Editor’s Note
This analysis of Diversified United Investment (ASX:DUI) highlights its position as a significant, A$1.15 billion investment manager. The focus is on its consistent historical earnings growth and the quality of its revenue stream, offering a snapshot for investors considering its unique profile in the Australian market.
Simply Wall St Value Rating: ★★★★★☆
Overview:
Diversified United Investment Limited is a publicly owned investment manager with a market cap of A$1.15 billion.
Operations:
DUI generates revenue primarily from its investment company segment, amounting to A$46.71 million.
Diversified United Investment, with its high-quality earnings, presents a unique profile in the Australian market. Over the past five years, earnings have grown at 5% annually, showcasing consistent performance despite not outpacing industry growth of 12.7% last year. The company is debt-free now compared to a 9% debt-to-equity ratio five years ago, eliminating concerns over interest coverage and signaling prudent financial management. However, significant insider selling in recent months might raise some eyebrows among investors. With a levered free cash flow of A$39 million as of June 2025 and no debt burden, DUI remains financially robust and poised for future opportunities.
Simply Wall St Value Rating: ★★★★★★
Overview:
Focus Minerals Limited is involved in the exploration and development of gold properties in Western Australia, with a market capitalization of approximately A$1.01 billion.
Operations:
Focus Minerals Limited generates revenue primarily from its Coolgardie segment, amounting to A$151.74 million. The company’s market capitalization stands at approximately A$1.01 billion.
In the dynamic landscape of Australia’s mining sector, Focus Minerals stands out with its robust earnings growth of 136% over the past year, surpassing the industry average of 10%. Despite a volatile share price in recent months, FML remains debt-free and boasts high-quality earnings. The company has no concerns about cash runway due to its profitability. However, free cash flow remains negative at A$6.21 million as of June 2024, influenced by significant capital expenditures totaling A$22.7 million. These figures suggest that while operationally strong, financial management and expenditure control could be areas for improvement moving forward.
Simply Wall St Value Rating: ★★★★★★
Overview:
GR Engineering Services Limited offers engineering, process control, automation, and construction services primarily to the mining and mineral processing industries globally, with a market capitalization of approximately A$731.73 million.
Operations:
GR Engineering Services Limited generates revenue primarily from its Mineral Processing segment, contributing A$383.09 million, and its Oil and Gas segment, which adds A$95.93 million.
GR Engineering Services, a nimble player in Australia, offers an intriguing profile with its debt-free balance sheet and impressive earnings growth of 21.8% annually over the past five years. Trading at a significant 41.5% below estimated fair value, this company presents potential upside for investors seeking undervalued opportunities. Despite recent insider selling activity over the last quarter, GR Engineering remains free cash flow positive, underscoring its robust financial health. The company’s revenue is expected to grow by 7.8% per year, providing a solid foundation for future expansion within the competitive engineering services sector in Australia.