Eureka Group Holdings Limited (EGH) AI Stock Analysis

• Market Cap: AU$231.61M
• Dividend Yield: 3.11%
• Average Volume (3M): 317.60K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.55
• Revenue Growth: 11.30%
• EPS Growth: 18.93%
• Country: AU
• Employees: 42
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.01
• Shares Outstanding: 428,905,980
• 10 Day Avg. Volume: 179,554
• 30 Day Avg. Volume: 317,596
• PEG Ratio: 0.51
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 5.00
• P/FCF Ratio: 21.37
• 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$0.77
• Price Target Upside: 60.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): AU$51.33M

• Rating: 78 Outperform
• Price Target: AU$0.62 ▲(28.33% Upside)
• Action: Upgraded Date: 03/24/26
• Date: Action: Upgraded 03/24/26

The score is driven primarily by solid financial performance (growth, strong recent profitability, and improved leverage) and an attractive valuation (low P/E with a dividend). Technicals add support with a positive trend and moderate momentum, though historical margin and cash-flow variability temper the overall score.

Positive Factors

Recurring rental revenue & demographic tailwind

EGH's business model is built on recurring rental and resident service income from seniors housing villages. This occupancy-based revenue is structurally durable, backed by ageing demographics and steady demand for retirement accommodation, supporting predictable cashflows over years.

High profitability margins

Eureka reports exceptionally strong operating and net margins, indicating efficient operations and pricing power in its niche. Such sustainable margin levels provide buffer against cost shocks, enable reinvestment in assets and services, and support long-term free cash flow generation.

Strong cash generation and low leverage

FCF nearly doubled year-over-year, reflecting solid cash conversion and operational cash strength. Combined with low debt-to-equity and a positive ROE, this indicates conservative capital structure and strong internal funding capacity for maintenance, modest expansion and distributions without heavy external borrowing.

Negative Factors

High reliance on equity financing

A 72% equity ratio reduces solvency risk but signals heavy reliance on equity rather than low-cost debt. Over time this can constrain returns on capital and limit flexibility to pursue yield-accretive, debt-funded growth or acquisitions, making capital allocation outcomes more sensitive to equity issuance or retained earnings.

Gross profit margin deterioration

A declining gross margin, even if modest, suggests pressure at the cost-of-services or pricing level. If persistent, this could erode the company’s strong operating margins and reduce excess cash available for reinvestment, dividends or to absorb sector cost inflation over the medium term.

Moderate cash conversion of reported earnings

Operating cash flow and FCF are roughly half of reported net income, indicating earnings include non-cash elements or timing differences. While FCF grew strongly, sustained ratios below 1.0 reduce margin of safety for distributions and reinvestment if earnings quality weakens, warranting monitoring of cash conversion.

Eureka Group Holdings Limited Business Overview & Revenue Model

Company Description

Eureka Group Holdings Limited, together with its subsidiaries, owns and manages senior independent living communities in Australia. The company operates through two segments, Rental Villages and Property Management. It provides ownership of seniors' rental villages; specialist property management and caretaking services; catering; and managed services. The company was formerly known as SCV Group Limited and changed its name to Eureka Group Holdings Limited in October 2010. Eureka Group Holdings Limited was incorporated in 2001 and is headquartered in Southport, Australia.

How the Company Makes Money

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Eureka Group Holdings Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and improved 2025 profitability, with generally good cash backing of earnings and a materially strengthened balance sheet (lower leverage, higher equity). Key risk is volatility in margins and free cash flow across years, which makes sustainability of elevated recent profitability less certain.

Income Statement

Revenue has grown steadily from 2020 to 2025 (rising from ~A$24.8m to ~A$45.8m), indicating solid demand and scaling. Profitability is strong, with gross margin improving to ~39% in 2025 and net margin expanding meaningfully versus prior years (to ~44%), supporting good earnings quality. A key watch-out is margin volatility across the period (notably swings in EBIT and EBITDA margins year to year), which suggests earnings can be influenced by mix, revaluations, or other non-recurring factors typical in the sector.

Balance Sheet

Leverage has improved materially, with debt-to-equity declining from ~0.72 (2022) to ~0.24 (2025), reflecting a stronger capital structure and reduced balance-sheet risk. Equity has expanded significantly (to ~A$240.3m in 2025) alongside asset growth (to ~A$332.9m), supporting financial flexibility. Returns on equity are steady but not accelerating (roughly ~8% in 2024–2025 versus a higher ~13% in 2023), implying that while risk is lower, incremental profitability on the enlarged equity base bears monitoring.

