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

• Market Cap: €414.01M
• Dividend Yield: 1.14%
• Average Volume (3M): 134.83K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.74
• Revenue Growth: -14.99%
• EPS Growth: 195.52%
• Country: AU
• Employees: 820
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Construction Materials
• EPS (TTM): 0.06
• Shares Outstanding: 188,184,170
• 10 Day Avg. Volume: 102,065
• 30 Day Avg. Volume: 134,832
• PEG Ratio: 0.29
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.85
• 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: €2.01
• Price Target Upside: -9.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: AU$2.50 ▲(12.61%Upside)

Wagners Holding Co. Ltd.'s solid financial performance, especially its revenue growth and improved cash flow, is a key strength. The technical analysis indicates strong upward momentum, though caution is advised due to overbought signals. The valuation is neutral, offering a balanced view of the stock's market position. High financial leverage remains a risk factor to monitor.

Wagners Holding Co. Ltd. Business Overview & Revenue Model

Company Description

Wagners 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 Money

Wagners Holding Co. Ltd. generates revenue through the production and sale of construction materials like cement, flyash, and aggregates, which are essential for building and infrastructure projects. The company also earns income from its innovative products like Earth Friendly Concrete (EFC), which offers environmental benefits and appeals to clients seeking sustainable building solutions. Additionally, Wagners' composite fiber technologies provide advanced materials for various engineering applications, further diversifying its revenue streams. Strategic partnerships and contracts with construction firms and government agencies also play a crucial role in sustaining its earnings by ensuring a steady demand for its products and services.

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. Overall, the financial statements reflect a company on a positive growth path with areas to watch for potential financial risks.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	481.64M	475.45M	336.85M	320.65M	249.67M
Gross Profit	248.33M	99.72M	75.74M	83.68M	59.82M
EBITDA	51.14M	45.27M	45.41M	48.38M	27.88M
Net Income	10.28M	3.12M	7.63M	10.00M	-17.00K
Balance Sheet
Total Assets	413.11M	500.49M	429.28M	371.27M	358.93M
Cash, Cash Equivalents and Short-Term Investments	18.66M	11.36M	12.20M	22.24M	3.44M
Total Debt	202.90M	248.85M	204.39M	171.02M	181.91M
Total Liabilities	278.55M	376.51M	308.38M	258.32M	256.52M
Stockholders Equity	134.56M	123.98M	120.90M	112.95M	102.41M
Cash Flow
Free Cash Flow	48.74M	1.64M	-20.10M	37.62M	-29.39M
Operating Cash Flow	72.60M	16.80M	3.87M	53.10M	1.14M
Investing Cash Flow	-20.42M	-14.02M	-23.55M	-16.30M	-31.69M
Financing Cash Flow	-44.27M	-3.67M	9.63M	-18.01M	27.76M

Wagners Holding Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.22 is below the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.14, and above the 200-day MA of 1.66, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 13.54 is Positive, 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
WGN	71 Outperform	€414.01M	20.85	14.64%	1.14%	-14.99%	195.52%
Sector *	44 Neutral	AU$1.51B	-6.22	-41.37%	3.85%	-3.52%	-43.04%
ALKEF	―	$279.20M	22.94	5.86%	―	―	―
MLXEF	―	$368.91M	5.35	27.43%	―	―	―
MMI	53 Neutral	AU$426.87M	―	-87.03%	―	30.32%	-22.58%
SVM	42 Neutral	AU$485.20M	―	-77.74%	―	―	-654.93%
CAY	26 Underperform	AU$437.27M	―	-33.55%	―	―	-175.00%

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.