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Emeco Holdings

ASX:EHL
Snowflake Description

Solid track record with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EHL
ASX
A$622M
Market Cap
  1. Home
  2. AU
  3. Capital Goods
Company description

Emeco Holdings Limited provides heavy earthmoving equipment solutions to mining companies and contractors in Australia. The last earnings update was 113 days ago. More info.


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EHL Share Price and Events
7 Day Returns
2.5%
ASX:EHL
-0%
AU Trade Distributors
-0.1%
AU Market
1 Year Returns
-4.2%
ASX:EHL
18.4%
AU Trade Distributors
19.1%
AU Market
EHL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Emeco Holdings (EHL) 2.5% 12.5% -1.9% -4.2% 178.1% 26.9%
AU Trade Distributors -0% 0.3% 1.7% 18.4% 60% 112.6%
AU Market -0.1% -0.6% 0.4% 19.1% 17.4% 26.5%
1 Year Return vs Industry and Market
  • EHL underperformed the Trade Distributors industry which returned 18.4% over the past year.
  • EHL underperformed the Market in Australia which returned 19.1% over the past year.
Price Volatility
EHL
Industry
5yr Volatility vs Market

Value

 Is Emeco Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Emeco Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Emeco Holdings.

ASX:EHL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year AU Government Bond Rate 1.1%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:EHL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 1.1%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.947 (1 + (1- 30%) (77.08%))
1.307
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.08% + (1.307 * 5.44%)
8.19%

Discounted Cash Flow Calculation for ASX:EHL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Emeco Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:EHL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.19%)
2020 69.56 Analyst x6 64.29
2021 88.82 Analyst x6 75.88
2022 77.59 Analyst x5 61.26
2023 71.09 Est @ -8.38% 51.88
2024 67.15 Est @ -5.54% 45.30
2025 64.76 Est @ -3.55% 40.38
2026 63.36 Est @ -2.16% 36.52
2027 62.61 Est @ -1.19% 33.35
2028 62.29 Est @ -0.51% 30.67
2029 62.27 Est @ -0.03% 28.34
Present value of next 10 years cash flows A$467.00
ASX:EHL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$62.27 × (1 + 1.08%) ÷ (8.19% – 1.08%)
A$885.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$885.09 ÷ (1 + 8.19%)10
A$402.78
ASX:EHL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$467.00 + A$402.78
A$869.78
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$869.78 / 306.36
A$2.84
ASX:EHL Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.84
Current discount Discount to share price of A$2.03
= -1 x (A$2.03 - A$2.84) / A$2.84
28.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Emeco Holdings is available for.
Intrinsic value
28%
Share price is A$2.03 vs Future cash flow value of A$2.84
Current Discount Checks
For Emeco Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Emeco Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Emeco Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Emeco Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Emeco Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:EHL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.11
ASX:EHL Share Price ** ASX (2019-12-11) in AUD A$2.03
Australia Trade Distributors Industry PE Ratio Median Figure of 6 Publicly-Listed Trade Distributors Companies 18.29x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Emeco Holdings.

ASX:EHL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:EHL Share Price ÷ EPS (both in AUD)

= 2.03 ÷ 0.11

18.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Emeco Holdings is good value based on earnings compared to the AU Trade Distributors industry average.
  • Emeco Holdings is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Emeco Holdings's expected growth come at a high price?
Raw Data
ASX:EHL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
23.4%per year
Australia Trade Distributors Industry PEG Ratio Median Figure of 5 Publicly-Listed Trade Distributors Companies 0.76x
Australia Market PEG Ratio Median Figure of 349 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

ASX:EHL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.18x ÷ 23.4%

0.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Emeco Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Emeco Holdings's assets?
Raw Data
ASX:EHL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$0.65
ASX:EHL Share Price * ASX (2019-12-11) in AUD A$2.03
Australia Trade Distributors Industry PB Ratio Median Figure of 13 Publicly-Listed Trade Distributors Companies 1.2x
Australia Market PB Ratio Median Figure of 1,588 Publicly-Listed Companies 1.66x
ASX:EHL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:EHL Share Price ÷ Book Value per Share (both in AUD)

