Emeco Holdings Limited (EHL)

Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today » it's FREE! Already a member? Login now!

General Information
Company Name: Emeco Holdings Limited
Stock Code: EHL
Website: www.emecogroup.com
GICS Sub-Industry: Trading Companies & Distributors
Market Cap ($M): 117
Equiv. Shares (M): 600

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.195 $ 0.195 $ 0.200 $ 0.195 $ 0.195 272,437 0%

Current Broker Consensus Recommendation more
Recommendation: Hold (3)
Recommendation Date: 21st Oct 2014
Brokers Surveyed: 2

Company Overview

Business Description:
Emeco Holdings limited (EHL) is an Australian mining equipment rental business. EHL operates as a global fleet of original equipment manufacturer (OEM) machines to deliver suitable equipment rental solutions for customers, with a focus on global mining industry. EHL has operations in Australia, Indonesia, Canada and Chile.

Strategy Analysis:
EHL seeks consolidation of its leading position in the rental of heavy earthmoving equipment in Australia and Indonesia. It looks to expand its Canadian position, supported by a positive outlook for oil sands activity. The weak European and US businesses have been exited. The company is again looking to expand geographically and is entering the copper rich region of Chile which has been experiencing volume growth. The shift toward larger and longer term mining projects improves the potential for wider margin and longer term deals. A strategy to expand the fleet with a particular focus on larger vehicles i.e. (240 tonne trucks) has helped profitability. Emeco Holdings reported NPAT down 22.1% to $22.5m for the half-year ended 31 December 2012. Revenues from ordinary activities were $246.7m, down 9.7% from the same period last year. Diluted EPS was 3.70 cents compared to 4.59 cents last year. Net operating cash flow was $101.61m compared to $114.00m last year. The interim dividend declared was 2.5 cents in line with 2.5 cents last year.

Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 4.4 0.8 -22.9 25.0 0.0 0.0 0.0
2015  F 5.7 1.0 -125.9 19.3 0.0 0.0 0.0
2014  A -22.0 -3.9 -166.4 -6.2 0.0 0.0 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Emeco Holdings (EHL) $120 M -- -- 0.2188 -- 31.2500 25.6410 0.00 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
EHL 1.54 -- 0.36 -- 0.46
Market 0.90 15.3 1.24 1.72 1.50
Sector 0.95 10.36 1.00 1.33 0.43

Name Position Start Date
Mr Ken Lewsey Chief Executive Officer,Managing Director 04 November 2013
Mr Peter Ian Richards Non-Executive Director 14 June 2010
Mr John Ernest Royer Cahill Non-Executive Director 15 September 2008
Ms Erica Smyth Non-Executive Director 15 December 2011
Mr Alexander (Alec) Norman Brennan Non-Executive Director,Non-Executive Chairman 16 August 2005

Name Position
Stephen Gobby Chief Financial Officer
Michael Kirkpatrick Company Secretary
Anthony Halls General Manager Australian Rental
Grant Stubbs General Manager Global Asset Management
Michael Turner General Manager Global Asset Management
Christopher Mossman President Director Indonesia
Ian Testrow President Emeco Americas

Substantial Shareholders
Holding Name
36,841,465 (6.14%) Franklin Resources, Inc and its affiliates
52,565,810 (8.77%) First Samuel Limited
31,174,717 (5.20%) LSV Asset Management
36,375,691 (6.07%) DFA Group

Calendar of Events
Date Event
14 October 2015 Report (Annual)
20 August 2015 Report (Prelim)
10 March 2015 Report (Interim)
19 February 2015 Report (Interim)
20 November 2014 AGM
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.


Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Investing in Art

An educational booklet with useful, practical tips to help you make better-informed decisions about investing in art.

More details...


Aussie share market bulls now have company

Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 | Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.

The Importance of Ignoring the Noise of the Market

Carl Richards, director of investor education at the BAM Alliance 17/10/2014 | “As odd as it may sound, the sooner you start treating your investments like you treat life, the happier you’ll be with the outcome.”

You only dance twice

William H. Gross, Janus Capital Group 16/10/2014 | “Financial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding “minus” 10 basis points.”

The Big Picture - Australia 200 Index

CMC Markets 8/10/2014 | Share market indices around the globe are breaking down. While analysts cast around for reasons, it’s clear that a time factor is in play. Simply put, many investors “feel” a correction is overdue. How low could it go?

Billionaires bankroll Ten's new direction Media Network sees digital future

The Age 19/12/2013 | Ten Network's programming ambitions will be funded by a $200 million loan guaranteed by three of its billionaire owners, as the free-to-air broadcaster declared digital was the future and pointed to early signs that its switch to an older market demographic was working.

Elders alleges $24m fraud in live cattle division

The Age 19/12/2013 | Troubled rural services group Elders is threatening to call in the police over an alleged $24 million fraud by a "handful of individuals" in its live cattle exports division.


Sponsored Links