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GR Engineering Services Ltd (AU:GNG)
ASX:GNG
Australian Market

GR Engineering Services Ltd (GNG) AI Stock Analysis

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AU

GR Engineering Services Ltd

(Sydney:GNG)

Rating:80Outperform
Price Target:
AU$3.50
▲(6.71%Upside)
GR Engineering Services Ltd demonstrates strong financial performance and attractive valuation, contributing significantly to its overall score. The technical analysis suggests positive momentum, further supporting the stock's potential. The absence of earnings call and corporate events data does not detract from the favorable assessment.

GR Engineering Services Ltd (GNG) vs. iShares MSCI Australia ETF (EWA)

GR Engineering Services Ltd Business Overview & Revenue Model

Company DescriptionGR Engineering Services Ltd (GNG) is an Australian-based engineering, consulting, and contracting company specializing in the mining and mineral processing industries. The company provides a wide range of services including feasibility studies, engineering design, procurement, construction, and project management. GR Engineering Services is known for its expertise in delivering comprehensive solutions tailored to the unique demands of its clients in the resources sector.
How the Company Makes MoneyGR 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
The company exhibits strong financial health with solid profitability, a stable balance sheet, and effective cash flow management. Despite challenges in revenue growth, robust margins and low financial risk are maintained.
Income Statement
78
Positive
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
85
Very Positive
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
82
Very Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue508.91M424.06M551.36M651.67M392.39M222.40M
Gross Profit324.34M232.54M52.61M65.77M40.42M13.62M
EBITDA61.53M50.02M46.20M55.93M34.09M-11.02M
Net Income38.71M31.18M27.49M34.72M23.24M-7.25M
Balance Sheet
Total Assets236.15M226.75M193.96M235.44M160.29M98.92M
Cash, Cash Equivalents and Short-Term Investments111.83M74.65M86.02M101.99M68.97M37.53M
Total Debt10.79M9.15M7.23M4.26M8.26M7.46M
Total Liabilities163.18M160.43M134.23M173.28M108.65M64.24M
Stockholders Equity72.97M66.33M59.73M62.16M51.64M34.68M
Cash Flow
Free Cash Flow89.13M24.97M9.86M65.81M47.51M10.21M
Operating Cash Flow95.24M29.79M13.27M69.42M49.19M11.24M
Investing Cash Flow-9.16M-8.27M4.25M-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
Positive
Last Price3.28
Price Trends
50DMA
2.94
Positive
100DMA
2.88
Positive
200DMA
2.56
Positive
Market Momentum
MACD
0.10
Negative
RSI
64.48
Neutral
STOCH
88.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GNG, the sentiment is Positive. The current price of 3.28 is above the 20-day moving average (MA) of 3.14, above the 50-day MA of 2.94, and above the 200-day MA of 2.56, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 88.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GNG.

GR Engineering Services Ltd 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%
AUCVL
78
Outperform
AU$600.06M10.1512.62%4.31%15.44%-4.13%
AULYL
77
Outperform
$427.66M9.1836.14%2.89%-1.31%-18.79%
AUDUR
74
Outperform
AU$364.70M16.2437.07%2.42%-1.02%-7.39%
AUGNP
67
Neutral
AU$745.97M30.8019.31%0.60%35.02%48.51%
AUSXE
66
Neutral
€475.94M16.6815.15%2.78%49.23%41.42%
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:GNG
GR Engineering Services Ltd
3.28
1.33
68.21%
AU:SXE
Southern Cross Electrical Engineering Limited
1.79
0.11
6.82%
AU:LYL
Lycopodium Limited
10.82
-1.65
-13.21%
AU:GNP
GenusPlus Group Ltd.
4.14
2.22
115.63%
AU:DUR
Duratec Limited
1.44
0.26
22.03%
AU:CVL
Civmec Singapore Limited Shs Chess Deposit Interests Repr 1 Sh
1.16
0.23
24.73%

GR Engineering Services Ltd Corporate Events

GR Engineering Services Launches Dividend Reinvestment Plan
Jul 1, 2025

GR Engineering Services Limited has announced the implementation of a Dividend Reinvestment Plan (DRP) for its shareholders, starting with the FY25 Final Dividend. This plan allows shareholders to reinvest their dividends into additional shares without incurring transaction costs, potentially enhancing shareholder value and engagement. The DRP is optional and available to shareholders in Australia and New Zealand, with GR Engineering encouraging eligible participants to make their election online.

GR Engineering Services Ltd Announces Cessation of Performance Rights
Jun 26, 2025

GR Engineering Services Ltd announced the cessation of 20,000 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may affect the company’s capital structure and could have implications for stakeholders, reflecting on the company’s performance metrics and future incentive plans.

AIC Mines Awards Contract for Eloise Plant Expansion
Jun 20, 2025

AIC Mines has awarded an engineering, procurement, and construction contract to GR Engineering Services for the expansion of the Eloise processing facility to a 1.1Mtpa throughput capacity at a fixed cost of $77.6 million. The expansion is designed to minimize disruption to current operations and is scheduled to begin construction in October 2025, with commissioning expected by December 2026. This expansion aligns with the ramp-up in production at the Jericho deposit and is forecasted to increase annual copper production to over 20,000tpa by FY28.

GR Engineering Secures $79 Million Contract for King of the Hills Upgrade
Jun 5, 2025

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
Apr 7, 2025

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.

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