The Environmental Group Limited

EGL.AX

Engineering & Construction · Industrials

Price

A$0.09

-0.00 (-2.22%)

Market Cap

A$33.5M

Exchange

Australian Securities Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Share count rising — dilution

+28.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 296.6M (2022) → 380.5M (2026)

Winston Score History

The full picture

The Environmental Group Limited (EGL) is an Australian company that helps industrial businesses manage pollution and meet environmental regulations. It provides services like air pollution control, industrial ventilation, and waste gas treatment, mainly to customers in mining, manufacturing, and energy sectors. EGL operates through several specialist subsidiaries, making it one of the few Australian companies offering a broad range of industrial environmental engineering services under one roof.

EGL earns revenue by designing, building, and maintaining pollution control systems for its clients, which means income comes from both project-based contracts and ongoing service agreements. The company operates primarily in Australia, and its small market size means it competes against both large engineering firms and niche specialists. With thin operating margins around 4-5%, the key risk is that project delays or cost overruns can quickly squeeze profits, while the main growth opportunity lies in tightening environmental regulations pushing more industrial companies to upgrade their pollution control infrastructure.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-7.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-276.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

A$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

40.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~2 years

A$2M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

A$2M cash & investments at current burn rate

Revenue declining

The Environmental Group Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

8.8%

Thin — 8.8% gross margin

Profit after running costs

Operating Margin

-1.6%

Losing money on operations — -1.6%

Return on the money invested

ROCE

0.5%

Weak — 0.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

-0.1%

Shrinking sales (-0.1% YoY)

Profit growth

EPS YoY

-222.6%

Earnings shrinking (-222.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

0.5%

Thin free cash flow (0.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.22

Conservative — low debt load (0.22)

Covers its interest

Interest Cover

0.18x

Dangerous — barely covers interest (0.2x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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