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Althea Group Holdings Ltd. (AU:AGH)
ASX:AGH
Australian Market

Althea Group Holdings Ltd. (AGH) AI Stock Analysis

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AU

Althea Group Holdings Ltd.

(Sydney:AGH)

Rating:45Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall stock score is primarily driven by weak financial performance, with consistent losses and negative cash flows being significant concerns. The technical analysis provides some positive signals, but they are outweighed by financial and valuation challenges. The negative P/E ratio and lack of dividend yield further highlight the company's current unprofitability.

Althea Group Holdings Ltd. (AGH) vs. iShares MSCI Australia ETF (EWA)

Althea Group Holdings Ltd. Business Overview & Revenue Model

Company DescriptionAlthea Group Holdings Limited manufactures, distributes, and sells cannabis-based medicines and recreational cannabis products in Australia, the United Kingdom, Germany, Canada, and internationally. It also offers a range of education, access, and management services to support eligible patients and healthcare professionals in navigating medicinal cannabis treatment pathways. In addition, the company provides formulation and manufacturing of recreational cannabis products, such as beverages, edibles, concentrates, and topicals; and owns and operates a private medical cannabis clinic network under the MyAccess Clinics name. Althea Group Holdings Limited was founded in 2016 and is based in Melbourne, Australia.
How the Company Makes MoneyAlthea Group Holdings Ltd. generates revenue primarily through the sale of its medical cannabis products to pharmacies, healthcare providers, and directly to patients, where regulations allow. The company's revenue model is driven by the growing demand for medicinal cannabis, supported by its strong distribution network and partnerships with healthcare professionals and organizations. AGH also engages in research and development activities to create new cannabis-based therapies, which can lead to additional revenue streams through licensing or proprietary product sales. Strategic partnerships and collaborations with international companies further contribute to its earnings by expanding its market reach and product offerings.

Althea Group Holdings Ltd. Financial Statement Overview

Summary
Althea Group Holdings Ltd. faces significant financial challenges with consistent losses and negative cash flows. Despite revenue growth, profitability and liquidity issues persist, necessitating strategic improvements to enhance financial health and sustainability.
Income Statement
35
Negative
The company has shown revenue growth over the years, with a notable increase from 2023 to 2024. However, the gross profit margin is weak, and the company is experiencing consistent net losses, indicating poor profitability. The negative EBIT and EBITDA margins further reflect operational challenges.
Balance Sheet
40
Negative
The debt-to-equity ratio has worsened, indicating increased financial leverage and risk. The equity ratio has decreased significantly, reflecting diminishing equity cushion. The return on equity is negative, pointing to losses impacting shareholder value.
Cash Flow
30
Negative
The company has been consistently generating negative free cash flow, which is concerning for sustainability. The operating cash flow to net income ratio is unfavorable, indicating cash flow challenges relative to reported losses.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
24.93M29.40M24.82M20.08M11.07M4.97M
Gross Profit
7.36M17.46M-3.28M-5.41M-9.84M-4.25M
EBIT
-7.13M-11.70M-12.46M-12.77M-15.40M-12.01M
EBITDA
-15.69M-28.56M-10.23M-9.07M-12.85M-13.22M
Net Income Common Stockholders
-16.95M-32.06M-13.72M-12.12M-15.05M-14.77M
Balance SheetCash, Cash Equivalents and Short-Term Investments
563.00K331.00K3.87M6.21M6.39M10.14M
Total Assets
24.33M23.65M48.34M56.56M53.91M52.38M
Total Debt
6.96M6.54M4.85M5.14M4.05M2.72M
Net Debt
6.40M6.21M978.00K-1.07M-2.34M-7.42M
Total Liabilities
23.98M23.34M18.57M15.12M11.22M6.26M
Stockholders Equity
349.00K314.00K29.77M41.45M42.70M46.12M
Cash FlowFree Cash Flow
-6.24M-4.83M-7.78M-10.04M-12.85M-25.92M
Operating Cash Flow
-5.54M-4.39M-6.29M-9.05M-10.45M-14.24M
Investing Cash Flow
317.00K2.29M-1.49M-982.00K-2.40M-14.14M
Financing Cash Flow
3.49M-1.44M5.55M9.89M9.18M23.77M

Althea Group Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.03
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Positive
200DMA
0.03
Positive
Market Momentum
MACD
<0.01
Negative
RSI
66.34
Neutral
STOCH
191.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AGH, the sentiment is Positive. The current price of 0.03 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 191.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AGH.

