Advanced Braking Technology Limited (ABV) AI Stock Analysis

• Market Cap: AU$49.73M
• Dividend Yield: N/A
• Average Volume (3M): 121.52K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.81
• Revenue Growth: 25.15%
• EPS Growth: 2.22%
• Country: AU
• Employees: 27
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): <0.01
• Shares Outstanding: 397,855,900
• 10 Day Avg. Volume: 160,285
• 30 Day Avg. Volume: 121,522
• PEG Ratio: 8.12
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 224.56
• 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$0.15
• Price Target Upside: 20.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): <0.01
• Revenue Forecast (FY): AU$23.40M

• Rating: 62 Neutral
• Price Target: AU$0.13 ▲(10.83% Upside)
• Action: Reiterated Date: 01/17/26
• Date: Action: Reiterated 01/17/26

The score is primarily supported by solid financial fundamentals (good revenue growth, strong gross margin, and low leverage), but is held back by weak cash flow conversion and sharply declining free cash flow growth. Technically, the trend is positive, yet overbought signals (high RSI/Stoch) raise near-term risk. Valuation further pressures the score due to a high P/E and no dividend yield provided.

Positive Factors

Revenue & Gross Margin Expansion

Sustained top-line growth combined with a materially improved gross margin indicates durable demand and effective cost management on core products. That mix expansion and margin strength support reinvestment, pricing flexibility, and lasting operational resilience in the auto-parts segment.

Low Financial Leverage

A very low debt load and high equity ratio give the company financial flexibility to fund capex or absorb shocks without heavy interest expense. This conservative capital structure reduces refinancing risk and preserves optionality for long-term investments or opportunistic M&A.

Strong EPS Growth Trend

Robust EPS expansion reflects improving profitability and operational leverage versus the prior period. If driven by recurring revenue gains and margin improvements, this earnings momentum supports sustainable internal funding for growth initiatives and strengthens long-term financial prospects.

Negative Factors

Weak Cash Conversion

Sharp decline in free cash flow and low operating-cash-to-net-income ratio signal difficulty turning accounting profits into cash. This constrains funding for capex, working capital needs, dividends or buybacks, and increases dependence on external financing for durable growth.

Compressing Net Margin

A falling net margin reduces the company’s buffer against input cost inflation or pricing pressure in the cyclical auto-parts industry. Persistent margin compression would limit retained earnings, weaken cash flow generation, and reduce ability to fund strategic initiatives over time.

Limited Scale

A very small employee base suggests constrained operational scale, limited R&D and commercial reach, and higher single-customer or product concentration risk. That scale limitation can impede winning large OEM contracts and restrain competitive positioning sustainably.

Advanced Braking Technology Limited Business Overview & Revenue Model

Company Description

Advanced Braking Technology Limited engages in the research, design, development, manufacture, distribution, and sale of braking solutions worldwide. The company offers braking solutions for light, heavy, defense, and electric vehicles, as well as autonomous vehicle emergency braking and brake controllers under the ABT Failsafe, Terra Dura, and ABT Failsafe Emergency brand names. The company also exports its products. It serves mining, defense, civil construction, and waste management industries. The company was incorporated in 2001 and is headquartered in Wangara, Australia.

How the Company Makes Money

ABV generates revenue primarily through the sale of its braking systems and related components to manufacturers in the automotive and rail industries. The company offers a range of products, including disc brakes, drum brakes, and electronic braking systems, which cater to diverse customer needs. Key revenue streams also include aftermarket sales of replacement parts and maintenance services. ABV has established significant partnerships with major automotive and rail manufacturers, enabling it to secure long-term contracts and expand its market presence. Additionally, ABV invests in research and development to innovate new products, which opens up further revenue opportunities through new market segments and clientele.

