Adrad Holdings Limited (AHL) AI Stock Analysis

• Market Cap: AU$55.69M
• Dividend Yield: 4.18%
• Average Volume (3M): 10.36K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.64
• Revenue Growth: 0.62%
• EPS Growth: -16.55%
• Country: AU
• Employees: 500
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 0.04
• Shares Outstanding: 81,303,116
• 10 Day Avg. Volume: 5,802
• 30 Day Avg. Volume: 10,361
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$1.05
• Price Target Upside: 54.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: AU$1.00 ▲(47.06% Upside)

Adrad Holdings Limited's overall stock score reflects a strong financial performance with solid revenue growth, robust margins, and healthy cash flows. The technical analysis supports a positive price trend, and the valuation metrics suggest the stock may be undervalued. The lack of earnings call data and corporate events does not impact the score due to their exclusion.

Adrad Holdings Limited Business Overview & Revenue Model

Company Description

Adrad Holdings Limited (AHL) is a company engaged in the design, manufacturing, and distribution of a wide range of heat transfer solutions and products. The company operates primarily in the automotive and industrial sectors, providing high-quality radiators, oil coolers, and other cooling systems. Adrad Holdings leverages its extensive expertise to supply both original equipment manufacturers (OEMs) and aftermarket customers with innovative and reliable thermal management products.

How the Company Makes Money

Adrad Holdings Limited generates revenue through the sale of its heat transfer products, including radiators, oil coolers, and other cooling systems, to various customers in the automotive and industrial sectors. The company's revenue streams are primarily derived from two segments: OEM sales and aftermarket sales. OEM sales involve supplying custom-engineered cooling solutions directly to vehicle manufacturers, while aftermarket sales cater to distributors and end-users needing replacement parts. Additionally, Adrad may benefit from strategic partnerships and collaborations that enhance its market reach and product offerings, contributing to its overall earnings.

Adrad Holdings Limited Financial Statement Overview

Summary

Adrad Holdings Limited presents solid financial performance with robust revenue growth, strong profit margins, and healthy cash flows. However, there is room for improvement in operational efficiency and shareholder returns.

Income Statement

Adrad Holdings Limited has demonstrated strong revenue growth over the past few years, with the 2024 revenue showing a modest increase from 2023. The gross profit margin for 2024 is approximately 53.8%, which indicates strong cost management and is a significant improvement from the prior year. The net profit margin is approximately 4.2%, reflecting stable profitability. EBIT and EBITDA margins are strong, indicating efficient operations. However, the slight decline in EBIT compared to 2023 suggests some operational challenges.

Balance Sheet

The company's balance sheet shows a healthy equity position with an equity ratio of approximately 63.4% in 2024, indicating a strong capital structure. The debt-to-equity ratio stands at 0.4, which is relatively conservative and suggests low financial leverage. Return on equity is about 4.9%, showing moderate profitability relative to equity. While the balance sheet is stable, the modest return on equity indicates potential areas for improving shareholder returns.

Cash Flow

Adrad Holdings has shown significant improvement in its cash flow generation, with a free cash flow to net income ratio of approximately 1.55 in 2024, indicating efficient conversion of earnings to cash. The operating cash flow to net income ratio is about 2.46, reflecting strong cash generation from operations. Free cash flow has grown considerably from the previous year, which enhances financial flexibility.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	143.27M	141.13M	122.83M	87.09M	91.49M
Gross Profit	27.84M	26.01M	25.23M	19.48M	31.36M
EBITDA	16.50M	18.31M	18.34M	15.49M	5.22M
Net Income	5.97M	5.61M	6.77M	12.86M	2.48M
Balance Sheet
Total Assets	190.56M	189.59M	169.41M	107.65M	122.64M
Cash, Cash Equivalents and Short-Term Investments	15.84M	13.93M	3.48M	4.84M	3.66M
Total Debt	48.77M	48.89M	75.26M	19.77M	36.85M
Total Liabilities	69.79M	72.70M	97.38M	43.36M	71.36M
Stockholders Equity	120.77M	116.89M	72.03M	62.34M	51.28M
Cash Flow
Free Cash Flow	9.27M	2.74M	3.88M	8.52M	111.65K
Operating Cash Flow	14.70M	6.76M	8.06M	11.69M	113.13K
Investing Cash Flow	-5.24M	-3.86M	-20.61M	-3.18M	―
Financing Cash Flow	-7.55M	7.56M	11.18M	-7.40M	―

Adrad Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.68
• 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 0.68 is below the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.66, and above the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 59.63 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
AHL	77 Outperform	AU$55.69M	9.70	4.71%	4.18%	0.62%	-16.55%
LBL	70 Outperform	AU$63.53M	21.60	8.11%	2.18%	4.36%	-38.12%
BOL	68 Neutral	€54.48M	2.57	18.38%	―	10.70%	―
SSH	67 Neutral	AU$12.89M	13.33	9.53%	―	11.60%	―
Sector *	59 Neutral	AU$1.62B	9.94	2.84%	3.53%	9.79%	5.94%
AVA	46 Neutral	AU$23.53M	―	-10.45%	―	13.25%	13.71%
LIS	40 Underperform	AU$99.23M	―	-11.59%	―	―	-18.75%

Adrad Holdings Limited Corporate Events

Adrad Holdings Appoints New CEO Amidst Growth Plans

Adrad Holdings Limited has announced the appointment of Paul Proctor as its new Chief Executive Officer, succeeding Kevin Boyle who has resigned. Proctor, with extensive leadership experience in the manufacturing sector, is expected to guide Adrad through its growth aspirations. The company anticipates its FY25 earnings to be comparable to FY24, indicating stable financial performance. The board expresses optimism about the company’s future under Proctor’s leadership.

The most recent analyst rating on (AU:AHL) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Adrad Holdings Limited stock, see the AU:AHL Stock Forecast page.

Adrad Holdings Announces Board Transition for Founder

Adrad Holdings Limited has announced a significant change in its board structure, with founder Gary Washington transitioning from an Executive Director to a Non-Executive Director role. This move allows Mr. Washington to continue contributing his expertise and oversight, ensuring continuity in leadership and strategic guidance for the company.

The most recent analyst rating on (AU:AHL) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Adrad Holdings Limited stock, see the AU:AHL Stock Forecast page.

Adrad Holdings to Exit New Zealand Operations for Strategic Growth

Adrad Holdings Limited has announced its strategic decision to exit its New Zealand operations by July 2025, following a comprehensive review that highlighted the region’s limited profitability potential due to market size and competition. This move, while resulting in a one-time negative impact on FY25 profits, is expected to enhance overall profitability and deliver earnings growth in FY26, as the company reallocates resources to more promising markets.

The most recent analyst rating on (AU:AHL) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Adrad Holdings Limited stock, see the AU:AHL Stock Forecast page.