ASX:EGH

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Eureka Group Holdings

Market Cap

AU$141.8m

Last Updated

2021/07/23 08:09 UTC

Data Sources

Company Financials +

Executive Summary

Eureka Group Holdings Limited, together with its subsidiaries, owns and manages senior independent living communities in Australia. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EGH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EGH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

EGH

0.5%

AU Real Estate

0.3%

AU Market


1 Year Return

87.7%

EGH

12.2%

AU Real Estate

25.8%

AU Market

Return vs Industry: EGH exceeded the Australian Real Estate industry which returned 12.2% over the past year.

Return vs Market: EGH exceeded the Australian Market which returned 25.8% over the past year.


Shareholder returns

EGHIndustryMarket
7 Day-1.6%0.5%0.3%
30 Day4.3%-2.2%1.3%
90 Day4.3%-2.9%4.2%
1 Year92.3%87.7%14.3%12.2%30.4%25.8%
3 Year134.3%117.9%-19.2%-25.7%32.8%16.6%
5 Year-9.5%-15.9%20.5%2.0%64.3%32.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Eureka Group Holdings 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: EGH (A$0.61) is trading below our estimate of fair value (A$3.87)

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


Price To Earnings Ratio

PE vs Industry: EGH is good value based on its PE Ratio (23.6x) compared to the Australian Real Estate industry average (23.9x).

PE vs Market: EGH is poor value based on its PE Ratio (23.6x) compared to the Australian market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: EGH is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: EGH is overvalued based on its PB Ratio (1.6x) compared to the AU Real Estate industry average (1x).


Future Growth

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

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGH's forecast earnings growth (11.6% per year) is above the savings rate (1.9%).

Earnings vs Market: EGH's earnings (11.6% per year) are forecast to grow slower than the Australian market (12.6% per year).

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

Revenue vs Market: EGH's revenue (9.4% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: EGH's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EGH's Return on Equity is forecast to be low in 3 years time (8.1%).


Past Performance

How has Eureka Group Holdings performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGH has high quality earnings.

Growing Profit Margin: EGH's current net profit margins (22.9%) are lower than last year (41.9%).


Past Earnings Growth Analysis

Earnings Trend: EGH's earnings have declined by 6.1% per year over the past 5 years.

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

Earnings vs Industry: EGH had negative earnings growth (-35.3%) over the past year, making it difficult to compare to the Real Estate industry average (-32.4%).


Return on Equity

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


Financial Health

How is Eureka Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EGH's short term assets (A$8.0M) exceed its short term liabilities (A$4.5M).

Long Term Liabilities: EGH's short term assets (A$8.0M) do not cover its long term liabilities (A$66.9M).


Debt to Equity History and Analysis

Debt Level: EGH's debt to equity ratio (73.6%) is considered high.

Reducing Debt: EGH's debt to equity ratio has reduced from 81.2% to 73.6% over the past 5 years.

Debt Coverage: EGH's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: EGH's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Dividend

What is Eureka Group Holdings's current dividend yield, its reliability and sustainability?

1.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGH's dividend (1.93%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2%).

High Dividend: EGH's dividend (1.93%) is low compared to the top 25% of dividend payers in the Australian market (5.02%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EGH has been paying a dividend for less than 10 years.

Growing Dividend: EGH's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.1%), EGH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGH's dividends in 3 years are forecast to be well covered by earnings (43.7% payout ratio).


Next Steps

Management

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

3.2yrs

Average board tenure


CEO

Cameron Taylor

no data

Tenure

AU$416,797

Compensation

Mr. Cameron Taylor has been Chief Executive Officer of Eureka Group Holdings Limited since July 1, 2021 and was its Chief Operating Officer since March 18, 2019 until July 1, 2021. He is the Head of Proper...


CEO Compensation Analysis

Compensation vs Market: Cameron's total compensation ($USD307.21K) is about average for companies of similar size in the Australian market ($USD270.82K).

Compensation vs Earnings: Cameron's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

Experienced Board: EGH's board of directors are considered experienced (3.2 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

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


Key Information

  • Name: Eureka Group Holdings Limited
  • Ticker: EGH
  • Exchange: ASX
  • Founded: 2001
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: AU$141.754m
  • Shares outstanding: 232.38m
  • Website: https://www.eurekagroupholdings.com.au

Location

  • Eureka Group Holdings Limited
  • 7 Short Street
  • Suite 2D
  • Southport
  • Queensland
  • 4215
  • Australia

Listings


Biography

Eureka Group Holdings Limited, together with its subsidiaries, owns and manages senior independent living communities in Australia. The company operates in two segments, Rental Villages and Property Manage...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 08:09
End of Day Share Price2021/07/22 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.