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EGL

Environmental GroupASX:EGL Stock Report

Market Cap

AU$49.3m

7D

16.7%

1Y

548.1%

Updated

20 Oct, 2021

Data

Company Financials
EGL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

EGL Overview

The Environmental Group Limited engages in the design, application, and servicing of gas and vapor emission control systems, and inlet and exhaust systems for gas turbines in Australia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Environmental Group
Historical stock prices
Current Share PriceAU$0.17
52 Week HighAU$0.027
52 Week LowAU$0.17
Beta0.65
1 Month Change20.69%
3 Month Change94.44%
1 Year Change548.15%
3 Year Change288.89%
5 Year Change821.05%
Change since IPO133.34%

Recent News & Updates

Sep 01
Environmental Group's (ASX:EGL) Solid Profits Have Weak Fundamentals

Environmental Group's (ASX:EGL) Solid Profits Have Weak Fundamentals

Unsurprisingly, The Environmental Group Limited's ( ASX:EGL ) stock price was strong on the back of its healthy...

Shareholder Returns

EGLAU MachineryAU Market
7D16.7%2.7%1.7%
1Y548.1%53.7%20.2%

Return vs Industry: EGL exceeded the Australian Machinery industry which returned 53.7% over the past year.

Return vs Market: EGL exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is EGL's price volatile compared to industry and market?
EGL volatility
EGL Beta0.65
Industry Beta1.34
Market Beta1

Stable Share Price: EGL is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: EGL's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
1923n/aJason Dixonhttps://www.environmental.com.au

The Environmental Group Limited engages in the design, application, and servicing of gas and vapor emission control systems, and inlet and exhaust systems for gas turbines in Australia and internationally. Its products include gas turbine inlet filtration systems (filter houses), inlet cooling/fogging systems, acoustical components, expansion joints, and complete exhaust systems with guillotine and diverter dampers; and a range of air pollution control equipment and services for the removal of pollutants from industrial gas and air streams. The company also provides engineering and water treatment services to various industries; and installation, commissioning, service, and maintenance of steam boilers, inert gas generators, hot water boilers, valves, thermal oil heaters, economizers, and burners.

Environmental Group Fundamentals Summary

How do Environmental Group's earnings and revenue compare to its market cap?
EGL fundamental statistics
Market CapAU$49.26m
Earnings (TTM)AU$1.58m
Revenue (TTM)AU$46.56m

31.3x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EGL income statement (TTM)
RevenueAU$46.56m
Cost of RevenueAU$33.60m
Gross ProfitAU$12.96m
ExpensesAU$11.38m
EarningsAU$1.58m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0056
Gross Margin27.83%
Net Profit Margin3.38%
Debt/Equity Ratio10.8%

How did EGL perform over the long term?

See historical performance and comparison

Valuation

Is Environmental Group undervalued compared to its fair value and its price relative to the market?

31.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EGL (A$0.18) is trading above our estimate of fair value (A$0)

Significantly Below Fair Value: EGL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EGL is poor value based on its PE Ratio (31.3x) compared to the Australian Machinery industry average (29.9x).

PE vs Market: EGL is poor value based on its PE Ratio (31.3x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EGL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EGL is overvalued based on its PB Ratio (2.7x) compared to the AU Machinery industry average (2.6x).


Future Growth

How is Environmental Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

55.4%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Environmental Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Environmental Group performed over the past 5 years?

-24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGL has high quality earnings.

Growing Profit Margin: EGL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EGL's earnings have declined by 24.4% per year over the past 5 years.

Accelerating Growth: EGL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EGL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (1.2%).


Return on Equity

High ROE: EGL's Return on Equity (9.5%) is considered low.


Financial Health

How is Environmental Group's financial position?


Financial Position Analysis

Short Term Liabilities: EGL's short term assets (A$12.9M) do not cover its short term liabilities (A$13.9M).

Long Term Liabilities: EGL's short term assets (A$12.9M) exceed its long term liabilities (A$2.3M).


Debt to Equity History and Analysis

Debt Level: EGL's debt to equity ratio (10.8%) is considered satisfactory.

Reducing Debt: EGL's debt to equity ratio has reduced from 21.1% to 10.8% over the past 5 years.

Debt Coverage: EGL's debt is well covered by operating cash flow (43.7%).

Interest Coverage: EGL's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Dividend

What is Environmental Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EGL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EGL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EGL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EGL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EGL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Jason Dixon

0.67

Tenure

AU$321,686

Compensation

Mr. Jason Dixon serves as the Chief Executive Officer at The Environmental Group Limited since February 08, 2021. Mr. Dixon served as an Executive General Manager of Corporate and Risk at Tox Free Solution...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD240.51K) is about average for companies of similar size in the Australian market ($USD302.06K).

Compensation vs Earnings: Insufficient data to compare Jason's compensation with company performance.


Leadership Team

Experienced Management: EGL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: EGL's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EGL insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.9%.


Top Shareholders

Company Information

The Environmental Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Environmental Group Limited
  • Ticker: EGL
  • Exchange: ASX
  • Founded: 1923
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: AU$49.259m
  • Shares outstanding: 281.48m
  • Website: https://www.environmental.com.au

Location

  • The Environmental Group Limited
  • 10 Ferntree Place
  • Level 1
  • Notting Hill
  • Victoria
  • 3168
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:20
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.