Engenco Limited, together with its subsidiaries, provides engineering services and products in Australasia, Europe, and the United States. More Details
Flawless balance sheet and undervalued.
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 +/- 9% a week.
Volatility Over Time: EGN's weekly volatility (9%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: EGN underperformed the Australian Machinery industry which returned 69.4% over the past year.
Return vs Market: EGN underperformed the Australian Market which returned 37.1% over the past year.
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
3 weeks ago | Simply Wall StEngenco Limited's (ASX:EGN) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
1 month ago | Simply Wall StEngenco (ASX:EGN) Is Growing Earnings But Are They A Good Guide?
2 months ago | Simply Wall StReturns On Capital - An Important Metric For Engenco (ASX:EGN)
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$2.03)
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 (15.2x).
PE vs Market: EGN is good value based on its PE Ratio (11.2x) 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 good value based on its PB Ratio (1.8x) compared to the AU Machinery industry average (3x).
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.
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.
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$19.9M).
Debt to Equity History and Analysis
Debt Level: EGN is debt free.
Reducing Debt: EGN has no debt compared to 5 years ago when its debt to equity ratio was 31.1%.
Debt Coverage: EGN has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: EGN has no debt, therefore coverage of interest payments is not a concern.
What is Engenco current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EGN's dividend (3.67%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).
High Dividend: EGN's dividend (3.67%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).
Stability and Growth of Payments
Stable Dividend: EGN has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: EGN's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (41.2%), EGN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Pallas (58 yo)
Mr. Kevin Pallas, BCom, MAICD, has been the Chief Executive Officer and Managing Director of Engenco Limited since February 1, 2015. Mr. Pallas served as the Chief Operating Officer of Engenco Limited from...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD501.50K) is above average for companies of similar size in the Australian market ($USD285.26K).
Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.
Experienced Management: EGN's management team is seasoned and experienced (5.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Engenco Limited's company bio, employee growth, exchange listings and data sources
- 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: https://www.engenco.com.au
Number of Employees
- Engenco Limited
- 535 Bourke Street
- Level 22
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/12 08:18|
|End of Day Share Price||2021/04/12 00:00|
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.