Adrad Holdings Limited (AHL) AI Stock Analysis

• Market Cap: AU$74.41M
• Dividend Yield: 3.41%
• Average Volume (3M): 81.43K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.73
• Revenue Growth: 7.16%
• EPS Growth: 3.94%
• Country: AU
• Employees: 500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.04
• 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$1.35
• Price Target Upside: 36.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: AU$0.97 ▼(-2.02% Downside)

Overall score reflects solid financial stability and improving gross margins, supported by reasonable valuation and dividend yield. These are tempered by weak technical momentum (below key moving averages with bearish indicators) and signs of pressured profitability and only moderate cash flow conversion.

Positive Factors

High gross margin

A sustained gross margin above 50% indicates strong product-level economics and pricing or cost advantages in the industrial machinery niche. This margin buffer supports reinvestment and resilience through cycles, enabling durable operating leverage if SG&A and overhead are controlled.

Strong balance sheet

Low leverage and a high equity ratio provide financial flexibility for capital expenditure, working capital needs, and downturns. Reduced debt burden limits refinancing risk and interest pressure, supporting longer-term investment and the ability to pursue strategic moves without stressing liquidity.

Improving free cash flow

Material free cash flow growth points to improving cash generation from operations after capex. Sustainable FCF expansion strengthens capacity for dividends, shareholder returns, debt reduction, and selective reinvestment, underlining durable internal funding versus reliance on external capital.

Negative Factors

Compressed net & operating margins

Declining net and operating margins suggest rising overhead, cost pressures beyond COGS, or weaker pricing power at the operating level. This erosion limits retained earnings and long-term return generation, requiring structural efficiency gains to restore sustainable profitability.

Moderate cash conversion

Less-than-one cash conversion ratios indicate a sizable portion of reported earnings is not converting to free cash flow. Over time this constrains ability to fund growth, pay down debt, or sustain payouts without external financing, making capital allocation more challenging.

Modest shareholder returns

A low ROE signals limited effectiveness in generating profit from shareholders' capital versus peers. Persistently modest ROE can impede long-term value creation and may reflect structural inefficiencies or underutilized capital, necessitating strategic improvements to lift returns.

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

Solid overall fundamentals: revenue grew 3.89% and gross margin improved to 52.34%. Balance sheet strength is a positive with lower leverage (debt-to-equity 0.33) and a high equity ratio (66.72%). Offsetting these positives are weaker profitability/efficiency trends (net margin down to 3.69% with lower EBIT/EBITDA margins) and only moderate cash conversion (operating cash flow to net income 0.56; free cash flow to net income 0.70).

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	153.18M	153.20M	143.27M	141.13M	122.83M	87.09M
Gross Profit	54.92M	80.19M	27.84M	26.01M	25.23M	19.48M
EBITDA	17.08M	15.63M	16.50M	18.31M	18.34M	15.49M
Net Income	6.22M	5.65M	5.97M	5.61M	6.77M	12.86M
Balance Sheet
Total Assets	189.22M	189.22M	190.56M	189.59M	169.41M	107.65M
Cash, Cash Equivalents and Short-Term Investments	18.97M	18.97M	15.84M	13.93M	3.48M	4.84M
Total Debt	41.35M	41.35M	47.98M	48.89M	75.26M	19.77M
Total Liabilities	62.97M	62.97M	69.79M	72.70M	97.38M	43.36M
Stockholders Equity	126.25M	126.25M	120.77M	116.89M	72.03M	62.34M
Cash Flow
Free Cash Flow	9.78M	9.78M	9.27M	2.74M	3.88M	8.52M
Operating Cash Flow	13.95M	13.95M	14.70M	6.76M	8.06M	11.69M
Investing Cash Flow	-4.07M	-4.07M	-5.24M	-3.86M	-20.61M	-3.18M
Financing Cash Flow	-7.50M	-7.50M	-7.55M	7.56M	11.18M	-7.40M

Adrad Holdings Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AHL, the sentiment is Neutral. The current price of 0.99 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.00, and above the 200-day MA of 0.77, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 28.76 is Positive, neither overbought nor oversold. The STOCH value of 17.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$65.92M	3.03	19.72%	1.18%	2.05%	259.95%
LBL	68 Neutral	AU$68.56M	17.74	9.67%	1.92%	3.55%	4.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AHL	62 Neutral	AU$74.41M	13.15	5.04%	3.41%	7.16%	3.94%
SSH	57 Neutral	AU$20.71M	23.75	6.19%	―	-6.52%	-20.79%
AVA	53 Neutral	AU$18.63M	-2.88	-25.77%	―	4.84%	-12.12%
LIS	52 Neutral	AU$92.83M	-14.85	-16.49%	―	―	-40.28%

Adrad Holdings Limited Corporate Events

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.

Adrad Holdings Addresses Director’s Interest Notice Delay

Adrad Holdings Limited announced a change in the director’s interest notice for Mr. Paul Proctor, related to on-market transactions of the company’s ordinary shares. The delay in lodging the notice was due to an internal administrative oversight, and the company has committed to improving its internal processes to ensure timely future notifications, reflecting its adherence to ASX Listing Rules and its commitment to transparency.

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.