Australian Clinical Labs Ltd (ACL) AI Stock Analysis

• Market Cap: AU$432.39M
• Dividend Yield: 4.6%
• Average Volume (3M): 867.30K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.88
• Revenue Growth: 6.73%
• EPS Growth: 37.16%
• Country: AU
• Employees: 4,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.07
• Shares Outstanding: 191,320,880
• 10 Day Avg. Volume: 799,589
• 30 Day Avg. Volume: 867,296
• PEG Ratio: 0.39
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 3.03
• 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$2.38
• Price Target Upside: 5.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): AU$741.18M

• Rating: 59 Neutral
• Price Target: AU$2.50 ▲(10.62% Upside)
• Action: Downgraded Date: 02/17/26
• Date: Action: Downgraded 02/17/26

Overall score is held back primarily by weak technicals (price below all major moving averages with negative MACD), partially offset by solid cash flow generation and an attractive valuation (moderate P/E and high dividend yield). Financial leverage remains a key risk despite decent ROE and improving gross margin.

Positive Factors

Cash generation

Consistent FCF growth and high cash conversion ratios indicate durable cash generation capacity. This supports dividend payments, debt servicing and reinvestment into labs and IT without relying solely on external financing, improving resilience over the next 2-6 months.

Improved gross margin

A materially higher gross margin points to better cost control or favorable test mix (more specialized, higher-margin testing). Sustained margin improvement enhances operating leverage, giving the company scope to absorb cost inflation and incrementally increase profitability over time.

Return on equity

A high ROE reflects effective use of shareholder capital and operational efficiency. If maintained, it supports the company’s ability to generate returns for investors, attract capital for strategic projects, and fund dividends or targeted expansion in core pathology services.

Negative Factors

High leverage

Elevated leverage increases interest expense and refinancing risk, limiting strategic flexibility. In a capital-intensive diagnostics business, high debt can constrain investment in capacity or acquisitions and makes the company more vulnerable to demand shocks or rising rates over the medium term.

Low net margin

A low net margin suggests a large share of revenue is consumed by operating costs, interest or other expenses, limiting retained earnings. This caps the firm’s ability to self-fund growth or rapidly deleverage, leaving profitability sensitive to cost pressures or pricing constraints.

Sluggish revenue growth

Minimal top-line growth indicates constrained organic demand or pricing power in core pathology services. In a volume-driven model, slow revenue expansion undermines scale benefits and makes margin improvement and debt reduction harder to achieve without structural initiatives or new contract wins.

Australian Clinical Labs Ltd Business Overview & Revenue Model

Company Description

Australian Clinical Labs Limited provides pathology services in Australia. The company offers range of services, which include routine pathology test, advanced molecular genetics testing, harmony NIPT and first trimester screening, genetic carrier screening, chemical pathology, histopathology, and cytopathology; hematology, allergy, and immunology; serology and microbiology; and infectious molecular testing, cardiac testing services, functional pathology, veterinary pathology, and commercial drug and alcohol testing services. It offers its service to private and public hospitals. The company was incorporated in 2020 and is headquartered in Clayton, Australia.

How the Company Makes Money

ACL generates revenue primarily through the provision of pathology testing services to healthcare providers, including hospitals, clinics, and general practitioners. The company charges fees for its diagnostic tests, which are often reimbursed by Medicare and private health insurers. Key revenue streams include routine pathology tests, specialized tests, and the provision of ancillary services such as sample collection and transportation. Additionally, ACL may engage in partnerships with healthcare organizations and participate in government initiatives that further enhance its service offerings and revenue potential. The volume of tests performed and the efficiency of its operations also play crucial roles in driving profitability.

Australian Clinical Labs Ltd Financial Statement Overview

Summary

Income statement is mixed (modest 1.79% revenue growth, improved gross margin to 36.54%, but low net margin at 4.37%). Balance sheet adds risk from high leverage (debt-to-equity 1.69, low equity ratio) despite solid ROE (18.93%). Cash flow is a relative strength (free cash flow up 8.67%, strong cash conversion with OCF/NI 0.84 and FCF/NI 0.95).

