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Eureka Group Holdings Limited
(Sydney:EGH)
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Rating:66Neutral
Price Target:
AU$0.68
â–²(3.03% Upside)
Action:Downgraded
Date:09/08/26
Overall score reflects solid underlying fundamentals and a positive FY2027 outlook from the earnings call (growth guidance, strong cash flow, occupancy and acquisition pipeline), balanced against weakened near-term technical momentum and increased leverage risk. Valuation is reasonable but not compelling enough to outweigh the technical softness.
Positive Factors
Strong revenue growth
Strong revenue and rental-income growth reflects portfolio expansion alongside organic demand. A larger recurring rental base can support operating leverage, reinvestment and earnings growth over the next several quarters, provided occupancy and acquisition execution remain durable.
Negative Factors
Material leverage increase
The sharp increase in leverage reduces financial flexibility even though the current debt-to-equity level is described as moderate for the sector. Higher debt can constrain future investment capacity and increase sensitivity to weaker property markets or funding conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Strong revenue and rental-income growth reflects portfolio expansion alongside organic demand. A larger recurring rental base can support operating leverage, reinvestment and earnings growth over the next several quarters, provided occupancy and acquisition execution remain durable.
Read all positive factors
Eureka Group Holdings Limited (EGH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$348.12M
Dividend Yield2.35%
Average Volume (3M)161.18K
Price to Earnings (P/E)15.9
Beta (1Y)0.48
Revenue Growth23.83%
EPS Growth-23.18%
CountryAU
Employees42
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.04
Shares Outstanding561,488,830
10 Day Avg. Volume77,566
30 Day Avg. Volume161,177
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)1.13
Price to Sales (P/S)5.08
P/FCF Ratio19.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.80Price Target Upside21.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.04
Revenue Forecast (FY)AU$63.95M
Eureka Group Holdings Limited Business Overview & Revenue Model
Company Description
Eureka Group Holdings Limited is an Australian firm specializing in the ownership and operation of independent living communities designed for seniors. The company's activities are organized into two primary divisions: Rental Villages and Property...
Eureka Group Holdings Limited Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Positive
The call presents a strongly positive operating and financial performance: double-digit top-line and EBITDA growth, very strong operating cash flow (up 41%), sizeable accretive acquisitions and a large off-market pipeline, progress on modular construction and capital partnerships, and a conservative balance sheet with headroom. Noted negatives are limited to a small number of underperforming communities, procurement and customer-journey improvements needed, higher construction and regional modular costs (notably in WA), some policy-driven deal timing uncertainty, and a modestly higher assumed cost of debt. Management has clear mitigation plans (divestments, funds/JV sales, asset swaps, modular scale) and guidance that does not rely heavily on further acquisitions, supporting a constructive outlook.Positive Updates
Strong top-line growth
Revenue of AUD 56.7m, up 24% year-on-year; rental income up 32% to AUD 44.9m, driven by portfolio expansion and organic growth.
Negative Updates
Underperforming regional communities
A small number of communities in regional Victoria and South Australia are trading below expectations; ~70% of seniors vacancies are concentrated in five or six markets (e.g., Whyalla, Shepparton, Horsham), requiring remediation or potential divestment.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong top-line growth
Revenue of AUD 56.7m, up 24% year-on-year; rental income up 32% to AUD 44.9m, driven by portfolio expansion and organic growth.
