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Acrow Formwork and Construction Services Limited (AU:ACF)
ASX:ACF

Acrow Formwork and Construction Services Limited (ACF) AI Stock Analysis

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AU

Acrow Formwork and Construction Services Limited

(Sydney:ACF)

Rating:66Neutral
Price Target:
AU$1.00
▼(-1.96%Downside)
The overall stock score of 66 reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's revenue growth and profitability are significant strengths, but high leverage and negative free cash flow present risks. Technical analysis indicates potential downward momentum, which investors should monitor closely.

Acrow Formwork and Construction Services Limited (ACF) vs. iShares MSCI Australia ETF (EWA)

Acrow Formwork and Construction Services Limited Business Overview & Revenue Model

Company DescriptionAcrow Formwork and Construction Services Limited provides engineered formwork, scaffolding and screen systems solutions, and in-house engineering and industrial labour supply services in Australia. The company is also involved in the rental of formwork equipment, including wall forming panel systems; soffit forming systems, such as Acrowform aluminum panels; GASS table forms; supercuplok; conventional systems; and scaffolding systems comprising cuplok scaffolding, super cuplok scaffolding, and ring-lok and quickstage scaffolding products. It offers hire and sales solutions to residential, commercial, civil, and industrial customers. Acrow Formwork and Construction Services Limited was founded in 1936 and is based in Sydney, Australia.
How the Company Makes MoneyACF generates revenue through the rental and sale of formwork and scaffold systems, which are essential components in construction projects. The company earns money by providing customized solutions and technical support services, ensuring optimal performance and safety in construction operations. Key revenue streams include long-term contracts with construction firms, government infrastructure projects, and partnerships with engineering companies. ACF also benefits from strategic alliances and collaborations that enhance its market reach and technological capabilities, contributing to its financial growth.

Acrow Formwork and Construction Services Limited Financial Statement Overview

Summary
Acrow Formwork and Construction Services Limited exhibits strong revenue and profit growth, underpinned by effective cost management and operational efficiency. While profitability metrics are robust, the high leverage reflected in the balance sheet presents some risk. Cash flow challenges, particularly in terms of negative Free Cash Flow, require strategic attention to ensure long-term financial health.
Income Statement
85
Very Positive
The company has shown strong revenue growth over the years, with a notable increase from 2023 to 2024. Gross Profit Margin has been impressive, with a high percentage indicating efficient cost management. The Net Profit Margin has also improved, showcasing enhanced profitability. The EBIT and EBITDA margins indicate a solid operational performance with a robust increase in EBIT from previous years.
Balance Sheet
70
Positive
The company has a high Debt-to-Equity Ratio, reflecting significant leverage, which could pose a risk if not managed properly. However, the Return on Equity (ROE) is strong, indicating effective use of equity to generate profits. The Equity Ratio is moderate, suggesting a balanced asset structure but with room for improvement in financial stability.
Cash Flow
60
Neutral
Free Cash Flow has been negative, indicating challenges in managing capital expenditures relative to operating cash flows. However, the Operating Cash Flow to Net Income Ratio is satisfactory, suggesting decent cash generation relative to reported profits. Continuous negative Free Cash Flow poses a potential risk to liquidity if not addressed.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
216.89M193.11M149.81M140.83M94.61M81.68M
Gross Profit
119.15M163.24M35.33M26.20M11.54M13.30M
EBIT
50.69M34.31M22.41M18.30M4.73M6.00M
EBITDA
67.56M66.46M48.51M34.21M20.84M14.49M
Net Income Common Stockholders
22.47M25.56M23.46M15.69M3.96M3.01M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.13M5.59M4.94M3.01M1.75M7.24M
Total Assets
341.58M312.45M218.52M184.90M159.03M148.22M
Total Debt
130.90M106.69M75.20M61.10M54.38M55.97M
Net Debt
127.77M101.10M70.26M58.09M52.63M48.73M
Total Liabilities
197.93M171.49M115.63M101.58M97.54M89.92M
Stockholders Equity
143.64M140.96M102.88M83.32M61.49M58.30M
Cash FlowFree Cash Flow
-23.16M-7.67M-19.25M-14.15M-8.22M-2.07M
Operating Cash Flow
23.67M32.54M25.69M8.23M9.19M11.03M
Investing Cash Flow
-23.86M-49.00M-26.26M-18.44M-9.84M-22.23M
Financing Cash Flow
-3.28M13.51M5.50M10.34M-6.69M15.15M

Acrow Formwork and Construction Services Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.02
Price Trends
50DMA
1.03
Negative
100DMA
1.05
Negative
200DMA
1.03
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
46.51
Neutral
STOCH
51.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ACF, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.03, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ACF.

