ASX:EGH

Stock Analysis Report

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Eureka Group Holdings

Executive Summary

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


Snowflake Analysis

Proven track record second-rate dividend payer.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

EGH

-4.8%

AU Real Estate

-1.6%

AU Market


1 Year Return

30.5%

EGH

-29.7%

AU Real Estate

-10.9%

AU Market

Return vs Industry: EGH exceeded the Australian Real Estate industry which returned -29.7% over the past year.

Return vs Market: EGH exceeded the Australian Market which returned -10.9% over the past year.


Shareholder returns

EGHIndustryMarket
7 Day1.3%-4.8%-1.6%
30 Day1.3%-1.6%-3.7%
90 Day20.3%-8.1%-1.4%
1 Year34.3%30.5%-28.0%-29.7%-7.7%-10.9%
3 Year24.2%16.7%-23.8%-30.3%16.2%1.3%
5 Year-27.4%-31.9%13.5%-5.1%37.8%9.6%

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?

10.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EGH (A$0.39) is trading above our estimate of fair value (A$0.13)

Significantly Below Fair Value: EGH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EGH is good value based on its PE Ratio (10.9x) compared to the AU Real Estate industry average (23.8x).

PE vs Market: EGH is good value based on its PE Ratio (10.9x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: EGH is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: EGH is overvalued based on its PB Ratio (1x) compared to the AU Real Estate industry average (0.9x).


Next Steps

Future Growth

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

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGH's forecast earnings growth (4% per year) is above the savings rate (2.3%).

Earnings vs Market: EGH's earnings (4% per year) are forecast to grow slower than the Australian market (17.3% per year).

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

Revenue vs Market: EGH's revenue (6.3% per year) is forecast to grow faster than the Australian market (4.5% per year).

High Growth Revenue: EGH's revenue (6.3% 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 (7.9%).


Next Steps

Past Performance

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

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGH has high quality earnings.

Growing Profit Margin: EGH's current net profit margins (32.6%) are higher than last year (29.2%).


Past Earnings Growth Analysis

Earnings Trend: EGH's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: EGH's earnings growth over the past year (18.9%) exceeds its 5-year average (-2.8% per year).

Earnings vs Industry: EGH earnings growth over the past year (18.9%) exceeded the Real Estate industry -39.6%.


Return on Equity

High ROE: EGH's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Eureka Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EGH's short term assets (A$8.2M) exceed its short term liabilities (A$3.4M).

Long Term Liabilities: EGH's short term assets (A$8.2M) do not cover its long term liabilities (A$55.9M).


Debt to Equity History and Analysis

Debt Level: EGH's debt to equity ratio (63.8%) is considered high.

Reducing Debt: EGH's debt to equity ratio has increased from 61.2% to 63.8% over the past 5 years.

Debt Coverage: EGH's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: EGH's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGH's dividend (2.86%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: EGH's dividend (2.86%) is low compared to the top 25% of dividend payers in the Australian market (5.7%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether EGH's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if EGH's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.3%), 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 (39.8% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Eureka Group Holdings has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Murray Boyte
Executive Chairman2.92yrsAU$336.00k0.20%
A$ 175.5k
Tracey Campion
Chief Financial Officer1.75yrsAU$263.12kno data
Cameron Taylor
Chief Operating Officer1.58yrsAU$416.80kno data
Laura Fanning
Company Secretary2.33yrsno datano data

2.0yrs

Average Tenure

Experienced Management: EGH's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Murray Boyte
Executive Chairman2.92yrsAU$336.00k0.20%
A$ 175.5k
Gregory Paramor
Independent Non-Executive Director0.33yrAU$2.15k2.04%
A$ 1.8m
Sue Renkin
Non-Executive Director2.92yrsAU$73.50kno data
Russell Banham
Non-Executive Director1.92yrsAU$75.00kno data

2.4yrs

Average Tenure

Experienced Board: EGH's board of directors are not considered experienced ( 2.4 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: EGH 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$89.715m
  • Shares outstanding: 230.04m
  • Website: https://www.eurekagroupholdings.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2004
EGHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2004

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 Analysis2020/10/01 10:34
End of Day Share Price2020/10/01 00:00
Earnings2020/06/30
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.