Read all positive updates
Company Guidance
Eureka guided FY2027 to underlying EPS of at least AUD 0.039 per share (at least 13% growth on FY2026), assuming ~AUD 50m of acquisitions, delivery of 150+ new rental homes (all modular) with ~200 one‑ and two‑bed modular homes committed, and conversion of an ~AUD 120m acquisition pipeline into earnings; management will keep LVR well below 40% (internal ceiling 40%, bank covenant 55%), assume an all‑in cost of debt of ~6.4–6.5% with ~28–29% of drawn debt hedged (target 30–50%), hold overhead growth below revenue growth, pursue divestment of non‑core/remote assets and exits of low‑profit management contracts, broaden capital via joint ventures/funds, and target medium‑term scale of >6,000 homes and a 40% operating margin—with rent growth, occupancy, acquisition pace, development ramp‑up and cost discipline the key variables for delivering guidance.Eureka Group Holdings Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 56.70M | 45.81M | 41.14M | 36.42M | 29.75M |
| Gross Profit | 21.39M | 17.90M | 14.95M | 12.52M | 9.96M |
| EBITDA | 15.40M | 13.52M | 22.47M | 9.86M | 8.45M |
| Net Income | 16.73M | 20.06M | 13.21M | 19.16M | 8.17M |
Balance Sheet | |||||
| Total Assets | 444.53M | 332.87M | 275.23M | 237.41M | 182.77M |
| Cash, Cash Equivalents and Short-Term Investments | 2.54M | 2.80M | 2.26M | 1.81M | 1.84M |
| Total Debt | 136.63M | 56.66M | 91.85M | 70.43M | 71.44M |
| Total Liabilities | 190.29M | 92.60M | 120.99M | 93.46M | 83.73M |
| Stockholders Equity | 254.23M | 240.27M | 154.24M | 143.96M | 99.03M |
Cash Flow | |||||
| Free Cash Flow | 15.12M | 10.72M | 7.92M | 7.93M | 2.87M |
| Operating Cash Flow | 15.20M | 10.79M | 8.13M | 8.71M | 8.28M |
| Investing Cash Flow | -91.37M | -39.33M | -26.07M | -32.86M | -20.89M |
| Financing Cash Flow | 75.87M | 29.08M | 18.38M | 24.14M | 12.56M |
Eureka Group Holdings Limited Technical Analysis
Negative
0.66
Price Trends
0.65
Negative
0.64
Negative
0.58
Positive
Market Momentum
>-0.01
Positive
42.84
Neutral
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EGH, the sentiment is Negative. The current price of 0.66 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.65, and above the 200-day MA of 0.58, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EGH.
Eureka Group Holdings Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$10.39B | 10.44 | 9.44% | 5.89% | 14.63% | 18.93% | |
71 Outperform | AU$734.05M | 7.09 | 16.17% | 8.31% | 1.05% | 77.00% | |
70 Outperform | AU$1.94B | 10.35 | 10.91% | 2.02% | 8.14% | 45.13% | |
66 Neutral | AU$348.12M | 15.86 | 6.72% | 2.35% | 23.83% | -23.18% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | AU$512.99M | 10.82 | 7.06% | 1.43% | 38.59% | ― | |
56 Neutral | AU$1.69B | 30.40 | 8.71% | 0.25% | 8.48% | -32.41% |
* Real Estate Sector Average
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Eureka Group Holdings Limited Corporate Events
Eureka Secures $70.7m in Institutional Raising to Fund Portfolio Expansion
Sep 7, 2026
Eureka Group Holdings Limited has successfully completed the institutional component of its fully underwritten $80.2 million equity raising, securing $70.7 million via a 1-for-3.29 accelerated non-renounceable pro-rata entitlement offer. The offer...
Index Rebalance Brings Broad Changes to S&P/ASX Benchmarks
Sep 4, 2026
SP Dow Jones Indices has announced its September 2026 quarterly rebalance of the SP/ASX indices, reshuffling constituents across the SP/ASX 50, 100, 200 and 300, while leaving the SP/ASX 20 unchanged. The changes, which introduce new companies and...
Eureka Group secures extended trading halt for institutional entitlement offer
Sep 3, 2026
Eureka Group Holdings has obtained an extension to its trading halt on the ASX for its ordinary shares, with the halt now expected to remain in place until the start of trading on Monday, 7 September 2026. The company says it is not aware of any r...
Eureka Group Unveils Accelerated Entitlement Offer for Over 130 Million Shares
Sep 3, 2026
Eureka Group Holdings Limited has announced a proposed accelerated non-renounceable entitlement offer of up to 130,366,557 ordinary fully paid shares, targeting existing shareholders. Trading in the stock will resume on an ex-entitlement basis on ...
Eureka Group Launches $80 Million Underwritten Entitlement Offer
Sep 3, 2026
Eureka Group Holdings has launched a fully underwritten accelerated non-renounceable pro-rata entitlement offer to raise about $80.2 million through the issue of roughly 130.4 million new shares at $0.615 each. Eligible shareholders can subscribe ...
Eureka boosts NSW footprint with $123.8m lifestyle community acquisition
Sep 3, 2026
Eureka Group Holdings has agreed to acquire six lifestyle and mixed-use communities in New South Wales from Ingenia Communities Group for $123.8 million, adding 953 sites across Greater Sydney, the Hunter Valley, Shoalhaven and the Central Coast. ...
Eureka Group to Buy $123.8m NSW Communities, Launches $80.2m Equity Raise
Sep 3, 2026
Eureka Group Holdings has agreed to acquire six lifestyle and mixed-use communities in New South Wales from Ingenia Communities Group for $123.8 million, adding 953 sites across Greater Sydney, the Central Coast, Hunter Valley and Shoalhaven. The ...
Eureka Group Shares Halted Ahead of Material Acquisition Announcement
Sep 2, 2026
Eureka Group Holdings Limited has requested and received a trading halt on its ordinary shares from the ASX, effective from Wednesday, 2 September 2026. The halt will remain in place until the earlier of the commencement of normal trading on Frida...