= 2.03 ÷ 0.65

3.14x

* Primary Listing of Emeco Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Emeco Holdings is overvalued based on assets compared to the AU Trade Distributors industry average.
X
Value checks
We assess Emeco Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Emeco Holdings has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Emeco Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Emeco Holdings expected to grow at an attractive rate?
  • Emeco Holdings's earnings growth is expected to exceed the low risk savings rate of 1.1%.
Growth vs Market Checks
  • Emeco Holdings's earnings growth is expected to exceed the Australia market average.
  • Emeco Holdings's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:EHL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:EHL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 23.4%
ASX:EHL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 5.8%
Australia Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 20%
Australia Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.3%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:EHL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:EHL Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30
2022-06-30 558 178 102 7
2021-06-30 549 199 97 8
2020-06-30 520 176 89 8
2019-12-11
ASX:EHL Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 464 169 34
2019-03-31 449 131 26
2018-12-31 434 93 19
2018-09-30 408 109 12
2018-06-30 381 126 5
2018-03-31 337 91 -61
2017-12-31 294 57 -127
2017-09-30 245 35 -142
2017-06-30 196 14 -157
2017-03-31 164 23 -125
2016-12-31 133 33 -93
2016-09-30 150 52 -131

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Emeco Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Emeco Holdings's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:EHL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Emeco Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:EHL Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30 0.31 0.42 0.22 6.00
2021-06-30 0.30 0.34 0.21 7.00
2020-06-30 0.27 0.30 0.25 7.00
2019-12-11
ASX:EHL Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.11
2019-03-31 0.10
2018-12-31 0.08
2018-09-30 0.05
2018-06-30 0.02
2018-03-31 -0.26
2017-12-31 -0.60
2017-09-30 -0.92
2017-06-30 -1.63
2017-03-31 -1.64
2016-12-31 -1.68
2016-09-30 -2.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Emeco Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Emeco Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Emeco Holdings has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Emeco Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Emeco Holdings's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Emeco Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Emeco Holdings's 1-year earnings growth exceeds its 5-year average (533% vs 36.1%)
  • Emeco Holdings's earnings growth has exceeded the AU Trade Distributors industry average in the past year (533% vs -42.9%).
Earnings and Revenue History
Emeco Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Emeco Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:EHL Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 464.49 33.67 20.37
2019-03-31 449.28 26.49 17.72
2018-12-31 434.08 19.31 15.07
2018-09-30 407.54 12.32 15.07
2018-06-30 380.99 5.32 15.07
2018-03-31 337.29 -60.95 12.29
2017-12-31 293.60 -127.21 9.51
2017-09-30 244.82 -142.19 9.51
2017-06-30 196.04 -157.17 9.51
2017-03-31 164.28 -125.27 7.13
2016-12-31 132.51 -93.38 4.74
2016-09-30 150.24 -130.92 5.70
2016-06-30 167.97 -168.45 6.65
2016-03-31 203.89 -173.30 5.47
2015-12-31 239.80 -178.15 4.28
2015-09-30 240.62 -150.64 4.39
2015-06-30 241.43 -123.13 4.51
2015-03-31 234.71 -115.05 4.41
2014-12-31 227.99 -106.96 4.31
2014-09-30 234.54 -165.57 4.23
2014-06-30 241.10 -224.17 4.15
2013-12-31 256.46 -191.87 3.48
2013-09-30 317.92 -95.93 3.54
2013-06-30 379.38 0.01 3.61
2012-12-31 538.75 63.65 3.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Emeco Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Emeco Holdings used its assets more efficiently than the AU Trade Distributors industry average last year based on Return on Assets.
  • Emeco Holdings has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Emeco Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Emeco Holdings has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Emeco Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Emeco Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Emeco Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Emeco Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Emeco Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Emeco Holdings Company Filings, last reported 5 months ago.