Income Statement

Australian Clinical Labs Ltd has shown a mixed performance in its income statement. The company experienced a slight revenue growth of 1.79% in the most recent year, following a decline in the previous periods. Gross profit margin improved significantly to 36.54%, indicating better cost management. However, the net profit margin remains low at 4.37%, suggesting challenges in translating revenue into profit. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.69, indicating significant leverage, which could pose a risk if not managed properly. Return on equity is relatively strong at 18.93%, showing effective use of equity to generate profits. However, the equity ratio is low, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow analysis shows a positive trend with an 8.67% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 0.84, suggesting good cash conversion from earnings. The free cash flow to net income ratio is high at 0.95, reflecting efficient cash management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	733.52M	741.27M	689.73M	692.10M	989.30M	641.31M
Gross Profit	209.96M	270.86M	138.45M	566.02M	781.71M	521.73M
EBITDA	133.59M	81.36M	169.65M	184.93M	372.75M	196.67M
Net Income	26.31M	32.43M	23.93M	35.90M	178.24M	60.37M
Balance Sheet
Total Assets	562.50M	574.84M	593.06M	578.91M	628.04M	474.70M
Cash, Cash Equivalents and Short-Term Investments	23.14M	22.12M	26.84M	20.59M	27.51M	36.28M
Total Debt	453.61M	290.38M	308.90M	316.32M	262.38M	294.26M
Total Liabilities	411.46M	402.86M	415.30M	406.24M	395.49M	392.79M
Stockholders Equity	150.57M	171.35M	177.53M	172.42M	232.44M	81.90M
Cash Flow
Free Cash Flow	156.69M	174.39M	153.09M	136.75M	262.83M	144.36M
Operating Cash Flow	164.57M	182.80M	159.59M	143.68M	284.09M	153.86M
Investing Cash Flow	-8.32M	-8.89M	-7.25M	-12.18M	-72.04M	-6.08M
Financing Cash Flow	-154.65M	-178.74M	-146.14M	-137.88M	-220.91M	-147.37M

Australian Clinical Labs Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.26
• 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:ACL, the sentiment is Negative. The current price of 2.26 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.57, and below the 200-day MA of 2.64, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ACL.

Australian Clinical Labs Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	70 Outperform	AU$11.78B	21.51	6.32%	4.69%	9.44%	-0.37%
ACL	59 Neutral	AU$432.39M	16.69	18.59%	4.60%	6.73%	37.16%
IDX	55 Neutral	AU$909.42M	64.72	0.94%	2.65%	33.54%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	46 Neutral	€497.40M	-0.91	-67.21%	―	-23.02%	33.11%

Australian Clinical Labs Ltd Corporate Events

Australian Clinical Labs Sets Investor Webinar for 1H26 Results

Australian Clinical Labs will release its financial and operating results for the half year ended 31 December 2025 on 16 February 2026 and will brief investors via a Zoom webinar hosted by CEO Melinda McGrath and CFO Matt Cordingley. The company will provide a recording of the session on its investor website and has outlined how it will collect and handle participants’ personal information for the event in line with its privacy policy, underscoring its ongoing engagement with shareholders and the broader investment community.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Retirement Trust Ceases to Be Substantial Holder in Australian Clinical Labs

Australian Retirement Trust Pty Ltd has notified Australian Clinical Labs Limited that it has ceased to be a substantial shareholder in the company as of 21 January 2026, according to a change in relevant interests disclosed under the Corporations Act. The move indicates a reduction in Australian Retirement Trust’s voting power below the substantial holding threshold, signalling a shift in the company’s institutional investor base that may alter its shareholder dynamics but does not, on its own, imply any change to underlying operations.

The most recent analyst rating on (AU:ACL) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Ethical Exits Substantial Holder Position in Australian Clinical Labs

Australian Ethical Investment Limited has notified the market that it has ceased to be a substantial shareholder in Australian Clinical Labs Limited, as formalised in a Form 605 lodged with the ASX. The change reduces Australian Ethical’s significant ownership influence in the pathology provider, signalling a shift in its investment position and potentially altering the shareholder landscape for Australian Clinical Labs, although no further operational or strategic implications were disclosed.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Cancels 200,000 Shares Under On‑Market Buy-Back

Australian Clinical Labs Limited has cancelled 200,000 fully paid ordinary shares as part of an on‑market share buy-back, effective 22 December 2025. The reduction in issued capital reflects the company’s ongoing capital management strategy, which may incrementally enhance earnings per share and signal management’s confidence in the business to investors.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Cancels Shares Following On-Market Buy-Back

Australian Clinical Labs Limited has cancelled 849,070 fully paid ordinary shares following an on‑market buy-back completed on 19 December 2025. The reduction in issued capital through this buy-back is likely to enhance capital management efficiency and may be marginally accretive to remaining shareholders, reflecting the company’s active approach to optimising its balance sheet and shareholder structure.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Reports Daily Progress on On-Market Share Buy-Back

Australian Clinical Labs Ltd has provided an updated notification to the ASX on its on‑market share buy-back, confirming that it is repurchasing ordinary fully paid shares under an existing buy-back program first notified in October 2025. As of 19 December 2025, the company reports a cumulative 3,370,516 shares bought back prior to the previous trading day and a further 200,000 shares repurchased on the previous day, indicating continued execution of its capital management strategy and a likely focus on enhancing shareholder value and optimising its balance sheet through reducing the number of shares on issue.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Program