Eureka Group Shifts Corporate Headquarters to New Brisbane City Address
Aug 31, 2026
Eureka Group Holdings Limited has announced an immediate change to its registered office and principal place of business, relocating its corporate headquarters to Level 12, 120 Edward Street in Brisbane City, Queensland. The move consolidates its ...
Eureka Sets 2026 AGM Date and Director Nomination Deadlines
Aug 27, 2026
Eureka Group Holdings Limited has scheduled its 2026 Annual General Meeting for 10:00 a.m. AEST on Friday, 30 October 2026 at Morgans’ offices in Brisbane, with full meeting details to be circulated to shareholders in September. The company ...
Eureka Corrects DRP Election Date for Upcoming Dividend
Aug 21, 2026
Eureka Group Holdings Limited has clarified details for its upcoming dividend on ordinary fully paid shares, relating to the six-month period ended 30 June 2026. The company confirmed a record date of 26 August 2026, an ex-dividend date of 25 Augu...
Eureka Group lifts revenue and EBITDA, amends DRP election date in FY26 update
Aug 21, 2026
Eureka Group Holdings has issued an amended version of its FY26 preliminary results to correct the Dividend Reinvestment Plan election date to 31 August 2026, with all other elements of the Appendix 4E unchanged. The company reported a 23.8% incre...
Eureka expands WA portfolio with $16.8m Geraldton acquisition
Aug 20, 2026
Eureka Group Holdings has agreed to acquire Sunset Beach Holiday Park in Geraldton, Western Australia, for $16.8 million, marking its third all-age rental community in the state. The 245-site asset combines a beachfront holiday and workforce accom...
Eureka Details Governance Compliance and Diversity Progress for FY26
Aug 20, 2026
Eureka Group Holdings Limited has outlined its adherence to the ASX Corporate Governance Council’s fourth edition principles for the year to 30 June 2026, confirming compliance across core areas such as board oversight, management delineatio...
Eureka Group Charts Growth Pathway With FY26 Results and Expansion Plans
Aug 20, 2026
Eureka Group Holdings outlined its full-year FY26 performance, highlighting portfolio growth, disciplined cost management and operating results across segments that underpin rising annualised recurring revenue. The company also detailed housing ma...
Eureka Group scales rental portfolio as underlying earnings surge in FY26
Aug 20, 2026
Eureka Group Holdings reported a 29% rise in underlying EBITDA to $21.7 million and a 24% lift in revenue to $56.7 million for FY26, driven by portfolio expansion and strong rental growth across seniors and all-age communities. Despite a 17% decli...
Eureka Group lifts revenue and underlying earnings but statutory profit falls
Aug 20, 2026
Eureka Group Holdings Limited reported a strong uplift in operating performance for the year to 30 June 2026, with revenue from ordinary activities rising 23.8% to $56.7 million and underlying EBITDA up 28.6% to $21.7 million. Underlying earnings ...
Eureka Group Adjusts Timing of FY26 Results Briefing
Aug 18, 2026
Eureka Group Holdings has rescheduled the time of its analyst and investor briefing associated with the release of its full-year financial results for the year ended 30 June 2026. The briefing, originally set for 11:00 AM AEST on 20 August 2026, w...
Eureka Group Sets Date for FY26 Full-Year Results and Investor Briefing
Aug 13, 2026
Eureka Group Holdings Limited has scheduled the release of its full-year financial results for the twelve months ended 30 June 2026 for Thursday, 20 August 2026. The announcement signals an upcoming update on the company’s financial and oper...
Eureka Expands Affordable Housing Footprint with $18.4m Mandurah Park Acquisition
Aug 13, 2026
Eureka Group Holdings has agreed to acquire the Mandurah Coastal Holiday Park, a 4.05-hectare mixed-use residential and short-stay rental community about 70 kilometres south of Perth, for $18.4 million. The property includes 168 existing sites acr...
Eureka launches first all-age rental fund to fuel growth amid housing crunch
Aug 12, 2026
Eureka Group Holdings has closed its first wholesale all-age rental fund, Eureka All Age Village Fund No 1, with $14.35 million in equity and a $14.50 million senior debt facility from National Australia Bank, taking a 30.9% equity stake itself. T...
Eureka Group Refreshes Company Secretarial Leadership
Jul 30, 2026
Eureka Group Holdings Limited has appointed experienced corporate governance advisor Daniel Petravicius as Company Secretary, effective 30 July 2026, bringing legal and business qualifications and broad sector experience across listed and unlisted...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.