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Wagners Holding Co. Ltd. (AU:WGN)
ASX:WGN

Wagners Holding Co. Ltd. (WGN) AI Stock Analysis

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AU

Wagners Holding Co. Ltd.

(Sydney:WGN)

Rating:70Neutral
Price Target:
AU$2.50
▲(11.11%Upside)
Wagners Holding Co. Ltd. exhibits strong financial performance with significant revenue growth and improved margins. The technical analysis supports a bullish trend, albeit with potential for a pullback due to overbought signals. Valuation is reasonable but not particularly attractive for income-focused investors. High leverage remains a key risk factor.

Wagners Holding Co. Ltd. (WGN) vs. iShares MSCI Australia ETF (EWA)

Wagners Holding Co. Ltd. Business Overview & Revenue Model

Company DescriptionWagners Holding Company Limited produces and sells construction materials in Australia, the United States, New Zealand, the United Kingdom, and PNG & Malaysia. It operates through three segments: Construction Materials & Services, Composite Fibre Technology, and Earth Friendly Concrete segments. The Construction Materials & Services segment primarily provides cement, flyash, ready-mix concrete, precast concrete products, aggregates, and reinforcing steel, as well as mobile concrete, crushing, and haulage services through medium to long-term contracts. This segment serves customers in the construction, infrastructure, and resources industries. The Composite Fibre Technology segment provides new generation building materials. The Earth Friendly Concrete segment offers new generation building material and EFC technology. The company was founded in 1989 and is headquartered in Wellcamp, Australia.
How the Company Makes MoneyWagners makes money through several key revenue streams. The primary source of income is the sale of construction materials, including cement, flyash, and ready-mix concrete, which are used extensively in commercial and infrastructure projects. The company also generates revenue from its composite fibre technologies and Earth Friendly Concrete products, which are gaining traction due to their sustainability benefits. Additionally, Wagners earns income from its transport, logistics, and services division, providing solutions such as bulk haulage and precast concrete installation. Strategic partnerships with major construction and mining companies further bolster its earnings, enabling Wagners to secure long-term contracts that provide stable revenue streams.

Wagners Holding Co. Ltd. Financial Statement Overview

Summary
Wagners Holding Co. Ltd. demonstrates solid improvement in revenue growth and operational efficiency over the years. The company has strengthened its profitability and cash flow generation, indicating a positive operational trajectory. However, high financial leverage and modest profitability margins highlight financial risk and opportunities for further efficiency improvements.
Income Statement
72
Positive
Wagners Holding Co. Ltd. shows a consistent revenue growth trajectory with revenue increasing from AUD 236.9 million in 2019 to AUD 481.6 million in 2024. The company improved its gross profit margin significantly from 25.3% in 2020 to 39.8% in 2024, indicating better cost management. Net profit margin improved from negative territory in 2020 to a modest 2.1% in 2024. EBIT and EBITDA margins show positive trends, reflecting strengthening operational efficiency. However, margins remain relatively low, suggesting room for profitability improvement.
Balance Sheet
65
Positive
The balance sheet reflects a stable equity base with stockholders' equity growing modestly from AUD 62.6 million in 2019 to AUD 134.6 million in 2024. The debt-to-equity ratio is high at approximately 1.51 in 2024, indicating significant leverage which poses financial risk. The equity ratio improved over the years, reaching 32.6% in 2024, which is a positive sign of increased asset backing by equity. Return on equity (ROE) remains low at 7.6% in 2024, suggesting limited return generation on shareholders' investments.
Cash Flow
78
Positive
The cash flow analysis shows a strong recovery with operating cash flow increasing substantially to AUD 72.6 million in 2024 from AUD 1.1 million in 2020. Free cash flow has turned positive in recent years, reaching AUD 48.7 million in 2024, indicating improved cash generation after capital expenditures. The operating cash flow to net income ratio is robust, demonstrating effective cash conversion. However, fluctuations in past free cash flow growth rates indicate potential volatility in future cash flows.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue442.42M481.64M475.45M336.85M320.65M249.67M
Gross Profit132.32M248.33M99.72M75.74M83.68M59.82M
EBITDA52.97M51.14M45.27M45.41M48.38M27.88M
Net Income19.81M10.28M3.12M7.63M10.00M-17.00K
Balance Sheet
Total Assets399.30M413.11M500.49M429.28M371.27M358.93M
Cash, Cash Equivalents and Short-Term Investments22.36M18.66M11.36M12.20M22.24M3.44M
Total Debt189.49M202.90M248.85M204.39M171.02M181.91M
Total Liabilities254.48M278.55M376.51M308.38M258.32M256.52M
Stockholders Equity144.82M134.56M123.98M120.90M112.95M102.41M
Cash Flow
Free Cash Flow28.96M48.74M1.64M-20.10M37.62M-29.39M
Operating Cash Flow53.43M72.60M16.80M3.87M53.10M1.14M
Investing Cash Flow-20.14M-20.42M-14.02M-23.55M-16.30M-31.69M
Financing Cash Flow-42.20M-44.27M-3.67M9.63M-18.01M27.76M

Wagners Holding Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.25
Price Trends
50DMA
1.97
Positive
100DMA
1.80
Positive
200DMA
1.53
Positive
Market Momentum
MACD
0.08
Negative
RSI
71.91
Negative
STOCH
80.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WGN, the sentiment is Positive. The current price of 2.25 is above the 20-day moving average (MA) of 2.04, above the 50-day MA of 1.97, and above the 200-day MA of 1.53, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 71.91 is Negative, neither overbought nor oversold. The STOCH value of 80.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WGN.

Wagners Holding Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUWGN
70
Neutral
€419.65M21.1414.64%1.12%-14.99%195.52%
43
Neutral
AU$1.42B-6.13-40.62%4.05%-4.78%-42.91%
$273.59M22.895.86%
$325.03M4.9427.43%
AUMMI
53
Neutral
AU$420.77M-87.03%30.32%-22.58%
AUSVM
42
Neutral
AU$443.15M-77.74%-654.93%
AUCAY
26
Underperform
AU$469.63M-33.55%-175.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WGN
Wagners Holding Co. Ltd.
2.25
1.44
178.81%
ALKEF
Alkane Resources Ltd
0.46
0.11
31.43%
MLXEF
Metals X Limited
0.37
0.07
23.33%
AU:SVM
Sovereign Metals Limited
0.69
0.04
6.15%
AU:MMI
Metro Mining Limited
0.07
0.02
40.00%
AU:CAY
Canyon Resources Limited
0.27
0.20
285.71%

Wagners Holding Co. Ltd. Corporate Events

Wagners Director Acquires Significant Shareholding
Mar 12, 2025

Wagners Holding Company Limited has announced a change in the interest of its director, Allan Brackin, who has acquired 100,000 ordinary shares through the Allan Brackin Retirement Fund Pty Ltd. This acquisition, valued at $152,874.27, was conducted via an on-market trade and marks the first holding of shares by Brackin in this capacity. The transaction does not involve any disposal of shares and was not conducted during a closed trading period, indicating compliance with regulatory requirements.

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 25, 2025