Austco Healthcare Limited (AHC) AI Stock Analysis

• Market Cap: AU$144.28M
• Dividend Yield: N/A
• Average Volume (3M): 242.22K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.51
• Revenue Growth: 39.98%
• EPS Growth: -30.04%
• Country: AU
• Employees: 102
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): <0.01
• Shares Outstanding: 374,751,280
• 10 Day Avg. Volume: 336,746
• 30 Day Avg. Volume: 242,221
• PEG Ratio: -0.60
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 10.08
• 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$0.55
• Price Target Upside: 37.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: AU$0.41 ▲(3.00% Upside)

Austco Healthcare Limited shows strong financial performance with robust revenue growth and a solid balance sheet, contributing positively to the overall score. The technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. The valuation suggests potential overvaluation, which slightly dampens the overall score. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Low financial leverage

A very low debt-to-equity ratio indicates conservative capital structure and limited financial risk. This boosts resilience through economic cycles, preserves borrowing capacity for strategic investments, and reduces default risk, supporting durable operational continuity and strategic optionality.

High gross margins

A sustained gross margin above 50% signals pricing power and efficient product cost structure in healthcare tech. This margin buffer supports investment in R&D, service expansion and absorbs SG&A pressure, underpinning long-term profitability even as competitive or pricing pressures emerge.

Recurring service and license revenue

Recurring software licenses and maintenance contracts create predictable, high-retention revenue streams from hospitals. This increases lifetime customer value, smooths revenue volatility across installation cycles, and enables higher long-term margins and scalable aftermarket growth.

Negative Factors

Net margin deterioration

A material drop in net margin year-over-year reduces cash available for reinvestment, shareholder returns and buffers against downturns. If persistent, this erosion can constrain growth initiatives and weaken return metrics despite solid top-line performance, requiring cost or pricing action.

Slowing free cash flow growth

Decelerating free cash flow growth limits the firm’s ability to fund capex, R&D and potential strategic M&A from operations. Over months, slower FCF expansion can increase reliance on external capital, reduce financial flexibility, and impede scaling of recurring revenue services.

EPS contraction

A roughly 30% decline in EPS signals pressure on per-share profitability that can reflect margin pressures, one-offs or dilution. Sustained EPS weakness undermines investor confidence, reduces reinvestment capacity per share, and complicates long-term capital allocation decisions.

Austco Healthcare Limited Business Overview & Revenue Model

Company Description

Austco 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 Money

Austco Healthcare Limited generates revenue through the sale of its advanced healthcare communication systems and software solutions, which are typically sold to hospitals and healthcare institutions. The company's revenue model is primarily based on direct sales of hardware and software, as well as ongoing service and maintenance contracts that ensure the continued functionality and support of their systems. Key revenue streams include the initial sales of nurse call systems and related equipment, recurring revenue from software licenses, and service agreements for system maintenance and upgrades. Additionally, AHC may engage in partnerships with healthcare providers and technology companies to expand its market reach and enhance its product offerings, which can lead to increased sales and revenue growth.

Austco Healthcare Limited Financial Statement Overview

Summary

Austco Healthcare Limited demonstrates strong financial health with robust revenue growth and efficient cost management. The balance sheet is solid with low leverage, enhancing financial stability. While cash flow generation is positive, the slowing growth rate of free cash flow warrants attention. Overall, the company is well-positioned for future growth, but should focus on improving net profit margins and cash flow conversion.

Income Statement

Austco Healthcare Limited shows strong revenue growth with a 12.72% increase in the latest year, indicating robust demand for its products. The gross profit margin remains healthy at 52.05%, reflecting efficient cost management. However, the net profit margin has decreased to 7.29% from 12.17% in the previous year, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins are stable, indicating consistent operational performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.075, indicating low financial leverage and reduced risk of financial distress. The return on equity is solid at 11.47%, showcasing effective use of shareholder funds to generate profits. The equity ratio of 56.79% suggests a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow has increased, supporting the company's ability to finance operations and growth. However, the free cash flow growth rate has slowed to 5.13%, which may impact future investment capabilities. The free cash flow to net income ratio of 0.79 indicates that a substantial portion of earnings is converted into free cash flow, although there is room for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	81.41M	81.41M	58.15M	41.98M	35.88M	31.25M
Gross Profit	42.37M	42.37M	30.67M	6.68M	18.85M	16.71M
EBITDA	11.10M	11.10M	8.11M	3.60M	3.73M	5.01M
Net Income	5.93M	5.93M	7.08M	2.26M	2.33M	3.42M
Balance Sheet
Total Assets	91.07M	91.07M	68.70M	37.85M	34.03M	27.18M
Cash, Cash Equivalents and Short-Term Investments	14.48M	14.48M	13.56M	4.67M	7.63M	7.77M
Total Debt	3.88M	3.88M	1.78M	524.00K	979.00K	1.15M
Total Liabilities	39.34M	39.34M	24.33M	12.85M	10.94M	7.88M
Stockholders Equity	51.73M	51.73M	44.38M	25.00M	23.09M	19.30M
Cash Flow
Free Cash Flow	10.66M	10.66M	7.45M	-1.25M	315.00K	1.91M
Operating Cash Flow	13.42M	13.42M	11.35M	320.00K	1.94M	3.21M
Investing Cash Flow	-12.32M	-12.32M	-11.06M	-1.57M	-1.63M	-1.30M
Financing Cash Flow	-402.00K	-402.00K	8.84M	-1.58M	-312.00K	-474.00K

Austco Healthcare Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AHC, the sentiment is Negative. The current price of 0.4 is above the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.41, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of -4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AHC.

