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

• Market Cap: AU$363.20M
• Dividend Yield: 1.45%
• Average Volume (3M): 144.83K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.80
• Revenue Growth: -14.99%
• EPS Growth: 195.52%
• Country: AU
• Employees: 820
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Construction Materials
• EPS (TTM): 0.06
• Shares Outstanding: 188,184,170
• 10 Day Avg. Volume: 92,328
• 30 Day Avg. Volume: 144,831
• PEG Ratio: -0.82
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 91.30
• 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$2.00
• Price Target Upside: 5.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: AU$2.00 ▲(5.26%Upside)

Wagners Holding Co. Ltd. shows positive financial performance with improved revenue growth and cash flow generation, though high leverage is a concern. Technical analysis signals are mixed, indicating a neutral to slightly bullish outlook. Valuation metrics suggest the stock is reasonably priced with moderate growth and income potential.

Wagners Holding Co. Ltd. Business Overview & Revenue Model

Company Description

Wagners Holding Company Limited (WGN) is a diversified Australian company that operates primarily in the construction and infrastructure sector. Established in 1989, Wagners specializes in providing high-quality construction materials and services, offering a range of products including cement, flyash, ready-mix concrete, and precast concrete products. Additionally, the company is involved in the development and commercialization of new generation building materials such as Earth Friendly Concrete (EFC). Wagners operates both domestically and internationally, serving a variety of clients in infrastructure, resources, and energy sectors.

How the Company Makes Money

Wagners 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

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
442.42M	481.64M	475.45M	336.85M	320.65M	249.67M
	Gross Profit
132.32M	248.33M	99.72M	75.74M	83.68M	59.82M
	EBIT
48.43M	34.38M	15.91M	16.19M	22.66M	7.60M
	EBITDA
52.97M	51.14M	45.27M	45.41M	48.38M	27.88M
	Net Income Common Stockholders
19.81M	10.28M	3.12M	7.63M	10.00M	-17.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.36M	18.66M	11.36M	12.20M	22.24M	3.44M
	Total Assets
399.30M	413.11M	500.49M	429.28M	371.27M	358.93M
	Total Debt
189.49M	202.90M	248.85M	204.39M	171.02M	181.91M
	Net Debt
167.13M	184.24M	237.49M	192.19M	148.78M	178.47M
	Total Liabilities
254.48M	278.55M	376.51M	308.38M	258.32M	256.52M
	Stockholders Equity
144.82M	134.56M	123.98M	120.90M	112.95M	102.41M
Cash Flow		Free Cash Flow
28.96M	48.74M	1.64M	-20.10M	37.62M	-29.39M
	Operating Cash Flow
53.43M	72.60M	16.80M	3.87M	53.10M	1.14M
	Investing Cash Flow
-20.14M	-20.42M	-14.02M	-23.55M	-16.30M	-31.69M
	Financing Cash Flow
-42.20M	-44.27M	-3.67M	9.63M	-18.01M	27.76M

Wagners Holding Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.90
• 50DMA: Positive
• 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:WGN, the sentiment is Neutral. The current price of 1.9 is below the 20-day moving average (MA) of 2.01, above the 50-day MA of 1.85, and above the 200-day MA of 1.46, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.16 is Neutral, neither overbought nor oversold. The STOCH value of 38.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:WGN.

Wagners Holding Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JHX	68 Neutral	$17.44B	26.92	21.09%	―	2.20%	-16.72%
WGN	67 Neutral	AU$363.20M	18.01	14.64%	1.45%	-14.99%	195.52%
PGH	57 Neutral	AU$268.55M	8.88	5.38%	―	-0.69%	―
BKW	53 Neutral	$4.92B	―	-1.34%	1.55%	-7.76%	-123.85%
Sector *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%

Wagners Holding Co. Ltd. Corporate Events

Wagners Director Acquires Significant Shareholding

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.