Adrad Holdings Limited (AHL) AI Stock Analysis

• Market Cap: AU$87.83M
• Dividend Yield: 3.41%
• Average Volume (3M): 81.43K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.59
• Revenue Growth: 7.16%
• EPS Growth: 3.94%
• Country: AU
• Employees: 500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.03
• Shares Outstanding: 81,321,360
• 10 Day Avg. Volume: 19,602
• 30 Day Avg. Volume: 81,433
• PEG Ratio: -1.68
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 5.28
• 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$1.38
• Price Target Upside: 38.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): AU$163.30M

• Rating: 66 Neutral
• Price Target: AU$1.00 ▲(1.01% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by solid overall financial quality (improving gross margin and a strengthened balance sheet), tempered by weaker net/operating profitability and only moderate cash-flow conversion. Technicals are supportive but not strong due to mixed momentum (slightly negative MACD). Valuation adds support with a moderate P/E and a meaningful dividend yield.

Positive Factors

Improving Gross Margin

A materially higher gross margin (52.34%) indicates durable improvements in cost structure or pricing power. Sustained elevated gross margins provide lasting operating leverage, helping the company absorb SG&A and support reinvestment, dividends or buffer downturns.

Stronger Balance Sheet

Lower leverage (D/E 0.33) and a high equity ratio (66.72%) enhance financial flexibility. This structural strength reduces refinancing and solvency risk, enabling stable capex, opportunistic M&A or dividend support without over-reliance on external funding.

Rising Free Cash Flow

Significant FCF growth (18.53%) shows improving cash generation capacity. Over the medium term this supports durable corporate actions—deleveraging, funding organic growth, or sustaining distributions—provided cash conversion trends remain stable.

Negative Factors

Weak Net Profit Margin

A low and falling net margin (3.69%) indicates that improved gross margins are not translating into bottom-line profitability. Persistent expense pressure or lower operating efficiency can constrain retained earnings and the firm's ability to build long-term shareholder value.

Moderate Cash Conversion

Operating cash flow and free cash flow convert a modest share of net income (0.56 and 0.70). Structurally incomplete cash conversion limits internal funding for capex, dividends or debt reduction, leaving the company more exposed to funding needs if earnings decline.

Low Return on Equity

ROE of 4.48% is low relative to the equity base and suggests limited efficiency in generating shareholder returns. Over time this can cap capital allocation effectiveness and make it harder to justify retained earnings growth or attract long-term equity investors.

Adrad Holdings Limited Business Overview & Revenue Model

Company Description

Adrad Holdings Limited (AHL) is an Australian company specializing in the design, manufacture, and distribution of a comprehensive range of automotive heat exchange products, including radiators, intercoolers, and condensers. Operating primarily in the automotive aftermarket sector, AHL serves both domestic and international markets, providing high-quality solutions for vehicle cooling systems. The company also engages in the supply of custom-engineered products for various industrial applications, further diversifying its portfolio.

How the Company Makes Money

AHL generates revenue through multiple streams, primarily by selling automotive heat exchange products to wholesalers, retailers, and directly to end-users in the automotive industry. The company benefits from a strong aftermarket presence, allowing it to capture demand for replacement parts as vehicles age. Additionally, AHL's revenue is bolstered by partnerships with automotive manufacturers and distributors, which help in expanding its market reach. The company also invests in innovation and product development to enhance its offerings, thereby attracting more customers and increasing sales. Significant factors contributing to AHL's earnings include its established brand reputation, a diverse product range, and ongoing demand in the automotive aftermarket.

Adrad Holdings Limited Financial Statement Overview

Summary

Steady revenue growth and a much stronger gross margin support the score, while softer net profit/EBITDA margins and only moderate cash conversion (operating cash flow to net income at 0.56; free cash flow to net income at 0.70) limit it. Balance sheet leverage is improved (debt-to-equity 0.33) with a solid equity base (equity ratio 66.72%).

Income Statement

Adrad Holdings Limited has shown consistent revenue growth over the years, with a 3.89% increase in the latest year. The gross profit margin improved significantly to 52.34%, indicating better cost management. However, the net profit margin decreased slightly to 3.69%, suggesting increased expenses or lower operational efficiency. The EBIT and EBITDA margins also saw a decline, which could be a concern for operational profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.33, reflecting a stronger balance sheet with reduced leverage. Return on equity is at 4.48%, indicating moderate profitability for shareholders. The equity ratio stands at 66.72%, showcasing a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Adrad Holdings Limited experienced an 18.53% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.56, suggesting that cash flow from operations is sufficient to cover net income. However, the free cash flow to net income ratio of 0.70 indicates that a significant portion of net income is not translating into free cash flow, which could impact future investments or debt repayments.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	152.57M	153.20M	143.27M	141.13M	122.83M	87.09M
Gross Profit	29.11M	80.19M	27.84M	26.01M	25.23M	19.48M
EBITDA	16.24M	15.63M	16.50M	18.31M	18.34M	15.49M
Net Income	6.00M	5.65M	5.97M	5.61M	6.77M	12.86M
Balance Sheet
Total Assets	191.50M	189.22M	190.56M	189.59M	169.41M	107.65M
Cash, Cash Equivalents and Short-Term Investments	18.63M	18.97M	15.84M	13.93M	3.48M	4.84M
Total Debt	79.78M	41.35M	47.98M	48.89M	75.26M	19.77M
Total Liabilities	64.07M	62.97M	69.79M	72.70M	97.38M	43.36M
Stockholders Equity	127.43M	126.25M	120.77M	116.89M	72.03M	62.34M
Cash Flow
Free Cash Flow	5.80M	9.78M	9.27M	2.74M	3.88M	8.52M
Operating Cash Flow	10.19M	13.95M	14.70M	6.76M	8.06M	11.69M
Investing Cash Flow	-3.41M	-4.07M	-5.24M	-3.86M	-20.61M	-3.18M
Financing Cash Flow	-7.24M	-7.50M	-7.55M	7.56M	11.18M	-7.40M

