Apiam Animal Health Ltd. (AHX) AI Stock Analysis

• Market Cap: AU$160.06M
• Dividend Yield: 2.3%
• Average Volume (3M): 293.45K
• Price to Earnings (P/E): 188.0
• Beta (1Y): 0.07
• Revenue Growth: 1.11%
• EPS Growth: -84.06%
• Country: AU
• Employees: 950
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.02
• Shares Outstanding: 185,038,790
• 10 Day Avg. Volume: 597,364
• 30 Day Avg. Volume: 293,452
• PEG Ratio: -1.36
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 8.72
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$1.00 ▲(14.94% Upside)

Apiam Animal Health Ltd. shows strong technical momentum, but this is overshadowed by significant valuation concerns and challenges in profitability and cash flow management. The high P/E ratio suggests the stock is overvalued, while the overbought technical indicators indicate potential for a short-term correction. The stable balance sheet and dividend yield provide some support, but overall risks are notable.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, supporting long-term sustainability.

Gross Profit Margin

A strong gross profit margin reflects efficient cost management and pricing power, contributing to long-term profitability.

Stable Balance Sheet

A stable balance sheet with manageable leverage enhances financial stability and provides flexibility for future growth.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate pressure on profitability, which may affect long-term financial health and shareholder returns.

Negative Free Cash Flow Growth

Negative free cash flow growth can constrain investment in growth initiatives and impact the company's ability to manage debt.

Declining Return on Equity

A declining return on equity suggests challenges in generating returns for shareholders, potentially affecting investor confidence.

Apiam Animal Health Ltd. Business Overview & Revenue Model

Company Description

Apiam Animal Health Limited, a vertically integrated animal health company, provides veterinary products and services to production and companion animals in Australia. The company operates through three segments: Dairy and Mixed, Feedlots, and Pigs. It engages in the provision of veterinary wholesale, diagnostics laboratories, custom vaccines, logistics, and other ancillary services. The company offers companion animal, dairy, swine and poultry, beef feedlot, equine, sheep, and genetic services. It also provides telemedicine, remote video headgear, health management apps for production animals systems, benchmarking databases, and herd management software. The company offers general animal health products through eCommerce. It provides its services through animal veterinary clinics. The company was founded in 1998 and is based in Bendigo, Australia.

How the Company Makes Money

Apiam Animal Health generates revenue through multiple streams including veterinary service fees, the sale of pharmaceuticals, and animal health products. The company earns income from consultations and treatments provided to both livestock farmers and pet owners. Additionally, AHX profits from the distribution of its proprietary and third-party animal health products. Significant partnerships with agricultural organizations and suppliers further bolster its market presence and contribute to stable revenue generation. The company also benefits from the growing demand for animal health services and products, driven by increased awareness of animal welfare and the need for high-quality veterinary care.

Apiam Animal Health Ltd. Financial Statement Overview

Summary

Apiam Animal Health Ltd. demonstrates strong revenue growth and a solid gross profit margin, but faces challenges in profitability and cash flow management. The balance sheet remains stable with manageable leverage, but declining returns on equity and negative free cash flow growth highlight areas for improvement.

Income Statement

Apiam Animal Health Ltd. has shown consistent revenue growth over the years, with a notable 22.9% increase in the latest period. However, the net profit margin has significantly decreased to 0.4% from 2.4% the previous year, indicating pressure on profitability. The gross profit margin remains strong at 66.2%, but the declining EBIT and EBITDA margins suggest operational challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively stable at 0.85, indicating a balanced approach to leveraging. However, the return on equity has decreased to 0.7%, reflecting challenges in generating returns for shareholders. The equity ratio remains healthy, suggesting a stable financial position.

Cash Flow

Operating cash flow has decreased slightly, impacting the operating cash flow to net income ratio, which stands at 0.52. The free cash flow growth rate is negative, indicating potential liquidity issues. However, the free cash flow to net income ratio remains reasonable at 0.61, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	206.92M	206.92M	204.66M	191.76M	157.06M	126.18M
Gross Profit	40.52M	137.03M	137.16M	28.81M	25.98M	20.57M
EBITDA	22.93M	19.92M	23.52M	17.11M	16.00M	14.64M
Net Income	832.00K	832.00K	4.93M	2.28M	4.64M	5.08M
Balance Sheet
Total Assets	255.80M	255.80M	255.78M	246.04M	199.18M	157.28M
Cash, Cash Equivalents and Short-Term Investments	2.52M	2.52M	1.76M	3.17M	2.85M	2.15M
Total Debt	102.54M	102.54M	101.78M	98.03M	63.39M	55.04M
Total Liabilities	134.72M	134.72M	133.75M	128.14M	90.49M	76.46M
Stockholders Equity	121.03M	121.03M	122.02M	117.87M	108.55M	79.81M
Cash Flow
Free Cash Flow	11.75M	10.83M	14.01M	9.25M	10.21M	8.71M
Operating Cash Flow	17.64M	17.64M	18.88M	17.45M	15.08M	13.69M
Investing Cash Flow	-6.26M	-6.26M	-10.91M	-40.62M	-32.49M	-16.56M
Financing Cash Flow	-10.62M	-10.62M	-9.39M	23.49M	18.11M	2.51M

Apiam Animal Health Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AHX, the sentiment is Positive. The current price of 0.87 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.85, and above the 200-day MA of 0.60, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 82.24 is Negative, neither overbought nor oversold. The STOCH value of 59.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AHX.

