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GR Engineering Services Limited
Basic Materials · Other Industrial Metals & Mining
Updated 13 hours ago
$3.87
MARKET CAP
$658.93M
P/E RATIO
19.5
DIV. YIELD
5.7%
FRANKING
92%
GR Engineering Services Limited provides engineering, process control, automation, and construction services to the mining and mineral processing industries in Australia and internationally.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$4.44
Discounted cash flow estimate
$2.86
For 6% dividend yield
Business quality and balance-sheet durability.
Profit generated per $1 of shareholder investment
Exceptional 38.3% ROE places this among elite companies. Strong competitive advantage evident. Note: COVID-19 Pandemic year(s) excluded — ROE recovered to 940% of target.
Current Snapshot
10Y Avg
38.3%
Threshold
15.0%
Worst Year
14.1%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 38.3%, meaning each $1 of shareholder equity generates $0.38 in annual profit. The threshold is 15%, and the worst single year was 14.1%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
At 38.3% ROE, every $1 retained by this company generates $0.38 in annual profit. This exceptional compounding power is what drives long-term wealth - and for dividend investors, it often translates to sustainable dividend growth without needing to borrow or dilute shareholders.
Sources
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$36M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $36M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Short-term assets vs. short-term debts
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
How much earnings are consumed by capital expenditure
Is the business growing — and is debt being managed responsibly?
Revenue and debt both growing — check whether debt is funding productive growth or covering shortfalls. Sustainable dividends require revenue to outpace debt over time.
Current Snapshot
Revenue Change
+87.6%
Debt Change
+897.5%
Trend State
Mixed
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +87.6% across the displayed period, while debt changed by +897.5%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue and debt both growing — check whether debt is funding productive growth or covering shortfalls. Sustainable dividends require revenue to outpace debt over time.
Sources
Annual dividends as percentage of stock price
4.44% yield is well below the 6% target. Not suitable for Barsi's income strategy.
Current Snapshot
6Y Avg Yield
4.4%
6% Requirement
6.0%
Gross Yield
6.2%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.17 and a share price of $3.87, the Barsi yield is 4.4%. The minimum requirement is 6%. Including franking credits, the gross yield is 6.2%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Low yield means you need significant capital to generate meaningful income. Barsi's strategy focuses on stocks that provide substantial cash flow from day one.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| ~31 Aug 2026Est | ~25 Sept 2026 | ~$0.13 | 100% | ~$0.09 | $0.04 |
| ~1 Mar 2027Est | ~25 Mar 2027 | ~$0.12 | 100% | ~$0.08 | $0.04 |
Highest price to lock in 6% yield
Industry category of the business
Basic Materials is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Other Industrial Metals & Mining
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Other Industrial Metals & Mining (Basic Materials sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
The company is paying out more in dividends than it earns (127%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Current Snapshot
Latest Ratio
127.5%
Healthy Range
30%-75%
Zone
Unsustainable
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.22 dividend / $0.20 EPS equals 110.8% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
The company is paying out more in dividends than it earns (127%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Sources
GR Engineering Services Limited provides engineering, process control, automation, and construction services to the mining and mineral processing industries in Australia and internationally. The company operates through Mineral Processing and Oil & Gas segments. It also offers feasibility studies, such as scoping, pre-feasibility, and definitive level studies, as well as study work and services that include front end engineering design, operations and process optimization, due diligence reviews, asset management system development and monitoring, risk evaluation and hazard/operability studies, technology evaluation and trade-off studies, and refurbishment assessments. In addition, the company provides design and construction of minerals processing facilities and related infrastructure for green fields or brownfield projects, including plant modifications, and upgrades, and expansions; plant evaluation and condition reports; plant operations, and maintenance support and optimization; and plant relocation, refurbishment, and recommissioning, as well as offers owners representatives and teams for project management and delivery.
Further, it provides project management services comprising project studies, engineering and procurement, construction and commissioning, operations and technical support, and infrastructure development services. Additionally, the company offers design and construction services comprising of civil, structural, mechanical, piping, electrical, instrumentation/control design, site structural, electrical construction, and installation works; and consulting services. GR Engineering Services Limited was founded in 1986 and is based in Ascot, Australia.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
Few fund managers own this — expect less research and analyst coverage
Shares freely traded on the ASX by individual investors like you
Leadership owns a solid 51.8% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (3.0%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Current Snapshot
Insider %
51.8%
Institutional %
3.0%
Float %
45.2%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 51.8% and institutions own 3.0%, public float is 45.2%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
Leadership owns a solid 51.8% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (3.0%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 14 Nov 2025 | Totaro (Guiseppe) Director (Non-Executive) | Sale at price 2.68 per share. | 3.0M | $8.0M |
| 30 June 2025 | Motiwalla (Omesh) Chief Financial Officer | Unknown | 70K | — |
Company insiders have been net sellers of shares over the past 12 months. Insider selling can occur for many reasons (tax, diversification) and is not necessarily negative.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Current ratio of 1.19 is below ideal 1.5. Adequate but limited cushion for unexpected expenses.
