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Last Updated

2021/04/11 08:29 UTC

Data Sources

Company Financials

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 undervalued.

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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: EGN's weekly volatility (8%) has been stable over the past year.

Market Performance

7 Day Return




AU Machinery


AU Market

1 Year Return




AU Machinery


AU Market

Return vs Industry: EGN underperformed the Australian Machinery industry which returned 66.8% over the past year.

Return vs Market: EGN underperformed the Australian Market which returned 35.6% over the past year.

Shareholder returns

7 Day7.9%1.4%2.6%
30 Day1.9%4.8%4.4%
90 Day-10.7%1.7%3.6%
1 Year34.9%29.8%71.8%69.4%41.3%37.1%
3 Year18.9%7.9%-6.6%-8.5%36.2%19.8%
5 Year618.1%541.2%24.6%16.2%67.4%34.6%

Long-Term 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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EGN (A$0.55) is trading below our estimate of fair value (A$2.04)

Significantly Below Fair Value: EGN is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: EGN is good value based on its PE Ratio (11.2x) compared to the AU Machinery industry average (15.1x).

PE vs Market: EGN is good value based on its PE Ratio (11.2x) compared to the Australian market (20.2x).

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 (1.8x) compared to the AU Machinery industry average (3x).

Future Growth

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


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?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EGN has high quality earnings.

Growing Profit Margin: EGN's current net profit margins (8.5%) are higher than last year (6.4%).

Past Earnings Growth Analysis

Earnings Trend: EGN's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: EGN's earnings growth over the past year (35.4%) exceeds its 5-year average (22.3% per year).

Earnings vs Industry: EGN earnings growth over the past year (35.4%) underperformed the Machinery industry 39.8%.

Return on Equity

High ROE: EGN's Return on Equity (17%) is considered low.

Financial Health

How is Engenco's financial position?

Financial Position Analysis

Short Term Liabilities: EGN's short term assets (A$87.2M) exceed its short term liabilities (A$28.8M).

Long Term Liabilities: EGN's short term assets (A$87.2M) exceed its long term liabilities (A$19.9M).

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 31.1%.

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


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EGN's dividend (3.67%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: EGN's dividend (3.67%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).

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 reasonably low payout ratio (41.2%), 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


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


Average management tenure


Kevin Pallas (58 yo)





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 ($USD501.50K) is above average for companies of similar size in the Australian market ($USD285.56K).

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

Leadership Team

Experienced Management: EGN's management team is seasoned and experienced (5.4 years average tenure).

Board Members

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


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 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$170.852m
  • Shares outstanding: 313.49m
  • Website:

Number of Employees


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



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 Analysis2021/04/11 08:29
End of Day Share Price2021/04/08 00:00
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.