ASX:EGN

Stock Analysis Report

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Executive Summary

Engenco Limited, together with its subsidiaries, provides engineering services and products in Australasia, Europe, and the United States. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Engenco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EGN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

EGN

-4.9%

AU Machinery

-3.9%

AU Market


1 Year Return

13.2%

EGN

-2.3%

AU Machinery

-9.6%

AU Market

Return vs Industry: EGN exceeded the Australian Machinery industry which returned -2.3% over the past year.

Return vs Market: EGN exceeded the Australian Market which returned -9.6% over the past year.


Shareholder returns

EGNIndustryMarket
7 Day-3.2%-4.9%-3.9%
30 Day13.2%12.8%1.8%
90 Day21.2%42.1%1.7%
1 Year17.8%13.2%-0.7%-2.3%-6.4%-9.6%
3 Year101.5%84.6%2.8%0.03%12.3%-1.9%
5 Year639.8%566.7%153.2%112.2%40.0%11.3%

Price Volatility Vs. Market

How volatile is Engenco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

14.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EGN (A$0.6) is trading above our estimate of fair value (A$0.57)

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


Price To Earnings Ratio

PE vs Industry: EGN is good value based on its PE Ratio (14x) compared to the AU Machinery industry average (19.1x).

PE vs Market: EGN is good value based on its PE Ratio (14x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EGN is overvalued based on its PB Ratio (2x) compared to the AU Machinery industry average (1.9x).


Next Steps

Future Growth

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

47.6%

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 Engenco 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.


Next Steps

Past Performance

How has Engenco performed over the past 5 years?

31.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGN has high quality earnings.

Growing Profit Margin: EGN's current net profit margins (7.4%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: EGN has become profitable over the past 5 years, growing earnings by 31.4% per year.

Accelerating Growth: EGN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EGN had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Machinery industry average (39.3%).


Return on Equity

High ROE: EGN's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is Engenco's financial position?


Financial Position Analysis

Short Term Liabilities: EGN's short term assets (A$92.2M) exceed its short term liabilities (A$32.1M).

Long Term Liabilities: EGN's short term assets (A$92.2M) exceed its long term liabilities (A$22.9M).


Debt to Equity History and Analysis

Debt Level: EGN's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: EGN's debt to equity ratio has reduced from 41% to 0.4% over the past 5 years.

Debt Coverage: EGN's debt is well covered by operating cash flow (4502.6%).

Interest Coverage: EGN's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Engenco current dividend yield, its reliability and sustainability?

5.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGN's dividend (5%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: EGN's dividend (5%) is low compared to the top 25% of dividend payers in the Australian market (5.53%).


Stability and Growth of Payments

Stable Dividend: EGN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EGN's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.7%), EGN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Kevin Pallas (58 yo)

5.58yrs

Tenure

AU$657,868

Compensation

Mr. Kevin Pallas, BCom, MAICD, has been the Chief Executive Officer and Managing Director of Engenco Limited since February 1, 2015. Mr. Pallas served as the Chief Operating Officer of Engenco Limited from ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD462.99K) is above average for companies of similar size in the Australian market ($USD274.23K).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Pallas
MD, CEO & Director 5.58yrsAU$657.87k0.028%
A$ 52.6k
Paul Burrows
CFO & Joint Company Secretary1.83yrsAU$348.72kno data
Meredith Rhimes
Joint Company Secretary & Senior Legal Counselno datano datano data
R. Edwards
Group HR & Safety Manager4.83yrsno datano data
Peter Swann
General Manager of Convairno dataAU$312.85kno data
Geoff Thorn
Executive General Manager of Rail8yrsAU$381.34kno data
D. Bentley
General Manager of Drivetrain TPCno dataAU$285.29kno data
P. Gale
General Manager of Drivetrain MPTno dataAU$264.70kno data
M. Haigh
General Manager of CERTno dataAU$301.06kno data
J. Källström
General Manager of Hedemora Turbo & Diesel -Sweden4.58yrsAU$152.73kno data

4.8yrs

Average Tenure

Experienced Management: EGN's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Pallas
MD, CEO & Director 5.58yrsAU$657.87k0.028%
A$ 52.6k
Vincent De Santis
Non-Executive Chairman4.58yrsAU$181.77k0.12%
A$ 227.4k
Dale Elphinstone
Non-Executive Director10.25yrsAU$87.60kno data
Ross Dunning
Independent Non-Executive Director9.83yrsAU$100.74k0.058%
A$ 109.8k
Scott Cameron
Independent Non-Executive Directorno datano data0.052%
A$ 98.1k
Alison von Bibra
Independent Non-Executive Director3.75yrsAU$94.17k0.011%
A$ 20.9k

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: EGN's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Engenco Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Engenco Limited
  • Ticker: EGN
  • Exchange: ASX
  • Founded: 1989
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: AU$188.093m
  • Shares outstanding: 313.49m
  • Website: https://www.engenco.com.au

Number of Employees


Location

  • Engenco Limited
  • 535 Bourke Street
  • Level 22
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2006
EGNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2006

Biography

Engenco Limited, together with its subsidiaries, provides engineering services and products in Australasia, Europe, and the United States. The company’s Gemco Rail segment engages in the remanufacture and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 10:34
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.