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Analysts Summary

Since turning in a profit in December 2005, EVZ has delivered excellent results following the implementation of its strategy to build a strong industrial group with focused operations in infrastructure, water and engineering services. The company reported an interim net profit before tax and significant items of $2.037 million, almost a four fold increase on the previous half year. EPS grew by 86.15%, while ROA increased from 12.46% to 18.36%. In turn, the company’s share price has performed exceptionally well over the past year experiencing a rise of over 235%.

The outlook for EVZ is positive. According to consensus analyst forecasts, the company is expected to report EPS of 2.90 cents for FY07, a 114.81% increase from the previous period. Based on current prices, this translates to a PE ratio of 32.00 times, a premium to the industry group average PE of 23.66 times. This indicates that at current prices, the company is potentially fully valued. However, when the company's EPS growth is factored in, a PEG ratio of 0.37 indicates the premium may be justified. Valuations may even improve if the strategic acquisition of National Engineering goes ahead, which would entail an earnings upgrade as annual turnover could increase by more than $70 million. EVZ is likely to attain Star Stock status when they next report their annual results.

Source: Stock Doctor as at 4/05/2007