Enero Group Limited (EGG) AI Stock Analysis

• Market Cap: €64.42M
• Dividend Yield: 4.93%
• Average Volume (3M): 113.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• 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: 160,538
• 30 Day Avg. Volume: 113,776
• PEG Ratio: -0.08
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.89
• 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: €1.50
• Price Target Upside: 110.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Enero Group Limited's consistent revenue growth is a positive factor, but the company's profitability issues and negative P/E ratio raise concerns. The technical indicators suggest bearish momentum, and while the dividend yield is attractive, the overall financial health needs improvement to support a higher score.

Enero Group Limited Business Overview & Revenue Model

Company Description

Enero Group Limited (EGG) is a global marketing and communications company headquartered in Australia. The company operates across various sectors, including advertising, public relations, market research, and digital marketing. It is known for providing strategic marketing solutions through its network of specialized agencies, which offer services such as brand development, creative content, media planning, and digital strategy consulting.

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
	EBIT
32.57M	27.30M	68.47M	58.62M	40.77M	19.61M
	EBITDA
28.17M	-18.67M	110.44M	64.49M	26.71M	27.32M
	Net Income Common Stockholders
-32.66M	-44.19M	56.47M	25.39M	-402.00K	10.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.34M	46.70M	52.43M	98.74M	50.72M	47.58M
	Total Assets
306.94M	300.89M	387.96M	300.16M	239.75M	218.66M
	Total Debt
17.05M	18.75M	22.88M	44.87M	11.85M	16.91M
	Net Debt
-31.29M	-27.96M	-29.55M	-53.87M	-38.87M	-30.67M
	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: Negative
• Last Price: 0.71
• 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 0.71 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.76, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 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
OML	69 Neutral	AU$883.60M	23.98	4.91%	3.20%	0.27%	6.59%
NEC	66 Neutral	AU$2.42B	26.47	5.56%	5.23%	-0.92%	-3.83%
SWM	63 Neutral	€246.26M	29.09	1.98%	―	-6.10%	-90.04%
Sector *	60 Neutral	$14.09B	6.89	-3.35%	3.69%	2.42%	-36.25%
EGG	56 Neutral	€64.42M	―		4.93%	-0.43%	-208.98%
SXL	55 Neutral	€178.72M	―	-71.41%	1.66%	-7.85%	-3088.82%

Enero Group Limited Corporate Events

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.

Enero Group Reports Decline in FY25 Financial Performance Amid Ad Tech Market Changes

Enero Group Limited has announced a trading update indicating a decline in financial performance for FY25, primarily due to structural changes in the ad tech market affecting OBMedia’s performance. The company expects a year-on-year decline in net revenue and EBITDA, with OBMedia’s transition to Google’s new RSOC product impacting revenue. Despite these challenges, Enero’s Technology, Healthcare, and Consumer Practice is showing improved performance, driven by key client wins and positive momentum in its Australian agencies. The company is also managing expenses through staff reductions at OBMedia while focusing on future margin management.

Enero Group Announces Leadership Change at OBMedia

Enero Group Limited has announced a leadership transition at its OBMedia business, with Mike Lynn stepping in as interim CEO. This change is part of Enero’s strategy to strengthen OBMedia for long-term success, leveraging Lynn’s extensive experience and understanding of the company’s operations to drive innovation and growth.

Enero Group Reports FY25 H1 Results Amid Challenging Market Conditions

Enero Group Limited reported a 12% decline in revenue for the first half of FY25, impacted by challenging macroeconomic conditions and the technology and AdTech markets. Despite these challenges, the company improved its EBITDA by 10% compared to the previous half and reduced expenses by 6% year-on-year. The Technology, Healthcare, and Consumer Practice showed resilience with a 17% growth in EBITDA from the prior half, driven by cost management and new business wins with major clients like Westpac. OBMedia faced a 2% decline in EBITDA compared to the prior half, but Enero is negotiating to sell its 51% interest in the company to maximize shareholder value. The company declared an interim dividend supported by a strong balance sheet.

Enero Group Announces Dividend Distribution

Enero Group Limited has announced a dividend distribution of AUD 0.015 per share for its ordinary fully paid shares, with the record date set for March 20, 2025, and payment scheduled for April 11, 2025. This announcement reflects the company’s financial performance for the six-month period ending December 31, 2024, and may influence investor sentiment and shareholder value.

Enero Group Reports Improved Profitability Amid Revenue Decline

Enero Group Limited reported a 4.65% decrease in revenues for the half-year ending December 2024 compared to the previous year, with revenues totaling AUD 397,688,000. Despite the revenue decline, the company significantly improved its profitability, reducing its loss from AUD 12,348,000 to AUD 817,000, marking a 93.38% improvement. This financial performance suggests a positive shift in the company’s operational efficiency, potentially enhancing its market positioning and stakeholder confidence.