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Australian Clinical Labs Ltd (AU:ACL)
ASX:ACL
Australian Market
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Australian Clinical Labs Ltd (ACL) AI Stock Analysis

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AU:ACL

Australian Clinical Labs Ltd

(Sydney:ACL)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
AU$2.50
▲(8.23% Upside)
Action:Downgraded
Date: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
Strong cash generation
Consistent and improving cash generation (FCF +8.67%, OCF/NI 0.84, FCF/NI 0.95) provides durable funding for operations, dividends and capex without heavy equity issuance. High cash conversion reduces reliance on accrual earnings and strengthens resilience to revenue shocks.
Negative Factors
High financial leverage
Significant leverage (debt/equity 1.69) raises refinancing and interest expense risk and limits strategic flexibility. In a reimbursement-sensitive industry, high debt amplifies exposure to volume or price shocks and constrains capacity to fund growth organically or via M&A.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent and improving cash generation (FCF +8.67%, OCF/NI 0.84, FCF/NI 0.95) provides durable funding for operations, dividends and capex without heavy equity issuance. High cash conversion reduces reliance on accrual earnings and strengthens resilience to revenue shocks.
Read all positive factors

Australian Clinical Labs Ltd (ACL) vs. iShares MSCI Australia ETF (EWA)

Australian Clinical Labs Ltd Business Overview & Revenue Model

Company Description
Australian Clinical Labs Limited operates across Australia, delivering a diverse range of diagnostic pathology services. The company's extensive portfolio encompasses standard examinations alongside advanced molecular genetics, including Harmony N...
How the Company Makes Money
ACL makes money primarily by providing pathology and diagnostic testing services and being paid per test/service delivered. Revenue is generated when healthcare providers (e.g., GPs, specialists and hospitals) refer patients or submit samples to A...

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
65
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue733.52M741.27M689.73M692.10M989.30M641.31M
Gross Profit209.96M270.86M138.45M566.02M781.71M521.73M
EBITDA133.59M81.36M169.65M184.93M372.75M196.67M
Net Income26.31M32.43M23.93M35.90M178.24M60.37M
Balance Sheet
Total Assets562.50M574.84M593.06M578.91M628.04M474.70M
Cash, Cash Equivalents and Short-Term Investments23.14M22.12M26.84M20.59M27.51M36.28M
Total Debt453.61M290.38M308.90M316.32M262.38M294.26M
Total Liabilities411.46M402.86M415.30M406.24M395.49M392.79M
Stockholders Equity150.57M171.35M177.53M172.42M232.44M81.90M
Cash Flow
Free Cash Flow156.69M174.39M153.09M136.75M262.83M144.36M
Operating Cash Flow164.57M182.80M159.59M143.68M284.09M153.86M
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
Positive
Last Price2.31
Price Trends
50DMA
2.23
Positive
100DMA
2.10
Positive
200DMA
2.32
Positive
Market Momentum
MACD
0.05
Positive
RSI
56.87
Neutral
STOCH
70.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ACL, the sentiment is Positive. The current price of 2.31 is below the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.23, and below the 200-day MA of 2.32, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 70.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ACL.

Australian Clinical Labs Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
AU$10.80B19.696.39%4.99%13.14%-2.73%
59
Neutral
AU$443.92M16.0116.35%5.42%1.12%-12.02%
55
Neutral
AU$782.99M55.852.05%3.51%56.28%55.14%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
AU$272.31M-0.50-29.48%-12.15%-2285.99%
42
Neutral
AU$13.40M-1.19-23.93%9.69%52.31%
39
Underperform
AU$24.70M-3.37-164.22%26.04%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ACL
Australian Clinical Labs Ltd
2.38
-0.28
-10.66%
AU:HLS
Healius Limited
0.41
-0.39
-48.75%
AU:BDX
BCAL Diagnostics Limited
0.07
<0.01
8.33%
AU:GSS
Genetic Signatures Ltd.
0.05
-0.27
-83.38%
AU:SHL
Sonic Healthcare Limited
22.25
-4.42
-16.58%
AU:IDX
Integral Diagnostics Ltd.
2.22
-0.45
-16.73%