Australian Clinical Labs Limited has released a notification regarding its ongoing on-market share buy-back program, stating that a total of 300,000 ordinary shares were repurchased on the previous day. This initiative highlights the company’s effort to optimize its capital structure, potentially improving shareholder value and reaffirming confidence in its financial position.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Progress

Australian Clinical Labs Limited has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of December 17, 2025, the company has repurchased a total of 3,070,516 securities, including 117,599 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Program

Australian Clinical Labs Ltd has announced an update on its ongoing share buy-back program. As of December 16, 2025, the company has repurchased a total of 2,768,487 ordinary fully paid securities, with an additional 184,430 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Issues Unquoted Equity Securities

Australian Clinical Labs Ltd announced the issuance of unquoted equity securities, including 110,528 service rights and 663,168 performance rights, under an employee incentive scheme. This move is likely aimed at enhancing employee engagement and aligning staff interests with company goals, potentially impacting the company’s operational dynamics and stakeholder relations.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Announces Cessation of Service Rights

Australian Clinical Labs Limited announced the cessation of 38,121 service rights due to unmet conditions, impacting its issued capital. This development may influence the company’s financial structure and could have implications for stakeholders regarding the company’s operational and strategic adjustments.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Ltd Updates on Share Buy-Back Program

Australian Clinical Labs Ltd has announced an update regarding its ongoing on-market buy-back program. As of December 15, 2025, the company has repurchased a total of 2,768,487 ordinary fully paid securities, including 136,041 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Program

Australian Clinical Labs Limited has announced an update regarding its ongoing share buy-back program. As of December 12, 2025, the company has repurchased a total of 2,632,446 ordinary fully paid securities, with 111,000 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Buy-Back Program

Australian Clinical Labs Ltd has announced an update regarding its ongoing on-market buy-back program. As of December 11, 2025, the company has bought back a total of 2,521,446 ordinary fully paid securities, including 250,000 on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Progress

Australian Clinical Labs Ltd has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities, with a total of 2,161,740 securities bought back before the previous day and an additional 109,706 securities bought back on the previous day. This buy-back initiative reflects the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Buy-Back Program

Australian Clinical Labs Ltd has announced an update on its ongoing on-market buy-back program, with a total of 101,866 ordinary fully paid securities bought back on the previous day, bringing the total to 2,059,874 securities. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Announces Cessation of Securities

Australian Clinical Labs Limited announced the cessation of 701,165 ordinary fully paid securities due to an on-market buy-back, effective December 5, 2025. This move is part of the company’s capital management strategy, potentially impacting its share value and market perception by reducing the number of outstanding shares.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Progress

Australian Clinical Labs Ltd has announced an update regarding its ongoing on-market buy-back program. As of December 8, 2025, the company has repurchased a total of 2,059,874 ordinary fully paid securities, including 127,390 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Progress

Australian Clinical Labs Ltd has announced an update regarding its ongoing on-market buy-back program. As of December 4, 2025, the company has repurchased a total of 1,932,484 ordinary fully paid securities, including 150,000 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Progress

Australian Clinical Labs Ltd has announced an update on its ongoing share buy-back program, revealing that a total of 289,740 ordinary fully paid securities were bought back on the previous day, bringing the total number of securities bought back to 1,492,744. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure, potentially impacting its market positioning and investor relations positively.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Ltd Updates on Buy-Back Program

Australian Clinical Labs Ltd has announced an update regarding its ongoing on-market buy-back program. As of December 2, 2025, the company has repurchased a total of 1,492,744 ordinary fully paid securities, including 175,000 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Buy with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Progress

Australian Clinical Labs Limited has announced an update regarding its ongoing share buy-back program. As of November 27, 2025, the company has repurchased a total of 1,231,319 shares, with 27,843 shares bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Program

Australian Clinical Labs Ltd announced an update on its ongoing share buy-back program, revealing that a total of 1,006,789 securities had been bought back before the previous day, with an additional 196,687 securities purchased on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Announces Cessation of Securities

Australian Clinical Labs Ltd announced the cessation of 550,000 fully paid ordinary securities as part of an on-market buy-back, effective November 19, 2025. This move is likely aimed at optimizing the company’s capital structure and could have implications for shareholder value and market perception.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Issues New Securities

Australian Clinical Labs Limited announced the issuance and conversion of unquoted equity securities, with a total of 83,853 ordinary fully paid securities being issued on specified dates in 2023. This move could impact the company’s financial structure and shareholder value, potentially influencing its market positioning and stakeholder interests.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.

Australian Clinical Labs Updates on Share Buy-Back Progress

Australian Clinical Labs Ltd has announced an update regarding its ongoing on-market buy-back program. As of November 18, 2025, the company has repurchased a total of 549,627 ordinary fully paid securities, with an additional 200,000 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ACL) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Australian Clinical Labs Ltd stock, see the AU:ACL Stock Forecast page.