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Engenco Limited (AU:EGN)
ASX:EGN

Engenco Limited (EGN) AI Stock Analysis

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AU

Engenco Limited

(Sydney:EGN)

Rating:66Neutral
Price Target:
Engenco Limited exhibits a stable financial foundation with strong revenue and profit margins, though there is room for improvement in profitability and cash flow. The technical analysis indicates a robust upward trend, supporting positive investor sentiment. The valuation is slightly high, but the dividend yield offers a compensating factor for investors. Overall, the stock is positioned well with a solid financial base and positive technical indicators.

Engenco Limited (EGN) vs. iShares MSCI Australia ETF (EWA)

Engenco Limited Business Overview & Revenue Model

Company DescriptionEngenco Limited (EGN) is an Australian-based company that provides a diverse range of products and services primarily to the transportation, resources, and defense sectors. The company operates through several divisions, including rail and road maintenance, workforce solutions, and power and propulsion systems. Engenco's core offerings include rail and road maintenance services, locomotive and wagon leasing, technical training, and engineering solutions, serving clients across Australia and internationally.
How the Company Makes MoneyEngenco Limited generates revenue through multiple streams across its various divisions. The company earns income from its rail and road maintenance services, which include the repair and refurbishment of locomotives and wagons, as well as track maintenance. Leasing locomotives and wagons to customers in the rail industry also contributes significantly to Engenco's revenue. Additionally, the company's workforce solutions division provides technical training and labor hire services, generating fees from both training programs and temporary staffing solutions. In the power and propulsion systems segment, Engenco supplies and services diesel and gas engines, deriving revenue from the sale of engines, parts, and maintenance services. Strategic partnerships with industry leaders and long-term service contracts are key factors that bolster Engenco's earnings.

Engenco Limited Financial Statement Overview

Summary
Engenco Limited displays a stable financial position with solid revenue and profit margins. While there is room for improvement in profitability and cash flow metrics, the company's balance sheet remains strong with a healthy equity position. The overall financial health is stable with positive cash flow growth, but attention to profitability and cost management is advised.
Income Statement
65
Positive
Engenco Limited has shown stable revenue over the years with a slight decline in the latest period. The gross profit margin improved significantly in 2024 compared to 2023, indicating better cost management. However, net profit margin decreased, suggesting increased expenses or lower net income. EBIT and EBITDA margins are moderate, indicating stable operational efficiency.
Balance Sheet
70
Positive
The company maintains a strong equity position with a healthy equity ratio, suggesting financial stability. The debt-to-equity ratio is moderate, indicating balanced leverage. Return on equity has decreased, reflecting lower profitability relative to equity. Overall, the balance sheet is stable with a solid equity foundation.
Cash Flow
60
Neutral
Engenco Limited's free cash flow has grown significantly in 2024, indicating improved cash generation abilities. The operating cash flow to net income ratio is strong, showing good cash conversion. However, the free cash flow to net income ratio is moderate, suggesting room for optimization in capital expenditures or operational adjustments.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue211.30M214.85M217.08M188.64M165.58M177.99M
Gross Profit102.98M106.39M25.21M21.37M19.30M23.72M
EBITDA12.80M15.68M14.06M14.77M14.55M18.53M
Net Income4.84M3.93M6.44M5.67M11.96M13.42M
Balance Sheet
Total Assets192.88M190.50M174.72M152.04M146.36M143.60M
Cash, Cash Equivalents and Short-Term Investments12.42M18.99M8.48M4.75M12.09M14.45M
Total Debt28.88M38.53M30.75M19.56M21.01M22.72M
Total Liabilities94.56M93.56M79.93M58.26M52.03M55.01M
Stockholders Equity104.15M102.76M100.62M99.61M100.16M94.42M
Cash Flow
Free Cash Flow17.75M17.06M205.00K6.83M4.97M277.00K
Operating Cash Flow27.66M25.10M2.99M10.56M14.55M14.09M
Investing Cash Flow-9.84M-7.91M-2.45M-6.53M-5.65M-12.68M
Financing Cash Flow-13.89M-6.69M3.19M-11.37M-10.94M-10.69M

Engenco Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.29
Positive
100DMA
0.27
Positive
200DMA
0.22
Positive
Market Momentum
MACD
<0.01
Positive
RSI
54.30
Neutral
STOCH
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EGN, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.29, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EGN.

