ASX:EVZ

Stock Analysis Report

Executive Summary

EVZ Limited operates in the engineering and energy services sectors in Australia and Asia.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

EVZ

3.9%

AU Construction

1.3%

AU Market


1 Year Return

-40.6%

EVZ

-24.4%

AU Construction

9.9%

AU Market

Return vs Industry: EVZ underperformed the Australian Construction industry which returned -24.4% over the past year.

Return vs Market: EVZ underperformed the Australian Market which returned 9.9% over the past year.


Share holder returns

EVZIndustryMarket
7 Day0%3.9%1.3%
30 Day15.2%-0.06%-0.7%
90 Day-2.6%-21.2%-0.4%
1 Year-40.6%-40.6%-21.4%-24.4%16.3%9.9%
3 Year188.3%171.4%30.7%18.7%35.8%17.6%
5 Year-19.3%-24.0%57.3%23.0%51.9%17.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is EVZ undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: EVZ (A$0.19) is trading below our estimate of fair value (A$1.35)

Significantly Undervalued: EVZ is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: EVZ is good value based on its PE Ratio (11x) compared to the Construction industry average (13.9x).

PE vs Market: EVZ is good value based on its PE Ratio (11x) compared to the Australian market (17.9x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: EVZ is good value based on its PB Ratio (0.8x) compared to the AU Construction industry average (1.1x).


Next Steps

Future Growth

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

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: EVZ's forecast earnings growth (15.1% per year) is above the savings rate (2.3%).

Earnings vs Market: EVZ's earnings (15.1% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: EVZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if EVZ's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if EVZ's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if EVZ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EVZ performed over the past 5 years?

59.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EVZ has become profitable over the past 5 years, growing earnings by 59.5% per year.

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

Earnings vs Industry: EVZ had negative earnings growth (-30.6%) over the past year, making it difficult to compare to the Construction industry average (5.7%).


Return on Equity

High ROE: EVZ's Return on Equity (6.8%) is considered low.


Return on Assets

ROA vs Industry: EVZ's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: EVZ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is EVZ's financial position?


Financial Position Analysis

Short Term Liabilities: EVZ's short term assets (A$25.0M) exceeds its short term liabilities (A$21.8M)

Long Term Liabilities: EVZ's short term assets (25.0M) exceeds its long term liabilities (376.5K)


Debt to Equity History and Analysis

Debt Level: EVZ's debt to equity ratio (13.8%) is considered satisfactory

Reducing Debt: EVZ's debt to equity ratio has reduced from 58.2% to 13.8% over the past 5 years.

Debt Coverage: EVZ's debt is well covered by operating cash flow (74.7%).

Interest Coverage: EVZ's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: EVZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: EVZ's debt is covered by short term assets (assets are 7.567250x debt).


Next Steps

Dividend

What is EVZ's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate EVZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EVZ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if EVZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EVZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EVZ is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EVZ's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of EVZ's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Scott Farthing 0

7.1yrs

Tenure

AU$418,167

Compensation

Mr. Scott Farthing has been the Chief Executive Officer at EVZ Limited since September 24, 2012. Mr. Farthing has an extensive business leadership expertise and engineering experience within the energy and ...


CEO Compensation Analysis

Compensation vs. Market: Scott's total compensation ($USD284.72K) is about average for companies of similar size in the Australian market ($USD257.37K).

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


Management Age and Tenure

5.8yrs

Average Tenure

Experienced Management: EVZ's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

64yo

Average Age

Experienced Board: EVZ's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$386,99913 May 19
Graham Burns
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,800,000
Max PriceAU$0.21
SellAU$386,99913 May 19
Graham Burns
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,800,000
Max PriceAU$0.21
BuyAU$11,05505 May 19
Graham Burns
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares50,000
Max PriceAU$0.22
BuyAU$24,67425 Jan 19
Graham Burns
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares85,200
Max PriceAU$0.29

Ownership Breakdown


Management Team

  • Adam Bellgrove

    General Manager of Syfon Systems Group

    • Tenure: 0yrs
    • Compensation: AU$378.53k
  • Scott Farthing

    Chief Executive Officer

    • Tenure: 7.1yrs
    • Compensation: AU$418.17k
  • Chris Bishop

    General Manager of Brockman Engineering Pty Ltd

    • Tenure: 6.3yrs
    • Compensation: AU$313.15k
  • Ian Whitford

    General Manager of TSF Power Services

    • Tenure: 5.3yrs
    • Compensation: AU$220.59k
  • Pieter Van Der Wal

    CFO & Company Secretary

    • Tenure: 2.1yrs
    • Compensation: AU$240.00k
  • J. Hughes

    General Manager of TSF Maintenance Services

    • Tenure: 0yrs

Board Members

  • Ian Luck (67yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$50.00k
  • Rob Edgley (54yo)

    Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: AU$50.00k
  • Graham Burns (64yo)

    Non-Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: AU$80.00k

Company Information

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


Key Information

  • Name: EVZ Limited
  • Ticker: EVZ
  • Exchange: ASX
  • Founded: 1984
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$18.262m
  • Shares outstanding: 96.12m
  • Website: https://www.evz.com.au

Location

  • EVZ Limited
  • 115/838 Collins Street
  • Docklands
  • Victoria
  • 3008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVZASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
EVZCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

EVZ Limited operates in the engineering and energy services sectors in Australia and Asia. It operates through Engineering, Energy, and Water segments. The Engineering segment designs, manufactures, and in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 10:33
End of Day Share Price2019/10/08 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.

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