GR Engineering Services Limited
GR Engineering Services Limited Fundamental Analysis
GR Engineering Services Limited (GNG.AX) shows moderate financial fundamentals with a PE ratio of 21.93, profit margin of 6.97%, and ROE of 42.55%. The company generates $0.4B in annual revenue with weak year-over-year growth of -23.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GNG.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGNG.AX demonstrates superior asset utilization.
Valuation Score
ExcellentGNG.AX trades at attractive valuation levels.
Growth Score
ModerateGNG.AX shows steady but slowing expansion.
Financial Health Score
ExcellentGNG.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateGNG.AX maintains healthy but balanced margins.
Key Financial Metrics
Is GNG.AX Expensive or Cheap?
P/E Ratio
GNG.AX trades at 21.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GNG.AX's PEG of -1.46 indicates potential undervaluation.
Price to Book
The market values GR Engineering Services Limited at 9.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.41 times EBITDA. This signals the market has high growth expectations.
How Well Does GNG.AX Make Money?
Net Profit Margin
For every $100 in sales, GR Engineering Services Limited keeps $6.97 as profit after all expenses.
Operating Margin
Core operations generate 9.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $42.55 in profit for every $100 of shareholder equity.
ROA
GR Engineering Services Limited generates $14.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GR Engineering Services Limited generates limited operating cash flow of $20.30M, signaling weaker underlying cash strength.
Free Cash Flow
GR Engineering Services Limited produces free cash flow of $18.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.11 in free cash annually.
FCF Yield
GNG.AX converts 2.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.43
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.53
vs 25 benchmark
How GNG.AX Stacks Against Its Sector Peers
| Metric | GNG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.93 | 25.96 | Better (Cheaper) |
| ROE | 42.55% | 1263.00% | Weak |
| Net Margin | 6.97% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.18 | 10.05 | Neutral |
| ROA | 14.23% | -1497918.00% (disorted) | Strong |
GNG.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GR Engineering Services Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
110.11%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
332.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
9.25%
Industry Style: Cyclical, Value, Infrastructure
Growing