Engenco Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUEGN
66
Neutral
$96.38M19.934.72%3.28%-6.22%-48.14%
AUVEE
65
Neutral
AU$122.38M27.118.82%0.53%9.97%-22.07%
AUVEE
65
Neutral
AU$122.38M27.118.82%0.53%9.97%-22.07%
AUCLX
65
Neutral
AU$144.98M9.1112.68%5.55%6.34%8.63%
AUCLX
65
Neutral
AU$144.98M9.1112.68%5.55%6.34%8.63%
64
Neutral
kr59.14B13.551.96%8.09%-0.10%-4.87%
AUCYG
63
Neutral
AU$97.22M156.730.29%4.60%1.00%-16.13%
AUCYG
63
Neutral
AU$97.22M156.730.29%4.60%1.00%-16.13%
AUKLS
62
Neutral
AU$1.03B20.425.35%4.22%22.28%50.12%
AUKLS
62
Neutral
AU$1.03B20.425.35%4.22%22.28%50.12%
AUSLH
54
Neutral
AU$172.88M22.84-1.11%1.34%11.01%-106.43%
AUSLH
54
Neutral
AU$172.88M22.84-1.11%1.34%11.01%-106.43%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EGN
Engenco Limited
0.30
0.12
66.67%
AU:CYG
Coventry Group Limited
0.72
-0.57
-44.19%
AU:CYG
Coventry Group Limited
0.72
-0.57
-44.19%
AU:CLX
CTI Logistics Limited
1.80
0.53
41.73%
AU:CLX
CTI Logistics Limited
1.80
0.53
41.73%
AU:VEE
Veem Ltd
0.84
-0.88
-51.16%
AU:VEE
Veem Ltd
0.84
-0.88
-51.16%
AU:SLH
Silk Logistics Holdings Ltd.
2.11
0.80
61.07%
AU:SLH
Silk Logistics Holdings Ltd.
2.11
0.80
61.07%
AU:KLS
Kelsian Group Limited
3.78
-0.93
-19.75%

Engenco Limited Corporate Events

Engenco Limited to be Delisted from ASX Following Acquisition
Jul 2, 2025

Engenco Limited, listed on the ASX under the ticker EGN, is set to be removed from the Official List following the compulsory acquisition of its remaining securities by Elph Investments Pty Ltd. This delisting marks a significant change in Engenco’s market presence as it transitions away from public trading, potentially impacting its stakeholders and altering its strategic direction.

Elphinstone Group Increases Stake in Engenco Limited
Jun 25, 2025

Engenco Limited has experienced a change in the interests of its substantial holder, the Elphinstone Group, which now holds 96.77% of the voting power in the company, up from 95.57%. This increase in voting power is a result of the Elphinstone Group’s acquisition of additional shares through an off-market takeover bid by Elph Investments Pty Ltd, indicating a consolidation of control and potentially impacting Engenco’s strategic direction and stakeholder interests.

Engenco Limited Faces Delisting as Elph Investments Takes Over
Jun 23, 2025

Engenco Limited is facing a significant change as Elph Investments Pty Ltd has acquired a 95.57% stake in the company and plans to compulsorily acquire the remaining shares. This move will lead to the suspension of Engenco’s trading on the ASX on 27 June 2025, followed by its delisting. Shareholders are encouraged to accept the offer before the deadline to ensure timely payment.

Engenco Limited Director Increases Shareholding
Jun 23, 2025

Engenco Limited has announced a change in the director’s interest, specifically regarding Dale Brendan Elphinstone. The director, through Elph Pty Ltd and Elph Investments Pty Ltd, acquired an additional 15,584,811 ordinary shares, bringing the total to 302,000,934 shares. This acquisition was made under a takeover bid by Elph Investments Pty Ltd, potentially impacting the company’s shareholding structure and market perception.

Elphinstone Group Increases Stake in Engenco Limited
Jun 22, 2025

Engenco Limited has experienced a change in the interests of its substantial holder, the Elphinstone Group, which now holds a 95.57% voting power in the company, up from 92.68%. This increase is due to the acquisition of additional shares through an off-market takeover bid by Elph Investments Pty Ltd, part of the Elphinstone Group, which could significantly impact Engenco’s operational control and strategic direction.

