Environmental Group Limited (EGL) AI Stock Analysis

• Market Cap: AU$91.32M
• Dividend Yield: N/A
• Average Volume (3M): 253.08K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.83
• Revenue Growth: 19.70%
• EPS Growth: 8.70%
• Country: AU
• Employees: 68
• Sector: Utilities
• Sector Strength: 91
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.01
• Shares Outstanding: 380,497,800
• 10 Day Avg. Volume: 280,127
• 30 Day Avg. Volume: 253,082
• PEG Ratio: 2.70
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$0.38
• Price Target Upside: 58.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Environmental Group Limited's strong revenue growth and solid financial position drive a positive overall outlook, supported by a stable balance sheet and efficient cash flow management. While the technical indicators present a neutral to slightly bullish scenario, the stock's valuation reflects moderate expectations with a P/E ratio of 24. The absence of dividend yield suggests a reinvestment strategy. Overall, the company is well-positioned in its industry with a sound financial foundation, but future investments may require strategic financial planning.

Environmental Group Limited Business Overview & Revenue Model

Company Description

Environmental Group Limited (EGL) is a leading company operating in the environmental services sector, specializing in waste management, recycling, and sustainable energy solutions. The company offers a comprehensive range of services including waste collection, recycling programs, and renewable energy projects, catering to both public and private sectors. EGL is committed to promoting environmental sustainability through innovative practices and cutting-edge technologies.

How the Company Makes Money

Environmental 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

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

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

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
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
97.88M	82.34M	56.70M	44.22M	36.92M
	Gross Profit
28.89M	9.10M	6.17M	2.90M	3.00M
	EBIT
7.11M	3.96M	2.24M	-442.43K	-1.73M
	EBITDA
9.34M	5.68M	3.38M	848.18K	-112.44K
	Net Income Common Stockholders
4.39M	2.61M	1.55M	1.58M	-1.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.15M	9.37M	1.74M	642.19K	763.96K
	Total Assets
74.72M	66.67M	45.13M	34.23M	32.01M
	Total Debt
5.52M	4.41M	4.25M	4.28M	5.04M
	Net Debt
-4.63M	-4.96M	2.51M	3.63M	4.27M
	Total Liabilities
33.78M	30.27M	20.00M	16.26M	17.73M
	Stockholders Equity
40.94M	36.40M	25.13M	17.98M	14.37M
Cash Flow		Free Cash Flow
3.17M	4.59M	-297.76K	384.46K	995.62K
	Operating Cash Flow
4.21M	5.24M	184.54K	852.87K	1.14M
	Investing Cash Flow
-1.07M	-4.08M	-1.93M	-341.51K	-144.25K
	Financing Cash Flow
-2.36M	6.47M	2.84M	-565.28K	-402.79K

Environmental Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.23, and below the 200-day MA of 0.30, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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
EGL	70 Outperform	AU$91.32M	24.00	9.28%	―	19.70%	8.70%
Sector *	63 Neutral	$8.52B	11.01	5.35%	4.37%	3.39%	-11.87%
SFG	45 Neutral	$9.67M	―	-110.26%	―	-45.59%	-127.78%
CNQ	43 Neutral		―	-71.32%	―	-32.22%	-13.94%
AEV	31 Underperform	$28.60M	―	-44.65%	―	―	-69.23%
EDE	31 Underperform	$4.11M	―	-150.37%	―	-1.30%	33.33%

Environmental Group Limited Corporate Events

Environmental Group Limited Issues New Performance Rights

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

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

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

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

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

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

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.

Mirrabooka Investments Increases Stake in Environmental Group Limited

Environmental Group Limited has experienced a change in the interests of a substantial holder. Mirrabooka Investments Limited (MIR) increased its voting power in Environmental Group Limited from 6.12% to 7.58%. This change reflects MIR acquiring additional ordinary shares, potentially impacting the company’s shareholder dynamics and indicating increased confidence or strategic interest in the company.

Environmental Group Limited Releases 1HFY25 Financial Results

Environmental Group Limited released its 1HFY25 financial results presentation, emphasizing its commitment to sustainable engineering solutions. The report includes forward-looking statements, highlighting potential uncertainties affecting the company’s projections. Stakeholders should consider the implications of these uncertainties on the company’s future operations and industry positioning.

EGL Reports Revenue Growth Amidst Profit Decline Due to Cost Overruns

The Environmental Group Limited (EGL) has reported a 16.1% increase in revenue to $54.2 million for the half-year ending December 31, 2024. However, the company experienced a decline in key financial metrics, with EBITDA down 13.4% and profit attributable to equity holders down 30.5% to $1.44 million. The decrease in profits is attributed to cost overruns in a project within EGL’s Baltec IES business unit, as well as restructuring and ERP implementation costs. Despite these challenges, EGL’s net assets increased by $1.52 million, signaling a strengthened financial position.