Cash Flow

Cash generation is solid, with free cash flow closely tracking reported profit in most years (free cash flow to net income ~0.91–0.99 in 2020–2021 and 2023–2025), suggesting earnings are generally backed by cash. Free cash flow rebounded sharply in 2025 (up ~92% to ~A$10.7m) after a weak 2022, indicating improving conversion and/or lower cash outflows. The main weakness is variability—2022 saw a pronounced drop in free cash flow (~A$2.9m) despite positive earnings, highlighting that cash flow can fluctuate with working capital and investment timing.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	50.25M	45.81M	41.14M	36.42M	29.75M	27.58M
Gross Profit	19.15M	17.90M	14.95M	12.52M	9.96M	9.76M
EBITDA	13.37M	13.50M	22.47M	9.86M	8.45M	10.40M
Net Income	18.91M	20.06M	13.21M	19.16M	8.17M	6.28M
Balance Sheet
Total Assets	396.81M	332.87M	275.23M	237.41M	182.77M	158.97M
Cash, Cash Equivalents and Short-Term Investments	3.35M	2.80M	2.26M	1.81M	1.84M	1.89M
Total Debt	113.26M	56.66M	91.85M	70.43M	71.44M	60.10M
Total Liabilities	152.71M	92.60M	120.99M	93.46M	83.73M	68.09M
Stockholders Equity	244.10M	240.27M	154.24M	143.96M	99.03M	90.88M
Cash Flow
Free Cash Flow	16.63M	10.72M	7.92M	7.93M	2.87M	7.79M
Operating Cash Flow	16.72M	10.79M	8.13M	8.71M	8.28M	7.85M
Investing Cash Flow	-84.37M	-39.33M	-26.07M	-32.86M	-20.89M	-9.42M
Financing Cash Flow	67.75M	29.08M	18.38M	24.14M	12.56M	1.01M

Eureka Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EGH, the sentiment is Positive. The current price of 0.48 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.50, and below the 200-day MA of 0.51, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 60.25 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EGH.

Eureka Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGH	78 Outperform	AU$231.61M	9.94	7.81%	3.11%	11.30%	18.93%
APW	70 Outperform	AU$153.15M	4.96	4.26%	―	-52.10%	119.21%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AOF	49 Neutral	AU$56.71M	-4.82	-16.74%	15.14%	-68.24%	42.03%
MPX	46 Neutral	AU$19.09M	-12.65	-14.04%	―	-81.98%	-131.34%
URF	45 Neutral	AU$122.20M	-3.53	-18.52%	2.62%	-35.85%	35.27%

Eureka Group Holdings Limited Corporate Events

Eureka Group to List 2.3 Million New Shares from Dividend Plan

Eureka Group Holdings Limited, listed on the ASX under the code EGH, lodged an application with the exchange for quotation of new ordinary fully paid shares. The announcement does not detail the company’s operations or market segment, focusing instead on the issuance mechanics.

The company will have 2,327,025 new ordinary fully paid shares quoted on the ASX, issued on March 20, 2026, under a dividend or distribution plan. This move modestly increases the company’s quoted share capital and reflects the use of equity-based distributions as part of Eureka’s capital management approach.

The most recent analyst rating on (AU:EGH) stock is a Hold with a A$0.58 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

S&P Dow Jones Revises March 2026 All Ordinaries Rebalance

S&P Dow Jones Indices has updated its March 2026 quarterly rebalance of the All Ordinaries index, reversing earlier plans affecting African Gold Limited and American Rare Earths Limited. African Gold will no longer be added, and American Rare Earths will remain in the index, altering the expected composition and weightings for index-tracking investors.

The revised rebalance will instead see a broad slate of additions, including 4DMedical, Acusensus, Calix, GemLife Communities Group, Southern Cross Media Group, and multiple mining and resources companies such as Galan Lithium, Lake Resources, and Hot Chili. These changes diversify the index across medical technology, media, and especially resource-focused small and mid-cap stocks, influencing capital flows and benchmark exposure for Australian equity market participants.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.85 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Resources-Focused Shake-Up as S&P Dow Jones Reveals March 2026 S&P/ASX Rebalance

S&P Dow Jones Indices has announced multiple changes to the S&P/ASX index family following its March 2026 quarterly review, with all adjustments taking effect before trading on March 23. The reshuffle reflects shifts in market capitalisation and sector performance across the Australian market and will drive portfolio rebalancing for funds tracking these benchmarks.

Northern Star Resources will join the S&P/ASX 20, replacing Santos, signalling the growing prominence of gold miners in the top tier of the Australian market. In the S&P/ASX 50, Light & Wonder Inc. and PLS Group Limited will be added, while Seek Limited and Technology One Limited will be removed.

The S&P/ASX 100 will see new entries from gold-focused miners Greatland Resources, Regis Resources, and Westgold Resources, replacing Lendlease Group, Netwealth Group, and Pinnacle Investment Management Group. These shifts indicate a rotation toward resources stocks at the expense of property and financial services groups.

At the broader S&P/ASX 200 level, Predictive Discovery, SRG Global, and Vulcan Energy Resources will enter the benchmark, replacing Catapult Sports, DigiCo Infrastructure REIT, and EBOS Group. Changes in the S&P/ASX 200 will have direct implications for a large pool of passive capital and may affect liquidity and valuations for the added and removed companies.

