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

GR Engineering Services Ltd (GNG) AI Stock Analysis

Compare
38 Followers

Top Page

AU:GNG

GR Engineering Services Ltd

(Sydney:GNG)

Rating:84Outperform
Price Target:
AU$4.00
▲(9.59%Upside)
GR Engineering Services Ltd presents a compelling investment opportunity with strong financial performance and positive technical indicators. The primary strengths lie in its solid financial health and bullish technical momentum. The valuation is reasonable, supported by a high dividend yield, although investors should monitor revenue growth challenges.

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 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 financial health with substantial profitability, evidenced by robust EBIT and EBITDA margins. The balance sheet is stable with low debt and a high return on equity, showcasing efficient capital management. Despite challenges in revenue growth, effective cash flow management supports overall financial strength.
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue424.06M551.36M651.67M392.39M222.40M
Gross Profit232.54M52.61M65.77M40.42M13.62M
EBITDA50.02M46.20M55.93M34.09M-11.02M
Net Income31.18M27.49M34.72M23.24M-7.25M
Balance Sheet
Total Assets226.75M193.96M235.44M160.29M98.92M
Cash, Cash Equivalents and Short-Term Investments74.65M86.02M101.99M68.97M37.53M
Total Debt9.15M7.23M4.26M8.26M7.46M
Total Liabilities160.43M134.23M173.28M108.65M64.24M
Stockholders Equity66.33M59.73M62.16M51.64M34.68M
Cash Flow
Free Cash Flow24.97M9.86M65.81M47.51M10.21M
Operating Cash Flow29.79M13.27M69.42M49.19M11.24M
Investing Cash Flow-8.27M4.25M-3.99M-1.47M-333.23K
Financing Cash Flow-33.51M-32.94M-33.13M-16.35M-4.95M

GR Engineering Services Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.65
Price Trends
50DMA
3.13
Positive
100DMA
2.98
Positive
200DMA
2.67
Positive
Market Momentum
MACD
0.15
Negative
RSI
70.66
Negative
STOCH
76.74
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 3.65 is above the 20-day moving average (MA) of 3.40, above the 50-day MA of 3.13, and above the 200-day MA of 2.67, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 70.66 is Negative, neither overbought nor oversold. The STOCH value of 76.74 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
AU$602.47M15.4858.99%5.48%25.12%31.13%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
$301.70M9.3036.14%0.41%
€268.57M15.2015.15%4.31%
81
Outperform
AU$569.55M9.6412.62%5.82%15.44%-4.13%
74
Outperform
AU$382.37M17.0237.07%2.81%-1.02%-7.39%
67
Neutral
AU$776.60M32.0719.31%0.58%35.02%48.51%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:GNG
GR Engineering Services Ltd
3.65
1.83
100.55%
LYOPF
Lycopodium Limited
7.24
-1.17
-13.91%
DE:4SO
Southern Cross Electrical Engineering Limited
1.02
-0.01
-0.97%
AU:GNP
GenusPlus Group Ltd.
4.29
2.15
100.47%
AU:DUR
Duratec Limited
1.52
0.29
23.58%
AU:CVL
Civmec Singapore Limited Shs Chess Deposit Interests Repr 1 Sh
1.21
0.05
4.31%

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.

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: Jul 15, 2025