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Eureka Group Holdings Limited (AU:EGH)
ASX:EGH
Australian Market

Eureka Group Holdings Limited (EGH) AI Stock Analysis

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AU

Eureka Group Holdings Limited

(Sydney:EGH)

Rating:71Outperform
Price Target:
AU$0.50
▼(-16.67%Downside)
Eureka Group Holdings Limited's solid financial performance and positive technical indicators drive a strong overall score. While valuation is reasonable, managing rising debt levels and enhancing cash flow growth are areas to watch. The stock's momentum supports its current valuation, with no significant earnings call or corporate events impacting the outlook.

Eureka Group Holdings Limited (EGH) vs. iShares MSCI Australia ETF (EWA)

Eureka Group Holdings Limited Business Overview & Revenue Model

Company DescriptionEureka 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 MoneyEureka Group Holdings Limited makes money primarily through rental income derived from its portfolio of rental retirement communities. The company owns and operates these properties, providing affordable accommodation to seniors who pay rent for their living spaces. In addition to rental income, EGH may also generate revenue from ancillary services provided to residents, such as community activities and amenities. The company's revenue model is supported by the increasing demand for affordable housing solutions for the aging population in Australia. Strategic acquisitions and management of retirement villages also play a significant role in the company's growth and profitability.

Eureka Group Holdings Limited Financial Statement Overview

Summary
Eureka Group Holdings Limited presents a solid financial position with strong revenue growth and profitability in the real estate services industry. The company exhibits effective cost management and a balanced capital structure, although the rising debt levels and decline in net income suggest potential challenges. Stable cash flows further enhance operational resilience, albeit with room for improvement in cash flow growth.
Income Statement
78
Positive
Eureka Group Holdings Limited has demonstrated strong revenue growth, with a notable increase from 2023 to 2024. The company maintains a solid gross profit margin and a healthy net profit margin, indicative of efficient cost management and profitability. However, the decline in net income from 2023 to 2024 suggests potential challenges in sustaining profitability levels.
Balance Sheet
75
Positive
The company's balance sheet reflects stable equity growth and a reasonable debt-to-equity ratio, indicating a balanced capital structure. Return on equity is strong, showcasing effective utilization of shareholders' funds. Yet, the rising total debt and liabilities may pose future financial risks if not managed carefully.
Cash Flow
72
Positive
Eureka Group Holdings demonstrates consistent operating cash flow generation, supporting its operational efficiency. The free cash flow remains positive, although its growth has been modest. The company effectively converts operating cash flow into free cash flow, but the reduction in operating cash flow from the previous year could impact liquidity.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue43.43M41.14M36.42M29.75M27.58M24.81M
Gross Profit16.64M15.64M12.52M9.96M9.76M9.49M
EBITDA18.75M22.47M9.86M8.45M10.40M10.19M
Net Income13.27M13.21M19.16M8.17M6.28M8.10M
Balance Sheet
Total Assets297.66M275.23M237.41M182.77M158.97M145.21M
Cash, Cash Equivalents and Short-Term Investments3.31M2.26M1.81M2.23M2.03M2.75M
Total Debt39.77M91.85M70.43M71.44M60.10M55.17M
Total Liabilities68.34M120.99M93.46M83.73M68.09M59.34M
Stockholders Equity229.32M154.24M143.96M99.03M90.88M85.87M
Cash Flow
Free Cash Flow5.57M7.92M7.93M2.87M7.79M7.56M
Operating Cash Flow5.61M8.13M8.71M8.28M7.85M7.61M
Investing Cash Flow-19.15M-26.07M-32.86M-20.89M-9.42M-9.60M
Financing Cash Flow13.56M18.38M24.14M12.56M1.01M1.38M

Eureka Group Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.60
Price Trends
50DMA
0.54
Positive
100DMA
0.54
Positive
200DMA
0.57
Positive
Market Momentum
MACD
0.01
Negative
RSI
70.20
Negative
STOCH
99.66
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 0.6 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.54, and above the 200-day MA of 0.57, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 70.20 is Negative, neither overbought nor oversold. The STOCH value of 99.66 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUEGH
71
Outperform
AU$252.39M14.557.03%2.45%10.68%-28.87%
53
Neutral
$1.19B3.25-0.13%7.48%-1.64%-127.49%
$7.42B13.617.73%4.69%
$5.93B310.201.03%1.43%
AUNSR
71
Outperform
AU$3.20B13.186.87%4.87%8.10%6.34%
AULIC
59
Neutral
AU$842.43M15.587.50%1.44%8.28%-39.60%
AUINA
54
Neutral
AU$2.23B37.723.77%1.90%22.09%-19.31%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EGH
Eureka Group Holdings Limited
0.60
0.09
17.65%
CNRAF
Vicinity Centres
1.52
0.36
31.03%
CTOUF
Charter Hall Group
12.54
5.21
71.08%
AU:INA
Ingenia Communities Group
5.47
0.77
16.38%
AU:NSR
National Storage REIT
2.30
0.11
5.02%
AU:LIC
Lifestyle Communities Ltd
7.00
-5.41
-43.59%

