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Alfabs Australia Ltd.
(Sydney:AAL)
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Rating:72Outperform
Price Target:
AU$0.29
▼(-6.77% Downside)
Action:Upgraded
Date:07/01/26
The score is driven primarily by solid underlying financial performance (strong operating profitability and ROE, but weakened by negative free cash flow and a large gross margin decline) and supportive valuation (low P/E and very high dividend yield). Technical conviction is limited because major indicators were not provided.
Positive Factors
Operating profitability
Sustained high EBIT and EBITDA margins indicate structurally efficient operations and disciplined project execution. Over 2–6 months this supports cash generation potential from core contracts, pricing flexibility on bespoke fabrication work, and resilience across project cycles.
Negative Factors
Sharp gross margin decline
A halving of gross margin signals structural cost pressure or weaker contract pricing that can materially erode long-term profitability. If persistent, it reduces profit buffer on projects, forces tighter cost controls, and can impair ability to fund growth from operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating profitability
Sustained high EBIT and EBITDA margins indicate structurally efficient operations and disciplined project execution. Over 2–6 months this supports cash generation potential from core contracts, pricing flexibility on bespoke fabrication work, and resilience across project cycles.
Read all positive factors
Alfabs Australia Ltd. (AAL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$74.62M
Dividend Yield7.8%
Average Volume (3M)113.68K
Price to Earnings (P/E)9.6
Beta (1Y)0.48
Revenue Growth17.91%
EPS Growth50.00%
CountryAU
Employees200
SectorGeneral
Sector StrengthN/A
IndustryConglomerates
Share Statistics
EPS (TTM)0.03
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$0.29Price Target Upside-6.45% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.04
Revenue Forecast (FY)AU$112.20M
Alfabs Australia Ltd. Business Overview & Revenue Model
Company Description
Headquartered in Kurri Kurri, Australia, Alfabs Australia Limited, established in 2024, specializes in providing mining equipment and comprehensive engineering solutions across Australia. The company's diverse activities are organized into Mining,...
How the Company Makes Money
AAL makes money primarily by delivering contracted engineering and manufacturing work and associated industrial services. Revenue is generated through (1) fabrication/manufacturing income from building engineered steel structures, modules, and rel...
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
0.31
Price Trends
0.28
Negative
0.30
Negative
0.38
Negative
Market Momentum
>-0.01
Positive
44.60
Neutral
13.10
Positive
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 0.31 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.28, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 13.10 is Positive, 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 (55)
AU:AAL
Alfabs Australia Ltd.
0.26
-0.11
-29.73%
AU:AGD
Austral Gold
0.13
0.07
132.14%
AU:OR3
Auroch Minerals Ltd.
0.07
0.05
173.08%
AU:EV8
Everlast Minerals Ltd
0.46
0.15
48.39%
AU:SNM
Sentinel Metals Limited
0.57
0.26
83.87%
AU:VAL
Valiant Gold Limited
0.20
-0.10
-35.00%
Alfabs Australia Ltd. Corporate Events
Alfabs Australia Cuts Debt and Boosts Mining Hire in Strong Q4 FY26
Jul 14, 2026
Alfabs Australia Limited reported a strong Q4 FY26, highlighting continued outperformance in its mining equipment hire division and steady demand, with average daily hire rates rising and assets redeployed after the Dartbrook mine entered administ...
Alfabs Australia Cancels 50,000 Lapsed Performance Rights
Jul 1, 2026
Alfabs Australia Ltd. has informed the market that 50,000 performance rights, trading under the ASX code AALAF, have lapsed after the conditions attached to these rights were not met or became incapable of being satisfied. The cessation of these s...
Alfabs Australia Issues 400,000 Unquoted Performance Rights Under Incentive Plan
Jul 1, 2026
Alfabs Australia Ltd. has notified the ASX of the issuance of 400,000 unquoted performance rights under its employee incentive scheme, with an expiry date of 1 July 2030. The new securities, not intended to be quoted on the exchange, indicate the ...
Alfabs Australia Names New Director With No Current Shareholdings
Jun 22, 2026
Alfabs Australia Limited has appointed Glen Robinson as a director effective 18 June 2026, according to an initial director’s interest notice lodged with the ASX. The filing confirms that Robinson holds no relevant interests in the company&#...
Alfabs Adds Veteran Mining Executive Glen Robinson to Board
Jun 19, 2026
Alfabs Australia Limited has appointed veteran mining executive Glen Robinson as an independent non-executive director, effective 18 June 2026, further bolstering its board and governance structure. Robinson, who will also join the Audit and Risk ...
Alfabs to Release Escrowed Shares and Options Without Changing Issued Capital
Jun 18, 2026
Alfabs Australia Limited has announced the scheduled release from escrow of 153,570,173 ordinary fully paid shares and a total of 18,500,000 unquoted options, all due to come out of escrow on 28 June 2026. The company emphasised that this escrow r...
Alfabs Details Executive Director Remuneration and Option Grant
Jun 5, 2026
Alfabs Australia Limited has confirmed the terms of employment for newly appointed Executive Director Peter White, whose role is ongoing and subject to standard termination provisions. His remuneration package includes a base salary of $450,000 pl...
Alfabs flags minor ASX listing rule breach over employee share plan
May 22, 2026
Alfabs Australia Ltd. has disclosed an inadvertent breach of ASX Listing Rule 10.14 after issuing 3,067 fully paid ordinary shares under its 2025 Employee Gift Plan to an associate of a director, despite the plan excluding directors and their asso...
Alfabs Australia Appoints New Director With Significant Option Package
May 4, 2026
Alfabs Australia Limited has appointed Peter White as a director effective 5 May 2026, according to an initial director’s interest notice lodged with the ASX. The filing discloses that White holds an indirect interest through PJW KDS Ventur...
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.