Acrow Formwork and Construction Services Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUACF
66
Neutral
€312.57M13.5316.85%6.37%28.56%-19.61%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
$147.51M9.4319.99%
$273.62M9.3036.14%4.55%
DE8MP
€984.25M20.9615.97%4.13%
DE3NR
€736.90M10.5918.01%5.98%
AUSRG
68
Neutral
AU$908.96M21.6211.36%3.32%25.40%41.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ACF
Acrow Formwork and Construction Services Limited
1.02
0.01
1.20%
AUSTF
Austin Engineering
0.25
-0.14
-35.90%
LYOPF
Lycopodium Limited
7.24
1.09
17.72%
DE:8MP
Monadelphous Group Limited
9.75
2.08
27.12%
DE:3NR
NRW Holdings Limited
1.63
-0.11
-6.32%
AU:SRG
SRG Global Limited
1.50
0.66
78.57%

Acrow Formwork and Construction Services Limited Corporate Events

Acrow Limited Issues New Securities on ASX
May 30, 2025

Acrow Limited has announced the issuance of 745,197 fully paid ordinary securities to be quoted on the Australian Securities Exchange (ASX) as of May 30, 2025. This move is part of a dividend or distribution plan, potentially impacting the company’s market presence and offering stakeholders an opportunity to engage with the company’s growth strategy.

The most recent analyst rating on (AU:ACF) stock is a Buy with a A$1.35 price target. To see the full list of analyst forecasts on Acrow Formwork and Construction Services Limited stock, see the AU:ACF Stock Forecast page.

Acrow Limited Updates Dividend Distribution Details
May 16, 2025

Acrow Limited, a company listed on the ASX under the code ACF, has announced an update regarding its dividend distribution for the period ending December 31, 2024. The update confirms the Dividend Reinvestment Plan (DRP) price, following a previous announcement made on February 26, 2025. This announcement is significant for stakeholders as it provides clarity on the dividend distribution process, which relates to a six-month period, and includes key dates such as the record date on April 30, 2025, and the ex-date on April 29, 2025.

The most recent analyst rating on (AU:ACF) stock is a Buy with a A$1.35 price target. To see the full list of analyst forecasts on Acrow Formwork and Construction Services Limited stock, see the AU:ACF Stock Forecast page.

Acrow Limited Expands Debt Facility by $20 Million
May 2, 2025

Acrow Limited has expanded its debt facility with Westpac Banking Corporation by $20 million, increasing its total facility limit to approximately $170 million. This expansion provides the company with enhanced financial flexibility and supports its recent acquisitions, ensuring a strong balance sheet and cash flow flexibility with a pro forma headroom of approximately $40 million.

Acrow Expands Industrial Access Division with Strategic Acquisitions
Apr 30, 2025

Acrow Limited has announced the acquisition of Brand Australia and Above Scaffolding to enhance its Industrial Access division. These acquisitions are expected to contribute significantly to Acrow’s revenue and EBITDA by FY26, with a combined expected revenue of around $40 million. The acquisitions align with Acrow’s growth strategy, providing access to new blue-chip customers and expanding its geographic presence in New South Wales. The acquisitions are expected to be immediately earnings accretive and will be funded through an expanded Westpac debt facility. The strategic move is anticipated to deliver substantial revenue uplift and cost reduction synergies, strengthening Acrow’s market position.

Acrow Limited Expands Market Presence with New Securities Quotation
Apr 1, 2025

Acrow Limited has announced the quotation of additional securities on the Australian Securities Exchange (ASX). The company is issuing a total of 51,960 ordinary fully paid securities, which will be quoted under the ASX issuer code ACF. This move is part of Acrow’s strategic financial activities, potentially impacting its market position and stakeholder interests by increasing the liquidity and availability of its shares.

Acrow Secures $60 Million Contract with BHP Mitsubishi Alliance
Mar 24, 2025

Acrow Limited’s subsidiary, MI Scaffold, has secured a substantial contract renewal with the BHP Mitsubishi Alliance, valued at a minimum of $60 million over three years, with an option for a fourth year. This contract, covering BMA’s Bowen Basin coal mines and Hay Point Coal Terminal, is expected to significantly bolster MI Scaffold’s business, representing at least 35% of branch revenue and marking the largest contract win for Acrow’s Industrial Access division.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.