tiprankstipranks
Trending News
More News >
Emeco Holdings Limited (AU:EHL)
:EHL

Emeco Holdings Limited (EHL) AI Stock Analysis

Compare
11 Followers

Top Page

AU

Emeco Holdings Limited

(OTC:EHL)

Rating:73Outperform
Price Target:
AU$1.00
▲(16.28%Upside)
Emeco Holdings Limited's strong financial performance and attractive valuation are the primary drivers of its stock score. The bullish technical indicators further support the positive outlook, despite concerns about declining revenue and free cash flow.

Emeco Holdings Limited (EHL) vs. iShares MSCI Australia ETF (EWA)

Emeco Holdings Limited Business Overview & Revenue Model

Company DescriptionEmeco Holdings Limited (EHL) is an Australian company specializing in the provision of heavy earthmoving equipment solutions to the mining industry. The company operates in sectors such as mining services, equipment rental, and maintenance, offering an extensive fleet of earthmoving equipment including trucks, dozers, and excavators. Emeco is known for its ability to deliver reliable and safe equipment solutions, customized to meet the specific needs of its clients in the mining sector.
How the Company Makes MoneyEmeco Holdings Limited generates revenue primarily through the rental of its heavy earthmoving equipment to mining companies. This rental model allows clients to access high-quality machinery without the significant capital expenditure associated with purchasing new equipment. The company also earns revenue from maintenance and repair services, ensuring that its fleet remains operational and efficient. Additionally, Emeco may engage in partnerships or collaborations that enhance its service offerings, further contributing to its revenue streams. Key factors contributing to Emeco's earnings include the demand for mining activities, the efficiency and reliability of its equipment, and its ability to adapt to industry needs.

Emeco Holdings Limited Financial Statement Overview

Summary
Emeco Holdings Limited exhibits strong profitability and an efficient capital structure, with improvements in profit margins and return on equity. While the revenue and free cash flow have shown some weakness, the company's ability to manage debt effectively and generate operating cash flow is commendable. Continued focus on revenue growth and free cash flow management will be crucial in maintaining financial health.
Income Statement
75
Positive
Emeco Holdings Limited demonstrated a robust improvement in profitability with a remarkable gross profit margin of 56.4% for 2024, up from 20.5% in 2023. The company also showed a positive net profit margin of 6.4% in 2024, an improvement from 4.7% in 2023. However, the revenue declined by 6% from the previous year, which is a concern. The EBIT margin improved significantly to 43.3% in 2024, indicating efficient cost management.
Balance Sheet
68
Positive
The company's debt-to-equity ratio stands at 0.56, reflecting a stable capital structure with reasonable leverage. The return on equity for 2024 increased to 8.3% from 7% in the prior year, showcasing improved profitability for shareholders. The equity ratio is a healthy 54.2%, indicating strong shareholder equity backing the assets. However, there is a slight increase in total debt, which should be monitored.
Cash Flow
62
Positive
Free cash flow decreased from 2023 to 2024, which might impact future liquidity. The operating cash flow to net income ratio is favorable, indicating strong cash generation from operations relative to reported net income. However, the free cash flow to net income ratio reflects a decline, highlighting challenges in maintaining free cash flow levels.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue775.52M822.73M874.92M754.37M620.53M540.43M
Gross Profit336.98M464.32M179.65M178.91M167.48M165.04M
EBITDA258.84M258.19M224.52M244.31M216.10M223.00M
Net Income66.84M52.66M41.33M64.95M20.70M66.13M
Balance Sheet
Total Assets1.20B1.17B1.09B1.02B1.06B1.16B
Cash, Cash Equivalents and Short-Term Investments110.19M78.27M46.67M60.16M74.72M198.17M
Total Debt352.38M358.74M322.65M301.06M299.21M620.02M
Total Liabilities525.55M537.52M498.98M454.29M528.96M805.63M
Stockholders Equity672.10M637.24M589.44M567.22M531.41M357.25M
Cash Flow
Free Cash Flow54.47M22.22M26.98M50.73M51.46M63.14M
Operating Cash Flow240.37M237.17M206.39M221.15M205.62M181.97M
Investing Cash Flow-176.34M-201.43M-180.88M-169.87M-149.56M-169.85M
Financing Cash Flow-18.28M-4.13M-38.99M-65.69M-179.47M149.82M

