Alfabs Australia Ltd. (AAL) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 3.33%
• Average Volume (3M): 80.58K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.95
• Revenue Growth: -0.16%
• EPS Growth: -22.41%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 80
• Industry: Conglomerates
• EPS (TTM): 0.02
• Shares Outstanding: 286,588,000
• 10 Day Avg. Volume: 113,454
• 30 Day Avg. Volume: 80,576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: AU$0.50
• Price Target Upside: 13.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: AU$0.50 ▲(13.64% Upside)

Alfabs Australia Ltd. shows strong financial performance with robust revenue growth and improved gross margins. The technical analysis indicates a bullish trend, although there are signs of the stock being overbought. Valuation is relatively high, but the dividend yield provides some compensation. These factors combined lead to a moderate overall stock score.

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. Its primary revenue sources include equipment hire services, where the company rents out specialized machinery and equipment to clients in the mining and construction sectors. Additionally, Alfabs provides engineering and fabrication services, offering custom-designed solutions that meet the specific needs of its clients. The company's mining services division contributes to its earnings by offering support and operational services to mining operations. Key partnerships with industry players and a strong reputation for delivering quality and reliable services also play a significant role in driving the company's revenue growth.

Alfabs Australia Ltd. Financial Statement Overview

Summary

Alfabs Australia Ltd. demonstrates strong revenue growth and improved gross margins, showcasing operational efficiency. However, declining net profit margins and negative free cash flow are areas of concern. The balance sheet remains strong with a healthy equity ratio and moderate leverage. Overall, the company is on a positive trajectory, with key areas requiring attention to sustain profitability and cash flow.

Income Statement

Alfabs Australia Ltd. shows a strong revenue growth rate of 14.02% year-over-year from 2023 to 2024, highlighting robust expansion. The gross profit margin improved significantly from 29.06% in 2023 to 63.17% in 2024, indicating enhanced cost efficiency. However, the net profit margin has decreased from 5.80% to 3.69%, showing pressure on bottom-line profitability despite improved EBIT and EBITDA margins.

Balance Sheet

The balance sheet displays a solid equity base with an equity ratio of 49.00% in 2024, reflecting prudent financial management. The debt-to-equity ratio is 0.45, indicating a moderate leverage level, suggesting manageable financial risk. ROE decreased from 20.01% to 6.26%, pointing to reduced profitability in generating returns for shareholders.

Cash Flow

Operating cash flow increased to $17.34M in 2024, showing strong cash generation capability. However, free cash flow turned negative at -$2.13M, primarily due to substantial capital expenditures. The operating cash flow to net income ratio stood at 4.88, indicating excellent cash conversion despite the negative free cash flow to net income ratio.

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

Alfabs Australia Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Positive
• 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 0.44 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.39, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 76.83 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	72 Outperform	AU$149.41M	9.39	12.68%	5.64%	6.34%	8.63%
KSC	71 Outperform	AU$465.28M	15.15	8.92%	4.66%	-6.12%	2.79%
AAL	70 Neutral		25.00	11.28%	3.33%	-0.16%	-22.41%
DBI	69 Neutral	AU$2.36B	28.91	7.48%	4.69%	19.38%	10.66%
Sector *	66 Neutral	€3.24B	23.59	6.71%	2.53%	-1.64%	-20.27%
LGL	60 Neutral	AU$266.10M	124.31	-2.12%	5.99%	8.23%	84.54%
HNG	56 Neutral	AU$151.88M	12.95	-0.93%	7.27%	14.23%	-102.99%

Alfabs Australia Ltd. Corporate Events

Alfabs Australia Limited Announces Quotation of New Securities

Alfabs Australia Limited has announced a new application for the quotation of 512,000 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and provide more liquidity for its shares, potentially benefiting its stakeholders by increasing the visibility and tradability of its securities.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 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 Director Departure

Alfabs Australia Ltd. has announced the cessation of Robert Neale as a director, effective July 14, 2025. This change in the board could impact the company’s strategic direction and governance, as Neale held significant interests through Acron Holdings Pty Ltd, which controls 2,000,000 ordinary shares.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 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 Cessation of 2 Million Securities

Alfabs Australia Limited announced the cessation of 2,000,000 securities, specifically options that were set to expire on May 24, 2028. The lapse occurred because the conditions required for these securities were not met or became incapable of being satisfied, impacting the company’s issued capital.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 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 New Securities Quotation on ASX

Alfabs Australia Ltd. has announced a new application for the quotation of 11,917,864 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is expected to enhance the company’s market presence and provide additional liquidity for stakeholders, potentially impacting its operational capabilities and industry positioning positively.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 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 Board Resignation

Alfabs Australia Limited announced the resignation of Mr. Robert Neale from his position as a Non-Executive Director, effective July 14, 2025. Mr. Neale, who joined the board in May 2024, played a significant role in the company’s transition to a publicly listed entity on the ASX and contributed to its growth and governance. The board expressed gratitude for his service and plans to review its composition to align with the company’s growth needs. The company remains optimistic about its future growth and commitment to delivering shareholder value.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.