Austco Healthcare Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHC	67 Neutral	AU$144.28M	23.31	12.35%	―	39.98%	-30.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CYC	50 Neutral	AU$108.36M	-8.20	-31.98%	―	34.20%	-23.90%
TRJ	47 Neutral	AU$105.25M	-24.06	-4.28%	―	7.38%	82.39%
4DX	47 Neutral	AU$2.30B	-63.89	-44.49%	―	55.91%	22.60%
ALA	44 Neutral	AU$106.91M	-12.94	-47.98%	―	700.00%	26.88%
SHG	43 Neutral	AU$83.20M	-12.11	―	―	―	―

Austco Healthcare Limited Corporate Events

Austco Healthcare Cancels 393,946 Performance Rights After Conditions Not Met

Austco Healthcare Limited has announced the cessation of 393,946 performance rights, which lapsed on 5 January 2026 because the conditions attached to these rights were not met or became incapable of being satisfied. The lapse of these conditional rights modestly reduces Austco’s potential future share issuance, slightly simplifying its capital structure and signaling that certain performance or service milestones tied to executive or employee incentives were not achieved within the prescribed timeframe.

The most recent analyst rating on (AU:AHC) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Austco Healthcare Limited stock, see the AU:AHC Stock Forecast page.

Austco Healthcare Director Acquires New Performance Rights

Austco Healthcare Limited announced a change in the director’s interest, with Clayton Astles acquiring 632,649 unlisted performance rights. This grant, approved by shareholders at the recent Annual General Meeting, reflects the company’s commitment to aligning executive incentives with long-term performance goals, potentially impacting stakeholder confidence and company operations positively.

The most recent analyst rating on (AU:AHC) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Austco Healthcare Limited stock, see the AU:AHC Stock Forecast page.

Austco Healthcare Issues New Performance Rights to Employees

Austco Healthcare Limited announced the issuance of 632,649 performance rights as part of an employee incentive scheme. These unquoted securities are intended to motivate and retain employees, potentially impacting the company’s operational efficiency and competitive positioning in the healthcare technology market.

The most recent analyst rating on (AU:AHC) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Austco Healthcare Limited stock, see the AU:AHC Stock Forecast page.

Austco Healthcare Reports Strong FY2025 Performance Amid Global Digitalization Growth

Austco Healthcare Limited reported a strong financial performance for FY2025, with a 40% increase in revenue to $81.4 million and a 62% rise in EBITDA to $13.0 million, achieving an EBITDA margin of 16%. The company is well-positioned for growth in the rapidly expanding global healthcare digitalization market, which is projected to grow significantly by 2031. With a debt-free balance sheet and substantial unfilled contract revenue, Austco Healthcare is poised for future earnings visibility and continued expansion.

The most recent analyst rating on (AU:AHC) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Austco Healthcare Limited stock, see the AU:AHC Stock Forecast page.

Austco Healthcare Achieves Record Financial Performance and Strategic Growth in 2025

Austco Healthcare Limited reported a record-breaking financial year in 2025, with a 40% increase in revenue to $81.4 million and a 62% growth in EBITDA to $13.0 million, driven by strong organic growth and successful integration of acquisitions. The company emphasized its strategic progress through acquisitions and innovation, investing significantly in research and development to maintain its leadership in healthcare communication systems. With a growing order book and a robust platform for expansion, Austco is well-positioned for continued growth and value delivery to shareholders and stakeholders.

The most recent analyst rating on (AU:AHC) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Austco Healthcare Limited stock, see the AU:AHC Stock Forecast page.

Austco Healthcare Reports Strong Q1 FY26 with 51% Revenue Growth

Austco Healthcare Limited reported a strong start to the 2026 financial year with a 51% increase in revenue to $23.2 million and an improved EBITDA margin of 18.1%. This growth is attributed to both organic expansion and recent acquisitions, alongside operational efficiencies. The company continues to experience robust demand for its integrated nurse call, RTLS, and workflow solutions, positioning it well for sustained profitable growth. With a solid sales pipeline and continued efficiency gains, Austco targets 10–14% organic revenue growth for FY26.

The most recent analyst rating on (AU:AHC) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Austco Healthcare Limited stock, see the AU:AHC Stock Forecast page.