Emeco Holdings Ltd
ASX:EHL
Intrinsic Value
Emeco Holdings Ltd. is engaging in providing heavy earthmoving equipment solutions for mining industries. [ Read More ]
The intrinsic value of one
EHL
stock under the Base Case scenario is
1.99
AUD.
Compared to the current market price of 0.725 AUD,
Emeco Holdings Ltd
is
Undervalued by 64%.
EHL could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Emeco Holdings Ltd's market capitalization is 374.7m AUD.
EHL stock price is 0.725 AUD.
EHL stock price (0.725 AUD) is 64% less than its Intrinsic Value (1.99 AUD).
EHL stock price (0.725 AUD) is 67% less than its Relative Value (2.196 AUD). Open Relative Valuation
EHL has upside potential of 45% compared to the average analyst price target.
Open Wall St Estimates
EHL's ROE (Return on Equity) for the past 12 months is positive and is equal to 10%.
EHL's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 10%.
EHL's ROE (Return on Equity) has decreased in the last 3 years from 11% to 10%.
EHL's Revenue is forecast to fall at a rate of 1% per year over the next 3 years.
EHL has positive three-year average ROIC (Return on Invested Capital): 11%. The company is efficient at using invested capital to generate operating income.
EHL has positive three-year average ROE (Return on Equity): 9%. The company is efficient at transforming stockholders' equity into net income.
EHL's Revenue has grown by 8% over the past 12 months.
EHL has positive Operating Income for the last twelve months.
EHL has positive Net Income for the last twelve months.
EHL's short-term assets (270m AUD) exceed its short-term liabilties (200m AUD).
EHL's ROIC (Return on Invested Capital) has decreased in the last 3 years from 20% to 10%.
EHL has positive Free Cash Flow for the last twelve months.
EHL's Revenue has been growing by 14% per year for the last 3 years.
EHL has positive Gross Profit for the last twelve months.
EHL's long-term assets (1B AUD) exceed its long-term liabilties (525m AUD).
EHL's D/E (Debt to Equity) is very low and is equal to 0.54.
EHL has positive Net Debt. This means that the company has more debt (328m AUD) than cash and short-term investments (64m AUD).
EHL's Altman Z-Score is very low and is equal to 0.88.
EHL doesn't generate enough operating income (120m AUD) to safely cover interest payments on its debt (-27m AUD).
Valuation Backtest
Emeco Holdings Ltd
Run backtest to discover the historical profit from buying and selling
EHL
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Emeco Holdings Ltd
Balance Sheet Decomposition
Emeco Holdings Ltd
| Current Assets | 269.6m |
| Cash & Short-Term Investments | 64.5m |
| Receivables | 158.8m |
| Other Current Assets | 46.4m |
| Non-Current Assets | 859.5m |
| Long-Term Investments | 4.7m |
| PP&E | 845.6m |
| Intangibles | 9.2m |
| Current Liabilities | 200m |
| Accounts Payable | 134.3m |
| Short-Term Debt | 25.1m |
| Other Current Liabilities | 40.6m |
| Non-Current Liabilities | 325.3m |
| Long-Term Debt | 303.4m |
| Other Non-Current Liabilities | 21.9m |
Earnings Waterfall
Emeco Holdings Ltd
|
Revenue
|
879.9m
AUD
|
|
Cost of Revenue
|
-530.9m
AUD
|
|
Gross Profit
|
349m
AUD
|
|
Operating Expenses
|
-228.9m
AUD
|
|
Operating Income
|
120.1m
AUD
|
|
Other Expenses
|
-62m
AUD
|
|
Net Income
|
58.1m
AUD
|
Free Cash Flow Analysis
Emeco Holdings Ltd
EHL Profitability Score
Profitability Due Diligence
Emeco Holdings Ltd's profitability score is 53/100. The higher the profitability score, the more profitable the company is.
Score
Emeco Holdings Ltd's profitability score is 53/100. The higher the profitability score, the more profitable the company is.
EHL Solvency Score
Solvency Due Diligence
Emeco Holdings Ltd's solvency score is 34/100. The higher the solvency score, the more solvent the company is.
Score
Emeco Holdings Ltd's solvency score is 34/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
EHL Price Targets Summary
Emeco Holdings Ltd
According to Wall Street analysts, the average 1-year price target for
EHL
is 1.049 AUD
with a low forecast of 0.707 AUD and a high forecast of 1.544 AUD.
Shareholder Return
EHL Price
Emeco Holdings Ltd
| Average Annual Return | -16.57% |
| Standard Deviation of Annual Returns | 21.94% |
| Max Drawdown | -80% |
| Market Capitalization | 374.7m AUD |
| Shares Outstanding | 516 798 697 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
Emeco Holdings Ltd
Country
Industry
Market Cap
Dividend Yield
Description
Emeco Holdings Ltd. is engaging in providing heavy earthmoving equipment solutions for mining industries. The company is headquartered in Perth, Western Australia and currently employs 1,100 full-time employees. The company went IPO on 2006-07-28. The firm is focused on providing complementary equipment and mining services, including market-maintenance, equipment and component rebuilds, fleet optimization technology, and technical and engineering services. The firm operates through three segments: Rental, Workshops and Pit N Portal. Rental segment provides a wide range of earthmoving equipment solutions to customers in Australia. Its Additional technology platforms have been developed to enable customers to improve earthmoving efficiencies of their rental machines. Workshops segment provides maintenance and component rebuild services to customers in Australia. Pit N Portal segment Provides a range of mining services solutions and associated services to customers in Australia.
Contact
IPO
Employees
Officers
The intrinsic value of one
EHL
stock under the Base Case scenario is
1.99
AUD.
Compared to the current market price of 0.725 AUD,
Emeco Holdings Ltd
is
Undervalued by 64%.
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