growth: -208.98%
• Country: AU
• Employees: 650
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.04
• Shares Outstanding: 90,735,120
• 10 Day Avg. Volume: 171,821
• 30 Day Avg. Volume: 80,022
• PEG Ratio: 0.06
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 4.76
• 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$1.32
• Price Target Upside: 115.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: AU$0.60 ▼(-1.97% Downside)

Enero Group Limited's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability issues. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation is constrained by negative earnings, although the dividend yield offers some investor appeal. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Low Leverage

Enero Group's low leverage provides financial stability and flexibility, allowing the company to navigate economic uncertainties without significant debt burdens.

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management in production, which can support profitability improvements if revenue stabilizes.

Efficient Cash Generation

Efficient cash generation, despite net losses, highlights Enero Group's ability to convert revenue into cash, supporting operational needs and potential investments.

Negative Factors

Declining Revenue

The sharp decline in revenue poses a significant challenge, impacting the company's ability to sustain operations and invest in growth opportunities.

Profitability Issues

Ongoing profitability issues indicate challenges in cost management and market positioning, potentially affecting long-term financial health and shareholder value.

Declining Cash Flows

Declining cash flows can limit Enero Group's ability to fund operations and strategic initiatives, potentially hindering growth and competitive positioning.

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 service fees for its marketing and communications solutions. The company operates on a project-based and retainer model, where clients pay for specific services or ongoing support. Key revenue streams include consulting fees, digital advertising, public relations campaigns, and creative project work. Additionally, EGG benefits from partnerships with technology providers and media platforms, which enhance its service offerings and expand its market reach. By leveraging its expertise and established client relationships, EGG is able to attract new business and maintain steady income from existing clients.

Enero Group Limited Financial Statement Overview

Summary

Enero Group Limited faces significant challenges with declining revenues and profitability issues, impacting its overall financial health. While the balance sheet remains stable with low leverage, the negative return on equity and declining cash flows highlight areas of concern. The company needs to focus on stabilizing revenue streams and improving profitability to enhance its financial position.

Income Statement

Enero Group Limited has experienced significant revenue volatility, with a sharp decline of 76.12% in the latest year. The company has struggled with profitability, as evidenced by negative net profit margins and EBIT margins. Despite a strong gross profit margin of 74% in the latest year, the overall financial performance is weakened by substantial net losses.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.11, indicating conservative leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio remains stable, suggesting a solid capital structure despite profitability challenges.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a decrease of 21.10% in the latest year. The operating cash flow to net income ratio is low, indicating cash flow challenges relative to earnings. However, the free cash flow to net income ratio remains high, suggesting efficient cash generation relative to net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	785.07M	187.47M	804.47M	740.21M	522.12M	402.48M
Gross Profit	177.56M	138.73M	189.71M	89.93M	74.77M	55.19M
EBITDA	28.17M	7.06M	-18.32M	110.44M	64.49M	26.71M
Net Income	-32.66M	-19.29M	-44.19M	56.47M	25.39M	-402.00K
Balance Sheet
Total Assets	306.94M	224.08M	300.89M	387.96M	300.16M	239.75M
Cash, Cash Equivalents and Short-Term Investments	48.34M	34.08M	46.70M	52.43M	98.74M	50.72M
Total Debt	17.05M	15.52M	18.75M	22.88M	44.87M	11.85M
Total Liabilities	131.82M	82.16M	137.81M	169.14M	144.83M	107.67M
Stockholders Equity	168.43M	141.92M	157.19M	211.65M	147.14M	128.32M
Cash Flow
Free Cash Flow	16.56M	13.07M	26.22M	60.39M	47.67M	52.21M
Operating Cash Flow	17.54M	14.77M	26.96M	61.48M	48.82M	53.20M
Investing Cash Flow	-4.86M	-13.24M	-4.56M	-35.75M	-11.12M	-21.18M
Financing Cash Flow	-22.63M	-14.79M	-28.09M	-73.92M	8.43M	-26.65M

Enero Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EGG, the sentiment is Negative. The current price of 0.61 is above the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.65, and below the 200-day MA of 0.76, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	AU$442.28M	9.50	22.94%	6.27%	-1.40%	68.17%
PPL	62 Neutral	AU$52.64M	34.62	23.87%	―	18.95%	1200.00%
OML	58 Neutral	AU$700.42M	36.01	2.70%	4.41%	9.25%	-42.79%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MXO	54 Neutral	AU$16.15M	-510.00	-1.65%	―	12.07%	98.72%
GTN	52 Neutral	AU$56.25M	-9.52	-2.90%	86.34%	-2.19%	-210.32%
EGG	46 Neutral	AU$55.35M	-1.70	―	4.59%	-0.43%	-208.98%

Enero Group Limited Corporate Events

Enero Group Updates Constitution Following Shareholder Approval

Enero Group Limited has announced the approval of its amended Constitution by a special resolution of shareholders at its Annual General Meeting. This amendment reflects the company’s ongoing efforts to align its governance structure with its strategic objectives, potentially impacting its operational efficiency and stakeholder engagement.

Enero Group Announces AGM 2025 Results

Enero Group Limited announced the results of its Annual General Meeting held on October 16, 2025. All resolutions, including the re-election of a director and the approval of the Rights Plan, were carried out by poll, except for the Spill Resolution, which was not carried. This outcome reflects the company’s strategic direction and governance, impacting its stakeholders and reinforcing its market position.

Enero Group Embraces Transformation and Innovation Amidst Dynamic Market

Enero Group Limited has undergone significant transformation in FY25, marked by the sale of OBMedia and strategic changes in leadership, which have strengthened its focus on core agencies. Despite a challenging market environment, the company reported improved EBITDA and margins, driven by business efficiency and cost reductions. The company is committed to innovation, operational excellence, and stakeholder engagement, with a strong emphasis on AI integration across its agencies to enhance service delivery and client outcomes. Looking forward, Enero aims to capitalize on industry consolidation trends and continue its growth trajectory by focusing on its core agencies.

Enero Group Limited Hosts 2025 Annual General Meeting

Enero Group Limited held its Annual General Meeting on October 16, 2025, via an online platform and at its Pyrmont location. The meeting featured speeches and presentations from the Chair and CEO, available on the company’s website. This event underscores Enero’s commitment to transparency and engagement with its stakeholders, reinforcing its position in the marketing and technology sectors.

Enero Group Cancels Share Appreciation Rights Due to Lapsed Conditions

Enero Group Limited announced the cancellation of certain Share Appreciation Rights (SARs) due to the lapsing of vesting conditions. This decision reflects the company’s ongoing management of its equity-based compensation plans, potentially impacting employee incentives and aligning with shareholder interests.

Enero Group Limited Announces 2025 Annual General Meeting Details

Enero Group Limited has announced the details for its upcoming Annual General Meeting scheduled for October 16, 2025, which will be held both in-person and online. This meeting is a significant event for shareholders as it provides an opportunity to discuss the company’s performance and future strategies, potentially impacting its market positioning and stakeholder relations.