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

• Market Cap: €311.03M
• Dividend Yield: 6.54%
• Average Volume (3M): 323.16K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.80
• Revenue Growth: 28.56%
• EPS Growth: -19.61%
• Country: AU
• Employees: 300
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): 0.05
• Shares Outstanding: 307,954,800
• 10 Day Avg. Volume: 322,483
• 30 Day Avg. Volume: 323,157
• PEG Ratio: -0.25
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -52.25
• 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: €1.41
• Price Target Upside: 39.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: AU$1.00 ▼(-0.99%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 Business Overview & Revenue Model

Company Description

Acrow Formwork and Construction Services Limited (ACF) is a leading provider in the construction services sector, specializing in innovative formwork and scaffold solutions. The company offers a comprehensive range of products and services tailored to infrastructure, commercial, and residential construction projects. With a focus on safety, efficiency, and sustainability, ACF supports its clients through all stages of construction, from planning and design to execution and completion.

How the Company Makes Money

ACF 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
216.89M	193.12M	149.81M	140.83M	94.61M	81.68M
	Gross Profit
119.15M	163.24M	105.91M	90.81M	59.40M	49.48M
	EBIT
50.69M	34.31M	22.41M	18.30M	3.64M	6.31M
	EBITDA
67.56M	65.27M	48.51M	34.21M	19.34M	13.73M
	Net Income Common Stockholders
22.47M	25.56M	23.46M	15.69M	3.96M	3.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.13M	5.59M	4.94M	3.01M	1.75M	7.24M
	Total Assets
341.58M	312.45M	218.52M	184.90M	159.03M	148.22M
	Total Debt
130.90M	106.69M	75.20M	61.10M	54.38M	55.97M
	Net Debt
127.77M	101.10M	70.26M	58.09M	52.63M	48.73M
	Total Liabilities
197.93M	171.49M	115.63M	101.58M	97.54M	89.92M
	Stockholders Equity
143.64M	140.96M	102.88M	83.32M	61.49M	58.30M
Cash Flow		Free Cash Flow
-23.16M	-7.67M	-19.25M	-14.15M	-8.22M	-2.07M
	Operating Cash Flow
23.67M	32.54M	25.69M	8.23M	9.19M	11.03M
	Investing Cash Flow
-23.86M	-49.00M	-26.26M	-18.44M	-9.84M	-22.23M
	Financing Cash Flow
-3.28M	13.51M	5.50M	10.34M	-6.69M	15.15M

Acrow Formwork and Construction Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.01 is below the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.02, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWH	80 Outperform	€1.36B	11.56	18.01%	4.70%	13.68%	24.51%
MND	76 Outperform	€1.73B	23.08	15.97%	3.76%	11.00%	34.97%
LYL	73 Outperform	$415.82M	8.81	36.14%	1.90%	-1.31%	-18.79%
ANG	71 Outperform	$207.88M	8.58	19.99%	1.93%	17.63%	55.81%
SRG	68 Neutral	AU$915.00M	21.77	11.36%	3.30%	25.40%	41.18%
ACF	66 Neutral	€311.03M	13.47	16.85%	6.54%	28.56%	-19.61%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%

Acrow Formwork and Construction Services Limited Corporate Events

Acrow Limited Issues New Securities on ASX

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

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

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

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

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

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.