Elph Investments Advances with Compulsory Acquisition of Engenco
Jun 20, 2025

Elph Investments Pty Ltd has initiated a compulsory acquisition of all ordinary shares in Engenco Limited, following its off-market takeover bid. This move is part of a strategic acquisition process under the Corporations Act 2001, aiming to consolidate Elph Investments’ control over Engenco. The compulsory acquisition notice has been lodged with ASIC and will be communicated to Engenco shareholders, marking a significant step in the takeover process.

Elph Investments Secures Control in Engenco Takeover
Jun 20, 2025

Elph Investments Pty Ltd has announced an off-market takeover bid for Engenco Limited, a company listed on the Australian Securities Exchange. The bid aims to acquire all ordinary shares of Engenco, and as of the latest update, Elph Investments has gained 93.20% voting power in Engenco, making the offer unconditional. This move signifies a significant consolidation of control by Elph Investments over Engenco, potentially impacting the company’s strategic direction and stakeholder interests.

Elph Investments’ Unconditional Takeover of Engenco
Jun 20, 2025

Engenco Limited has announced that Elph Investments Pty Ltd has made an unconditional takeover offer for Engenco shares at 31 cents per share, acquiring a 92.68% interest. Engenco’s directors recommend shareholders accept the offer before the compulsory acquisition process begins, with the offer closing on June 27, 2025. The Employee Share Purchase Plan restrictions have been lifted to allow holders to accept the offer.

Engenco Limited Announces Change in Substantial Holding
Jun 19, 2025

Engenco Limited has announced a change in the substantial holding of its voting securities. This change reflects a shift in the relevant interests and associations of substantial holders, impacting the company’s shareholder structure. The announcement may have implications for the company’s governance and control, potentially affecting stakeholders’ interests.

Elphinstone Group Increases Stake in Engenco Limited
Jun 18, 2025

Engenco Limited has seen a change in the interests of its substantial holder, the Elphinstone Group, which now holds a 92.68% voting power in the company, up from 90.64%. This increase in voting power follows the acquisition of additional shares through an off-market takeover bid by Elph Investments Pty Ltd, indicating a consolidation of control by the Elphinstone Group, which could impact the company’s strategic direction and stakeholder interests.

Elph Investments’ Takeover Bid for Engenco Now Unconditional
Jun 18, 2025

Elph Investments Pty Ltd has announced that its off-market takeover bid for Engenco Limited is now unconditional, as all defeating conditions have been removed. The offer, which aims to acquire all ordinary shares of Engenco, is set to close on June 27, 2025, unless extended or withdrawn, with Elph Investments currently holding a 91.74% voting power in Engenco.

Engenco Director Increases Shareholding
Jun 17, 2025

Engenco Limited has announced a significant change in the director’s interest, with Dale Brendan Elphinstone increasing his indirect shareholding through Elph Pty Ltd and Elph Investments Pty Ltd. The director acquired 58,073,798 ordinary shares at a takeover offer price of 31.0 cents per share, bringing his total holdings to 286,416,123 shares. This move reflects a strategic consolidation of shares under the takeover bid by Elph Investments Pty Ltd, potentially strengthening the director’s influence and control within the company.

Elphinstone Group Increases Stake in Engenco Limited
Jun 16, 2025

Engenco Limited has seen a change in the substantial holding of its shares, primarily through acquisitions by the Elphinstone Group. The Elphinstone Group, through Elph Investments Pty Ltd, has increased its voting power in Engenco from 88.98% to 90.64% following an off-market takeover bid. This change in shareholding could potentially strengthen the Elphinstone Group’s influence over Engenco’s strategic decisions and operations, impacting stakeholders and the company’s market positioning.

Engenco Directors Recommend Acceptance of Increased Takeover Offer
Jun 13, 2025

Engenco Limited has received an increased all-cash offer from Elph Investments Pty Ltd for its shares, raising the price from 30.5 cents to 31 cents per share. The Recommending Directors of Engenco have unanimously advised shareholders to accept this offer, citing its attractive premium over previous trading prices, the low likelihood of a higher competing offer, and the benefits of liquidity in a market with limited trading activity. With Elph Investments’ interest in Engenco shares nearing the threshold for compulsory acquisition, shareholders are encouraged to accept the offer to avoid the risks associated with remaining minority shareholders.

