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Environmental Group Limited (AU:EGL)
ASX:EGL
Australian Market
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Environmental Group Limited (EGL) AI Stock Analysis

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AU:EGL

Environmental Group Limited

(Sydney:EGL)

Rating:71Outperform
Price Target:
AU$0.50
▲(85.19% Upside)
The company's strong financial performance is the most significant factor, supported by healthy revenue growth and profitability, which contributes to a positive outlook. Technical indicators suggest a bullish trend, although the valuation appears high, which may pose a risk. The lack of dividend yield might deter income-focused investors. Overall, Environmental Group Limited is positioned well in its industry, but investors should be cautious about its valuation.

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 MoneyEGL generates revenue through multiple streams. The primary source of income is its waste management services, where the company charges fees for waste collection, disposal, and recycling services provided to municipalities and commercial clients. Additionally, EGL earns money from its renewable energy projects by selling generated power to the grid or through power purchase agreements with businesses. The consultancy division contributes to the revenue by offering environmental assessments, compliance audits, and sustainability planning for various organizations. Key partnerships with government agencies and private sector companies often enhance revenue opportunities, allowing EGL to expand its reach and capabilities in the environmental sector.

Environmental Group Limited Financial Statement Overview

Summary
Environmental Group Limited demonstrates strong financial performance with significant revenue growth and profitability. The balance sheet shows low leverage and a healthy equity position, providing stability. Cash flow management is moderately efficient, indicating potential needs for strategic financial planning for future investments.
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue97.88M82.34M56.70M44.22M36.92M
Gross Profit28.89M18.54M6.17M10.86M12.27M
EBITDA9.34M5.68M3.58M2.92M-259.00K
Net Income4.39M2.61M1.55M1.58M-1.32M
Balance Sheet
Total Assets74.72M66.67M45.13M34.23M32.01M
Cash, Cash Equivalents and Short-Term Investments10.15M9.37M1.74M642.19K763.96K
Total Debt5.52M4.41M4.25M4.28M5.04M
Total Liabilities33.78M30.27M20.00M16.26M17.73M
Stockholders Equity40.94M36.40M25.13M17.98M14.37M
Cash Flow
Free Cash Flow3.17M4.59M-297.76K384.46K995.62K
Operating Cash Flow4.21M5.24M184.54K852.87K1.14M
Investing Cash Flow-1.07M-4.08M-1.93M-341.51K-144.25K
Financing Cash Flow-2.36M6.47M2.84M-565.28K-402.79K

Environmental Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.27
Price Trends
50DMA
0.26
Negative
100DMA
0.25
Positive
200DMA
0.27
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.64
Neutral
STOCH
28.89
Neutral
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 0.27 is below the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.26, and above the 200-day MA of 0.27, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
AU$102.73M27.009.28%19.70%8.70%
69
Neutral
AU$38.55M7.2063.00%333.36%
56
Neutral
AU$1.93B7.282.42%4.01%24.17%-114.27%
54
Neutral
AU$32.28M-22.62%6.37%20.31%
44
Neutral
AU$15.63M6.25-20.47%-77.68%-9.09%
40
Underperform
AU$9.84M-203.38%20.00%17.22%
27
Underperform
AU$11.88M-122.51%26.32%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EGL
Environmental Group Limited
0.26
-0.08
-23.53%
AU:PET
Phoslock Environmental Technologies Limited
0.02
0.00
0.00%
AU:DEL
Delorean Corporation Ltd
0.17
0.11
183.33%
AU:AEI
Aeris Environmental Ltd
0.04
-0.02
-33.33%
AU:ECT
Environmental Clean Technologies Limited
AU:DEM
De.mem Ltd.
0.10
-0.03
-23.08%

Environmental Group Limited Corporate Events

EGL Appoints Gareth Nicholls as New CFO to Drive Strategic Growth
Jul 13, 2025

The Environmental Group Limited (EGL) has appointed Gareth Nicholls as its new Chief Financial Officer, effective October 6, 2025. Nicholls brings over 20 years of experience in finance, having held senior roles in various sectors, including manufacturing and banking. His expertise in corporate finance and strategic initiatives is expected to drive EGL’s growth and operational efficiency. The appointment aligns with EGL’s strategic goals as Nicholls’ leadership style and values match the company’s culture. Meanwhile, outgoing CFO Andrew Bush will continue part-time as Joint Company Secretary, aiding in the ERP system implementation and ensuring a smooth transition.

The most recent analyst rating on (AU:EGL) stock is a Buy with a A$0.43 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 Secures Landmark PFAS Treatment Plant Contract
Jul 8, 2025

The Environmental Group Limited has secured a $1.9 million contract to design and construct a PFAS treatment plant, marking a significant milestone in the commercial deployment of its proprietary technology. This project underscores the increasing demand for effective PFAS solutions and positions EGL as a leader in environmental technology, with its innovative foam fractionation technology offering a safe and sustainable method for PFAS extraction. The contract aligns with EGL’s strategy to provide scalable infrastructure that addresses environmental challenges, potentially enhancing its market position and stakeholder value.

The most recent analyst rating on (AU:EGL) stock is a Buy with a A$0.43 price target. To see the full list of analyst forecasts on Environmental Group Limited stock, see the AU:EGL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 02, 2025