Emeco Holdings Limited (EHL)

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General Information
Company Name: Emeco Holdings Limited
Stock Code: EHL
Website: www.emecogroup.com
GICS Sub-Industry: Trading Companies & Distributors
Market Cap ($M): 123
Equiv. Shares (M): 600

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.205 $ 0.205 $ 0.210 $ 0.205 $ 0.205 475,526 0%

Current Broker Consensus Recommendation more
Recommendation: Hold (3)
Recommendation Date: 30th Sep 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 26.3 0.0 0.0 0.0
2015  F 5.7 1.0 -125.9 20.3 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) $124 M -- -- 0.0400 -- 27.6000 26.5385 0.00 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
EHL 1.81 -- 0.38 -- 0.48
Market 0.98 15.4 1.26 1.71 1.56
Sector 1.12 10.97 0.99 1.35 0.45

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

Calendar of Events
Date Event
20 August 2015 Report (Prelim)
10 March 2015 Report (Interim)
19 February 2015 Report (Interim)
20 November 2014 AGM
15 October 2014 Report (Annual)
© 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.


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