tiprankstipranks
Trending News
More News >
Austco Healthcare Limited (AU:AHC)
:AHC
Australian Market

Austco Healthcare Limited (AHC) AI Stock Analysis

Compare
2 Followers

Top Page

AU

Austco Healthcare Limited

(Sydney:AHC)

Rating:76Outperform
Price Target:
AU$0.50
▲(66.67%Upside)
Austco Healthcare Limited's strong financial performance is the primary driver of its stock score, supported by robust revenue and profit growth, healthy margins, and a solid balance sheet. Technical analysis suggests moderate momentum, while valuation indicates reasonable pricing relative to growth prospects. The absence of dividend yield and neutral technical indicators slightly moderate the overall score.
Positive Factors
Financial Stability
Ongoing Software Maintenance Agreements support revenues through FY29, enhancing long-term financial stability.
Global Expansion
The contract strengthens Austco’s presence in Latin America and highlights its expanding global healthcare footprint.
Product Strength
Austco Healthcare has continued to show its product strength, renewing its agreement with a large US healthcare provider.
Negative Factors
Delayed 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, giving 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 (AHC) is a leading provider of communication solutions for the healthcare sector. The company specializes in the development and supply of advanced nurse call systems and clinical workflow management solutions designed to enhance the safety and efficiency of healthcare facilities. AHC operates primarily within the healthcare technology sector, offering products that integrate with existing hospital infrastructure to improve patient care and streamline clinical processes.
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue72.22M58.15M41.98M35.88M31.25M31.60M
Gross Profit37.67M30.67M6.68M18.85M16.71M16.44M
EBITDA10.64M8.11M3.60M3.52M3.13M3.65M
Net Income8.84M7.08M2.26M2.33M3.42M2.50M
Balance Sheet
Total Assets29.50M68.70M37.85M34.03M27.18M23.09M
Cash, Cash Equivalents and Short-Term Investments7.07M13.56M4.67M7.63M7.77M6.45M
Total Debt997.00K1.78M524.00K979.00K1.15M892.00K
Total Liabilities8.20M24.33M12.85M10.94M7.88M6.83M
Stockholders Equity21.30M44.38M25.00M23.09M19.30M16.26M
Cash Flow
Free Cash Flow10.14M7.45M-1.25M315.00K1.91M1.79M
Operating Cash Flow11.72M11.35M320.00K1.94M3.21M3.30M
Investing Cash Flow-14.16M-11.06M-1.57M-1.63M-1.30M-1.51M
Financing Cash Flow15.13M8.84M-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
0.28
Positive
Market Momentum
MACD
<0.01
Positive
RSI
52.05
Neutral
STOCH
40.00
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 above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.29, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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 (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUAHC
76
Outperform
AU$109.22M10.9923.38%63.10%290.00%
AUSHG
54
Neutral
AU$113.13M
AUCYC
49
Neutral
AU$106.69M-35.20%4.68%-155.42%
49
Neutral
AU$2.49B4.37-64.25%2.83%36.51%13.14%
AUTRJ
45
Neutral
AU$109.71M-24.66%0.70%-1600.91%
AUALA
40
Underperform
AU$110.54M-85.35%315.11%51.16%
AU4DX
39
Underperform
AU$111.73M-52.37%471.29%-4.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AHC
Austco Healthcare Limited
0.30
0.10
50.00%
AU:CYC
Cyclopharm Limited
1.12
-0.56
-33.33%
AU:SHG
Singular Health Group Ltd
0.36
0.27
300.00%
AU:TRJ
Trajan Group Holdings Ltd
0.72
-0.29
-28.71%
AU:4DX
4DMedical Ltd
0.24
-0.31
-56.36%
AU:ALA
Arovella Therapeutics Limited
0.10
-0.05
-33.33%

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.

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: Jun 28, 2025