Adrad Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AHL, the sentiment is Positive. The current price of 0.99 is above the 20-day moving average (MA) of 0.99, below the 50-day MA of 1.00, and above the 200-day MA of 0.81, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.00 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AHL.

Adrad Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOL	71 Outperform	AU$72.20M	3.33	19.72%	1.18%	2.05%	259.95%
LBL	68 Neutral	AU$72.10M	8.31	9.67%	1.92%	3.55%	4.14%
AHL	66 Neutral	AU$87.83M	7.98	5.04%	3.41%	7.16%	3.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SSH	57 Neutral	AU$21.80M	3.85	6.19%	―	-6.52%	-20.79%
LIS	52 Neutral	AU$80.03M	-20.20	-16.49%	―	―	-40.28%
AVA	48 Neutral	AU$16.30M	-4.31	-25.77%	―	4.84%	-12.12%

Adrad Holdings Limited Corporate Events

Adrad Ties CEO and Chair Bonuses to Market Value Growth in One-Off Incentive Plan

Adrad Holdings has revamped its executive pay structure, introducing a performance-based cash incentive for Managing Director and CEO Paul Proctor that is directly tied to the company’s market value growth. The scheme runs from September 2025 to August 2027 and will reward him with a share of any uplift above a base valuation of A$60 million, with payment only due if he remains in the role and the company achieves at least a 15% increase in value.

The board has also approved an exceptional, one-off cash incentive for Non-Executive Chairman Donald McGurk on the same performance terms, granting him a smaller share of the calculated uplift. While acknowledging that such performance-linked pay is unusual for non-executive directors and will not become standard practice, the company signalled it may seek shareholder approval if the final payment exceeds the existing director fee pool, underscoring a strong linkage between leadership rewards and shareholder value creation.

The most recent analyst rating on (AU:AHL) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Adrad Holdings Limited stock, see the AU:AHL Stock Forecast page.

Adrad Director Gary Washington Increases Indirect Shareholding

Adrad Holdings Limited has disclosed a change in the equity interests of director Gary Washington, who holds his stake indirectly via the Gary Washington Family Trust and a superannuation account. The filing shows that Washington acquired an additional 34,673 fully paid ordinary shares on market for $36,025.16, increasing his holding in one account to 190,458 shares while leaving his 49,320,114-share trust holding unchanged, signaling a modest vote of confidence in the company by a key insider without altering control dynamics.

The most recent analyst rating on (AU:AHL) stock is a Buy with a A$1.35 price target. To see the full list of analyst forecasts on Adrad Holdings Limited stock, see the AU:AHL Stock Forecast page.

Adrad Director Gary Washington Increases Indirect Shareholding

Adrad Holdings Limited has disclosed a change in the indirect shareholding of director Gary Washington, who holds interests through the Gary Washington Family Trust and a superannuation account shared with Karen Washington. The filing shows that on 15 December 2025 he acquired 67,086 fully paid ordinary shares via an on-market purchase for $67,573.42, increasing his personal indirect holding in that account to 155,785 shares while his larger trust-held stake remained unchanged, signalling a modest increase in his overall equity exposure to the company that may be read by investors as a vote of confidence from the boardroom.

The most recent analyst rating on (AU:AHL) stock is a Buy with a A$1.35 price target. To see the full list of analyst forecasts on Adrad Holdings Limited stock, see the AU:AHL Stock Forecast page.

Adrad Holdings Updates Director’s Shareholding

Adrad Holdings Limited has announced a change in the director’s interest notice for Gary Washington. The update reveals that Mr. Washington, through indirect interests, acquired an additional 24,689 fully paid ordinary shares, bringing his total to 88,699 shares. This transaction, valued at $23,482.41, was executed through an on-market purchase. The change in shareholding reflects a strategic move that could influence the company’s governance and potentially impact shareholder confidence.

The most recent analyst rating on (AU:AHL) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adrad Holdings Limited stock, see the AU:AHL Stock Forecast page.

Adrad Holdings Director Increases Shareholding

Adrad Holdings Limited has announced a change in the director’s interest notice, specifically involving Gary Washington. The change reflects an acquisition of 64,010 fully paid ordinary shares by Mr. Washington through an on-market purchase, valued at $58,509.19. This adjustment in shareholding indicates a potential increase in Mr. Washington’s investment in the company, which could signal confidence in the company’s future performance.

The most recent analyst rating on (AU:AHL) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Adrad Holdings Limited stock, see the AU:AHL Stock Forecast page.