Apiam Animal Health Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFP	68 Neutral	AU$699.53M	34.28	5.77%	2.85%	7.75%	4.38%
MFD	66 Neutral	AU$36.58M	-1.77	-37.06%	―	18.84%	-1657.69%
AFL	65 Neutral	AU$16.23M	159.09	―	―	27.43%	-90.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AHX	61 Neutral	AU$160.06M	188.04	0.68%	2.30%	1.11%	-84.06%
SHJ	55 Neutral	AU$116.03M	207.58	0.21%	7.30%	4.44%	-90.57%
EXP	48 Neutral	AU$90.73M	-92.31	-0.76%	2.08%	5.73%	-1200.00%

Apiam Animal Health Ltd. Corporate Events

Apiam Animal Health Announces New Company Secretary

Apiam Animal Health Limited has announced a change in its company secretary position, with Ms. Eryl Baron resigning and Ms. Natalie Climo taking over the role, effective immediately. This change in leadership is significant for the company’s communication with the ASX on listing rule matters, potentially impacting its operational and regulatory engagements.

Apiam Animal Health Successfully Passes All Resolutions at 2025 AGM

Apiam Animal Health Limited announced the results of its 2025 Annual General Meeting, where all resolutions were successfully passed through a poll. This outcome reflects the company’s stable governance and may reinforce its industry position, potentially impacting stakeholders positively by ensuring continued strategic direction and operational stability.

Apiam Animal Health Faces Challenges in FY25, Implements Strategic Reset

Apiam Animal Health Ltd. experienced a challenging FY25, with overall financial results falling below expectations due to underperformance in its Clinical Vet Services segment, which constitutes 75% of the company’s revenue. Despite achieving some growth in Intensive Animal Services and implementing efficiency initiatives, the company faced revenue pressures and a statutory net loss following the divestment of Agnes Banks Equine Clinic. In response, a leadership change was made, appointing Bruce Dixon as Interim Managing Director and implementing a Strategic Reset Program to realign the business for sustainable returns.

Apiam Animal Health Issues New Shares to Strengthen Market Position

Apiam Animal Health Limited announced the issuance of 1,096,270 Paid Ordinary Shares without disclosure to investors under Part 6D.2 of the Corporations Act. The company has adhered to relevant provisions of the Corporations Act and confirmed no excluded information needs disclosure. This move reflects Apiam’s strategic financial management and could potentially enhance its operational capabilities and market presence.

Apiam Animal Health Issues New Securities for Employee Share Plan

Apiam Animal Health Ltd. has announced the issuance of 1,096,270 ordinary fully paid securities to the Trustee of the Company’s Employee Share Plan. This move is aimed at administering the Employee Share Plan, potentially enhancing employee engagement and aligning their interests with the company’s growth objectives.

Apiam Animal Health Ltd. Agrees to Acquisition by Adamantem Capital

Apiam Animal Health Ltd. has entered into a binding Scheme Implementation Deed with entities controlled by Adamantem Capital, under which Adamantem’s BidCo will acquire 100% of Apiam’s shares. The proposal offers Apiam shareholders $0.87 cash per share, with alternative options for scrip consideration, representing a significant premium over recent trading prices. The Apiam Independent Board Committee recommends the scheme, highlighting the certainty of value and premium it provides, while recognizing Apiam’s strong market position and growth potential.

Apiam Animal Health Announces 2025 Annual General Meeting

Apiam Animal Health Limited has announced its 2025 Annual General Meeting, scheduled for November 20, 2025, at the Lakeside Hotel Bendigo. Shareholders are encouraged to attend or submit proxy forms by November 18, 2025, to ensure their votes are counted. The company is complying with the Corporations Amendment Act 2022 by offering electronic access to meeting documents, emphasizing its commitment to modern governance practices.

Apiam Animal Health Extends Exclusivity Period for Acquisition Proposal

Apiam Animal Health Limited has extended its exclusivity period with Adamantem Capital Management Pty Ltd for 10 business days to negotiate and sign binding transaction documentation for a proposed acquisition. The proposal, which includes a cash price adjustment per share, remains subject to several conditions, including shareholder and court approvals. Apiam shareholders are advised that no action is required at this time, and updates will be provided as necessary.

Apiam Animal Health Ltd. Announces Cessation of Securities

Apiam Animal Health Ltd. has announced the cessation of 98,426 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for its stakeholders, reflecting on the company’s operational adjustments and strategic focus.