Advanced Braking Technology Limited (ABV) AI Stock Analysis

• Market Cap: AU$53.71M
• Dividend Yield: N/A
• Average Volume (3M): 121.52K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.88
• 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$0.14
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: AU$0.15 ▲(6.43% Upside)

The score is driven primarily by decent financial performance (strong growth, strong gross margin, and low leverage) but is held back by weak cash-flow conversion and a steep P/E multiple. Technically, the uptrend is supported by moving averages and MACD, but overbought readings raise near-term downside risk.

Positive Factors

Revenue Growth and Product Mix

Sustained double-digit revenue growth (13.4%) combined with diversified product lines and aftermarket services provides a durable revenue base. Established OEM/rail partnerships and R&D investment enhance contract visibility and support incremental, repeatable sales over the medium term.

Strong Gross Margin

A 45.96% gross margin signals robust cost control and product-level pricing power across braking systems. Higher gross margins create structural capacity to absorb input cost volatility, fund ongoing R&D, and preserve competitiveness in engineering-focused niches over multiple business cycles.

Conservative Capital Structure

Very low leverage (D/E 0.13) and a high equity ratio (72.43%) give the company financial resilience. This durable balance-sheet strength reduces refinancing risk, supports investment in product development or capex, and improves ability to weather sector cyclicality without heavy external funding.

Negative Factors

Weak Cash Conversion

Sharp negative free cash flow growth and a low OCF-to-net-income ratio indicate difficulty converting accounting profits into cash. Over months, weak cash conversion limits self-funding of growth, increases reliance on external financing, and constrains flexibility for capex or working-capital demands.

Declining Net Profitability

A falling net margin (now 9.3%) despite improving gross margin points to rising operating or overhead pressure. Structurally lower net profitability reduces retained earnings available for reinvestment, weakens shock absorption, and makes long-term returns more sensitive to cost or demand shocks.

Small Scale and Sector Cyclicality

A very small workforce (27 employees) and exposure to the cyclical auto-parts sector suggest limited scale versus large OEM suppliers. This can constrain capacity to win large contracts, reduce bargaining power, and increase vulnerability to auto demand swings, affecting durable competitive positioning.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.13M	19.13M	15.29M	14.15M	11.09M	9.70M
Gross Profit	8.79M	8.79M	7.39M	3.22M	1.62M	4.18M
EBITDA	2.19M	2.19M	2.09M	1.80M	996.00K	947.00K
Net Income	1.78M	1.78M	1.70M	1.47M	644.00K	620.00K
Balance Sheet
Total Assets	14.80M	14.80M	12.83M	10.96M	7.66M	6.83M
Cash, Cash Equivalents and Short-Term Investments	2.94M	2.94M	2.45M	2.05M	1.74M	1.41M
Total Debt	1.40M	1.40M	1.43M	1.38M	191.00K	689.00K
Total Liabilities	4.08M	4.08M	3.96M	4.01M	2.33M	2.11M
Stockholders Equity	10.72M	10.72M	8.87M	6.95M	5.33M	4.72M
Cash Flow
Free Cash Flow	143.00K	143.00K	36.00K	276.00K	324.00K	938.00K
Operating Cash Flow	621.00K	621.00K	335.00K	941.00K	378.00K	1.21M
Investing Cash Flow	-478.00K	-478.00K	-139.00K	-665.00K	-28.00K	-274.00K
Financing Cash Flow	355.00K	325.00K	164.00K	33.00K	-22.00K	-43.00K

Advanced Braking Technology Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 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:ABV, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 57.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$279.29M	11.51	10.48%	4.50%	1.54%	-10.39%
ABV	63 Neutral	AU$53.71M	29.35	18.17%	―	25.15%	2.22%
RPM	63 Neutral	AU$15.53M	3.28	8.25%	―	-5.17%	-19.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AMA	53 Neutral	AU$358.93M	-44.91	-4.58%	―	13.54%	66.33%
NTD	48 Neutral	AU$38.57M	-0.78	-44.12%	―	0.89%	-2641.38%
SIX	47 Neutral	AU$52.66M	-6.94	―	―	-27.79%	32.50%

Advanced Braking Technology Limited Corporate Events

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.

Advanced Braking Technology Passes All Resolutions at 2025 AGM

Advanced Braking Technology Limited announced that all resolutions at its 2025 Annual General Meeting were passed. This outcome supports the company’s strategic initiatives and may enhance its operational capabilities and market positioning, potentially benefiting stakeholders by reinforcing its commitment to innovation and growth.

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 Reports Strong FY25 Growth and Strategic Expansion

Advanced Braking Technology Ltd (ABT) reported strong growth and solid results for FY25, driven by consistent revenue growth, innovative product launches, and global expansion. Key achievements included the launch of new products like BRAKEiQ and the Toyota Hilux Failsafe Sealed Integrated Brake System, as well as a significant increase in offshore revenue, particularly in Canada, Indonesia, and Mongolia. The company also strengthened its foundations by enhancing its talent pool, securing ISO accreditations, and refining its management frameworks. Looking forward, ABT is poised to capitalize on the evolving mining industry and increasing demand for safety technology, with plans to continue innovating and expanding its market presence.

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 Announces Director’s Interest Change

Advanced Braking Technology Ltd has announced a change in the director’s interest, with Andrew Booth acquiring 5,952,369 performance rights as part of an Employee Share Plan. This change reflects the company’s commitment to aligning its leadership’s interests with its strategic goals, potentially impacting its operational focus and stakeholder confidence positively.

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 Ltd Reports Strong Q1 FY26 Growth

Advanced Braking Technology Ltd reported a strong start to FY26 with a 21% increase in product sales revenue to $5.3 million and a 66% rise in NPBT to $0.35 million for Q1. The company experienced broad-based growth across new and aftermarket revenue, driven by proactive engagement with blue-chip customers and strong demand in key international markets like Canada, Mongolia, and Europe. ABT’s ongoing innovation in autonomous braking technology, including the development of SIBSiQ and BRAKEiQ, reinforces its technology roadmap and positions it well in the industry.

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 Sets AGM Agenda with Key Resolutions

Advanced Braking Technology Limited has announced its Annual General Meeting scheduled for November 19, 2025, at the InterContinental Sydney. The meeting will address several key resolutions, including the adoption of the remuneration report, re-election of director Les Guthrie, approval of a 7.1A mandate for issuing equity securities, and the renewal of proportional takeover provisions in the constitution. These resolutions are significant for the company’s governance and strategic financial planning, potentially impacting shareholder value and the company’s operational flexibility.

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.