ASX:GNG

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GR Engineering Services

Executive Summary

GR Engineering Services Limited operates as an engineering, consulting, and contracting company that provides engineering design, procurement, and construction services to the mining and mineral processing industries in Australia and internationally.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has GR Engineering Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GNG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

18.3%

GNG

1.5%

AU Metals and Mining

-2.0%

AU Market


1 Year Return

-6.7%

GNG

-0.3%

AU Metals and Mining

-12.3%

AU Market

Return vs Industry: GNG underperformed the Australian Metals and Mining industry which returned 0.4% over the past year.

Return vs Market: GNG exceeded the Australian Market which returned -11.8% over the past year.


Shareholder returns

GNGIndustryMarket
7 Day18.3%1.5%-2.0%
30 Day17.5%0.5%-3.6%
90 Day15.9%21.9%11.9%
1 Year-1.8%-6.7%5.0%-0.3%-8.7%-12.3%
3 Year-31.5%-41.7%66.0%43.0%14.9%-0.4%
5 Year16.6%-16.0%109.9%68.5%28.3%0.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GNG (A$0.84) is trading below our estimate of fair value (A$1.43)

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


Price To Earnings Ratio

PE vs Industry: GNG is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.

PE vs Market: GNG is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GNG is overvalued based on its PB Ratio (4x) compared to the AU Metals and Mining industry average (1.8x).


Next Steps

Future Growth

How is GR Engineering Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

103.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GNG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: GNG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GNG's is expected to become profitable in the next 3 years.

Revenue vs Market: GNG's revenue (14.1% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: GNG's revenue (14.1% per year) is forecast to grow slower than 20% 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 (26.1%)


Next Steps

Past Performance

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

-25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GNG is currently unprofitable.

Growing Profit Margin: GNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GNG is unprofitable, and losses have increased over the past 5 years at a rate of -25% per year.

Accelerating Growth: Unable to compare GNG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GNG is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.4%).


Return on Equity

High ROE: GNG has a negative Return on Equity (-22.69%), as it is currently unprofitable.


Next Steps

Financial Health

How is GR Engineering Services's financial position?


Financial Position Analysis

Short Term Liabilities: GNG's short term assets (A$55.1M) exceed its short term liabilities (A$39.0M).

Long Term Liabilities: GNG's short term assets (A$55.1M) exceed its long term liabilities (A$3.2M).


Debt to Equity History and Analysis

Debt Level: GNG is debt free.

Reducing Debt: GNG has not had any debt for past 5 years.

Debt Coverage: GNG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GNG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GNG's dividend (4.76%) is higher than the bottom 25% of dividend payers in the Australian market (2.49%).

High Dividend: GNG's dividend (4.76%) is low compared to the top 25% of dividend payers in the Australian market (6.51%).


Stability and Growth of Payments

Stable Dividend: GNG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GNG has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: GNG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: GNG's dividends in 3 years are forecast to be covered by earnings (81.6% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Geoff Jones (58yo)

7.08yrs

Tenure

AU$713,333

Compensation

Mr. Geoffrey Michael Jones, also known as Geoff, BEng, FIEAust, CPEng, has been Managing Director of GR Engineering Services Limited since June 26, 2013. Mr. Jones is a civil engineer with over 30 years’ e ...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD496.44K) is above average for companies of similar size in the Australian market ($USD263.40K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Jones
MD & Director7.08yrsAU$713.33k0.50% A$644.7k
Omesh Motiwalla
CFO & Company Secretary1.25yrsAU$58.42kno data
Tony Patrizi
Executive Director13.83yrsAU$346.63k6.37% A$8.2m
David Sala Tenna
Manager of Projects2.58yrsAU$382.88k8.02% A$10.3m
Stephen Kendrick
Manager of Projects2.58yrsAU$304.66k3.17% A$4.1m
Rodney Schier
Engineering Managerno dataAU$303.89k5.27% A$6.8m
Thomas Marshall
Manager of Eastern Region / Americas2.92yrsAU$360.78k0.020% A$25.0k
Peter Allen
Manager of Technical Services2.58yrsAU$500.88kno data
Trevor McAlister
Human Resources Managerno datano datano data
Teodoro Condipodero
HSE Manager & Manager of Procurement2.58yrsAU$230.47kno data

2.6yrs

Average Tenure

Experienced Management: GNG's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geoffrey Jones
MD & Director7.08yrsAU$713.33k0.50% A$644.7k
Tony Patrizi
Executive Director13.83yrsAU$346.63k6.37% A$8.2m
Barry Patterson
Independent Non-Executive Director7.08yrsAU$63.94kno data
Phillip Lockyer
Independent Non-Executive Chairman3.58yrsAU$85.47k0.033% A$41.7k
Peter Hood
Independent Non Executive Director9.42yrsAU$63.94k0.33% A$417.5k
Giuseppe Totaro
Non-Executive Director1yrAU$328.59k5.21% A$6.7m

7.1yrs

Average Tenure

76yo

Average Age

Experienced Board: GNG's board of directors are considered experienced (7.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GR Engineering Services Limited's company bio, 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$128.300m
  • Shares outstanding: 153.65m
  • Website: https://www.gres.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GNGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2011
8GRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2011
GNGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2011

Biography

GR Engineering Services Limited operates as an engineering, consulting, and contracting company that 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 and Gas. It provides project management services, including project studies, engineering and procurement, construction and commissioning, asset management plans and system development, operations and technical support, and infrastructure development services. The company’s services include the design and construction of minerals processing facilities and related infrastructure for greenfield or brownfield projects, such as plant modifications, upgrades, and expansions; plant evaluation and condition reports; plant operations, and maintenance support and optimization; and plant relocation, refurbishment, and recommissioning, as well as engages in the provision of owners representatives and teams for project management and delivery, and asset management services. Its services also comprise engineering and process design consulting services; and feasibility studies comprising scoping, pre-feasibility, and definitive engineering studies. In addition, the company offers operations, maintenance, advisory, and well management services to the oil and gas sector. GR Engineering Services Limited was founded in 1986 and is based in Ascot, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 10:34
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
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.