Emeco Holdings Limited

ASX:EHL Stock Report

Market Cap: AU$416.6m

Emeco Holdings Valuation

Is EHL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EHL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EHL (A$0.82) is trading below our estimate of fair value (A$1.92)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EHL?

Key metric: As EHL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EHL. This is calculated by dividing EHL's market cap by their current earnings.
What is EHL's PE Ratio?
PE Ratio8x
EarningsAU$52.66m
Market CapAU$416.62m

Price to Earnings Ratio vs Peers

How does EHL's PE Ratio compare to its peers?

The above table shows the PE ratio for EHL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
ACF Acrow
12.9x12.5%AU$326.2m
IPG IPD Group
20.3x15.7%AU$454.2m
RDX Redox
22.5x9.1%AU$2.0b
BOL Boom Logistics
8.9xn/aAU$59.0m
EHL Emeco Holdings
8x11.2%AU$419.2m

Price-To-Earnings vs Peers: EHL is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does EHL's PE Ratio compare vs other companies in the Global Trade Distributors Industry?

23 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EHL 8.0xIndustry Avg. 14.6xNo. of Companies87PE01224364860+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EHL is good value based on its Price-To-Earnings Ratio (8x) compared to the Global Trade Distributors industry average (14.6x).

Price to Earnings Ratio vs Fair Ratio

What is EHL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EHL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8x
Fair PE Ratio17.2x

Price-To-Earnings vs Fair Ratio: EHL is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (17.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EHL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.81
AU$1.08
+32.9%
6.8%AU$1.18AU$1.00n/a3
Nov ’25AU$0.76
AU$1.03
+35.1%
13.2%AU$1.18AU$0.85n/a3
Oct ’25AU$0.77
AU$1.14
+47.7%
19.8%AU$1.47AU$0.85n/a4
Sep ’25AU$0.81
AU$1.14
+41.3%
19.8%AU$1.47AU$0.85n/a4
Aug ’25AU$0.82
AU$1.10
+33.0%
20.1%AU$1.47AU$0.90n/a4
Jul ’25AU$0.73
AU$1.11
+51.0%
18.9%AU$1.47AU$0.95n/a4
Jun ’25AU$0.69
AU$1.11
+59.7%
18.9%AU$1.47AU$0.95n/a4
May ’25AU$0.72
AU$1.03
+41.8%
24.2%AU$1.47AU$0.70n/a5
Apr ’25AU$0.71
AU$1.03
+44.8%
24.2%AU$1.47AU$0.70n/a5
Mar ’25AU$0.66
AU$0.92
+39.0%
14.0%AU$1.03AU$0.70n/a4
Feb ’25AU$0.64
AU$0.95
+48.4%
15.9%AU$1.10AU$0.70n/a4
Jan ’25AU$0.67
AU$0.96
+43.7%
13.6%AU$1.10AU$0.75n/a4
Dec ’24AU$0.61
AU$0.97
+59.8%
14.3%AU$1.10AU$0.75n/a4
Nov ’24AU$0.58
AU$1.07
+84.8%
21.5%AU$1.46AU$0.75AU$0.765
Oct ’24AU$0.63
AU$1.07
+70.2%
21.5%AU$1.46AU$0.75AU$0.775
Sep ’24AU$0.66
AU$1.07
+62.4%
21.5%AU$1.46AU$0.75AU$0.815
Aug ’24AU$0.70
AU$1.10
+56.6%
18.7%AU$1.46AU$0.85AU$0.825
Jul ’24AU$0.65
AU$1.10
+68.6%
18.7%AU$1.46AU$0.85AU$0.735
Jun ’24AU$0.64
AU$1.10
+71.3%
18.7%AU$1.46AU$0.85AU$0.695
May ’24AU$0.68
AU$1.10
+61.2%
18.7%AU$1.46AU$0.85AU$0.725
Apr ’24AU$0.73
AU$1.10
+50.1%
18.7%AU$1.46AU$0.85AU$0.715
Mar ’24AU$0.74
AU$1.16
+55.0%
20.0%AU$1.51AU$0.85AU$0.666
Feb ’24AU$0.77
AU$1.16
+51.1%
19.7%AU$1.51AU$0.85AU$0.646
Jan ’24AU$0.77
AU$1.16
+51.1%
19.7%AU$1.51AU$0.85AU$0.676
Dec ’23AU$0.78
AU$1.16
+50.1%
19.7%AU$1.51AU$0.85AU$0.616
Nov ’23AU$0.79
AU$1.24
+57.4%
13.8%AU$1.51AU$1.00AU$0.586

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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