Environmental Group Limited (EGL) AI Stock Analysis

• Market Cap: AU$93.22M
• Dividend Yield: N/A
• Average Volume (3M): 292.16K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.79
• Revenue Growth: 19.70%
• EPS Growth: 8.70%
• Country: AU
• Employees: 68
• Sector: Utilities
• Sector Strength: 82
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.01
• Shares Outstanding: 380,497,800
• 10 Day Avg. Volume: 197,622
• 30 Day Avg. Volume: 292,163
• PEG Ratio: -1.58
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.59
• 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$0.36
• Price Target Upside: 50.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• 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 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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
105.78M	97.88M	82.34M	56.70M	44.22M	36.92M
	Gross Profit
30.19M	28.89M	9.10M	6.17M	2.90M	3.00M
	EBIT
6.22M	7.11M	3.96M	2.24M	-442.43K	-1.73M
	EBITDA
6.85M	9.34M	5.68M	3.38M	848.18K	-112.44K
	Net Income Common Stockholders
3.76M	4.39M	2.61M	1.55M	1.58M	-1.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.02M	10.15M	9.37M	1.74M	642.19K	763.96K
	Total Assets
76.07M	74.72M	66.67M	45.13M	34.23M	32.01M
	Total Debt
5.34M	5.52M	4.41M	4.25M	4.28M	5.04M
	Net Debt
-2.67M	-4.63M	-4.96M	2.51M	3.63M	4.27M
	Total Liabilities
33.61M	33.78M	30.27M	20.00M	16.26M	17.73M
	Stockholders Equity
42.46M	40.94M	36.40M	25.13M	17.98M	14.37M
Cash Flow		Free Cash Flow
3.15M	3.17M	4.59M	-297.76K	384.46K	995.62K
	Operating Cash Flow
3.43M	4.21M	5.24M	184.54K	852.87K	1.14M
	Investing Cash Flow
-709.95K	-1.07M	-4.08M	-1.93M	-341.51K	-144.25K
	Financing Cash Flow
-2.37M	-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: Positive
• 200DMA: Negative
• MACD: Negative
• 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, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGL	74 Outperform	AU$93.22M	25.50	9.28%	―	19.70%	8.70%
Sector *	64 Neutral	$8.61B	10.33	4.70%	4.36%	4.14%	-13.05%
SFG	45 Neutral	AU$9.67M	―	-110.26%	―	-45.59%	-127.78%
EDEYF		$7.98M	―	-150.37%	―	―	―
MMMKF		$16.52M	―	-44.65%	―	―	―
REFXF		$16.60M	―		―	―	―
CNQ	45 Neutral		―	-71.32%	―	-32.22%	-13.94%

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.