Althea Group Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$5.38B3.40-45.06%3.28%16.75%-0.02%
AUAGH
45
Neutral
AU$21.39M-218.38%-14.30%29.69%
$2.23M-21.29%
$5.24M-164.01%
AUBOT
53
Neutral
AU$666.70M-56.99%10.76%-195.89%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AGH
Althea Group Holdings Ltd.
0.03
<0.01
50.00%
ELLXF
Elixinol Wellness
0.01
-0.02
-66.67%
CNGGF
Cann Group
0.01
-0.04
-80.00%
AU:BOT
Botanix Pharmaceuticals Limited
0.32
0.01
3.23%

Althea Group Holdings Ltd. Corporate Events

Althea Group Holdings Shifts Focus to North American THC Beverage Market
May 30, 2025

Althea Group Holdings Ltd has executed a definitive Asset Sale Agreement to sell certain assets of its subsidiary, Althea Company Pty Ltd, to Tasmanian Botanics Pty Ltd. This strategic move allows AGH to focus entirely on its North American THC-infused beverage operations under the Peak Processing Solutions brand, marking a significant shift in the company’s operational focus. The transaction, valued at $1.0 million with additional profit-sharing terms, will help strengthen AGH’s balance sheet through targeted debt repayment, without impacting its board or executive management.

Althea Group Holdings Updates Head Office Contact Number
May 28, 2025

Althea Group Holdings Limited announced a change in its head office telephone number to +61 3 7044 2936. This update, made in accordance with ASX Listing Rule 3.14, does not affect any other contact details. The change is a minor operational update and is unlikely to have significant implications for stakeholders or the company’s market positioning.

Althea Group Holdings Shifts Focus to THC Beverages for Growth
May 19, 2025

Althea Group Holdings Ltd. has announced a strategic shift by disposing of its pharmaceutical assets to concentrate on the high-growth potential of THC beverages. This move aligns with the company’s focus on expanding its market presence in the U.S. and leveraging its Canadian subsidiary, Peak, which is noted for its scalable business model and high barriers to entry. The strategic realignment is expected to enhance Althea’s industry positioning and provide significant opportunities for growth, impacting stakeholders positively by focusing on a promising segment of the cannabis market.

Althea Group Holdings Shifts Focus to THC-Infused Beverages
May 16, 2025

Althea Group Holdings Limited is set to host a live webinar to discuss its strategic decision to divest its pharmaceutical assets and focus on the global THC-infused beverage market. This move aims to capitalize on the high demand in this segment, particularly in North America, positioning AGH as a leader in this space.

Althea Group Holdings Appoints New CFO to Drive Financial Growth
May 11, 2025

Althea Group Holdings Ltd has appointed Brian Mbesha as its new Chief Financial Officer, effective June 9, 2025. Mr. Mbesha, with over two decades of experience in senior finance roles across North America, will be based at the company’s North American headquarters in Windsor, Ontario. His extensive expertise in financial systems optimization, cost control, and operational efficiency is expected to significantly contribute to AGH’s growth and transformation efforts. The appointment is anticipated to enhance the company’s strategic and operational capabilities as it continues to scale its business in the competitive THC beverage market.

Althea Group Shifts Focus to THC Beverages, Withdraws FY25 Guidance
May 7, 2025

Althea Group Holdings Ltd has announced the withdrawal of its FY25 financial guidance following the sale of its pharmaceutical assets to Tasmanian Botanics Pty Ltd. This strategic divestment allows the company to concentrate its resources on the high-growth North American THC-infused beverage market, where its subsidiaries, Peak Canada and Peak USA, are poised to lead. The move signifies a pivotal shift in AGH’s business strategy, aligning its operations with its evolving focus on the THC beverage sector.