ASX:EHL Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 198.08 457.49 36.19
2019-03-31 198.08 457.49 36.19
2018-12-31 167.52 467.21 18.63
2018-09-30 167.52 467.21 18.63
2018-06-30 153.48 474.07 171.43
2018-03-31 153.48 474.07 171.43
2017-12-31 50.18 447.04 56.03
2017-09-30 50.18 447.04 56.03
2017-06-30 -32.01 452.60 16.98
2017-03-31 -32.01 452.60 16.98
2016-12-31 -24.58 380.58 33.81
2016-09-30 -24.58 380.58 33.81
2016-06-30 6.00 368.81 31.17
2016-03-31 6.00 368.81 31.17
2015-12-31 128.86 374.59 30.32
2015-09-30 128.86 374.59 30.32
2015-06-30 221.47 420.72 40.56
2015-03-31 221.47 420.72 40.56
2014-12-31 285.49 388.54 34.13
2014-09-30 285.49 388.54 34.13
2014-06-30 323.97 347.74 41.83
2013-12-31 437.12 339.59 4.63
2013-09-30 437.12 339.59 4.63
2013-06-30 611.18 405.83 6.45
2012-12-31 623.18 467.39 16.08
  • Emeco Holdings's level of debt (231%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (107.6% vs 231% today).
  • Debt is well covered by operating cash flow (37%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Emeco Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Emeco Holdings has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Emeco Holdings dividends. Estimated to be 2.89% next year.
If you bought A$2,000 of Emeco Holdings shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Emeco Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Emeco Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:EHL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Global Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 339 Stocks 3.1%
Australia Market Average Dividend Yield Market Cap Weighted Average of 389 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:EHL Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30 0.24 1.00
2021-06-30 0.06 4.00
2020-06-30 0.00 3.00
2019-12-11
ASX:EHL Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2014-08-20 0.000 0.000
2014-02-19 0.000 0.000
2013-08-21 0.000 0.000
2013-02-20 0.600 16.364
2012-08-20 0.600 9.506
2011-08-23 0.600 6.184
2011-02-22 0.400 3.586
2010-08-25 0.200 2.076
2010-02-24 0.000 0.000
2010-02-23 0.000 0.000
2009-08-26 0.400 5.007
2009-02-25 0.450 10.547

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Emeco Holdings has not reported any payouts.
  • Unable to verify if Emeco Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Emeco Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Emeco Holdings has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Emeco Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Emeco Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Emeco Holdings has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Emeco Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ian Testrow
COMPENSATION A$11,439,633
AGE 49
TENURE AS CEO 4.3 years
CEO Bio

Mr. Ian M. Testrow, BEng (Civil), MBA has been the Chief Executive Officer, Managing Director and Executive Director at Emeco Pty Limited since August 2015 and as its Chief Operating Officer since 2014. Prior to Emeco, he worked for Wesfarmers Limited, BHP Billiton Ltd, Thiess Pty Ltd and Dyno Nobel. Mr. Testrow has been the Chief Executive Officer and Managing Director of Emeco Holdings Limited since August 20, 2015 and served as its Chief Operating Officer until August 26, 2015. Mr. Testrow served as an Executive General Manager of Global Asset Management, Technology and Applications at Emeco Holdings Limited since 2014. He served as the Chief Operating Officer of Australian Rental at Emeco Holdings Limited since February 17, 2014. Mr. Testrow served as President of New & Developing Business at Emeco Holdings Limited since April 26, 2013 until February 17, 2014 and served its President of North America at Emeco Holdings Limited since February 1, 2010. Mr. Testrow served as the President of Emeco Canada at Emeco Holdings Ltd. He served as General Manager of Northern Regional Rental at Emeco Holdings Ltd. since March 1, 2008. Mr. Testrow joined Emeco Holding in October 2005 and came with over 15 years of experience in the mining and civil sectors. Prior to relocating to Canada from Australia he was responsible for Emeco's business in the Northern Territory, Queensland and New South Wales as General Manager of the Northern Region. He has been Director of Emeco Holdings Limited since August 26, 2015. He has a Diploma in Surveying, Bachelor of Civil Engineering and an MBA, majoring in Finance, with the University of Southern Queensland.

