Environmental Group Limited (EGL) AI Stock Analysis

• Market Cap: AU$95.12M
• Dividend Yield: N/A
• Average Volume (3M): 287.15K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.02
• Revenue Growth: 13.51%
• EPS Growth: 5.08%
• Country: AU
• Employees: 68
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.01
• Shares Outstanding: 380,497,800
• 10 Day Avg. Volume: 336,957
• 30 Day Avg. Volume: 287,152
• PEG Ratio: 2.98
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.88
• P/FCF Ratio: -20.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$0.26 ▲(8.33% Upside)

The overall stock score reflects a combination of solid financial performance with areas for improvement in profitability and cash flow, bearish technical indicators, and a moderate valuation. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Sustained revenue growth indicates expanding customer adoption and market penetration for core services. Over the medium term this supports scale benefits, improves bargaining power with suppliers, and provides a foundation for reinvestment into product capabilities or geographic expansion, strengthening durable top-line momentum.

Operational Efficiency / Margins

Improving gross margins and stable EBIT/EBITDA margins point to better cost control and operational execution. Sustained margin expansion increases internal cash generation potential per revenue dollar and enhances the firm’s ability to fund growth, absorb pricing pressure, and maintain competitive advantages over time.

Capital Structure / Equity Strength

A healthy equity ratio combined with rising ROE signals a resilient capital structure and improving return on invested capital. This durability supports access to capital, underpins creditworthiness, and gives management flexibility to pursue strategic investments or weather cyclical downturns without immediate balance sheet strain.

Negative Factors

Operating Cash Flow Weakness

Negative operating cash flow and declining free cash flow indicate difficulty converting earnings into cash. Over months this can constrain capital expenditure, maintenance, and growth initiatives, forcing reliance on external financing or asset sales and reducing the company’s financial resilience.

Rising Debt Levels

An uptick in total debt, even from a moderate base, reduces financial flexibility and increases fixed obligations. Over the medium term higher leverage can amplify earnings volatility, limit strategic options, and raise refinancing risk if cash generation does not improve, especially given current cash flow headwinds.

Low Net Profit Margin

A persistently low net profit margin means revenue gains translate poorly into shareholder returns. Structurally this limits retained earnings for reinvestment, reduces buffers against cost shocks, and requires sustained margin improvement to support long-term earnings growth and return on capital objectives.

Environmental Group Limited Business Overview & Revenue Model

Company Description

The 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 Money

EGL generates revenue primarily through its waste management services, which include residential and commercial waste collection contracts. The company charges fees for collection and disposal services, and it also profits from recycling materials that are processed and sold to manufacturers. Additional revenue streams include consulting services for businesses seeking to implement sustainable practices and compliance strategies. EGL has established partnerships with local governments and corporations, allowing it to secure long-term contracts that provide a steady income stream. Furthermore, the company invests in technology to enhance operational efficiency and reduce costs, which contributes positively to its profit margins.

Environmental Group Limited Financial Statement Overview

Summary

Environmental Group Limited demonstrates solid revenue growth and operational efficiency, but profitability and cash flow generation remain areas for improvement. The balance sheet is stable, but increased debt levels should be monitored.

Income Statement

Environmental Group Limited has shown consistent revenue growth over the years, with a 5% increase in the latest period. The gross profit margin has improved, indicating better cost management. However, the net profit margin remains relatively low, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leverage. Return on equity has improved, suggesting better utilization of shareholder funds. The equity ratio is healthy, showing a strong capital structure. However, the increase in total debt warrants careful monitoring.

Cash Flow

The cash flow situation is concerning, with negative free cash flow growth and a negative operating cash flow in the latest period. The operating cash flow to net income ratio is unfavorable, indicating challenges in converting income into cash. The company needs to focus on improving cash generation to support future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	111.47M	111.07M	97.88M	82.34M	56.70M	44.22M
Gross Profit	23.73M	31.89M	28.89M	18.54M	6.17M	10.86M
EBITDA	8.55M	9.98M	9.34M	5.68M	3.58M	2.92M
Net Income	4.71M	4.71M	4.39M	2.61M	1.55M	1.58M
Balance Sheet
Total Assets	91.06M	91.06M	74.72M	66.67M	45.13M	34.23M
Cash, Cash Equivalents and Short-Term Investments	2.70M	2.70M	10.15M	9.37M	1.74M	642.19K
Total Debt	11.17M	11.17M	5.52M	4.41M	4.25M	4.28M
Total Liabilities	45.24M	45.24M	33.78M	30.27M	20.00M	16.26M
Stockholders Equity	45.82M	45.82M	40.94M	36.40M	25.13M	17.98M
Cash Flow
Free Cash Flow	-4.42M	-4.69M	3.17M	4.59M	-297.76K	384.46K
Operating Cash Flow	-3.79M	-3.79M	4.21M	5.24M	184.54K	852.87K
Investing Cash Flow	-5.00M	-5.00M	-1.07M	-4.08M	-1.93M	-341.51K
Financing Cash Flow	-2.19M	-2.19M	-2.36M	6.47M	2.84M	-565.28K