Althea Group Holdings Sells Pharmaceutical Assets to Focus on THC Beverage Market
May 7, 2025

Althea Group Holdings Ltd. has announced the sale of its pharmaceutical assets to Tasmanian Botanics Pty Ltd for $1 million, along with a revenue-sharing arrangement on residual inventory sales. This strategic divestment allows AGH to concentrate on the booming THC-infused beverage market in North America, leveraging its expertise and proprietary technology to capitalize on growing consumer demand. The transaction aligns with AGH’s vision to enhance shareholder value by focusing on high-growth, lower-risk product categories, and ensures continuity of care for Althea’s existing patients and prescribers.

Althea Group Holdings Announces Change in Substantial Holder Interests
May 1, 2025

Althea Group Holdings Ltd. has announced a change in the interests of a substantial holder, which impacts the company’s shareholding structure. This change could affect the company’s operations and its positioning in the market, as it may influence stakeholder decisions and company strategy moving forward.

Althea Group’s Director Acquires Significant Shareholding
Apr 30, 2025

Althea Group Holdings Ltd. announced a change in the director’s interest, with Director Matt Adams acquiring 1,000,000 Ordinary Class Shares through participation in a placement. This acquisition was made following shareholder approval at the company’s General Meeting, indicating a strategic move to strengthen the director’s stake and potentially align management interests with shareholder value. The transaction, valued at $0.02 per share, reflects the company’s ongoing efforts to enhance its capital structure and market positioning.

Althea Group Director Increases Stake Through Share Placement
Apr 30, 2025

Althea Group Holdings Ltd. announced a change in the director’s interest, specifically for Director Vaughan Webber, who increased his indirect interest in the company by acquiring an additional 1,000,000 Ordinary Class Shares. This acquisition was made through participation in a placement after receiving shareholder approval at the company’s General Meeting. The change in shareholding reflects a strategic move by the director to increase his stake in the company, potentially indicating confidence in the company’s future prospects and aligning his interests with those of other shareholders.

Althea Group Director Increases Stake in Strategic Move
Apr 30, 2025

Althea Group Holdings Ltd has announced a change in the director’s interest, with Director Joshua Fegan acquiring additional securities. The acquisition includes 4,000,000 Ordinary Class Shares and 2,601,564 Performance Rights, following shareholder approval at the company’s General Meeting. This move is part of the company’s strategy to align director interests with company performance, potentially impacting its market positioning and stakeholder confidence.

Althea Group Holdings Reports Strong Quarterly Performance and Strategic Growth Initiatives
Apr 30, 2025

Althea Group Holdings reported significant financial activities for the quarter ending March 31, 2025, with $5.02 million in customer receipts and strategic investments in inventory pre-purchasing to support future growth. Peak Canada achieved $4.2 million in customer receipts and improved gross margins, while Peak USA commenced commercial operations with strong early demand. Despite a decline in the pharmaceutical cannabis segment, the company is conducting a strategic review to explore profitability restoration. These developments position AGH for potential revenue and profitability growth in the upcoming fiscal periods.

Althea Group Holdings Ltd. Announces Quotation of New Securities
Apr 29, 2025

Althea Group Holdings Ltd. announced the application for quotation of 100 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of previously announced transactions and signifies the company’s ongoing efforts to strengthen its market presence and enhance shareholder value.

Althea Group Issues 25 Million Unquoted Equity Securities
Apr 29, 2025

Althea Group Holdings Ltd. has announced the issuance of 25 million unquoted equity securities in the form of options to subscribe for ordinary class shares, with an exercise price of $0.03 and an expiration date of April 28, 2027. This move is part of a previously announced transaction, indicating strategic financial maneuvers to potentially enhance capital structure and shareholder value.