CEO Compensation
  • Ian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ian's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Emeco Holdings management team in years:

2.9
Average Tenure
  • The tenure for the Emeco Holdings management team is about average.
Management Team

Ian Testrow

TITLE
MD, CEO & Executive Director
COMPENSATION
A$11M
AGE
49
TENURE
4.3 yrs

Justine Lea

TITLE
Chief Financial Officer
COMPENSATION
A$1M
TENURE
3.2 yrs

Thao Pham

TITLE
Chief Strategy Officer
COMPENSATION
A$2M
TENURE
2.6 yrs

Penny Young

TITLE
Company Secretary & General Counsel
TENURE
2.4 yrs
Board of Directors

Ian Testrow

TITLE
MD, CEO & Executive Director
COMPENSATION
A$11M
AGE
49

Peter Frank

TITLE
Non-Executive Director
COMPENSATION
A$100K
AGE
72
TENURE
2.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
06. Nov 19 Buy Perennial Value Management Limited Company 29. Jul 19 04. Nov 19 11,430,807 A$2.38 A$21,991,332
30. Oct 19 Sell Paradice Investment Management Pty Ltd. Company 24. Oct 19 28. Oct 19 -689,720 A$1.93 A$-1,303,403
07. Oct 19 Sell Paradice Investment Management Pty Ltd. Company 27. Aug 19 03. Oct 19 -5,009,797 A$2.13 A$-9,244,773
27. Aug 19 Sell Paradice Investment Management Pty Ltd. Company 05. Jul 19 23. Aug 19 -7,509,733 A$2.20 A$-14,980,157
14. Jun 19 Sell Paradice Investment Management Pty Ltd. Company 12. May 18 27. May 19 -2,638,323 A$24.99 A$-9,184,115
14. Jun 19 Buy Paradice Investment Management Pty Ltd. Company 21. Feb 19 12. Jun 19 5,114,536 A$2.50 A$10,850,155
04. Apr 19 Sell Eley Griffiths Group Pty Limited Company 02. Apr 19 02. Apr 19 -500,000 A$1.98 A$-988,400
X
Management checks
We assess Emeco Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Emeco Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Like Emeco Holdings Limited’s (ASX:EHL) High Return On Capital Employed?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Emeco Holdings:0.16 = AU$103m ÷ (AU$769m - AU$106m) (Based on the trailing twelve months to June 2019.) So, Emeco Holdings has an ROCE of 16%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … The Bottom Line On Emeco Holdings's ROCE This is good to see, and with a sound ROCE, Emeco Holdings could be worth a closer look.

Simply Wall St -

Emeco Holdings Limited (ASX:EHL): What Does Its Beta Value Mean For Your Portfolio?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Check out our latest analysis for Emeco Holdings What EHL's beta value tells investors Given that it has a beta of 1.24, we can surmise that the Emeco Holdings share price has been fairly sensitive to market volatility (over the last 5 years). … Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies.

Simply Wall St -

How Did Emeco Holdings Limited's (ASX:EHL) 12% ROE Fare Against The Industry?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Emeco Holdings: 12% = AU$19m ÷ AU$168m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … How Does Debt Impact Return On Equity? … Emeco Holdings's Debt And Its 12% ROE Emeco Holdings clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 2.79.