Current Snapshot
Current Ratio
1.19x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 1.19x — it has $1.19 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Limited liquidity increases the risk of dividend cuts if cash flow becomes stressed during a downturn. There's less buffer to absorb surprises.
Sources
5.1% earnings yield is below the 8.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
5.1%
Required Yield
8.5%
Spread
-3.4pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.20 and a share price of $3.87, earnings yield is 5.1%. The required yield for this industry is 8.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
How current price compares with estimated intrinsic value
Stock is trading 74% ABOVE the fair-value threshold (includes 50% margin of safety), but still below the estimated intrinsic value.
Current Snapshot
Current Margin
12.8%
Industry Threshold
50%
Status
74% Above Fair Value
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $4.44 per share, current price is $3.87, and margin of safety is 12.8%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
Price remains below the intrinsic value estimate but above your required threshold. Under this methodology, the valuation buffer is thinner, so estimate error and volatility have a larger impact.
Sources
Exceptionally capital-light. Only 11% of earnings consumed by CapEx — this is the type of business Buffett loves.
Current Snapshot
10Y CapEx Intensity
11%
Threshold
75%
Buffer
+64%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 11% of this company's cumulative earnings were consumed by capital expenditure. The materials & mining threshold is 75%, leaving a buffer of +64%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Very low capital requirements mean most profits are available for dividends, buybacks, or growth. This business generates wealth without needing to pour money back in — the hallmark of a durable competitive advantage.
Sources
Consistency of profits over time
Cyclical business - earnings naturally fluctuate with commodity prices. Focus on dividend consistency instead.
Current Snapshot
Positive Years
9/10
Allowed Losses
0
EPS CAGR
5.8%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 9 of the last 10 years. The allowed loss tolerance for this industry is 0 years. EPS growth rate (CAGR) is 5.8%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Cyclical businesses have volatile earnings tied to commodity prices. For these companies, dividend track record is more telling than earnings consistency.
Sources
Percentage of revenue that becomes profit after all expenses
7.1% net margin is below the 15% threshold. May reflect this sector's structural characteristics.
Current Snapshot
Current Margin
7.1%
Threshold
15.0%
Relative Position
-7.9%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 7.1% — it keeps 7 cents of every revenue dollar as profit after all expenses. The materials & mining threshold is 15%, putting it 7.9% below the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Lower margins in this sector are common, but they leave less cushion if costs rise or revenue drops. Monitor whether margins are stable over time — consistency matters more than the absolute level.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 2 Mar 2026Interim | 25 Mar 2026 | $0.17 | 100% | $0.12 | $0.05 |
| 1 Sept 2025Final | 25 Sept 2025 | $0.17 | 100% | $0.12 | $0.05 |
| 4 Mar 2025Interim | 25 Mar 2025 | $0.14 | 100% | $0.10 | $0.04 |
| 2 Sept 2024Final | 7 Oct 2024 | $0.14 | 100% | $0.10 | $0.04 |
| 4 Mar 2024Interim | 25 Mar 2024 | $0.13 | 100% | $0.09 | $0.04 |
| 4 Sept 2023Final | 22 Sept 2023 | $0.14 | 100% | $0.10 | $0.04 |
| 2 Mar 2023Interim | 23 Mar 2023 | $0.13 | 100% | $0.09 | $0.04 |
| 1 Sept 2022Final | 20 Sept 2022 | $0.14 | 100% | $0.10 | $0.04 |
| 3 Mar 2022Interim | 25 Mar 2022 | $0.13 | 100% | $0.09 | $0.04 |
| 2 Sept 2021Final | 22 Sept 2021 | $0.10 | 100% | $0.07 | $0.03 |
Excellent track record. 11 years of consistent dividends through multiple market cycles.
Current Snapshot
History
11yr
Predictability
Moderate
Payout Health
High risk
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 11 years of dividend history (2016–2026). No suspensions detected — 11 consecutive years of payments. Predictability: Moderate. Payout health: High risk. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A 11-year track record through multiple economic cycles gives confidence your income will continue. This company has proven it prioritises shareholder returns.
Sources
Current price ($3.87) is 35% above the ceiling. Wait for a drop to lock in 6% yield.
Current Snapshot
Current Price
$3.87
Max Buy Price
$2.86
Delta
-35.3%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $3.87 and a ceiling of $2.86, the entry is 35.3% above the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
At this price, you won't achieve Barsi's target 6% yield. Consider waiting for a pullback — market volatility often creates more favourable valuations for patient investors.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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