Environmental Group Limited (EGL) AI Stock Analysis

• Market Cap: AU$85.61M
• Dividend Yield: N/A
• Average Volume (3M): 287.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• 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: AU$0.34
• Price Target Upside: 54.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.01
• Revenue Forecast (FY): AU$129.30M

• Rating: 54 Neutral
• Price Target: AU$0.26 ▲(18.18% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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 (13.5%) indicates consistent demand for the company’s pollution and treatment services. Over 2-6 months this supports ongoing market share expansion, gives management room to invest in capacity or R&D, and underpins medium-term top-line resilience.

Improving Gross Margin

An improving gross profit margin signals better cost management or pricing power in core operations. This enhances structural profitability potential, provides a buffer against commodity or input cost swings, and supports sustainable EBITDA margins over the medium term.

Healthy Capital Structure and ROE

A healthy equity ratio and improving return on equity reflect stronger capital allocation and a solid balance-sheet foundation. Balanced leverage enables strategic investments while limiting solvency risk, supporting durable operational plans and shareholder value creation.

Negative Factors

Weak Cash Conversion

Negative operating cash flow and declining free cash flow point to structural weakness in turning accounting profits into spendable cash. Over months this can limit ability to fund capex, reduce flexibility for acquisitions or dividends, and increase reliance on external financing.

Rising Debt Levels

An increase in total debt, despite a moderate debt-to-equity ratio, raises leverage risk if cash generation does not improve. Persistently higher debt can elevate interest costs, constrain strategic options, and amplify downside in an industry downturn over the medium term.

Low Net Profit Margin

Relatively low net profit margins imply limited conversion of revenue into retained earnings. This restricts internal funding capacity and returns to shareholders, leaving the business more exposed to margin compression from rising costs or pricing pressure over time.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	115.84M	111.07M	97.88M	82.34M	56.70M	44.22M
Gross Profit	16.05M	31.89M	28.89M	18.54M	6.17M	10.86M
EBITDA	9.08M	9.98M	9.34M	5.68M	3.58M	2.92M
Net Income	3.00M	4.71M	4.39M	2.61M	1.55M	1.58M
Balance Sheet
Total Assets	95.18M	91.06M	74.72M	66.67M	45.13M	34.23M
Cash, Cash Equivalents and Short-Term Investments	4.39M	2.70M	10.15M	9.37M	1.74M	642.19K
Total Debt	23.26M	11.17M	5.52M	4.41M	4.25M	4.28M
Total Liabilities	49.55M	45.24M	33.78M	30.27M	20.00M	16.26M
Stockholders Equity	45.63M	45.82M	40.94M	36.40M	25.13M	17.98M
Cash Flow
Free Cash Flow	-2.70M	-4.69M	3.17M	4.59M	-297.76K	384.46K
Operating Cash Flow	-1.64M	-3.79M	4.21M	5.24M	184.54K	852.87K
Investing Cash Flow	-5.16M	-5.00M	-1.07M	-4.08M	-1.93M	-341.51K
Financing Cash Flow	-2.34M	-2.19M	-2.36M	6.47M	2.84M	-565.28K

Environmental Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EGL, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.24, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$85.61M	-82.07	10.86%	―	13.51%	5.08%
DEM	49 Neutral	AU$30.05M	-16.21	-16.00%	―	11.53%	46.15%
DEL	43 Neutral	AU$22.03M	-4.53	-129.44%	―	-29.97%	-284.16%
PET	42 Neutral	AU$7.49M	-2.69	-26.47%	―	-45.80%	-210.00%
ECT	41 Neutral	AU$47.85M	-7.05	-164.39%	―	―	15.66%
AEI	41 Neutral	AU$8.88M	-1.32	―	―	-0.52%	-38.84%

Environmental Group Limited Corporate Events

Environmental Group sets February webinar to brief investors on half-year results

The Environmental Group Limited has scheduled a live investor webinar for 18 February 2026 to discuss its financial results for the half year ended 31 December 2025, with the session to be led by its chief executive, chief financial officer and chief commercial officer. The briefing underscores the company’s effort to engage directly with investors and other stakeholders on recent performance and operational progress across its environmentally focused businesses, which span clean air technologies, gas turbine systems supporting renewables, 24/7 equipment servicing and emerging waste-to-energy and PFAS treatment solutions.

The most recent analyst rating on (AU:EGL) stock is a Hold with a A$0.26 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 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.