Environmental Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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, above the 50-day MA of 0.24, and below the 200-day MA of 0.25, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 49.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EGL	54 Neutral	AU$95.12M	20.16	10.86%	―	13.51%	5.08%
PET	50 Neutral	AU$11.24M	-4.09	-26.47%	―	-45.80%	-210.00%
DEM	50 Neutral	AU$34.29M	-15.00	-16.00%	―	11.53%	46.15%
ECT	49 Neutral	AU$60.33M	-6.90	-164.39%	―	―	15.66%
AEI	41 Neutral	AU$13.07M	-3.15	―	―	-0.52%	-38.84%
DEL	40 Underperform	AU$20.93M	-2.33	-129.44%	―	-29.97%	-284.16%

Environmental Group Limited Corporate Events

Environmental Group Limited Issues Performance Rights to Boost Employee Engagement

Environmental Group Limited has announced the issuance of 377,358 performance rights as part of an employee incentive scheme. This move is likely to enhance employee motivation and align their interests with the company’s long-term goals, potentially strengthening the company’s market position and operational efficiency.

The most recent analyst rating on (AU:EGL) stock is a Hold with a A$0.24 price target. To see the full list of analyst forecasts on Environmental Group Limited stock, see the AU:EGL Stock Forecast page.

Environmental Group Limited Announces Cessation of Performance Rights

Environmental Group Limited announced the cessation of 1,212,005 performance rights due to unmet conditions, impacting its issued capital. This development may affect the company’s financial structuring and stakeholder interests, as it reflects on the company’s ability to meet certain performance benchmarks.

The most recent analyst rating on (AU:EGL) stock is a Hold with a A$0.24 price target. To see the full list of analyst forecasts on Environmental Group Limited stock, see the AU:EGL Stock Forecast page.

Director Increases Stake in Environmental Group Limited

Lucia Estana Cade, a director at Environmental Group Limited, has increased her indirect shareholding in the company by acquiring 80,000 fully paid ordinary shares through an on-market trade. This change in director’s interest, which took place on November 26-27, 2025, brings her total holdings to 140,000 shares, reflecting a strategic move that may signal confidence in the company’s future prospects.

The most recent analyst rating on (AU:EGL) stock is a Hold with a A$0.24 price target. To see the full list of analyst forecasts on Environmental Group Limited stock, see the AU:EGL Stock Forecast page.

Director’s Share Acquisition Signals Confidence in The Environmental Group Limited

The Environmental Group Limited has announced a change in the director’s interest, with Director Vincent D’Rozario acquiring 110,000 fully paid ordinary shares through an on-market trade at $0.23 per share. This acquisition reflects a significant personal investment by the director, potentially indicating confidence in the company’s future prospects and stability, which may positively influence stakeholder perceptions and market positioning.

The most recent analyst rating on (AU:EGL) stock is a Hold with a A$0.24 price target. To see the full list of analyst forecasts on Environmental Group Limited stock, see the AU:EGL Stock Forecast page.

Environmental Group Limited Reports Annual General Meeting Outcomes

The Environmental Group Limited announced the results of its Annual General Meeting, highlighting the company’s commitment to environmental protection through its diverse business units. This announcement reflects EGL’s strategic focus on enhancing its operational capabilities and market positioning in the environmental sector, which may have significant implications for stakeholders involved in air quality, waste management, and renewable energy solutions.

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

Environmental Group Limited’s 2025 AGM Highlights Commitment to Sustainability

The Environmental Group Limited has released documents for its 2025 Annual General Meeting, including addresses from the Chair and CEO, and an investor presentation. The release highlights the company’s ongoing commitment to environmental protection through its diverse business units, which focus on air quality, carbon emission reduction, and waste treatment. This announcement underscores EGL’s strategic positioning in the environmental sector and its dedication to innovation and sustainable practices, potentially impacting stakeholders positively.

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