tiprankstipranks
Trending News
More News >
GR Engineering Services Ltd (AU:GNG)
:GNG
Australian Market

GR Engineering Services Ltd (GNG) AI Stock Analysis

Compare
35 Followers

Top Page

AU

GR Engineering Services Ltd

(Sydney:GNG)

Rating:80Outperform
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 (GNG) vs. iShares MSCI Australia ETF (EWA)

GR Engineering Services Ltd Business Overview & Revenue Model

Company DescriptionGR 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 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
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
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.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
508.91M424.06M551.36M651.67M392.39M222.40M
Gross Profit
324.34M232.54M52.61M65.77M40.42M13.62M
EBIT
60.82M43.21M34.15M47.56M29.83M-13.77M
EBITDA
61.53M50.02M46.20M55.93M34.09M-11.02M
Net Income Common Stockholders
38.71M31.18M27.49M34.72M23.24M-7.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
111.83M74.65M86.02M101.99M68.97M37.53M
Total Assets
236.15M226.75M193.96M235.44M160.29M98.92M
Total Debt
10.79M9.15M7.23M4.26M8.26M7.46M
Net Debt
-101.04M-65.49M-78.79M-97.74M-60.72M-30.07M
Total Liabilities
163.18M160.43M134.23M173.28M108.65M64.24M
Stockholders Equity
72.97M66.33M59.73M62.16M51.64M34.68M
Cash FlowFree Cash Flow
89.13M24.97M9.86M65.81M47.51M10.21M
Operating Cash Flow
95.24M29.79M13.27M69.42M49.19M11.24M
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
Neutral
Last Price2.80
Price Trends
50DMA
2.82
Negative
100DMA
2.80
Positive
200DMA
2.42
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
48.45
Neutral
STOCH
25.93
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUGNG
80
Outperform
AU$468.59M12.0458.99%7.14%25.12%31.13%
AUMND
76
Outperform
AU$1.72B22.8615.97%4.13%11.00%34.97%
AULYL
73
Outperform
$420.16M9.0236.14%4.55%-1.31%-18.79%
AUANG
70
Outperform
$226.49M9.0819.99%3.84%17.63%55.81%
AUSRG
68
Neutral
AU$908.96M21.6211.36%3.32%25.40%41.18%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
AUDOW
65
Neutral
€4.12B56.493.35%3.96%-7.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:GNG
GR Engineering Services Ltd
2.80
0.77
37.93%
AU:ANG
Austin Engineering
0.37
-0.15
-29.54%
AU:MND
Monadelphous Group Limited
17.43
4.92
39.36%
AU:DOW
Downer EDI Limited
6.14
1.68
37.58%
AU:LYL
Lycopodium Limited
10.65
-0.95
-8.21%
AU:SRG
SRG Global Limited
1.50
0.66
78.57%

GR Engineering Services Ltd Corporate Events

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.

GR Engineering Services Issues New Performance Rights
Mar 31, 2025

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
Mar 18, 2025

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
Mar 14, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.