Simply Wall St -

Is There An Opportunity With Emeco Holdings Limited's (ASX:EHL) 34% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Emeco Holdings Limited (ASX:EHL) by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (A$, Millions) A$84.9m A$84.8m A$85.3m A$86.3m A$87.6m A$89.1m A$90.8m A$92.7m A$94.6m A$96.7m Growth Rate Estimate Source Analyst x4 Analyst x3 Est @ 0.63% Est @ 1.14% Est @ 1.49% Est @ 1.74% Est @ 1.91% Est @ 2.03% Est @ 2.11% Est @ 2.17% Present Value (A$, Millions) Discounted @ 9.56% A$77.5 A$70.6 A$64.9 A$59.9 A$55.5 A$51.5 A$47.9 A$44.6 A$41.6 A$38.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= A$552.9m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = AU$97m × (1 + 2.3%) ÷ (9.6% – 2.3%) = AU$1.4b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = A$AU$1.4b ÷ ( 1 + 9.6%)10 = A$547.74m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is A$1.10b.

Simply Wall St -

Does Emeco Holdings (ASX:EHL) Have A Healthy Balance Sheet?

ASX:EHL Historical Debt, July 15th 2019 How Healthy Is Emeco Holdings's Balance Sheet? … This deficit is considerable relative to its market capitalization of AU$644.2m, so it does suggest shareholders should keep an eye on Emeco Holdings's use of debt. … Either way, since Emeco Holdings does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Emeco Holdings (ASX:EHL) Shareholders Have Enjoyed A Whopping 547% Share Price Gain

One such superstar is Emeco Holdings Limited (ASX:EHL), which saw its share price soar 547% in three years. … We'd be remiss not to mention the difference between Emeco Holdings's total shareholder return (TSR) and its share price return. … We note that Emeco Holdings's TSR, at 566% is higher than its share price return of 547%.

Simply Wall St -

At AU$1.64, Is Emeco Holdings Limited (ASX:EHL) Worth Looking At Closely?

I find that Emeco Holdings’s ratio of 20.6x is trading slightly above its industry peers’ ratio of 19.14x, which means if you buy Emeco Holdings today, you’d be paying a relatively fair price for it. … And if you believe that Emeco Holdings should be trading at this level in the long run, there’s only an insignificant downside when the price falls to its real value. … This is because Emeco Holdings’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market.

Simply Wall St -

Emeco Holdings Limited (ASX:EHL) Earns Among The Best Returns In Its Industry

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Emeco Holdings: 0.14 = AU$88m ÷ (AU$706m - AU$81m) (Based on the trailing twelve months to December 2018.) So, Emeco Holdings has an ROCE of 14%. … Emeco Holdings's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Does Emeco Holdings Limited (ASX:EHL) Have A Particularly Volatile Share Price?

If you're interested in Emeco Holdings Limited (ASX:EHL), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Emeco Holdings Limited (ASX:EHL) Has A ROE Of 12%

Our data shows Emeco Holdings has a return on equity of 12% for the last year. … That means that for every A$1 worth of shareholders' equity, it generated A$0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

Emeco Holdings Limited provides heavy earthmoving equipment solutions to mining companies and contractors in Australia. The company rents trucks, excavators, dozers, loaders, and graders. It is also involved in the maintenance and remanufacturing of various components of heavy earthmoving equipment. Emeco Holdings Limited was founded in 1972 and is headquartered in Perth, Australia.

Details
Name: Emeco Holdings Limited
EHL
Exchange: ASX
Founded: 1972
A$621,919,993
306,364,529
Website: http://www.emecogroup.com
Address: Emeco Holdings Limited
71 Walters Drive,
Level 3,
Perth,
Western Australia, 6017,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX EHL Ordinary Shares Australian Securities Exchange AU AUD 28. Jul 2006
OTCPK EOHD.F Ordinary Shares Pink Sheets LLC US USD 28. Jul 2006
DB E3A Ordinary Shares Deutsche Boerse AG DE EUR 28. Jul 2006
CHIA EHL Ordinary Shares Chi-X Australia AU AUD 28. Jul 2006
Number of employees
Current staff
Staff numbers
543
Emeco Holdings employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/11 10:34
End of day share price update: 2019/12/11 00:00
Last estimates confirmation: 2019/12/08
Last earnings filing: 2019/08/20
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.