Alfabs Australia Ltd. (AU:AAL)
ASX:AAL
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Alfabs Australia Ltd.
(Sydney:AAL)
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Rating:62Neutral
Price Target:
AU$0.32
â–˛(7.67% Upside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by solid underlying financial performance (good profitability and balance sheet) offset by weak cash flow (negative free cash flow). Technicals are a notable headwind with a downtrend and bearish momentum despite oversold readings. Valuation is supported by a high dividend yield, with a moderate P/E.
Positive Factors
Consistent revenue growth
Alfabs shows multi-year top-line expansion (latest year +4.52%, Fundamentals revenue growth ~17.9%), indicating durable demand across resources and industrials. Persistent revenue growth supports scale, backlog resilience and gives management room to pursue project wins and reinvestment over a 2–6 month horizon.
Negative Factors
Negative free cash flow
Despite positive operating cash flow, free cash flow is negative and cash conversion is weak (operating CF / net income ~0.31). This structural shortfall limits internal funding for capex, working capital and dividends, increasing reliance on external financing and constraining strategic flexibility over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Alfabs shows multi-year top-line expansion (latest year +4.52%, Fundamentals revenue growth ~17.9%), indicating durable demand across resources and industrials. Persistent revenue growth supports scale, backlog resilience and gives management room to pursue project wins and reinvestment over a 2–6 month horizon.
Read all positive factors
Alfabs Australia Ltd. (AAL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$87.54M
Dividend Yield7.8%
Average Volume (3M)113.68K
Price to Earnings (P/E)21.4
Beta (1Y)0.22
Revenue Growth-1.55%
EPS Growth232.03%
CountryAU
Employees200
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)<0.01
Shares Outstanding287,002,040
10 Day Avg. Volume84,412
30 Day Avg. Volume113,680
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.61
Price to Sales (P/S)1.10
P/FCF Ratio-4.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.36Price Target Upside20.00% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.03
Revenue Forecast (FY)AU$109.75M
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 mini...
How the Company Makes Money
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Alfabs Australia Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 107.12M | 94.95M | 96.27M | 84.42M | 75.48M |
| Gross Profit | 28.55M | 30.13M | 60.82M | 24.54M | 14.15M |
| EBITDA | 24.22M | 27.74M | 18.26M | 14.49M | 9.75M |
| Net Income | 7.75M | 12.17M | 3.55M | 4.90M | 3.20M |
Balance Sheet | |||||
| Total Assets | 136.71M | 131.81M | 115.78M | 74.13M | 66.12M |
| Cash, Cash Equivalents and Short-Term Investments | 4.89M | 8.18M | 23.60M | 2.95M | 3.87M |
| Total Debt | 51.93M | 34.40M | 25.54M | 17.43M | 20.26M |
| Total Liabilities | 75.26M | 66.95M | 59.04M | 48.63M | 45.44M |
| Stockholders Equity | 61.44M | 64.87M | 56.74M | 24.49M | 20.01M |
Cash Flow | |||||
| Free Cash Flow | -18.05M | -21.49M | -2.13M | 2.12M | -1.69M |
| Operating Cash Flow | 12.53M | 10.63M | 17.34M | 13.51M | 12.22M |
| Investing Cash Flow | -29.36M | -30.60M | -19.81M | -11.39M | -13.65M |
| Financing Cash Flow | 16.07M | 4.56M | 23.12M | -2.90M | 4.62M |
Alfabs Australia Ltd. Technical Analysis
Negative
0.30
Price Trends
0.38
Negative
0.40
Negative
0.42
Negative
Market Momentum
-0.02
Negative
41.43
Neutral
48.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAL, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.38, and below the 200-day MA of 0.42, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AAL.
Alfabs Australia Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$152.09M | 3.47 | 14.98% | 4.59% | 1.33% | -11.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$87.54M | 21.45 | 20.02% | 7.80% | -1.55% | 232.03% | |
54 Neutral | AU$424.23M | 10.20 | 6.54% | 4.73% | -9.67% | -6.49% | |
51 Neutral | AU$2.53B | 84.90 | 8.17% | 4.73% | 13.19% | 14.79% |
* Industrials Sector Average
AU:AAL
Alfabs Australia Ltd.
0.31
-0.04
-12.86%
AU:CLX
CTI Logistics Limited
1.88
0.40
27.03%
AU:DBI
Dalrymple Bay Infrastructure Ltd.
5.10
1.48
40.92%
AU:KSC
K & S Corporation Limited
3.10
-0.16
-5.02%
Alfabs Australia Ltd. Corporate Events
Alfabs Restructures Mining Operations and Refinances Debt to Boost Cash Flow
Apr 10, 2026
Alfabs Australia Ltd. has completed a review of its Mining Workshops that has led to an organisational restructure, including consolidating workshop operations into its fully owned Kurri Kurri facility and closing its leased Wollongong workshop wh...
Alfabs Australia Seeks ASX Quotation for New Employee Incentive Shares
Mar 29, 2026
Alfabs Australia Limited has applied to the ASX for quotation of 414,045 ordinary fully paid shares issued on 24 March 2026 under its employee incentive scheme. The move modestly increases the company’s free-float and recognises staff partic...
Alfabs Director Increases Shareholding Through On‑Market Purchase
Mar 10, 2026
Alfabs Australia Limited has disclosed a change in the interests of director Matthew Torrance, in line with ASX listing rule requirements for director shareholdings. The notice details his existing holdings in ordinary shares, options and performa...
Alfabs director lifts equity stake with additional on-market share purchase
Mar 6, 2026
Alfabs Australia Ltd. has disclosed a change in director Matthew Torrance’s holdings, noting that he directly acquired 50,000 additional ordinary shares in the company via an on-market trade on 5 March 2026. Following this transaction, Torra...
Alfabs Director Increases Equity Exposure Through New Option Grant
Feb 25, 2026
Alfabs Australia Ltd. has disclosed a change in director William Wavish’s interests, indicating he and his spouse collectively hold a significant stake in the company through ordinary shares and options. The announcement underscores the comp...
Alfabs Australia to Issue 7.27 Million Unquoted Options and Rights Under Incentive Plan
Feb 25, 2026
Alfabs Australia Ltd. has notified the market of the planned issue of 7,270,000 unquoted options and performance rights under its employee incentive scheme. The new equity instruments, not intended to be quoted on the ASX, will be issued on 25 Feb...
Alfabs lifts revenue, ramps capex as earnings dip and dividend paused
Feb 22, 2026
Alfabs Australia reported December 2025 half-year revenue of $55.6 million, up 28%, but EBITDA fell to $9.5 million as non-recurring impacts from the Dartbrook mine administration, additional investment in key personnel and softer engineering marg...
Alfabs Revenue Climbs but Profit Slumps in Mixed Half-Year Result
Feb 22, 2026
Alfabs Australia Limited reported a strong 28% rise in revenue to $55.6 million for the half-year ended 31 December 2025, but profitability declined sharply as EBITDA fell 24% to $9.5 million and EBIT dropped 60% to $3.4 million. Net profit attrib...
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.