Elph Investments Increases Stake in Engenco Limited
Jun 12, 2025

Elph Investments Pty Ltd, part of the Elphinstone Group, has increased its stake in Engenco Limited, a company in which it already held a substantial interest. The group’s voting power in Engenco has risen from 83.10% to 88.98% following the acquisition of additional shares through an off-market takeover bid. This increase in ownership consolidates Elphinstone Group’s control over Engenco, potentially impacting the company’s strategic direction and stakeholder interests.

Elph Investments Increases Stake in Engenco Limited
Jun 11, 2025

Elph Investments Pty Ltd, part of the Elphinstone Group, has increased its voting power in Engenco Limited from 72.01% to 83.10% through an acquisition of additional shares. This change in substantial holding reflects Elph Investments’ strategic move to consolidate its influence within Engenco, potentially impacting the company’s governance and strategic direction.

Engenco Limited Director Increases Shareholding
Jun 10, 2025

Engenco Limited has announced a change in the director’s interest notice involving Dale Brendan Elphinstone. The director, through Elph Pty Ltd and Elph Investments Pty Ltd, acquired 2,645,881 ordinary shares under a takeover bid, increasing his total holdings to 226,321,421 shares. This change reflects shareholder acceptances under the takeover bid by Elph Investments Pty Ltd, indicating a strategic move to consolidate ownership.

Elph Investments Increases Stake in Engenco Limited
Jun 5, 2025

Elph Investments Pty Ltd, along with its associated entities within the Elphinstone Group, has increased its voting power in Engenco Limited from 70.67% to 72.01%. This change follows the acceptance of an off-market takeover bid, which involved the acquisition of 4,225,781 ordinary shares at $0.31 per share. This increase in voting power strengthens the Elphinstone Group’s influence over Engenco Limited, potentially impacting the company’s strategic direction and decision-making processes.

Elph Investments Raises Offer for Engenco Limited Takeover
Jun 4, 2025

Elph Investments Pty Ltd has announced an increase in its offer price for the off-market takeover bid of Engenco Limited, raising the price from $0.305 to $0.31 per share. This final offer price aims to acquire all ordinary shares of Engenco, and the increase reflects Elph’s commitment to securing the acquisition, potentially impacting Engenco’s market position and shareholder value.

Engenco Limited Announces Director’s Share Acquisition
May 30, 2025

Engenco Limited has announced a change in the director’s interest, specifically involving Dale Brendan Elphinstone. The director, through Elph Pty Ltd and Elph Investments Pty Ltd, acquired 2,147,659 ordinary shares, increasing his total holding to 223,675,540 shares. This acquisition was part of a takeover bid by Elph Investments Pty Ltd, reflecting strategic moves within the company to consolidate ownership.

Elph Investments Extends Takeover Bid for Engenco Limited
May 23, 2025

Elph Investments Pty Ltd has announced an extension of its off-market takeover bid for all ordinary shares in Engenco Limited, a company listed on the ASX. The offer period has been extended to 7:00pm on 27 June 2025, providing more time for shareholders to consider the proposal. This extension may impact Engenco’s market position and shareholder decisions, as the terms of the offer remain unchanged.

Engenco Director Increases Shareholding Through Elph Investments
May 19, 2025

Engenco Limited has announced a change in the director’s interest, with Dale Brendan Elphinstone increasing his indirect shareholding through Elph Investments Pty Ltd. The acquisition of 3,756,093 ordinary shares was made at a takeover offer price of 30.5 cents per share, raising his total shareholding to 221,527,881 shares. This move signifies a consolidation of ownership under Elph Investments Pty Ltd, potentially strengthening the company’s strategic positioning and stability.

Elphinstone Group Increases Stake in Engenco Limited
May 16, 2025

Engenco Limited has seen a change in the interests of its substantial holder, the Elphinstone Group, which includes Elph Investments Pty Ltd and other associated entities. The Elphinstone Group has increased its voting power in Engenco from 69.56% to 70.67% through the acquisition of additional shares as part of an off-market takeover bid. This change in voting power could potentially strengthen the Elphinstone Group’s influence over Engenco’s strategic decisions and operations.

