GR Engineering Services Ltd (GNG) AI Stock Analysis

• Market Cap: AU$468.59M
• Dividend Yield: 7.14%
• Average Volume (3M): 113.92K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.54
• Revenue Growth: 25.12%
• EPS Growth: 31.13%
• Country: AU
• Employees: 415
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 0.13
• Shares Outstanding: 167,353,470
• 10 Day Avg. Volume: 117,100
• 30 Day Avg. Volume: 113,917
• PEG Ratio: 0.58
• Price to Book (P/B): 6.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.31
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: AU$3.50 ▲(25.00%Upside)

GR Engineering Services Ltd displays strong financial performance with solid profitability and low financial risk, which significantly boosts the stock score. The technical analysis is neutral, indicating the stock is stable but lacks strong bullish momentum. The stock's valuation is attractive with a reasonable P/E ratio and a high dividend yield, making it appealing for income-focused investors.

GR Engineering Services Ltd Business Overview & Revenue Model

Company Description

GR Engineering Services Limited provides engineering, procurement, and construction services to the mining and mineral processing industries in Australia and internationally. The company operates through two segments, Mineral Processing, and Oil & Gas. It offers feasibility studies, such as scoping, pre-feasibility, and definitive level studies, as well as study work and services that include front end engineering design, operations and process optimization, due diligence reviews, asset management system development and monitoring, risk evaluation and hazard/operability studies, technology evaluation and trade-off studies, and refurbishment assessments. The company also provides design and construction of minerals processing facilities and related infrastructure for green fields or brownfield projects, including plant modifications, and upgrades, and expansions; plant evaluation and condition reports; plant operations, and maintenance support and optimization; and plant relocation, refurbishment, and recommissioning, as well as offers owners representatives and teams for project management and delivery. In addition, it provides project management services comprising project studies, engineering and procurement, construction and commissioning, asset management plans and system development, operations and technical support, and infrastructure development services. Further, the company offers engineering and process design consulting services; asset management services; and operations, maintenance, and advisory services to the oil and gas sector. GR Engineering Services Limited was founded in 1986 and is based in Ascot, Australia.

How the Company Makes Money

GR Engineering Services Ltd generates revenue primarily through its engineering and consulting services offered to the mining and resources industries. The company earns money by securing contracts for the design, construction, and management of processing facilities and infrastructure projects. These contracts can vary in scope from small consulting assignments to extensive engineering, procurement, and construction (EPC) projects. The company also benefits from long-term relationships and partnerships with key clients, which often lead to repeat business and ongoing service agreements. Additionally, GR Engineering Services may engage in strategic alliances and joint ventures to enhance its service offerings and market reach, thereby contributing to its revenue streams.

GR Engineering Services Ltd Financial Statement Overview

Summary

GR Engineering Services Ltd exhibits strong financial health with solid profitability, a stable balance sheet, and effective cash flow management. The income statement shows strong margins despite revenue challenges. The balance sheet reflects low financial risk with a low debt-to-equity ratio, and cash flow statements demonstrate effective cash management.

Income Statement

The income statement reflects strong profitability with a notable gross profit margin of 54.8% and a net profit margin of 7.4% for the latest year. The company has experienced fluctuations in revenue, with a decline from 2022 to 2023 and a further decrease in 2024, indicating potential challenges in maintaining consistent growth. However, EBIT and EBITDA margins are robust at 11.8%, indicating efficient management of operating expenses.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.14, reflecting conservative financial leverage and low risk associated with debt. Return on equity stands at 47.0%, showcasing strong profitability relative to shareholder investments. Additionally, the company maintains an equity ratio of 29.3%, indicating a stable capital structure.