Advanced Braking Technology Limited Financial Statement Overview

Summary

Income statement strength (75) is supported by solid revenue growth (+13.4%) and a strong/improving gross margin (45.96%), but profitability shows some pressure with net margin down to 9.30%. Balance sheet is healthy (70) with low leverage (debt-to-equity 0.13) and a strong equity ratio (72.43%). Cash flow is the weak spot (60) with sharply negative free cash flow growth (-126.38%) and low cash conversion (operating cash flow to net income 0.20).

Income Statement

Advanced Braking Technology Limited has shown a strong revenue growth rate of 13.4% in the most recent year, indicating a positive trajectory. The gross profit margin has improved significantly over the years, reaching 45.96%, which is a strong indicator of cost management. However, the net profit margin has slightly decreased to 9.30%, suggesting some pressure on profitability. The EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong with a low debt-to-equity ratio of 0.13, indicating low financial leverage and risk. The return on equity has slightly decreased to 16.60%, which is still a healthy level, showing effective use of equity. The equity ratio stands at 72.43%, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

The cash flow statement reveals some challenges, with a significant decline in free cash flow growth rate by -126.38%. The operating cash flow to net income ratio is low at 0.20, indicating potential issues in converting income to cash. However, the free cash flow to net income ratio is at 23.03%, showing some ability to generate cash relative to net income.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	21.49M	19.13M	15.29M	14.15M	11.09M	9.70M
Gross Profit	7.14M	8.79M	7.39M	3.22M	1.62M	4.18M
EBITDA	2.57M	2.19M	2.09M	1.80M	996.00K	947.00K
Net Income	1.99M	1.78M	1.70M	1.47M	644.00K	620.00K
Balance Sheet
Total Assets	15.37M	14.80M	12.83M	10.96M	7.66M	6.83M
Cash, Cash Equivalents and Short-Term Investments	4.14M	2.94M	2.45M	2.05M	1.74M	1.41M
Total Debt	2.06M	1.40M	1.43M	1.38M	191.00K	689.00K
Total Liabilities	3.96M	4.08M	3.96M	4.01M	2.33M	2.11M
Stockholders Equity	11.41M	10.72M	8.87M	6.95M	5.33M	4.72M
Cash Flow
Free Cash Flow	2.21M	143.00K	36.00K	276.00K	324.00K	938.00K
Operating Cash Flow	2.61M	621.00K	335.00K	941.00K	378.00K	1.21M
Investing Cash Flow	-402.00K	-478.00K	-139.00K	-665.00K	-28.00K	-274.00K
Financing Cash Flow	-415.00K	325.00K	164.00K	33.00K	-22.00K	-43.00K

Advanced Braking Technology Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABV, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.07 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ABV.

Advanced Braking Technology Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFC	66 Neutral	AU$277.93M	16.85	10.48%	4.50%	1.54%	-10.39%
ABV	62 Neutral	AU$49.73M	24.51	18.17%	―	25.15%	2.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RPM	57 Neutral	AU$8.72M	4.92	8.25%	―	-5.17%	-19.44%
AMA	56 Neutral	AU$303.33M	-74.12	-4.58%	―	13.54%	66.33%
SIX	47 Neutral	AU$47.04M	-9.71	―	―	-27.79%	32.50%
NTD	45 Neutral	AU$33.54M	-3.13	-44.12%	―	0.89%	-2641.38%

Advanced Braking Technology Limited Corporate Events

Advanced Braking Technology Lifts Half-Year Earnings and Revenue After Typo Correction

Advanced Braking Technology has corrected a typographical error in its recently released half-year results, clarifying that basic earnings per share rose 55.2 percent, underscoring an improvement in shareholder returns. The update accompanies record first-half revenue of A$11.1 million, up 27.2 percent year on year, driven by strong demand for its SIBS failsafe safety systems and robust sales of new brakes and consumables.

The company reported a 61.6 percent increase in net profit after tax to A$0.54 million, stable gross margins around 49 percent and cash and equivalents up 44 percent to A$4.1 million, reflecting disciplined cost and working capital management. Management highlights a solid balance sheet and cash generation as providing capacity to fund ABT’s growth strategy and product development, potentially strengthening its competitive position in key industrial markets.

