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GNG

GR Engineering ServicesASX:GNG Stock Report

Market Cap

AU$289.6m

7D

0.6%

1Y

67.4%

Updated

18 Oct, 2021

Data

Company Financials +
GNG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends4/6

GNG Overview

GR Engineering Services Limited provides engineering design, procurement, and construction services to the mining and mineral processing industries in Australia and internationally.

GR Engineering Services Competitors

Imdex

ASX:IMD

AU$1.1b

Boart Longyear

ASX:BLY

AU$994.3m

Perenti Global

ASX:PRN

AU$726.6m

Macmahon Holdings

ASX:MAH

AU$451.5m

Price History & Performance

Summary of all time highs, changes and price drops for GR Engineering Services
Historical stock prices
Current Share PriceAU$1.80
52 Week HighAU$1.01
52 Week LowAU$1.92
Beta0.86
1 Month Change-2.70%
3 Month Change24.14%
1 Year Change67.44%
3 Year Change38.46%
5 Year Change-6.25%
Change since IPO-4.76%

Recent News & Updates

Shareholder Returns

GNGAU Metals and MiningAU Market
7D0.6%4.3%0.9%
1Y67.4%12.2%20.2%

Return vs Industry: GNG exceeded the Australian Metals and Mining industry which returned 12.2% over the past year.

Return vs Market: GNG exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is GNG's price volatile compared to industry and market?
GNG volatility
GNG Beta0.86
Industry Beta0.97
Market Beta1

Stable Share Price: GNG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GNG's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986n/aGeoff Joneshttps://www.gres.com.au

GR Engineering Services Limited provides engineering design, procurement, and construction services to the mining and mineral processing industries in Australia and internationally. The company operates through two segments, Mineral Processing, and Oil & Gas. It offers feasibility studies, such as scoping, pre-feasibility, and definitive level studies, as well as study work and services that include front end engineering design, operations and process optimization, due diligence reviews, asset management system development and monitoring, risk evaluation and hazard/operability studies, technology evaluation and trade-off studies, and refurbishment assessments.

GR Engineering Services Fundamentals Summary

How do GR Engineering Services's earnings and revenue compare to its market cap?
GNG fundamental statistics
Market CapAU$289.59m
Earnings (TTM)AU$23.24m
Revenue (TTM)AU$393.44m

12.5x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GNG income statement (TTM)
RevenueAU$393.44m
Cost of RevenueAU$237.52m
Gross ProfitAU$155.92m
ExpensesAU$132.68m
EarningsAU$23.24m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin39.63%
Net Profit Margin5.91%
Debt/Equity Ratio4.7%

How did GNG perform over the long term?

See historical performance and comparison

Dividends

7.8%

Current Dividend Yield

80%

Payout Ratio

Valuation

Is GR Engineering Services undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GNG (A$1.8) is trading below our estimate of fair value (A$14.28)

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


Price To Earnings Ratio

PE vs Industry: GNG is good value based on its PE Ratio (12.5x) compared to the Australian Metals and Mining industry average (15x).

PE vs Market: GNG is good value based on its PE Ratio (12.5x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: GNG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GNG is overvalued based on its PB Ratio (5.6x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is GR Engineering Services forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNG's earnings are forecast to decline over the next 3 years (-3% per year).

Earnings vs Market: GNG's earnings are forecast to decline over the next 3 years (-3% per year).

High Growth Earnings: GNG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GNG's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: GNG's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GNG's Return on Equity is forecast to be high in 3 years time (37.5%)


Past Performance

How has GR Engineering Services performed over the past 5 years?

-20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNG has high quality earnings.

Growing Profit Margin: GNG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GNG's earnings have declined by 20.8% per year over the past 5 years.

Accelerating Growth: GNG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GNG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: GNG's Return on Equity (45%) is considered outstanding.


Financial Health

How is GR Engineering Services's financial position?


Financial Position Analysis

Short Term Liabilities: GNG's short term assets (A$122.5M) exceed its short term liabilities (A$100.0M).

Long Term Liabilities: GNG's short term assets (A$122.5M) exceed its long term liabilities (A$5.7M).


Debt to Equity History and Analysis

Debt Level: GNG's debt to equity ratio (4.7%) is considered satisfactory.

Reducing Debt: GNG's debt to equity ratio has increased from 0% to 4.7% over the past 5 years.

Debt Coverage: GNG's debt is well covered by operating cash flow (2045.9%).

Interest Coverage: GNG's interest payments on its debt are well covered by EBIT (99.9x coverage).


Balance Sheet


Dividend

What is GR Engineering Services's current dividend yield, its reliability and sustainability?

7.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GNG's dividend (7.78%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: GNG's dividend (7.78%) is in the top 25% of dividend payers in the Australian market (5.32%)


Stability and Growth of Payments

Stable Dividend: GNG's dividend payments have been volatile in the past 10 years.

Growing Dividend: GNG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.5%), GNG's 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?

3.8yrs

Average management tenure


CEO

Geoff Jones (60 yo)

8.25yrs

Tenure

AU$910,097

Compensation

Mr. Geoffrey Michael Jones, also known as Geoff, BE(Civil), FIEAust, CPEng, has been Managing Director of GR Engineering Services Limited since July 1, 2013. Mr. Jones is a civil engineer with great experi...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD675.50K) is about average for companies of similar size in the Australian market ($USD556.28K).

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


Leadership Team

Experienced Management: GNG's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: GNG's board of directors are considered experienced (7.8 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 been diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

Company Information

GR Engineering Services Limited's employee growth, exchange listings and data sources


Key Information

  • Name: GR Engineering Services Limited
  • Ticker: GNG
  • Exchange: ASX
  • Founded: 1986
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$289.591m
  • Shares outstanding: 160.88m
  • Website: https://www.gres.com.au

Location

  • GR Engineering Services Limited
  • 71 Daly Street
  • Ascot
  • Western Australia
  • 6104
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:29
End of Day Share Price2021/10/18 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.