Austco Healthcare Limited (AHC) AI Stock Analysis

• Market Cap: AU$131.16M
• Dividend Yield: N/A
• Average Volume (3M): 242.22K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.66
• 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: 57.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): AU$105.70M

• Rating: 63 Neutral
• Price Target: AU$0.42 ▲(18.57% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

Overall score reflects strong financial health led by low leverage and solid revenue growth, partially offset by margin compression and slowing free cash flow growth. Technical indicators are a notable drag due to a clear downtrend (price below key moving averages, negative MACD). Valuation is neither compellingly cheap nor clearly expensive based on the provided P/E, with no dividend yield data to add support.

Positive Factors

Balance Sheet Strength

Very low financial leverage (debt-to-equity 0.075) and a ~56.8% equity ratio provide durable financial flexibility. This reduces default risk, supports investment or R&D funding without heavy external financing, and preserves capacity to weather sector cycles over the medium term.

Revenue Growth & Gross Margin

Sustained top-line growth (12.72% latest year) alongside a high gross margin (52.05%) signals durable demand and efficient product economics for its clinical communication systems. That combination supports reinvestment in product development and helps buffer operating profit against modest cost pressures.

Cash Generation & Recurring Revenues

Rising operating cash flow and a strong FCF-to-net-income conversion (0.79) indicate reliable cash generation. Coupled with recurring support and maintenance revenue described in the business model, this creates predictable cash streams that support ongoing service delivery, upgrades and steady capex over the medium term.

Negative Factors

Net Margin Compression

A drop in net margin from 12.17% to 7.29% signals meaningful profitability pressure. Persistent margin erosion reduces retained earnings and the company's ability to self-fund growth or absorb cost shocks, making medium-term margin recovery and investment planning more challenging without cost control or pricing improvements.

Slowing Free Cash Flow Growth

Deceleration of free cash flow growth to ~5.13% tightens financial headroom for capex, acquisitions or returns of capital. Even with positive cash conversion, slower FCF growth limits the pace of strategic initiatives and forces tougher capital allocation choices over the coming quarters.

EPS Decline

A negative EPS growth rate (~-22.7%) reflects lower bottom-line performance despite revenue gains. Sustained EPS declines can undermine confidence in earnings durability and may require corrective actions (cost cuts or margin improvement) to restore per-share earnings growth over the medium term.

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

Solid overall fundamentals: strong revenue growth (+12.72%) and a healthy gross margin (52.05%) support profitability. Balance sheet strength is a key positive with very low leverage (debt-to-equity 0.075) and a solid equity base (equity ratio 56.79%). Main concern is profitability pressure, with net margin down to 7.29% from 12.17%, and free cash flow growth slowing to 5.13%.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	92.73M	81.41M	58.15M	41.98M	35.88M	31.25M
Gross Profit	34.91M	42.37M	30.67M	6.68M	18.85M	16.71M
EBITDA	13.87M	11.10M	8.11M	3.60M	3.73M	5.01M
Net Income	7.75M	5.93M	7.08M	2.26M	2.33M	3.42M
Balance Sheet
Total Assets	87.50M	91.07M	68.70M	37.85M	34.03M	27.18M
Cash, Cash Equivalents and Short-Term Investments	15.23M	14.48M	13.56M	4.67M	7.63M	7.77M
Total Debt	7.68M	3.88M	1.78M	524.00K	979.00K	1.15M
Total Liabilities	28.76M	39.34M	24.33M	12.85M	10.94M	7.88M
Stockholders Equity	58.76M	51.73M	44.38M	25.00M	23.09M	19.30M
Cash Flow
Free Cash Flow	17.39M	10.66M	7.45M	-1.25M	315.00K	1.91M
Operating Cash Flow	20.36M	13.42M	11.35M	320.00K	1.94M	3.21M
Investing Cash Flow	-14.00M	-12.32M	-11.06M	-1.57M	-1.63M	-1.30M
Financing Cash Flow	-1.08M	-402.00K	8.84M	-1.58M	-312.00K	-474.00K

Austco Healthcare Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.35 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.37, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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	63 Neutral	AU$131.16M	7.70	12.35%	―	39.98%	-30.04%
4DX	53 Neutral	AU$2.32B	-3.16	-44.49%	―	55.91%	22.60%
ALA	52 Neutral	AU$94.16M	-14.80	-47.98%	―	700.00%	26.88%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TRJ	47 Neutral	AU$80.85M	-59.43	-4.28%	―	7.38%	82.39%
CYC	44 Neutral	AU$97.09M	-6.27	-31.98%	―	34.20%	-23.90%
SHG	43 Neutral	AU$80.50M	-6.64	―	―	―	―

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.