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Austco Healthcare Limited (AU:AHC)
ASX:AHC
Australian Market

Austco Healthcare Limited (AHC) AI Stock Analysis

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AU

Austco Healthcare Limited

(Sydney:AHC)

Rating:80Outperform
Price Target:
AU$0.50
▲(66.67%Upside)
Austco Healthcare Limited's strong financial performance, characterized by significant growth and robust profitability, is the most impactful factor driving the score. The positive technical outlook further supports the stock's potential. The company's valuation is reasonable, with a focus on growth over immediate dividend returns. The absence of recent earnings call data or corporate events did not affect the score.
Positive Factors
Global Expansion
The contract strengthens Austco’s presence in Latin America and highlights its expanding global healthcare footprint.
Product Strength
Austco Healthcare has renewed its agreement with a large US healthcare provider, showcasing its product strength.
Negative Factors
Contract Impact
The impact of the contract on FY25 is small, with most equipment and installation to be recognized in FY26 and FY27.
Revenue Flexibility
There is no minimum purchase commitment in the renewed agreement, providing flexibility but no locked-in revenue.

Austco Healthcare Limited (AHC) vs. iShares MSCI Australia ETF (EWA)

Austco Healthcare Limited Business Overview & Revenue Model

Company DescriptionAustco Healthcare Limited, together with its subsidiaries, engages in the manufacture, distribution, marketing, supply, service, and sale of healthcare and electronic communications systems in Australia, New Zealand, Asia, Europe, and North America. It offers Tacera, an IP based nurse call solution for hospitals and aged care facilities. The company was formerly known as Azure Healthcare Limited and changed its name to Austco Healthcare Limited in November 2020. Austco Healthcare Limited was founded in 1986 and is headquartered in Port Melbourne, Australia.
How the Company Makes MoneyAustco Healthcare Limited generates revenue through the sale and installation of its communication and workflow management systems to healthcare facilities, including hospitals and aged care centers. The company's key revenue streams include the upfront sale of hardware and software solutions, as well as ongoing service and maintenance contracts, which provide recurring income. AHC also earns revenue from customized solutions and upgrades that cater to specific client needs. Significant partnerships with healthcare institutions and technology firms contribute to its earnings by expanding market reach and enhancing product offerings.

Austco Healthcare Limited Financial Statement Overview

Summary
Austco Healthcare Limited exhibits strong financial health with significant revenue and profit growth, robust profitability margins, and a solid balance sheet. The company's low leverage and strong cash flow generation support its operational and strategic initiatives. With continued focus on operational efficiency and cost management, Austco Healthcare is well-positioned for sustained growth and value creation.
Income Statement
85
Very Positive
Austco Healthcare Limited has demonstrated strong revenue growth with a 38.5% increase from 2023 to 2024. The gross profit margin improved significantly, reaching 52.7% in 2024, indicating strong cost management. Net profit margin also increased to 12.2%, reflecting enhanced profitability. EBIT and EBITDA margins were healthy at 9.9% and 13.9% respectively, highlighting operational efficiency. Overall, the income statement reflects robust growth and profitability.
Balance Sheet
78
Positive
The company's balance sheet shows a solid equity base with a stable debt-to-equity ratio of 0.04, indicating low leverage and financial risk. The return on equity improved to 15.9%, showcasing effective use of equity to generate profits. The equity ratio stands at 64.6%, suggesting a strong capital structure. However, the relatively low total debt might limit leverage opportunities for further growth.
Cash Flow
82
Very Positive
Austco Healthcare's cash flow statement indicates substantial growth in free cash flow, rising from negative in 2023 to positive $7.45 million in 2024, reflecting improved cash generation. The operating cash flow to net income ratio of 1.60 supports strong cash generation relative to net income. The free cash flow to net income ratio is positive, further indicating ample liquidity. Overall, the cash flow position is robust, supporting operational and investment activities effectively.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
72.22M58.15M41.98M35.88M31.25M31.60M
Gross Profit
37.67M30.67M6.68M18.85M16.71M16.44M
EBIT
9.65M5.79M1.80M2.14M2.10M2.74M
EBITDA
10.64M8.11M3.60M3.52M3.13M3.65M
Net Income Common Stockholders
8.84M7.08M2.26M2.33M3.42M2.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.07M13.56M4.67M7.63M7.77M6.45M
Total Assets
29.50M68.70M37.85M34.03M27.18M23.09M
Total Debt
997.00K1.78M524.00K979.00K1.15M892.00K
Net Debt
-6.08M-11.78M-4.15M-6.65M-6.62M-5.55M
Total Liabilities
8.20M24.33M12.85M10.94M7.88M6.83M
Stockholders Equity
21.30M44.38M25.00M23.09M19.30M16.26M
Cash FlowFree Cash Flow
10.14M7.45M-1.25M315.00K1.91M1.79M
Operating Cash Flow
11.72M11.35M320.00K1.94M3.21M3.30M
Investing Cash Flow
-14.16M-11.06M-1.57M-1.63M-1.30M-1.51M
Financing Cash Flow
15.13M8.84M-1.58M-312.00K-474.00K2.78M