The S&P/ASX 300 will be expanded to include a wide range of smaller and mid-tier names such as 4DMedical, Arafura Rare Earths, DPM Metals, Dateline Resources, Elsight, Elevra Lithium, GemLife Communities Group, L1 Group, Macmahon Holdings, Meeka Metals, Minerals 260, and Metals X. The additions highlight continued investor interest in emerging resources, technology, and specialised industrial plays within the broader Australian equity universe.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.85 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Eureka Group clarifies DRP pricing and FX terms for latest dividend

Eureka Group Holdings Limited has updated its dividend notification for holders of its ordinary fully paid shares, relating to the six-month period ended 31 December 2025. The update follows an earlier announcement on 24 February 2026 and keeps investors informed on the mechanics of the distribution tied to this reporting period.

The company’s latest notice advises the dividend reinvestment plan (DRP) issue price and the foreign exchange rate to be applied for shareholders receiving payments in New Zealand dollars. These details help clarify the final cash or share entitlement for investors ahead of the dividend timetable, including the ex-date of 27 February 2026 and record date of 2 March 2026.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.85 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Eureka Group Issues 443,105 Unquoted Rights Under Employee Incentive Scheme

Eureka Group Holdings Limited has notified the market of the issue of 443,105 unquoted rights securities under its employee incentive scheme, effective 2 March 2026. These rights, classified as EGHAA and not intended to be quoted on the ASX, indicate the company is continuing to use equity-based compensation to incentivise and retain staff, modestly expanding its capital base while aligning employee interests with shareholders.

The most recent analyst rating on (AU:EGH) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Eureka flags disciplined growth focus in affordable rentals amid 1H26 update

Eureka Group Holdings has released material related to its first-half 2026 results, framing its strategy around scaling an affordable rentals platform while maintaining disciplined capital allocation. The update positions the company as focused on sustainable expansion in low-cost rental housing, though the document is largely composed of standard disclaimers on accuracy, liability and the non-offer nature of the presentation, providing limited detail on financial performance or operational changes.

The emphasis on capital discipline alongside growth in affordable rentals suggests Eureka is trying to balance expansion with risk management, which is likely to be a key consideration for investors in the current environment. However, the predominance of cautionary and legal statements, including warnings about the reliability of projections and jurisdictional restrictions, means stakeholders receive more guidance on the limits of the information than on concrete operational developments or forward strategies.

The most recent analyst rating on (AU:EGH) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Eureka scales all‑age rentals as earnings grow and margins ease

Eureka Group Holdings reported first-half FY26 underlying EBITDA of $9.1 million, up 11%, on revenue that rose 20% to $27 million, driven by resilient seniors’ rentals and strong contributions from newer all‑age communities. Statutory net profit fell 18% to $5.2 million due to lower valuation gains and acquisition-related costs, while underlying EPS slipped to 1.44 cents as new equity from a late‑2024 raising was fully deployed into growth projects.

The group has grown assets under management 17% to $454 million and expanded its footprint to 3,784 units, including a sharp increase in all‑age rental sites to 1,074 across nine communities, which has temporarily diluted margins but broadened its addressable market. Eureka invested $60.3 million in acquisitions, development and capex, maintained a conservative 33.5% loan-to-value ratio, converted $180 million of debt into social loans aligned with affordable housing objectives, reaffirmed FY26 earnings guidance and declared an unfranked interim dividend of 0.73 cents per share with a dividend reinvestment plan in place.

The most recent analyst rating on (AU:EGH) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Eureka Group Declares Interim Dividend for Half-Year to December 2025

Eureka Group Holdings Limited has announced a cash dividend on its ordinary fully paid shares, relating to the six-month period ended 31 December 2025 and payable in Australian dollars. The distribution has been set at A$0.0073 per share, with an ex-dividend date of 27 February 2026, a record date of 2 March 2026, and payment due on 20 March 2026, indicating the company’s continued practice of returning capital to shareholders on a semi-annual basis and offering a dividend reinvestment option via a DRP election closing on 5 March 2026.

The most recent analyst rating on (AU:EGH) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Eureka Group Buys Nagambie Lifestyle Park in $11m Regional Victoria Expansion

Eureka Group Holdings has agreed to acquire Nagambie Lifestyle Park in regional Victoria for $11 million, its second all-age rental community in the state and ninth such acquisition in the past year. The mixed-use, freehold park comprises 127 revenue-generating sites, including land-lease homes, park-owned rentals, annual sites and motel rooms, and is expected to deliver an initial yield of 7.3% and a target five-year IRR of 15.9%. With 26 fully serviced vacant sites requiring renewal of an expired planning permit and two completed homes ready for sale, Eureka plans to expand the park to about 155 sites, over 90% of which would be long-term rental and land-lease homes, reinforcing its affordable housing strategy in a region characterised by strong population growth, low rental vacancy and high median house prices. The acquisition, due to settle in late January 2026 subject to customary conditions, strengthens Eureka’s footprint in regional Victoria alongside nearby assets in Benalla, Shepparton and Albury, and comes as the group pursues a further $90 million of non-binding acquisition opportunities under due diligence.

The most recent analyst rating on (AU:EGH) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.