Cash Flow

The cash flow statement indicates robust cash generation, with a free cash flow to net income ratio of 0.80 and an impressive operating cash flow to net income ratio of 0.96. Free cash flow has grown significantly year-over-year, demonstrating effective cash management. However, fluctuations in operating and investing cash flows suggest some variability in cash generation activities.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
508.91M	424.06M	551.36M	651.67M	392.39M	222.40M
	Gross Profit
324.34M	232.54M	52.61M	65.77M	40.42M	13.62M
	EBIT
60.82M	43.21M	34.15M	47.56M	29.83M	-13.77M
	EBITDA
61.53M	50.02M	46.20M	55.93M	34.09M	-11.02M
	Net Income Common Stockholders
38.71M	31.18M	27.49M	34.72M	23.24M	-7.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
111.83M	74.65M	86.02M	101.99M	68.97M	37.53M
	Total Assets
236.15M	226.75M	193.96M	235.44M	160.29M	98.92M
	Total Debt
10.79M	9.15M	7.23M	4.26M	8.26M	7.46M
	Net Debt
-101.04M	-65.49M	-78.79M	-97.74M	-60.72M	-30.07M
	Total Liabilities
163.18M	160.43M	134.23M	173.28M	108.65M	64.24M
	Stockholders Equity
72.97M	66.33M	59.73M	62.16M	51.64M	34.68M
Cash Flow		Free Cash Flow
89.13M	24.97M	9.86M	65.81M	47.51M	10.21M
	Operating Cash Flow
95.24M	29.79M	13.27M	69.42M	49.19M	11.24M
	Investing Cash Flow
-9.16M	-8.27M	4.25M	-3.99M	-1.47M	-333.23K
	Financing Cash Flow
-33.38M	-33.51M	-32.94M	-33.13M	-16.35M	-4.95M

GR Engineering Services Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.80
• 50DMA: Negative
• 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:GNG, the sentiment is Neutral. The current price of 2.8 is below the 20-day moving average (MA) of 2.82, below the 50-day MA of 2.82, and above the 200-day MA of 2.42, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:GNG.

GR Engineering Services Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNG	80 Outperform	AU$468.59M	12.04	58.99%	7.14%	25.12%	31.13%
MND	76 Outperform	AU$1.72B	22.86	15.97%	4.13%	11.00%	34.97%
LYL	73 Outperform	$420.16M	9.02	36.14%	4.55%	-1.31%	-18.79%
ANG	70 Outperform	$226.49M	9.08	19.99%	3.84%	17.63%	55.81%
SRG	68 Neutral	AU$908.96M	21.62	11.36%	3.32%	25.40%	41.18%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
DOW	65 Neutral	€4.12B	56.49	3.35%	3.96%	-7.32%	―

GR Engineering Services Ltd Corporate Events

GR Engineering Secures $79 Million Contract for King of the Hills Upgrade

GR Engineering Services Limited has secured a $79 million contract variation for the Stage 2 Upgrade of the King of the Hills Operations in Western Australia, in partnership with Greenstone Resources, a subsidiary of Vault Minerals Limited. This upgrade will enhance the processing plant’s capacity to 7.5 million tonnes per annum, reflecting confidence in GR Engineering’s capabilities and reinforcing its position in the mining services industry.

GR Engineering Secures Black Swan Plant Refurbishment Contract

Horizon Minerals Limited has awarded GR Engineering Services Ltd the contract for engineering studies to refurbish and repurpose the Black Swan processing plant for gold production. This project is a significant step towards Horizon’s goal of becoming a mid-tier gold producer, as it involves providing capital and operating cost estimates with a high degree of accuracy, leveraging GR Engineering’s extensive experience in the industry.

GR Engineering Services Issues New Performance Rights

GR Engineering Services Ltd has announced the issuance of 134,000 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize its employees and align their interests with the company’s growth objectives, potentially impacting its operational performance and stakeholder engagement positively.

GR Engineering Services Reports Strong HY25 Results with Major Project Progress

GR Engineering Services Ltd reported a significant increase in revenue and EBITDA for the first half of the 2025 fiscal year, with revenues reaching $272.1 million and EBITDA at $34.5 million. The company maintains strong project execution levels, with ongoing work on major projects like the Mungari Future Growth Project and the Kainantu Gold Project. Additionally, GR Production Services has enhanced its revenue visibility through contract extensions, while Mipac and Paradigm continue to deliver digital solutions for major global clients. These developments underscore the company’s robust operational performance and strategic positioning in the engineering sector.

GR Engineering Issues Shares to Employees Under Incentive Plan

GR Engineering Services Limited has issued 65,000 fully paid ordinary shares to its employees as part of its 2019 Equity Incentive Plan. This move, executed without investor disclosure under the Corporations Act, reflects the company’s commitment to rewarding its workforce and potentially enhancing employee retention and motivation.