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Environmental Group Limited (AU:EGL)
ASX:EGL
Australian Market

Environmental Group Limited (EGL) AI Stock Analysis

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AU

Environmental Group Limited

(Sydney:EGL)

Rating:74Outperform
Price Target:
AU$0.50
▲(108.33%Upside)
Environmental Group Limited's strong financial performance and stability are key strengths, contributing significantly to the score. The technical indicators suggest a neutral market sentiment, while the valuation is on the higher side, indicating potential overvaluation concerns. These factors combine to result in a balanced overall stock score.

Environmental Group Limited (EGL) vs. iShares MSCI Australia ETF (EWA)

Environmental Group Limited Business Overview & Revenue Model

Company DescriptionThe Environmental Group Limited engages in the design, application, and servicing of gas and vapor emission control systems, and inlet and exhaust systems for gas turbines in Australia and internationally. Its products include gas turbine inlet filtration systems (filter houses), inlet cooling/fogging systems, acoustical components, expansion joints, and complete exhaust systems with guillotine and diverter dampers; and a range of air pollution control equipment and services for the removal of pollutants from industrial gas and air streams. The company also provides engineering and water treatment services to various industries; and installation, commissioning, service, and maintenance of steam boilers, inert gas generators, hot water boilers, valves, thermal oil heaters, economizers, and burners. In addition, it offers turnkey recycling solutions. The Environmental Group Limited was incorporated in 1923 and is based in Notting Hill, Australia.
How the Company Makes MoneyEnvironmental Group Limited (EGL) generates revenue through multiple streams. The primary source of income is its waste management services, where EGL charges fees for the collection, transportation, and disposal of waste materials from households, businesses, and municipalities. Additionally, the company earns revenue from its recycling operations by selling processed recyclable materials to manufacturers and other enterprises. EGL also invests in renewable energy projects such as solar and wind farms, generating income through the sale of green energy to utility companies and private clients. Strategic partnerships with government bodies and other corporations further enhance EGL's earnings by providing opportunities for large-scale contracts and collaborative sustainability initiatives.

Environmental Group Limited Financial Statement Overview

Summary
Environmental Group Limited exhibits strong financial performance with significant revenue growth and profitability. The balance sheet's low leverage and healthy equity position provide stability. Cash flow management shows moderate efficiency, though future investments may require strategic financial planning. Overall, the company is well-positioned in its industry with a sound financial foundation.
Income Statement
85
Very Positive
Environmental Group Limited has demonstrated robust revenue growth with a 18.86% increase from 2023 to 2024. The company achieved a strong gross profit margin of 29.51% and a solid net profit margin of 4.49% in 2024. EBIT and EBITDA margins are also healthy at 7.26% and 9.54% respectively, indicating efficient operational management. These metrics highlight the company's profitability and growth trajectory in a competitive industry.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.13, indicating low leverage. The return on equity (ROE) is 10.72% for 2024, showing effective utilization of equity. The equity ratio stands at 54.79%, suggesting a solid capital structure. However, the modest cash position and debt levels necessitate careful liquidity management.
Cash Flow
70
Positive
The cash flow statement shows a decrease in operating cash flow from 2023 to 2024, alongside a positive free cash flow of 3,166,264 AUD in 2024. The operating cash flow to net income ratio is 0.96, while the free cash flow to net income ratio is 0.72, indicating efficient cash generation relative to income, yet highlighting potential strains on cash flows for future investments without additional financing.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
105.78M97.88M82.34M56.70M44.22M36.92M
Gross Profit
30.19M28.89M9.10M6.17M2.90M3.00M
EBIT
6.22M7.11M3.96M2.24M-442.43K-1.73M
EBITDA
6.85M9.34M5.68M3.38M848.18K-112.44K
Net Income Common Stockholders
3.76M4.39M2.61M1.55M1.58M-1.32M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.02M10.15M9.37M1.74M642.19K763.96K
Total Assets
76.07M74.72M66.67M45.13M34.23M32.01M
Total Debt
5.34M5.52M4.41M4.25M4.28M5.04M
Net Debt
-2.67M-4.63M-4.96M2.51M3.63M4.27M
Total Liabilities
33.61M33.78M30.27M20.00M16.26M17.73M
Stockholders Equity
42.46M40.94M36.40M25.13M17.98M14.37M
Cash FlowFree Cash Flow
3.15M3.17M4.59M-297.76K384.46K995.62K
Operating Cash Flow
3.43M4.21M5.24M184.54K852.87K1.14M
Investing Cash Flow
-709.95K-1.07M-4.08M-1.93M-341.51K-144.25K
Financing Cash Flow
-2.37M-2.36M6.47M2.84M-565.28K-402.79K

Environmental Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.24
Price Trends
50DMA
0.24
Positive
100DMA
0.25
Positive
200DMA
0.29
Negative
Market Momentum
MACD
<0.01
Negative
RSI
55.38
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EGL, the sentiment is Positive. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.24, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EGL.