Australian Clinical Labs Ltd Corporate Events

Citi Group Entities Drop Below Substantial Holder Threshold in Australian Clinical Labs
Jul 13, 2026
Citigroup Global Markets Australia Pty Limited and its related Citi group entities have ceased to be substantial shareholders in Australian Clinical Labs Ltd as of 9 July 2026, according to a statutory disclosure. The change reflects adjustments i...
Citigroup group exits substantial holder position in Australian Clinical Labs
Jul 2, 2026
Australian Clinical Labs Ltd is a medical diagnostics company that operates pathology and laboratory testing services across Australia. The group provides routine and specialized clinical testing to healthcare providers, hospitals and patients, po...
Australian Clinical Labs Names New Director With No Current Shareholdings
Jul 2, 2026
Australian Clinical Labs Limited has appointed Amandeep Kaur Hansra as a director effective 1 July 2026, reinforcing its board within the regulated pathology services sector. The company disclosed that the new director currently holds no relevant ...
Australian Clinical Labs Issues Shares on Conversion of Unquoted Securities
Jun 29, 2026
Australian Clinical Labs has notified the market of the issue of new ordinary fully paid shares following the conversion of unquoted securities. The company reported that a total of 144,704 shares were issued on two dates in March and December 202...
Australian Clinical Labs adds digital health expert Dr Amandeep Hansra to board
Jun 18, 2026
Australian Clinical Labs has appointed General Practitioner and digital health specialist Dr Amandeep Hansra as a non-executive director, effective 1 July 2026. Her background spans more than two decades of clinical practice and leadership roles a...
Australian Clinical Labs updates market on contained SunDoctors cyber incident
Jun 17, 2026
Australian Clinical Labs&#8217; subsidiary SunDoctors has completed an investigation into a cyber incident at an external IT service provider that allowed unauthorised access to part of SunDoctors&#8217; systems, leading to some data being taken. ...
Australian Clinical Labs appoints former Healthscope chief Greg Horan as new CEO
May 27, 2026
Australian Clinical Labs has appointed former Healthscope chief executive Greg Horan as its new Group CEO and Executive Director, with his tenure commencing on 31 August 2026 following a transition period from 1 June. The move marks a planned lead...
Australian Clinical Labs Continues On‑Market Share Buy‑Back Program
May 24, 2026
Australian Clinical Labs has continued its on-market share buy-back program, repurchasing a total of 9,096,218 ordinary fully paid shares prior to the latest reporting day. The company reports that a further 26,183 shares were bought back on the p...
Australian Clinical Labs Updates Market on Ongoing Share Buy-Back Activity
May 21, 2026
Australian Clinical Labs has continued its on-market share buy-back program, repurchasing a total of 8,946,218 ordinary fully paid shares prior to the latest reporting day and a further 150,000 shares on the previous trading day. The ongoing buy-b...
Australian Clinical Labs Continues On-Market Share Buy-Back
May 21, 2026
Australian Clinical Labs Limited has continued its on-market share buy-back program for its ordinary fully paid shares, as disclosed in its latest daily notification to the ASX. The update notes that the company has repurchased a cumulative 8,838,...
Australian Clinical Labs Updates Market on Ongoing On‑Market Share Buy‑Back
May 11, 2026
Australian Clinical Labs has updated the market on progress of its on&#8209;market share buy&#8209;back, confirming that a total of 8,295,781 ordinary fully paid shares had been repurchased before the latest reporting day. The company disclosed th...
Australian Clinical Labs Updates Market on Ongoing On‑Market Share Buy‑Back
May 10, 2026
Australian Clinical Labs has updated the market on progress under its on-market share buy-back program for its ordinary fully paid shares. The company reported that it had repurchased a cumulative total of 8,268,983 shares before the previous trad...
Franklin Resources Trims Stake in Australian Clinical Labs
May 8, 2026
Franklin Resources and its affiliates have reduced their substantial shareholding in Australian Clinical Labs, with their voting interest declining from 5.02% to 4.93% of the company&#8217;s ordinary shares. The change reflects a modest decrease i...
Australian Clinical Labs Updates Market on Progress of On-Market Share Buy-Back
May 5, 2026
Australian Clinical Labs has continued its on-market share buy-back program, confirming a cumulative repurchase of 8,168,983 ordinary fully paid shares prior to the latest reporting date. The company reported that it bought back a further 50,000 s...
Macquarie Group Ceases to Be Substantial Holder in Australian Clinical Labs
May 4, 2026
Macquarie Group Limited and a wide range of its controlled entities have notified Australian Clinical Labs that they have ceased to be a substantial holder in the company. The filing, made under Australian substantial holding rules, indicates a ch...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Feb 17, 2026