Elph Investments Increases Stake in Engenco Limited
May 13, 2025

Elph Investments Pty Ltd, part of the Elphinstone Group, has increased its voting power in Engenco Limited, a company in which it holds a substantial interest. The group’s voting power has risen from 68.53% to 69.56% following the acquisition of additional shares through an off-market takeover bid. This change in voting power indicates a strengthening of Elph Investments’ influence over Engenco, potentially impacting the company’s strategic decisions and stakeholder interests.

Engenco Limited Director Increases Shareholding Amid Takeover Bid
May 13, 2025

Engenco Limited has announced a change in the director’s interest, with Dale Brendan Elphinstone acquiring an additional 2,020,904 ordinary shares through Elph Investments Pty Ltd, bringing his total to 219,792,692 shares. This acquisition, part of a takeover bid, reflects a strategic move that could influence the company’s market positioning and stakeholder interests.

Engenco Responds to Elph Investments’ Takeover Bid
May 9, 2025

Engenco Limited has issued a Target’s Statement in response to a takeover bid by Elph Investments Pty Ltd for all issued shares. The Recommending Directors suggest shareholders accept the offer if they plan to sell soon, as it offers a premium over recent trading prices, and a competing bid is unlikely. However, they advise rejecting the offer if shareholders wish to retain their shares for potential long-term value despite associated risks. An Independent Expert’s Report finds the offer reasonable but not fair, valuing shares slightly higher than the offer price.

Engenco Limited Updates FY25 Outlook Amid Production Challenges
May 9, 2025

Engenco Limited has updated its FY25 outlook, indicating that financial performance will remain positive but will not improve compared to FY24. This is due to challenges faced by its Gemco Rail business unit in meeting production targets and lower than anticipated bearing sales. The company expects FY25 net profit after tax to align with FY24. Despite these challenges, Engenco maintains a strong pipeline for its rail business, with plans to commence the manufacture of iron ore wagons in Karratha in FY26. Drivetrain is also broadening its service offerings to increase future workshop activity.

Engenco Limited Rectifies Administrative Oversight with Compliance Assurance
May 6, 2025

Engenco Limited has addressed an administrative oversight by releasing the Appendix 3X for Ms. Kelly Elphinstone, who was appointed to the Board of Directors on September 19, 2022. The company assures stakeholders that it has the necessary compliance systems in place to adhere to the ASX Listing Rule 3.19A, reflecting its commitment to transparency and regulatory adherence.

Engenco Limited Announces Director’s Interest Change
May 5, 2025

Engenco Limited announced a change in the director’s interest, specifically involving Dale Brendan Elphinstone. The change was due to shareholder acceptances under a takeover bid by Elph Investments Pty Ltd, resulting in an acquisition of 1,217,081 ordinary shares at a takeover offer price of 30.5 cents per share. This change increases the total number of securities held by the director to 217,771,788 shares.

Engenco Limited Receives Takeover Offer from Elph Investments
Apr 30, 2025

Engenco Limited has received an off-market takeover offer from Elph Investments Pty Ltd, part of the Elphinstone Group, to acquire all ordinary shares at $0.305 per share. The Elphinstone Group already holds a significant stake in Engenco, and a special committee of independent directors has been formed to evaluate the offer. The offer is contingent upon several conditions, including Elph Investments acquiring a relevant interest in over 92.13% of Engenco shares. Engenco plans to issue a Target’s Statement with recommendations and an independent expert’s opinion by mid-May. Until then, shareholders are advised to take no action.

Elph Investments Launches Takeover Bid for Engenco Limited
Apr 7, 2025

Engenco Limited, a company involved in engineering and logistics services, is the subject of an off-market takeover bid by Elph Investments Pty Ltd, part of the Elphinstone Group. The Elphinstone Group has maintained its substantial holding in Engenco, with a slight decrease in voting power from 68.64% to 68.53%. The takeover bid aims to acquire all ordinary shares of Engenco not already owned by Elph Investments Pty Ltd, potentially impacting the company’s control and strategic direction.

Elph Investments Launches Takeover Bid for Engenco Limited
Apr 7, 2025

Elph Investments Pty Ltd has launched an off-market takeover bid for all ordinary shares of Engenco Limited, a company listed on the Australian Securities Exchange. The bidder’s statement for this takeover was lodged with the Australian Securities and Investments Commission and sent to Engenco, marking a significant step in the acquisition process.

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: Apr 08, 2025