Environmental Group Limited (EGL) AI Stock Analysis

• Market Cap: AU$104.64M
• Dividend Yield: N/A
• Average Volume (3M): 349.48K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.58
• Revenue Growth: 19.70%
• EPS Growth: 8.70%
• Country: AU
• Employees: 68
• Sector: Utilities
• Sector Strength: 70
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.01
• Shares Outstanding: 380,497,800
• 10 Day Avg. Volume: 692,671
• 30 Day Avg. Volume: 349,479
• PEG Ratio: -1.75
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.61
• 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$0.40
• Price Target Upside: 48.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: AU$0.50 ▲(85.19%Upside)

Environmental Group Limited has a solid financial foundation with robust revenue growth and profitability. However, the stock's technical signals are mixed, and its valuation appears high, potentially limiting upside. The absence of significant earnings call insights or corporate events suggests a stable but cautious outlook.

Environmental Group Limited Business Overview & Revenue Model

Company Description

Environmental Group Limited (EGL) is a leading company in the environmental services sector, focusing on sustainable solutions for waste management, renewable energy, and environmental consultancy. EGL provides a comprehensive range of services including waste collection and recycling, the development and management of renewable energy projects such as wind and solar farms, and consultancy services that help businesses comply with environmental regulations and reduce their carbon footprint.

How the Company Makes Money

EGL 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

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	18.54M	6.17M	10.86M	12.27M
EBITDA	9.34M	5.68M	3.58M	2.92M	-259.00K
Net Income	4.39M	2.61M	1.55M	1.58M	-1.32M
Balance Sheet
Total Assets	74.72M	66.67M	45.13M	34.23M	32.01M
Cash, Cash Equivalents and Short-Term Investments	10.15M	9.37M	1.74M	642.19K	763.96K
Total Debt	5.52M	4.41M	4.25M	4.28M	5.04M
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: 0.27
• 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 0.27 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.13 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 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	69 Neutral	AU$104.64M	27.50	9.28%	―	19.70%	8.70%
DEL	67 Neutral	AU$36.90M	6.87	63.00%	―	333.36%	―
Sector *	57 Neutral	AU$884.67M	4.28	-2.37%	5.40%	21.41%	-109.15%
DEM	54 Neutral	AU$32.28M	―	-22.62%	―	6.37%	20.31%
PET	44 Neutral	AU$15.63M	6.25	-20.47%	―	-77.68%	-9.09%
AEI	41 Neutral	AU$9.59M	―	-203.38%	―	20.00%	17.22%
ECT	27 Underperform	AU$15.84M	―	-122.51%	―	―	26.32%

Environmental Group Limited Corporate Events

EGL Appoints Gareth Nicholls as New CFO to Drive Strategic Growth

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

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.

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.