Austco Healthcare Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.29
Positive
100DMA
0.29
Positive
200DMA
0.27
Positive
Market Momentum
MACD
<0.01
Positive
RSI
50.17
Neutral
STOCH
57.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AHC, the sentiment is Positive. The current price of 0.3 is below the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.29, and above the 200-day MA of 0.27, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AHC.

Austco Healthcare Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUAHC
80
Outperform
AU$109.22M10.8123.38%63.10%290.00%
54
Neutral
$5.41B3.27-45.10%3.29%16.81%0.02%
$2.94B22.016.45%2.46%
$11.57B46.9320.61%1.55%
$75.60B28.7915.38%1.72%
AURMD
79
Outperform
AU$56.91B28.1425.23%1.31%10.54%38.69%
AUSHL
71
Outperform
AU$12.89B23.616.86%3.28%10.15%6.20%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AHC
Austco Healthcare Limited
0.30
0.12
66.67%
ANSLF
Ansell
18.00
1.36
8.17%
CHEOF
Cochlear
175.20
-35.39
-16.81%
CMXHF
CSL
148.65
-36.95
-19.91%
AU:SHL
Sonic Healthcare Limited
26.89
2.51
10.30%
AU:RMD
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh
38.52
6.88
21.74%

Austco Healthcare Limited Corporate Events

Austco Healthcare Expands with Acquisition of G&S Technologies
May 30, 2025

Austco Healthcare Limited has completed the acquisition of New Zealand-based G&S Technologies, a company renowned for its expertise in Nurse Call systems, RTLS, CCTV, and other integrated security and communication systems, particularly in the healthcare and aged care sectors. This strategic acquisition is intended to bolster Austco’s direct sales capabilities, accelerate growth, and expand its range of solutions to better serve the healthcare markets. The acquisition was funded through existing cash reserves and includes provisions for earnout payments based on future performance, reflecting Austco’s commitment to enhancing its market position and delivering value to stakeholders.

The most recent analyst rating on (AU:AHC) stock is a Buy with a A$0.45 price target. To see the full list of analyst forecasts on Austco Healthcare Limited stock, see the AU:AHC Stock Forecast page.

Austco Healthcare Wins $2.1M Contract for Toronto Hospital Project
May 13, 2025

Austco Healthcare Limited has secured a AUD $2.1 million contract to implement its advanced nurse call platform, Tacera, at the new patient and surgical tower of Toronto Western Hospital, part of the University Health Network. This project, part of a $1 billion investment by Ontario, is expected to enhance healthcare delivery with real-time clinical communication and integration with hospital systems, supporting Austco’s North American growth strategy and reinforcing its position as a leader in innovative healthcare solutions.

The most recent analyst rating on (AU:AHC) stock is a Buy with a A$0.45 price target. To see the full list of analyst forecasts on Austco Healthcare Limited stock, see the AU:AHC Stock Forecast page.

