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EGN

EngencoASX:EGN Stock Report

Market Cap

AU$164.1m

7D

6.1%

1Y

-6.3%

Updated

17 Oct, 2021

Data

Company Financials
EGN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends2/6

EGN Overview

Engenco Limited, together with its subsidiaries, provides engineering services and products worldwide.

Engenco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Engenco
Historical stock prices
Current Share PriceAU$0.52
52 Week HighAU$0.44
52 Week LowAU$0.64
Beta0.71
1 Month Change8.33%
3 Month Change-0.95%
1 Year Change-6.31%
3 Year Change5.05%
5 Year Change333.33%
Change since IPO-95.81%

Recent News & Updates

Aug 30
Estimating The Fair Value Of Engenco Limited (ASX:EGN)

Estimating The Fair Value Of Engenco Limited (ASX:EGN)

Does the August share price for Engenco Limited ( ASX:EGN ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

EGNAU MachineryAU Market
7D6.1%-0.9%0.9%
1Y-6.3%59.2%20.2%

Return vs Industry: EGN underperformed the Australian Machinery industry which returned 59.2% over the past year.

Return vs Market: EGN underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is EGN's price volatile compared to industry and market?
EGN volatility
EGN Beta0.71
Industry Beta1.32
Market Beta1

Stable Share Price: EGN is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: EGN's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989500Kevin Pallashttps://www.engenco.com.au

Engenco Limited, together with its subsidiaries, provides engineering services and products worldwide. The company’s Gemco Rail segment engages in the remanufacture and repair of locomotives, wagons, bearings, and other rail products for rail operators and maintainers. This segment offers wheelset, bogie, and in-field wagon maintenance services; and manufactures new and refurbished wagons, bogie component parts, customized remote controlled ballast car discharge gates, and various rail maintenance equipment and spares.

Engenco Fundamentals Summary

How do Engenco's earnings and revenue compare to its market cap?
EGN fundamental statistics
Market CapAU$164.06m
Earnings (TTM)AU$11.96m
Revenue (TTM)AU$165.59m

13.7x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EGN income statement (TTM)
RevenueAU$165.59m
Cost of RevenueAU$81.73m
Gross ProfitAU$83.87m
ExpensesAU$71.90m
EarningsAU$11.96m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.038
Gross Margin50.65%
Net Profit Margin7.22%
Debt/Equity Ratio0%

How did EGN perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

52%

Payout Ratio

Valuation

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

11.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGN (A$0.52) is trading below our estimate of fair value (A$0.59)

Significantly Below Fair Value: EGN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EGN is good value based on its PE Ratio (13.7x) compared to the Australian Machinery industry average (26.8x).

PE vs Market: EGN is good value based on its PE Ratio (13.7x) compared to the Australian market (19.8x).


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 good value based on its PB Ratio (1.6x) compared to the AU Machinery industry average (2.3x).


Future Growth

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

54.9%

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.


Past Performance

How has Engenco performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGN has a large one-off gain of A$2.3M impacting its June 30 2021 financial results.

Growing Profit Margin: EGN's current net profit margins (7.2%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: EGN's earnings have grown by 17.4% per year over the past 5 years.

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 (-10.9%) over the past year, making it difficult to compare to the Machinery industry average (1.2%).


Return on Equity

High ROE: EGN's Return on Equity (12.7%) is considered low.


Financial Health

How is Engenco's financial position?


Financial Position Analysis

Short Term Liabilities: EGN's short term assets (A$87.6M) exceed its short term liabilities (A$30.5M).

Long Term Liabilities: EGN's short term assets (A$87.6M) exceed its long term liabilities (A$21.5M).


Debt to Equity History and Analysis

Debt Level: EGN is debt free.

Reducing Debt: EGN has no debt compared to 5 years ago when its debt to equity ratio was 21.2%.

Debt Coverage: EGN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EGN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

3.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGN's dividend (3.85%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: EGN's dividend (3.85%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.4%), EGN's dividend payments are 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?

5.9yrs

Average management tenure


CEO

Kevin Pallas (59 yo)

6.67yrs

Tenure

AU$525,169

Compensation

Mr. Kevin Pallas, BCom, MAICD, has been the Chief Executive Officer and Managing Director of Engenco Limited since February 1, 2015. He has been an Executive Director of Engenco Limited since December 17,...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD389.79K) is about average for companies of similar size in the Australian market ($USD302.72K).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EGN's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: EGN's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$164.058m
  • Shares outstanding: 315.50m
  • Website: https://www.engenco.com.au

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 07:04
End of Day Share Price2021/10/15 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.