Althea Group Issues 25 Million Unquoted Options
Apr 29, 2025

Althea Group Holdings Ltd. has announced the issuance of 25 million unquoted options to subscribe for ordinary class shares, with an exercise price of $0.04 and an expiration date of February 28, 2027. This move is part of a previously announced transaction and is expected to enhance the company’s financial flexibility and strategic positioning in the medicinal cannabis market.

Althea Group Holdings Issues Unquoted Equity Securities
Apr 29, 2025

Althea Group Holdings Ltd. announced the issuance of unquoted equity securities, specifically options expiring in January 2028. This move is part of a previously announced transaction, indicating strategic financial maneuvers to potentially enhance the company’s capital structure and market positioning.

Althea Group Expands Market Presence with New Securities Quotation
Apr 29, 2025

Althea Group Holdings Ltd. has announced the quotation of 4,574,824 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of April 29, 2025. This move is part of previously announced transactions and is expected to enhance the company’s liquidity and market presence, potentially benefiting shareholders and strengthening its position in the medicinal cannabis sector.

Althea Group Holdings Ltd. Announces Quotation of New Securities on ASX
Apr 29, 2025

Althea Group Holdings Ltd. announced the quotation of 274,750,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of April 29, 2025. This move is part of previously announced transactions, potentially enhancing the company’s market presence and liquidity, which could have positive implications for stakeholders by increasing the company’s capital base and supporting its growth initiatives.

Althea Group Holdings Ltd. Issues New Securities Under Employee Incentive Scheme
Apr 29, 2025

Althea Group Holdings Ltd. has announced the issuance of 10,163,770 ordinary fully paid securities to be quoted on the ASX as of April 29, 2025. This move is part of an employee incentive scheme, indicating the company’s commitment to rewarding and retaining talent, which may enhance its operational capabilities and market positioning.

Althea Group Holdings Announces New Securities Issue to Boost Market Position
Apr 23, 2025

Althea Group Holdings Ltd. announced a proposed issue of securities, including options and ordinary shares, to be listed on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to raise capital, potentially enhancing its financial position and market presence in the medicinal cannabis sector.

Althea Group Holdings Announces Cleansing Offer to Lift Trading Restrictions
Apr 23, 2025

Althea Group Holdings Limited has announced a Cleansing Offer of up to 100 shares at A$0.10 each, closing on April 29, 2025. The primary purpose of this offer is to remove trading restrictions on the sale of shares to be issued by the company in April 2025, in accordance with section 708A(11) of the Corporations Act.

Althea Group Holdings Secures Shareholder Approval for Key Resolutions
Apr 7, 2025

Althea Group Holdings Ltd announced that all resolutions proposed at their General Meeting were passed by poll. The successful resolutions indicate strong shareholder support for the company’s strategic initiatives, which could positively impact its operations and market positioning in the global cannabis industry.

Althea Group Holdings Announces Change in Substantial Shareholder Structure
Apr 2, 2025

Althea Group Holdings Ltd. has announced a significant change in its substantial shareholder structure, with a notable increase in shareholding by an unnamed entity. This change is expected to impact the company’s market positioning and could have implications for its strategic direction and stakeholder interests.

Althea Group Holdings Announces Change of Address
Apr 1, 2025

Althea Group Holdings Ltd has announced a change in its registered office and principal place of business to Level 19, 180 Lonsdale Street, Melbourne, Victoria 3000, effective immediately. This change is part of the company’s ongoing operational adjustments and does not affect its contact number. The announcement reflects the company’s commitment to maintaining its operational efficiency and presence in key markets.

Althea Group Announces Director’s Share Transfer
Mar 14, 2025

Althea Group Holdings Ltd. announced a change in the director’s interest, with Alan Boyd transferring 113,718 ordinary shares off-market to closely related entities. This transfer, which reduces Boyd’s direct shareholding to 170,000 shares, is valued at approximately $0.024 per share based on the closing price on March 11, 2025. The off-market transfer indicates a strategic internal reallocation of shares, potentially impacting the company’s governance structure and shareholder dynamics.

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.