Eureka Group Holdings Limited Corporate Events

Eureka Group Holdings Appoints Simon Owen as Managing Director
Jun 24, 2025

Eureka Group Holdings Limited has appointed Simon Owen as its Managing Director, effective from July 1, 2025. Owen, who has been serving as the CEO since September 2024, brings over 20 years of leadership experience in ASX-listed property and retirement living businesses. His appointment is expected to strengthen Eureka’s growth and market position, as he is well-regarded by stakeholders and has a deep understanding of the company’s strategic values and market focus.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.70 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 Holdings Appoints New CFO to Drive Growth
Jun 23, 2025

Eureka Group Holdings Limited has appointed Shiv Chetan as its new Chief Financial Officer, effective September 22, 2025. Shiv brings a wealth of experience from his previous roles at Corporate Travel Management and other companies, which is expected to support Eureka’s growth and enhance shareholder value.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.70 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 Holdings Updates Securities Trading Policy
Jun 4, 2025

Eureka Group Holdings Limited has updated its Securities Trading Policy to comply with ASX Listing Rule 12.10. This revision aims to ensure that all employees, directors, officers, and associates adhere to legal and ethical standards when dealing with company securities, preventing insider trading and maintaining market fairness.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.70 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 Expands Portfolio with Cairns Park Acquisition
Jun 2, 2025

Eureka Group Holdings Limited has acquired the Barrier Reef Tourist Park in Cairns, a mixed-use facility catering to retirees, key workers, tradespeople, and tourists. This acquisition, valued at $3.5 million, offers a 9.7% yield and potential for further development of long-term rental units, aligning with the region’s strong population growth and rental demand.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.70 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 Holdings Director Increases Shareholding
May 22, 2025

Eureka Group Holdings Limited announced a change in the director’s interest as John Whiteman, a director and shareholder of Endurance Asset Management Pty Ltd, acquired an additional 295,000 fully paid ordinary shares through on-market trades. This acquisition increases the total number of shares held by Endurance Asset Management to 1,753,355. The change in director’s interest reflects a significant investment and confidence in the company’s future prospects, potentially impacting stakeholders by indicating a positive outlook from the management.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.70 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Aspen Group Divests Substantial Stake in Eureka Group Holdings
May 22, 2025

Eureka Group Holdings Limited has announced that Aspen Group Limited has ceased to be a substantial holder in the company as of May 20, 2025. This change occurred due to Aspen’s sale of 55,120,160 ordinary shares in Eureka, representing 13% of the company’s voting securities, for a total consideration of $27,560,080. The divestment may impact Eureka’s shareholder structure and could have implications for its market positioning.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.70 price target. To see the full list of analyst forecasts on Eureka Group Holdings Limited stock, see the AU:EGH Stock Forecast page.

Aspen Group Completes Sale of Eureka Group Holdings Shares
May 19, 2025

Eureka Group Holdings Limited announced that Aspen Group has sold its remaining 12.3% shareholding in the company. This move is expected to enhance the liquidity of Eureka’s shares and potentially diversify its shareholder base, which could have positive implications for the company’s market presence and investor appeal.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.70 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 Holdings Issues New Equity Securities
May 19, 2025

Eureka Group Holdings Limited announced the issuance of 285,685 unquoted equity securities under an employee incentive scheme. This move is aimed at rewarding and retaining employees, potentially strengthening the company’s operational capabilities and aligning employee interests with company growth.

The most recent analyst rating on (AU:EGH) stock is a Buy with a A$0.70 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 Expands with Strategic Caravan Park Acquisition on Fraser Coast
May 2, 2025

Eureka Group Holdings Limited has announced the acquisition of Burrum River Caravan Park on Queensland’s Fraser Coast for $5.3 million. This strategic purchase, with an initial yield of 8.6%, aims to convert existing caravan sites into long-term rental units, addressing the region’s housing crisis. The acquisition aligns with Eureka’s strategy to expand its presence in the area, where it already operates five seniors rental living communities at full occupancy. The move is expected to meet the increasing demand for rental accommodation driven by large infrastructure projects in the region.

Eureka Group Expands Debt Facility to Fuel Growth
May 1, 2025

Eureka Group Holdings Limited has successfully refinanced and increased its debt facilities to $185 million, with support from National Australia Bank and Westpac Banking Corporation. This strategic move enhances the company’s financial flexibility and capacity, enabling it to pursue further growth through acquisitions and development of residential communities nationwide.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 19, 2025