GR Engineering Services Ltd (GNG) AI Stock Analysis

• Market Cap: AU$647.01M
• Dividend Yield: 5.7%
• Average Volume (3M): 261.61K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.75
• Revenue Growth: 12.96%
• EPS Growth: 8.19%
• Country: AU
• Employees: 415
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.07
• Shares Outstanding: 167,619,900
• 10 Day Avg. Volume: 244,353
• 30 Day Avg. Volume: 261,605
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$4.50
• Price Target Upside: 16.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: AU$4.50 ▲(16.58% Upside)

GR Engineering Services Ltd demonstrates strong financial performance with robust profitability and low leverage, which is the most significant factor in its overall score. The technical analysis supports a positive outlook with bullish momentum. Valuation metrics indicate a fair price with an attractive dividend yield, contributing to the stock's appeal.

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 through its engineering, procurement, and construction management (EPCM) contracts with clients primarily in the mining and mineral processing sectors. The company's revenue model is based on providing tailored engineering solutions and project management services that help clients improve their operational efficiencies and reduce costs. This includes executing feasibility studies, designing and constructing mineral processing facilities, and providing ongoing support and maintenance services. Key revenue streams include contract fees for project management and engineering services, as well as commissions from successfully completed projects. Additionally, strategic partnerships with technology providers and equipment manufacturers enhance the company's service offerings and contribute to its earnings by enabling GNG to deliver integrated solutions to its clients.

GR Engineering Services Ltd Financial Statement Overview

Summary

GR Engineering Services Ltd exhibits strong profitability and financial stability, with impressive margins and low leverage. However, the company faces challenges in revenue growth and cash flow volatility. Continued focus on revenue expansion and cash flow management will be crucial for sustaining long-term growth.

Income Statement

GR Engineering Services Ltd has demonstrated strong profitability with a consistent gross profit margin above 50% in recent years, indicating effective cost management. However, the company has faced challenges in revenue growth, with a decline of 5.87% in the latest year. Despite this, net profit margins have remained stable, reflecting efficient operations.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.13, suggesting low leverage and financial stability. Return on equity is impressive at nearly 50%, indicating strong profitability relative to shareholder investments. However, the equity ratio is moderate, suggesting room for improvement in asset management.

Cash Flow

While operating cash flow has been positive, the free cash flow growth rate has been volatile, with a significant decline of nearly 60% in the latest year. The operating cash flow to net income ratio is relatively low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains strong, suggesting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	479.02M	479.02M	424.06M	551.36M	651.67M	392.39M
Gross Profit	166.03M	254.86M	232.54M	52.61M	65.77M	40.42M
EBITDA	56.35M	55.44M	50.02M	46.20M	55.93M	34.09M
Net Income	34.21M	34.21M	31.18M	27.49M	34.72M	23.24M
Balance Sheet
Total Assets	192.51M	192.51M	226.75M	193.96M	235.44M	160.29M
Cash, Cash Equivalents and Short-Term Investments	70.96M	70.96M	74.65M	86.02M	101.99M	68.97M
Total Debt	9.18M	9.18M	9.15M	7.23M	4.26M	8.26M
Total Liabilities	123.66M	123.66M	160.43M	134.23M	173.28M	108.65M
Stockholders Equity	68.85M	68.85M	66.33M	59.73M	62.16M	51.64M
Cash Flow
Free Cash Flow	34.49M	35.84M	24.97M	9.86M	65.81M	47.51M
Operating Cash Flow	36.86M	38.21M	29.79M	13.27M	69.42M	49.19M
Investing Cash Flow	-3.02M	-3.02M	-8.27M	4.25M	-3.99M	-1.47M
Financing Cash Flow	-37.34M	-38.69M	-33.51M	-32.94M	-33.13M	-16.35M

GR Engineering Services Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.86
• 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 Positive. The current price of 3.86 is below the 20-day moving average (MA) of 3.94, below the 50-day MA of 3.96, and above the 200-day MA of 3.05, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 46.33 is Neutral, neither overbought nor oversold. The STOCH value of 45.06 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUR	76 Outperform	AU$527.76M	22.53	30.71%	2.07%	3.10%	5.08%
LYL	75 Outperform	AU$464.35M	11.08	27.80%	2.97%	-3.08%	-16.35%
GNP	73 Outperform	AU$1.14B	31.91	22.14%	0.40%	36.30%	82.20%
SXE	71 Outperform	AU$533.88M	16.76	15.48%	3.73%	45.23%	43.94%
GNG	70 Outperform	AU$647.01M	18.87	50.61%	5.70%	12.96%	8.19%
CVL	66 Neutral	AU$706.85M	16.61	8.01%	4.32%	-21.57%	-34.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

GR Engineering Services Ltd Corporate Events

GR Engineering Services Launches Dividend Reinvestment Plan

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

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

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

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.