The most recent analyst rating on (AU:ABV) stock is a Buy with a A$0.14 price target. To see the full list of analyst forecasts on Advanced Braking Technology Limited stock, see the AU:ABV Stock Forecast page.

Advanced Braking Technology posts record half-year as global mining demand accelerates

Advanced Braking Technology delivered record first-half FY26 results, with revenue up 27% to $11.1 million and net profit after tax rising 62% to $0.54 million, underpinned by strong demand for its SIBS Failsafe systems. Gross margins remained stable at 48.7%, while disciplined cost and working capital management lifted cash to $4.1 million, leaving the balance sheet well positioned to fund further growth and product development.

The company deepened its penetration in both domestic and overseas markets, with sales to Canada, Mongolia and Europe driving nearly 30% international revenue growth. New deployments at Rio Tinto’s Oyu Tolgoi copper operation and MMG’s Dugald River zinc mine, alongside progress in autonomous braking and collision-avoidance accreditation for BRAKEiQ, strengthen ABT’s positioning as a safety leader serving a mining industry increasingly focused on automation and complex underground operations.

The most recent analyst rating on (AU:ABV) stock is a Buy with a A$0.14 price target. To see the full list of analyst forecasts on Advanced Braking Technology Limited stock, see the AU:ABV Stock Forecast page.

Advanced Braking Technology Delivers Strong Half-Year Profit and Revenue Growth

Advanced Braking Technology Ltd reported a strong half-year result for the period ended 31 December 2025, with revenue from ordinary activities rising 27.2% to $11.06 million. The company’s profit after tax attributable to owners surged 61.6% to $538,000, up from $333,000 a year earlier, reflecting improved operational performance.

Net tangible assets per ordinary security increased to 2.88 cents from 2.70 cents, indicating a modest strengthening of the balance sheet. Despite the profit growth and higher asset backing, the board did not declare or pay any dividends for the period, suggesting a continued focus on reinvestment or balance sheet consolidation.

The most recent analyst rating on (AU:ABV) stock is a Buy with a A$0.14 price target. To see the full list of analyst forecasts on Advanced Braking Technology Limited stock, see the AU:ABV Stock Forecast page.

Advanced Braking Technology Delivers Strong Q2 Growth and Strengthens Balance Sheet

Advanced Braking Technology reported a strong December 2025 quarter, with product sales revenue rising 34% year-on-year to $5.6 million and expected profit before tax jumping 191% to $0.35 million, underpinned by 48.3% gross margins. The company saw 52% growth in new brake revenue and 12% growth in spares and consumables, supported by expanding global uptake and a robust domestic performance that included a mandate for its FailSafe brakes from MMG’s Dugald River zinc operation. Cash and cash equivalents increased to $4.14 million, up 44% from the FY25 year-end and 76% on the prior corresponding period, enabling ABT to allow its trade finance facility to lapse and highlighting a strengthened balance sheet and improved operating leverage as it pursues further international market penetration.

The most recent analyst rating on (AU:ABV) stock is a Buy with a A$0.12 price target. To see the full list of analyst forecasts on Advanced Braking Technology Limited stock, see the AU:ABV Stock Forecast page.

Advanced Braking Technology Issues 2.26 Million Unquoted Performance Rights Under Incentive Plan

Advanced Braking Technology Limited has notified the market that it will issue 2,263,636 unquoted performance rights under its employee incentive scheme, effective 18 December 2025. The new class of performance rights, which will not be quoted on the ASX, underscores the company’s continued use of equity-based remuneration to align employee interests with shareholder value and support long-term operational and strategic goals.

The most recent analyst rating on (AU:ABV) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on Advanced Braking Technology Limited stock, see the AU:ABV Stock Forecast page.