Austco Healthcare Limited (AHC) AI Stock Analysis

• Market Cap: AU$138.44M
• Dividend Yield: N/A
• Average Volume (3M): 256.58K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.63
• Revenue Growth: 63.10%
• EPS Growth: 290.00%
• Country: AU
• Employees: 102
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): <0.01
• Shares Outstanding: 364,308,230
• 10 Day Avg. Volume: 287,003
• 30 Day Avg. Volume: 256,584
• PEG Ratio: 0.80
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.85
• 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$0.50
• Price Target Upside: 31.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: AU$0.50 ▲(31.58%Upside)

Austco Healthcare Limited's strong financial performance is the most significant factor, highlighting robust growth and profitability. The technical analysis shows potential overbought conditions despite positive momentum. The stock's valuation is fair, but the lack of a dividend yield could deter some investors.

Positive Factors

Global Expansion

The contract strengthens Austco’s presence in Latin America and highlights its expanding global healthcare footprint.

Long-term Financial Stability

Ongoing Software Maintenance Agreements support revenues through FY29, enhancing long-term financial stability.

Product Strength

Austco Healthcare has continued to show its product strength, renewing its agreement with a large US healthcare provider.

Negative Factors

Financial Impact

The impact of the contract on FY25 is small, with most equipment and installation to be recognized in FY26 and FY27.

Relocation Costs

Austco is relocating its production to manufacturers outside of China, an initiative expected to be completed within the next 2 to 3 months.

Revenue Flexibility

There is no minimum purchase commitment, giving flexibility, but no locked-in revenue.

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 makes money through the sale of its healthcare communication systems, primarily to hospitals and aged care facilities. Key revenue streams include the sale of nurse call systems, which are critical for patient-to-nurse communication, and related clinical workflow solutions that improve efficiency and patient safety. The company also generates revenue from service and maintenance contracts, ensuring the ongoing functionality and reliability of their systems. Additionally, AHC may engage in strategic partnerships and collaborations to expand its market reach and product offerings, contributing to its earnings.

Austco Healthcare Limited Financial Statement Overview

Summary

Austco Healthcare Limited shows strong financial health with significant revenue and profit growth, robust profitability margins, and a solid balance sheet. The low leverage and strong cash flow generation support its operational and strategic initiatives, positioning it well for sustained growth.

Income Statement

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

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

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	72.22M	58.15M	41.98M	35.88M	31.25M	31.60M
Gross Profit	37.67M	30.67M	6.68M	18.85M	16.71M	16.44M
EBITDA	10.64M	8.11M	3.60M	3.52M	3.13M	3.65M
Net Income	8.84M	7.08M	2.26M	2.33M	3.42M	2.50M
Balance Sheet
Total Assets	74.28M	68.70M	37.85M	34.03M	27.18M	23.09M
Cash, Cash Equivalents and Short-Term Investments	14.91M	13.56M	4.67M	7.63M	7.77M	6.45M
Total Debt	2.24M	1.78M	524.00K	979.00K	1.15M	892.00K
Total Liabilities	25.17M	24.33M	12.85M	10.94M	7.88M	6.83M
Stockholders Equity	49.11M	44.38M	25.00M	23.09M	19.30M	16.26M
Cash Flow
Free Cash Flow	10.14M	7.45M	-1.25M	315.00K	1.91M	1.79M
Operating Cash Flow	11.72M	11.35M	320.00K	1.94M	3.21M	3.30M
Investing Cash Flow	-14.16M	-11.06M	-1.57M	-1.63M	-1.30M	-1.51M
Financing Cash Flow	15.13M	8.84M	-1.58M	-312.00K	-474.00K	2.78M

Austco Healthcare Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 0.38 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.31, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 78.57 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHC	76 Outperform	AU$138.44M	13.92	23.38%	―	63.10%	290.00%
Sector *	52 Neutral	$7.61B	0.11	-63.03%	2.07%	16.35%	0.29%
SHG	48 Neutral	AU$95.03M	―		―	―	―
TRJ	47 Neutral	AU$114.28M	―	-24.66%	―	0.70%	-1600.91%
4DX	46 Neutral	AU$121.04M	―	-52.37%	―	471.29%	-4.58%
CYC	45 Neutral	AU$120.03M	―	-35.20%	―	4.68%	-155.42%
ALA	40 Underperform	AU$124.80M	―	-85.35%	―	315.11%	51.16%

Austco Healthcare Limited Corporate Events

Austco Healthcare Reports Strong FY25 Growth Driven by Strategic Acquisitions

Austco Healthcare Limited announced a significant financial performance for the year ending June 30, 2025, with a revenue increase of over 37% and EBITDA growth exceeding 54%. This growth was driven by both organic operations and strategic acquisitions, including the successful integration of Amentco Enterprise Group Pty Ltd and G&S Technologies Limited. The company funded these acquisitions through operating cash flows, maintaining a strong cash position. The strong performance of Amentco led to a higher-than-expected earn-out payment, impacting statutory net profit but not EBITDA. Austco’s CEO highlighted the transformative nature of FY25, emphasizing the company’s robust contracted revenue and strategic execution, positioning it confidently for FY26.

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 Announces Quotation of New Securities on ASX

Austco Healthcare Limited has announced the quotation of 247,363 ordinary fully paid securities on the ASX, issued under an employee incentive scheme. This move is part of the company’s strategy to enhance its market presence and incentivize its workforce, potentially impacting its operational dynamics and stakeholder engagement positively.

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 Substantial Shareholder Reduces Stake

Austco Healthcare Limited has announced a change in the interests of a substantial shareholder, as reported by Australian Ethical Investment Limited. The voting power of the substantial holder has decreased from 15.59% to 14.06%, indicating a reduction in their stake in the company. This change could have implications for Austco Healthcare’s shareholder dynamics and influence within the company.

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 Expands with Acquisition of G&S Technologies

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

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

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.