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Environmental Group Limited (AU:EGL)
:EGL
Australian Market

Environmental Group Limited (EGL) AI Stock Analysis

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AU

Environmental Group Limited

(Sydney:EGL)

Rating:68Neutral
Price Target:
AU$0.50
▲(92.31%Upside)
Environmental Group Limited shows strong financial fundamentals with robust revenue growth and efficient profitability, which are significant positive factors. Technical analysis indicates stable price trends with potential for upward movement. However, the valuation suggests moderate attractiveness, primarily due to the high P/E ratio and absence of dividend yield.

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 MoneyEnvironmental 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
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue105.78M97.88M82.34M56.70M44.22M36.92M
Gross Profit30.19M28.89M18.54M6.17M10.86M12.27M
EBITDA6.85M9.34M5.68M3.58M2.92M-259.00K
Net Income3.76M4.39M2.61M1.55M1.58M-1.32M
Balance Sheet
Total Assets76.07M74.72M66.67M45.13M34.23M32.01M
Cash, Cash Equivalents and Short-Term Investments8.02M10.15M9.37M1.74M642.19K763.96K
Total Debt5.34M5.52M4.41M4.25M4.28M5.04M
Total Liabilities33.61M33.78M30.27M20.00M16.26M17.73M
Stockholders Equity42.46M40.94M36.40M25.13M17.98M14.37M
Cash Flow
Free Cash Flow3.15M3.17M4.59M-297.76K384.46K995.62K
Operating Cash Flow3.43M4.21M5.24M184.54K852.87K1.14M
Investing Cash Flow-709.95K-1.07M-4.08M-1.93M-341.51K-144.25K
Financing Cash Flow-2.37M-2.36M6.47M2.84M-565.28K-402.79K

Environmental Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.26
Price Trends
50DMA
0.25
Positive
100DMA
0.24
Positive
200DMA
0.28
Negative
Market Momentum
MACD
<0.01
Positive
RSI
52.66
Neutral
STOCH
39.68
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 0.26 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.25, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 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

Overall Rating
UnderperformOutperform
Sector (72)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€13.24B44.9212.20%4.27%2.01%5.74%
AUEGL
68
Neutral
AU$97.03M25.509.28%19.70%8.70%
AUDEL
62
Neutral
AU$37.45M7.0063.00%333.36%
AUDEM
54
Neutral
AU$28.42M-22.62%6.37%20.31%
AUPET
44
Neutral
AU$15.63M6.25-20.47%-77.68%-9.09%
AUAEI
41
Neutral
AU$9.10M-203.38%20.00%17.22%
AUECT
27
Underperform
AU$11.86M-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
0.14
466.67%
AU:AEI
Aeris Environmental Ltd
0.04
-0.02
-33.33%
AU:ECT
Environmental Clean Technologies Limited
AU:DEM
De.mem Ltd.
0.11
>-0.01
-8.33%

Environmental Group Limited Corporate Events

Environmental Group Limited Issues New Performance Rights
Apr 28, 2025

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
Apr 14, 2025

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
Apr 4, 2025

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
Apr 3, 2025

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
Apr 2, 2025

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
Mar 31, 2025

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.

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: Jun 11, 2025