Alfabs Australia Ltd. (AAL) AI Stock Analysis

• Market Cap: AU$127.53M
• Dividend Yield: 7.8%
• Average Volume (3M): 113.68K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.75
• Revenue Growth: -1.55%
• EPS Growth: 232.03%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.02
• Shares Outstanding: 286,588,000
• 10 Day Avg. Volume: 84,412
• 30 Day Avg. Volume: 113,680
• PEG Ratio: 0.04
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -4.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: AU$0.48 ▲(13.33% Upside)

Alfabs Australia Ltd. presents a mixed investment case. The company's strong financial performance is offset by technical indicators suggesting bearish momentum. The attractive valuation with a low P/E ratio and high dividend yield provides a potential opportunity for value investors. However, the negative free cash flow and oversold technical conditions warrant caution.

Positive Factors

High EBIT and EBITDA margins

Sustained high EBIT and EBITDA margins indicate efficient core operations and strong cost control in fabrication and services. These margins provide durable earnings power, funding for reinvestment, and a buffer against cyclical revenue shocks over the next several months.

Strong return on equity and balanced capital structure

A high ROE alongside an equity ratio near 50% and a modest debt-to-equity suggests the company is using leverage prudently. This durable combination supports shareholder returns, provides funding headroom for projects, and improves resilience to industry cycles over 2–6 months.

Diversified revenue streams and long-term contracts

Multiple revenue streams (manufacturing, equipment sales, maintenance, project management) and long-term contracts reduce reliance on single projects or spot cycles. This structural diversification supports predictable cash flows and cross-selling opportunities over the medium term.

Negative Factors

Sharp decline in gross profit margin

A large drop in gross margin significantly narrows the buffer to cover fixed costs and SG&A. If driven by pricing pressure or higher input costs, it can erode sustainable profitability and limit the company’s ability to sustain investment or dividends without structural cost or pricing remediation.

Negative free cash flow

Persistent negative free cash flow despite positive operating cash flow suggests heavy capex or working capital strain. Over months this constrains discretionary spending, debt paydown, and organic growth funding, raising reliance on external financing if the trend continues.

Increase in total debt over time

Growing absolute debt levels, even with an improved D/E ratio, raise interest expense and refinancing exposure. If cash conversion weakens or margins remain pressured, higher debt amplifies credit and liquidity risk, reducing financial flexibility through the next several quarters.

Alfabs Australia Ltd. Business Overview & Revenue Model

Company Description

Alfabs Australia Limited engages in the mining equipment and engineering business in Australia. It operates through Mining, Engineering, and Other segments. The company offers equipment hire services to operators in the underground black coal mining industry; and supplies mining consumables and spare parts to mining operators, as well as offers repair, maintenance, overhaul, and construction of underground mining equipment. It also provides engineering fabrication, engineering services, protective coatings, forklift, access, logistic, and labor hire services for engineering and site-based maintenance and upgrade projects. In addition, the company offers consumables products, such as construction and drilling consumables, ground-engaging tools, industrial hoses and fittings, lubricants and oils, custom engraved decals, PPE and safety supplies, office stationery and supplies, and commercial and industrial cleaning supplies through retail stores. The company was incorporated in 2024 and is headquartered in Kurri Kurri, Australia.

How the Company Makes Money

Alfabs Australia Ltd. generates revenue through multiple streams, primarily by offering manufacturing and engineering services that cater to the needs of the mining and construction industries. Key revenue streams include the fabrication of custom steel products, sales of mining and construction equipment, and ongoing maintenance and repair services for heavy machinery. The company also benefits from long-term contracts and partnerships with major industry players, which provide a steady flow of projects and revenue. Additionally, Alfabs engages in project management services, which contributes to its earnings by providing comprehensive solutions from planning to execution, ensuring that clients receive end-to-end support.

Alfabs Australia Ltd. Financial Statement Overview

Summary

Alfabs Australia Ltd. demonstrates strong revenue growth and profitability, with efficient operational management reflected in its margins. The balance sheet shows a healthy capital structure, but the rising debt levels need monitoring. Cash flow management is a concern due to negative free cash flow, which could impact future growth and investment capabilities.