Environmental Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUEGL
74
Outperform
AU$93.22M25.509.28%19.70%8.70%
64
Neutral
$8.61B10.334.70%4.36%4.14%-13.05%
AUSFG
45
Neutral
AU$9.67M-110.26%-45.59%-127.78%
$7.98M-150.37%
$16.52M-44.65%
$16.60M
AUCNQ
45
Neutral
-71.32%-32.22%-13.94%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EGL
Environmental Group Limited
0.26
-0.04
-13.33%
AU:SFG
Seafarms Group Limited
EDEYF
Eden Innovations Ltd
0.01
0.00
0.00%
MMMKF
Avenira Limited
0.01
0.00
0.00%
REFXF
Redflow Limited
0.06
-0.01
-14.29%
AU:CNQ
Clean TeQ Water Ltd
0.17
-0.09
-34.62%

Environmental Group Limited Corporate Events

Environmental Group Limited Issues New Performance Rights
Apr 28, 2025

Environmental Group Limited has announced the issuance of 79,929 performance rights as part of an employee incentive scheme. This move is intended to motivate and retain employees by offering them a stake in the company’s future success, which could enhance operational efficiency and strengthen the company’s position in the environmental sector.

Environmental Group Secures EPA Approval for PFAS Treatment Plant
Apr 14, 2025

The Environmental Group Limited has received EPA approval for its PFAS separation plant at Reclaim Waste’s Laverton facility, marking a significant milestone in waste management practices. This approval allows the facility to treat PFAS-contaminated liquid waste, aligning with new EPA regulations and offering commercial opportunities. The company’s patented technology underscores its commitment to environmental responsibility and positions it as a leader in the growing PFAS treatment market, driven by increasing environmental regulations and the need for site remediation.

Director’s Share Acquisition at Environmental Group Limited
Apr 4, 2025

Environmental Group Limited announced a change in the director’s interest, with Michael Scott Constable acquiring 115,920 fully paid ordinary shares, bringing his total to 1,196,739 shares. This acquisition, conducted through an on-market trade, reflects a strategic move that may influence the company’s governance and shareholder dynamics.

Director Increases Stake in Environmental Group Limited
Apr 3, 2025

Lucia Estana Cade, a director at Environmental Group Limited, has acquired 60,000 fully paid ordinary shares at $0.255 per share through an on-market trade. This acquisition reflects a change in her indirect interest in the company, indicating a potential increase in her involvement and confidence in the company’s future prospects.

Director’s Share Acquisition Signals Confidence in The Environmental Group Limited
Apr 2, 2025

The Environmental Group Limited has announced a change in the director’s interest, with Lynn Richardson, a sole director of Richmarsh Investments Pty Ltd, acquiring an additional 37,250 fully paid ordinary shares through an on-market trade. This acquisition increases the total number of shares held by Richmarsh Investments Pty Limited to 3,862,251. The transaction reflects the director’s continued confidence in the company’s prospects and may influence stakeholder perceptions positively.

EGL Expands Industrial Capabilities with Acquisition of Advanced Boilers
Mar 31, 2025

The Environmental Group Limited (EGL) has announced its acquisition of Advanced Boilers & Combustion Pty Ltd for $5.5 million, marking a significant expansion in its industrial boiler service and manufacturing capabilities. This strategic move enhances EGL’s market position by integrating Advanced’s expertise in fabrication and exclusive rights to Maxitherm boiler technology, aligning with EGL’s growth strategy and providing recurring service revenue streams.

Environmental Group Limited Issues Performance Rights to Employees
Mar 17, 2025

Environmental Group Limited has announced the issuance of 3,396,227 performance rights as part of an employee incentive scheme. These securities are unquoted and not intended for trading on the ASX, reflecting the company’s strategy to motivate and retain key personnel, potentially enhancing its operational capabilities and market competitiveness.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.