Emeco Holdings Limited (EHL) AI Stock Analysis

• Market Cap: $539.85M
• Dividend Yield: N/A
• Average Volume (3M): 703.15K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.91
• Revenue Growth: -4.54%
• EPS Growth: 43.24%
• Country: AU
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 73
• Industry: Rental & Leasing Services
• EPS (TTM): 0.00
• Shares Outstanding: 518,374,760
• 10 Day Avg. Volume: 941,441
• 30 Day Avg. Volume: 703,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 1.86
• Enterprise Value/Ebitda: 2.21
• 1Y Price Target: $1.22
• Price Target Upside: 17.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: AU$1.00 ▼(-3.85% Downside)

Emeco Holdings Limited's strong financial performance and undervaluation are the primary drivers of its stock score. The company's robust cash flow and efficient operational management support its financial stability. Technical indicators show bullish momentum, although caution is advised due to overbought signals. The absence of earnings call and corporate events data does not impact the overall score.

Emeco Holdings Limited Business Overview & Revenue Model

Company Description

Emeco Holdings Limited provides heavy earthmoving equipment and mining service solutions in Australia. The company rents trucks, excavators, dozers, loaders, and graders. It is also involved in the maintenance and remanufacturing of various components of heavy earthmoving equipment; mechanical and boilermaker repair services; and sandblasting and painting services. The company was founded in 1972 and is headquartered in Perth, Australia.

How the Company Makes Money

Emeco Holdings Limited makes money primarily through its equipment rental services, where it leases heavy earthmoving machinery to mining companies. The company generates significant revenue by offering both short-term and long-term equipment rental agreements, tailored to the specific needs of its clients. Additionally, Emeco provides maintenance and repair services, ensuring the optimal performance of its fleet, which is another key revenue stream. The company also benefits from asset management and fleet optimization services, helping clients improve operational efficiencies. Strategic partnerships with mining operators and a focus on high-utilization regions further contribute to Emeco's earnings, enhancing its market position and driving revenue growth.

Emeco Holdings Limited Financial Statement Overview

Summary

Emeco Holdings Limited exhibits a solid financial position with strong revenue growth and operational efficiency. The company has effectively managed its leverage and improved its equity position. Cash flow generation is robust, supporting future growth and stability. Continued focus on enhancing profitability and managing debt levels will be crucial for sustaining long-term success.

Income Statement

Emeco Holdings Limited has shown a consistent revenue growth trajectory over the years, with a notable increase in revenue in the latest period. The gross profit margin has improved, indicating efficient cost management. However, the net profit margin, while improving, remains moderate, suggesting room for enhancing profitability. The EBIT and EBITDA margins are strong, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating a reduction in leverage and a stronger equity position. Return on equity has shown positive trends, reflecting effective use of shareholder funds. The equity ratio is stable, suggesting a balanced asset structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Emeco Holdings has demonstrated strong cash flow management, with significant growth in free cash flow in the latest period. The operating cash flow to net income ratio is robust, indicating efficient cash generation from operations. The free cash flow to net income ratio is healthy, supporting the company's ability to reinvest and manage debt.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	785.35M	785.35M	822.73M	874.92M	754.37M	620.53M
Gross Profit	342.29M	455.96M	464.32M	179.65M	178.91M	167.48M
EBITDA	287.99M	290.35M	258.19M	224.52M	244.31M	216.10M
Net Income	75.14M	75.14M	52.66M	41.33M	64.95M	20.70M
Balance Sheet
Total Assets	1.25B	1.25B	1.17B	1.09B	1.02B	1.06B
Cash, Cash Equivalents and Short-Term Investments	126.36M	126.36M	78.27M	46.67M	60.16M	74.72M
Total Debt	321.33M	321.33M	358.74M	322.65M	301.06M	299.21M
Total Liabilities	532.18M	532.18M	537.52M	498.98M	454.29M	528.96M
Stockholders Equity	714.82M	714.82M	637.24M	589.44M	567.22M	531.41M
Cash Flow
Free Cash Flow	92.00M	92.00M	22.22M	26.98M	50.73M	51.46M
Operating Cash Flow	253.78M	253.78M	237.17M	206.39M	221.15M	205.62M
Investing Cash Flow	-149.18M	-149.18M	-201.43M	-180.88M	-169.87M	-149.56M
Financing Cash Flow	-56.50M	-56.50M	-4.13M	-38.99M	-65.69M	-179.47M

Emeco Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.04 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 0.92, and above the 200-day MA of 0.86, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 68.93 is Neutral, neither overbought nor oversold. The STOCH value of 48.91 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EHL	73 Outperform	$539.85M	7.15	10.86%	―	-4.54%	43.24%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
59Y	―	€176.41M	12.53	16.13%	―	―	―
GJY	―	€30.46M	2.18	19.72%	―	―	―
KSC	71 Outperform	AU$465.28M	15.93	8.00%	4.71%	-9.67%	-6.49%
GNG	70 Outperform	AU$689.83M	20.14	50.61%	5.33%	12.96%	8.19%
GNP	67 Neutral	AU$919.86M	25.84	25.18%	0.48%	36.30%	82.20%

Emeco Holdings Limited Corporate Events

Emeco Holdings Highlights Financial Performance and Strategic Initiatives at Industry Forum

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

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.