Income Statement

Alfabs Australia Ltd. has shown consistent revenue growth over the years, with a notable increase of 4.52% in the latest year. The company maintains a strong EBIT margin of 19.59% and an impressive EBITDA margin of 29.22%, indicating efficient operational management. However, the gross profit margin has decreased significantly from 63.17% to 31.74%, which could be a concern for future profitability. The net profit margin improved to 12.82%, reflecting better cost control and profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.53, indicating a balanced approach to leveraging. Return on equity is strong at 18.76%, showcasing effective use of shareholder funds. The equity ratio stands at 49.21%, suggesting a solid capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Operating cash flow remains positive, but the free cash flow is negative, which is a concern for liquidity and future investments. The free cash flow to net income ratio is negative, indicating that the company is not generating sufficient free cash flow relative to its net income. The operating cash flow to net income ratio is 0.31, showing moderate cash generation efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	94.95M	94.95M	96.27M	84.42M	75.48M
Gross Profit	30.13M	30.13M	60.82M	24.54M	14.15M
EBITDA	27.74M	27.74M	18.26M	14.49M	9.75M
Net Income	12.17M	12.17M	3.55M	4.90M	3.20M
Balance Sheet
Total Assets	131.81M	131.81M	115.78M	74.13M	66.12M
Cash, Cash Equivalents and Short-Term Investments	8.18M	8.18M	23.60M	2.95M	3.87M
Total Debt	34.40M	34.40M	25.54M	17.43M	20.26M
Total Liabilities	66.95M	66.95M	59.04M	48.63M	45.44M
Stockholders Equity	64.87M	64.87M	56.74M	24.49M	20.01M
Cash Flow
Free Cash Flow	-21.49M	-21.49M	-2.13M	2.12M	-1.69M
Operating Cash Flow	10.63M	10.63M	17.34M	13.51M	12.22M
Investing Cash Flow	-30.60M	-30.60M	-19.81M	-11.39M	-13.65M
Financing Cash Flow	4.56M	4.56M	23.12M	-2.90M	4.62M

Alfabs Australia Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAL, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.43, and above the 200-day MA of 0.41, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AAL.

Alfabs Australia Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLX	71 Outperform	AU$191.30M	13.00	11.37%	4.59%	1.33%	-11.07%
DBI	71 Outperform	AU$2.39B	27.12	8.17%	4.73%	13.19%	14.79%
KSC	70 Neutral	AU$465.28M	15.93	8.00%	4.73%	-9.67%	-6.49%
AAL	64 Neutral	AU$127.53M	10.47	20.02%	7.80%	-1.55%	232.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HNG	51 Neutral	AU$122.05M	-26.88	-2.96%	9.09%	43.14%	-136.36%

Alfabs Australia Ltd. Corporate Events

Alfabs Australia Announces Director Departure

Alfabs Australia Limited announced that Mark Harrison has ceased to be a director as of December 3, 2025. The notice details Harrison’s relevant interests in securities, including 2,500,000 options and shares held through entities MWH Nominees No 1 Pty Ltd and MCH Management Pty Ltd. This change in directorship may impact the company’s governance structure and could influence stakeholder perceptions, given Harrison’s significant holdings in the company.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.42 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Announces Key Management Changes

Alfabs Australia Limited has announced changes in its key management personnel with the resignation of Mark Harrison as CFO and Finance Director and the appointment of Peter White as Chief Finance & Strategy Officer, effective January 2026. Peter White brings extensive experience in strategic finance and global project delivery, which is expected to significantly contribute to Alfabs’ strategic growth, while Mark Harrison is recognized for his contributions to the company’s growth and governance, particularly during its ASX listing.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.42 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Ltd. Director Adjusts Shareholding

Alfabs Australia Ltd. announced a change in the director’s interest, specifically involving William Wavish, who disposed of 1,000,000 ordinary shares through an off-market trade valued at $400,000. Following this transaction, Wavish holds 5,733,333 ordinary shares and 4,000,000 options, while his spouse, Yvonne Wavish, retains 4,266,667 ordinary shares. This adjustment in shareholding could indicate strategic financial planning or portfolio adjustment by the director, potentially impacting shareholder perceptions and market dynamics.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Limited Reports Successful AGM Outcomes

Alfabs Australia Limited announced the results of its annual general meeting held on November 24, 2025. All resolutions, including the adoption of the remuneration report, election of Mrs. Aimee Travis, and approvals of various employee and director plans, were carried with significant support. This outcome reflects strong shareholder confidence and positions the company to continue its strategic initiatives in the mining and engineering sectors.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Reports Strong FY2025 Performance Amid Market Challenges

Alfabs Australia Limited has reported a successful FY2025, marking its first full year as an ASX-listed company with significant growth in EBITDA and net profit after tax, increasing by 39% and 76% respectively. Despite challenges in market conditions affecting project margins, the company continues to see positive sales volumes, particularly in its Asset Remediation division and Stone Dust ‘Bat Bag’ division. The company is strategically positioned for growth with ongoing projects like the St Mary’s railway station and a strong presence in the Sydney market.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Corrects Proxy Voting Deadline

Alfabs Australia Limited has issued a correction regarding the cut-off time for proxy voting instructions, which must now be received by 2:00pm AEDT on November 22, 2025. This correction ensures that shareholders use the updated proxy form for voting, maintaining the integrity of the voting process and potentially affecting shareholder engagement and decision-making.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Ltd. Announces 2025 AGM and Key Resolutions

Alfabs Australia Limited has announced its 2025 Annual General Meeting, scheduled for November 24, 2025, which will be held both in-person and virtually. Key agenda items include the adoption of the Remuneration Report, the election of Mrs. Aimee Travis as a Non-Executive Director, and the approval of the 2025 Employee Gift Plan, which involves issuing up to 550,000 shares. These resolutions indicate the company’s commitment to governance, leadership continuity, and employee engagement, potentially impacting shareholder value and company culture.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.