ENVIRONMENTAL GROUP LIMITED (EGL)
Share Price Analysis and Chart

13/06/2025

1

Buy

$0.38

50.79%

Bell Potter transferred Environmental Group's coverage to Ritesh Varma, and the new analyst has remodelled forecasts by raising revenue and EBITDA margin forecasts.

Following the recent acquisition and continued success of the Fulton Boiler distribution agreement, the broker expects the company to deliver on its FY25 guidance.

No change to EPS estimates, but target price rises to 38c from 37c.

The broker notes the stock trades at 9.8x NTM EV/EBITDA which is a -3% discount to international peers, and hence is seen offering an attractive entry point.

Buy retained.

FORECAST
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.30 cents.
Bell Potter forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.70 cents.

07/04/2025

1

Buy

$0.36

42.86%

Environmental Group is acquiring Advanced Boiler and Combustion for $5.5m cash, with completion expected on April 5. Moelis notes the company had $8m cash at the end of 2024 and recently increased its overdraft facility by $3m and bond facility by $1.5m.

The broker believes the acquisition is EPS accretive as it's complementary to the company's existing business and provides a pathway for further growth.

EPS estimates for FY25/26/27 lifted by 1%/6%/6% after factoring in the acquisition. Target price rises to 36c from 35c.

Buy maintained. 

FORECAST
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.30 cents.
Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of 2.00 cents.