Emeco Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.86
Price Trends
50DMA
0.78
Positive
100DMA
0.81
Positive
200DMA
0.83
Positive
Market Momentum
MACD
0.02
Negative
RSI
63.62
Neutral
STOCH
88.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EHL, the sentiment is Positive. The current price of 0.86 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.78, and above the 200-day MA of 0.83, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 88.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EHL.

Emeco Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUGNG
80
Outperform
AU$545.57M14.0258.99%6.13%25.12%31.13%
AUEHL
73
Outperform
AU$444.73M6.5910.65%-11.86%15.29%
AUACF
72
Outperform
€300.26M13.0016.85%9.17%28.56%-19.61%
AUKSC
70
Outperform
AU$452.96M14.758.92%4.83%-6.12%2.79%
AUBOL
68
Neutral
€57.04M2.6118.38%10.70%
AUGNP
67
Neutral
AU$733.36M30.2819.31%0.60%35.02%48.51%
59
Neutral
AU$1.63B9.6011.29%3.70%6.59%5.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EHL
Emeco Holdings Limited
0.86
0.09
12.50%
AU:BOL
Boom Logistics Ltd
1.36
-0.14
-9.33%
AU:ACF
Acrow Formwork and Construction Services Limited
1.02
>-0.01
-0.20%
AU:GNP
GenusPlus Group Ltd.
4.14
2.22
115.63%
AU:KSC
K & S Corporation Limited
3.29
0.28
9.30%
AU:GNG
GR Engineering Services Ltd
3.28
1.32
67.35%

Emeco Holdings Limited Corporate Events

Emeco Holdings Highlights Financial Performance and Strategic Initiatives at Industry Forum
Jun 16, 2025

Emeco Holdings Limited presented at the Euroz Hartleys Industrial & Resources Forum, highlighting its financial performance and strategic initiatives. The presentation emphasized the company’s use of non-IFRS financial measures to assess operational performance, although these figures have not been audited. The company cautioned that forward-looking statements are subject to risks and uncertainties, which could impact future performance.

The most recent analyst rating on (AU:EHL) stock is a Buy with a A$1.05 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Reaffirms FY25 Earnings Guidance Amid Resilient Performance
Jun 16, 2025

Emeco Holdings Limited has reaffirmed its FY25 earnings guidance, projecting an Operating EBITDA target of $300 million. The company has effectively managed costs and leveraged its competitive advantage to mitigate weather-related impacts, maintaining a strong cash return for shareholders. With no growth capex for the year and a focus on equipment redeployment, Emeco is poised to achieve its earnings targets for FY25 and anticipates continued growth in FY26, supported by a lower cost base, reduced debt levels, and positive production activity in the mining sector.

The most recent analyst rating on (AU:EHL) stock is a Buy with a A$1.05 price target. To see the full list of analyst forecasts on Emeco Holdings Limited stock, see the AU:EHL Stock Forecast page.

Emeco Holdings Announces New Address for Share Registry Office
Apr 14, 2025

Emeco Holdings Limited, listed on the ASX under the ticker EHL, has announced a change in the address of its share registry office in Sydney. The registry, managed by MUFG Corporate Markets (AU) Limited, will now be located at Liberty Place, Level 41, 161 Castlereagh St, Sydney NSW 2000. This move is effective from 14 April 2025, while the telephone numbers and postal address remain unchanged. This change is part of the company’s compliance with ASX Listing Rule 3.15.1 and is expected to streamline operations without impacting stakeholders.

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: Jul 04, 2025