ASX:EGG

Stock Analysis Report

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Executive Summary

Enero Group Limited provides integrated marketing and communication services in Australia, the United Kingdom, Europe, and the United States.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EGG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

EGG

0.9%

AU Media

2.5%

AU Market


1 Year Return

-15.4%

EGG

-59.8%

AU Media

-10.8%

AU Market

Return vs Industry: EGG exceeded the Australian Media industry which returned -59.8% over the past year.

Return vs Market: EGG underperformed the Australian Market which returned -10.8% over the past year.


Shareholder returns

EGGIndustryMarket
7 Day-3.2%0.9%2.5%
30 Day0.7%-10.2%1.0%
90 Day59.3%25.6%21.8%
1 Year-13.0%-15.4%-51.5%-59.8%-7.1%-10.8%
3 Year40.1%29.2%-44.1%-58.7%19.2%3.4%
5 Year121.6%95.7%-28.0%-52.7%35.9%6.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Enero Group undervalued compared to its fair value and its price relative to the market?

38.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGG (A$1.37) is trading below our estimate of fair value (A$2.23)

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


Price To Earnings Ratio

PE vs Industry: EGG is poor value based on its PE Ratio (32.6x) compared to the Media industry average (16.2x).

PE vs Market: EGG is poor value based on its PE Ratio (32.6x) compared to the Australian market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: EGG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: EGG is good value based on its PB Ratio (1x) compared to the AU Media industry average (1x).


Next Steps

Future Growth

How is Enero Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGG's forecast earnings growth (37.3% per year) is above the savings rate (2.3%).

Earnings vs Market: EGG's earnings (37.3% per year) are forecast to grow faster than the Australian market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EGG's revenue is expected to decline over the next 3 years (-13.2% per year).

High Growth Revenue: EGG's revenue is forecast to decline over the next 3 years (-13.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EGG's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Enero Group performed over the past 5 years?

39.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGG has a large one-off loss of A$8.2M impacting its December 31 2009 financial results.

Growing Profit Margin: EGG's current net profit margins (1.4%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: EGG has become profitable over the past 5 years, growing earnings by 39.3% per year.

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

Earnings vs Industry: EGG had negative earnings growth (-66.7%) over the past year, making it difficult to compare to the Media industry average (-47.8%).


Return on Equity

High ROE: EGG's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Enero Group's financial position?


Financial Position Analysis

Short Term Liabilities: EGG's short term assets (A$78.6M) exceed its short term liabilities (A$66.4M).

Long Term Liabilities: EGG's short term assets (A$78.6M) exceed its long term liabilities (A$24.1M).


Debt to Equity History and Analysis

Debt Level: EGG is debt free.

Reducing Debt: EGG currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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

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


Balance Sheet


Next Steps

Dividend

What is Enero Group current dividend yield, its reliability and sustainability?

4.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGG's dividend (4.38%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: EGG's dividend (4.38%) is low compared to the top 25% of dividend payers in the Australian market (6.44%).


Stability and Growth of Payments

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

Growing Dividend: EGG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (131%), EGG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGG's dividends in 3 years are forecast to be well covered by earnings (46.9% payout ratio).


Next Steps

Management

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

2.2yrs

Average board tenure


CEO

Brent Scrimshaw (52yo)

no data

Tenure

Mr. Brent Scrimshaw has been Executive Director and Chief Executive Officer of Enero Group Limited since July 1, 2020. He Co-Founded Unscriptd.com and served as its Chief Executive Officer. Mr. Scrimshaw s ...


Board Members

NamePositionTenureCompensationOwnership
Brent Scrimshaw
CEO & Executive Directorno datano datano data
Ian Rowden
Independent Non-Executive Director1.67yrsAU$46.06k0.070% A$82.2k
Ann Sherry
Independent Non-Executive Chairman0.50yrno data0.022% A$25.7k
Susan McIntosh
Non Executive Director20.08yrsAU$75.00k0.14% A$167.4k
David Brain
Independent Non-Executive Director2.17yrsAU$75.00k0.088% A$102.8k
Anouk Darling
Independent Non-Executive Director3.42yrsAU$82.01k0.023% A$26.9k

2.2yrs

Average Tenure

60yo

Average Age

Experienced Board: EGG's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Enero Group Limited
  • Ticker: EGG
  • Exchange: ASX
  • Founded:
  • Industry: Advertising
  • Sector: Media
  • Market Cap: AU$117.042m
  • Shares outstanding: 85.43m
  • Website: https://www.enero.com

Number of Employees


Location

  • Enero Group Limited
  • 100 Harris Street
  • Level 2
  • Pyrmont
  • New South Wales
  • 2009
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2004
EGGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2004

Biography

Enero Group Limited provides integrated marketing and communication services in Australia, the United Kingdom, Europe, and the United States. Its services include strategy, market research and insights, advertising, digital, public relations, communications planning, graphic design, events management, direct marketing, and corporate communications. The company is based in Pyrmont, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 10:34
End of Day Share Price2020/07/03 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.