Austco Healthcare Renews Major US Supplier Agreement, Expands Global Presence
May 9, 2025

Austco Healthcare Limited has renewed its preferred supplier agreement with a major US healthcare provider, continuing to supply and support its Tacera IP Nurse Call systems across approximately 180 healthcare facilities in over 30 US states. This renewal builds on a previous five-year agreement that generated over A$49 million in revenue and reinforces Austco’s position as a leader in digital nurse call and patient management solutions. The company is also shifting production away from China to mitigate tariff challenges, a move expected to be completed in the next few months.

Austco Healthcare Secures Major Contract with Mexican Health System
Apr 15, 2025

Austco Healthcare Limited has secured a multi-year, multi-million dollar contract with Angeles Health System in Mexico to supply advanced nurse call and infant protection systems across three major hospitals. This AUD $3.4 million contract will enhance Austco’s presence in the Latin American healthcare market, with revenue recognition expected from FY25 to FY27 and support revenues extending to FY29. The agreement includes comprehensive training and technical support, demonstrating Austco’s commitment to delivering scalable healthcare technology solutions. The project will not be affected by U.S. tariffs due to Austco’s drop-shipping model, ensuring cost predictability and uninterrupted delivery.

Austco Healthcare Expands with Strategic Acquisition of G&S Technologies
Apr 9, 2025

Austco Healthcare Limited has announced a strategic acquisition of G&S Technologies, a New Zealand-based provider of integrated communication and security systems for healthcare facilities. This acquisition aligns with Austco’s strategy to expand its direct sales capabilities and enhance its portfolio of solutions, aiming to accelerate growth and improve market penetration. The acquisition is expected to be immediately earnings per share accretive and will enable Austco to engage with common corporate clients across New Zealand and Australia, compete for larger opportunities, and deliver integrated technology solutions. The transaction is set to complete on June 1, 2025, and is anticipated to provide significant revenue synergies.

Austco Healthcare CEO Sells Shares Amid Personal Circumstances
Apr 1, 2025

Austco Healthcare Limited announced that its CEO and Executive Director, Clayton Astles, has sold 500,000 shares due to extraordinary personal circumstances involving medical expenses for a family member. Despite the sale, Mr. Astles remains committed to the company, retaining a shareholding and expressing confidence in Austco’s long-term growth and strategy. The Board supports Mr. Astles’ decision, extending their thoughts to him and his family during this challenging time.

Austco Healthcare Completes Teknocorp Acquisition and Releases Escrowed Shares
Mar 27, 2025

Austco Healthcare Limited has successfully completed the earn-out period for its acquisition of Teknocorp, making a final payment of $799,092 and settling all contingent considerations. The acquisition has bolstered Austco’s revenue and profit growth, enhancing its market strategy in Australia and aligning its services with global operations. The release of 3,888,889 shares from voluntary escrow is also announced, although the company acknowledges a delay in notification due to an administrative oversight. Austco remains committed to transparency and regulatory compliance.

Austco Healthcare Secures Landmark SMA Contract with West Park Hospital
Mar 18, 2025

Austco Healthcare Limited’s subsidiary in Canada has secured its largest Software and Maintenance Agreement (SMA) contract, valued at AUD $1.02 million, with West Park Hospital in Toronto. This five-year agreement, starting in April 2025, emphasizes Austco’s strategic focus on expanding recurring software and service revenues, enhancing revenue predictability, and providing ongoing support and upgrades to its customers. The contract underscores the growing demand for Austco’s healthcare communication solutions and strengthens its position in the industry by aligning with its strategic growth initiatives.

Austco Healthcare Achieves Record Growth in 1HFY25
Mar 16, 2025

Austco Healthcare Limited has reported a record performance in the first half of the fiscal year 2025, driven by successful integration of acquisitions. The company achieved a 62% revenue growth, reaching $36.9 million, and a 150% increase in EBITDA, totaling $5.2 million, which exceeded the top end of their guidance. Additionally, the company saw a 270% growth in NPBT, with profits rising to $3.9 million, and a 15% growth in software and SMA revenues, which reached $4.6 million.

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.