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AJ Lucas Group Limited (AU:AJL)
ASX:AJL

AJ Lucas Group (AJL) AI Stock Analysis

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AU

AJ Lucas Group

(Sydney:AJL)

Rating:53Neutral
Price Target:
AJ Lucas Group Limited is facing significant financial challenges, primarily due to negative equity and consistent net losses, impacting its overall score. Despite these issues, the company benefits from strong cash flow, which provides some stability. The technical analysis is inconclusive due to lack of data, and valuation metrics are unfavorable with a negative P/E ratio. The absence of earnings call insights and recent corporate events further limits a comprehensive analysis.

AJ Lucas Group (AJL) vs. iShares MSCI Australia ETF (EWA)

AJ Lucas Group Business Overview & Revenue Model

Company DescriptionAJ Lucas Group Limited (AJL) is an Australian-based company primarily engaged in the energy and infrastructure sectors. The company specializes in providing drilling services, engineering, and construction services, with a focus on coal seam gas and unconventional hydrocarbon drilling. AJL is also involved in the exploration and development of oil and gas resources, leveraging its expertise in drilling technology and infrastructure development to support the energy industry.
How the Company Makes MoneyAJ Lucas Group Limited makes money through its diverse operations in the energy and infrastructure sectors. The company's revenue model includes providing specialized drilling services for coal seam gas and unconventional hydrocarbons, which are crucial for energy resource extraction. Additionally, AJL generates income from its engineering and construction services, which involve designing, building, and maintaining infrastructure projects. A significant portion of its earnings also comes from its investments and interests in oil and gas exploration and production, where it benefits from the sale of extracted resources. Strategic partnerships with other energy companies and infrastructure firms further enhance its revenue streams by allowing AJL to participate in large-scale projects and share in the profits from successful resource extraction and infrastructure development.

AJ Lucas Group Financial Statement Overview

Summary
AJ Lucas Group Limited demonstrates operational efficiency with positive EBIT and EBITDA margins, but is struggling with profitability as evidenced by consistent net losses. The balance sheet indicates high leverage and solvency challenges due to negative equity. However, the cash flow situation is robust, with strong operating and free cash flows, suggesting effective cash management despite profitability issues.
Income Statement
65
Positive
The company has shown a moderate revenue growth of 0.95% from the previous year. Gross Profit Margin stands at 25.31%, which indicates healthy operational efficiency. However, the Net Profit Margin is negative due to a net loss of $702,000, reflecting challenges in achieving profitability. EBIT and EBITDA margins are satisfactory at 13.63% and 18.21% respectively, showing positive operational performance excluding interest, tax, and depreciation.
Balance Sheet
40
Negative
The company faces financial challenges with a negative Stockholders' Equity of $57.79 million, indicating potential solvency issues. The Debt-to-Equity Ratio is not meaningful due to negative equity, highlighting high leverage. The Equity Ratio is negative, which poses a risk to financial stability. The Return on Equity is not applicable due to negative equity.
Cash Flow
70
Positive
Operating Cash Flow significantly improved to $32.03 million, indicating strong cash generation capabilities. Free Cash Flow is positive at $17.78 million, showing effective capital management. The Operating Cash Flow to Net Income ratio is strong due to positive cash flow despite net losses, reflecting efficient cash management.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
157.41M159.10M157.61M123.23M111.09M146.75M
Gross Profit
38.94M40.27M36.09M26.62M27.62M30.18M
EBIT
19.64M21.69M16.74M11.89M14.49M13.37M
EBITDA
24.06M28.98M-135.61M13.82M24.12M18.25M
Net Income Common Stockholders
-9.62M-702.00K-152.06M-11.32M3.34M-8.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.55M16.85M14.04M3.06M5.14M4.48M
Total Assets
99.60M108.32M104.14M220.70M232.00M238.56M
Total Debt
127.24M126.38M126.91M110.12M107.39M114.56M
Net Debt
118.69M109.53M112.86M107.06M102.25M110.08M
Total Liabilities
169.39M166.16M161.20M143.88M137.56M151.62M
Stockholders Equity
-69.73M-57.79M-57.03M75.66M93.27M85.81M
Cash FlowFree Cash Flow
14.47M17.78M-4.46M9.28M17.89M-13.00M
Operating Cash Flow
29.94M32.03M1.39M12.56M19.62M2.00M
Investing Cash Flow
-14.95M-13.75M-5.84M-3.27M-1.65M-19.75M
Financing Cash Flow
-22.91M-15.46M15.35M-12.84M-15.88M8.66M

AJ Lucas Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUAJL
53
Neutral
$8.25M
3.26%-800.00%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
AUWEC
41
Neutral
$10.91M
17.66%
AUAUH
39
Underperform
AU$4.54M-10.84%-60.00%
AUJAL
38
Underperform
AU$24.43M-2.89%50.00%
AUNCR
38
Underperform
AU$3.84M-12.38%33.33%
AUREY
33
Underperform
AU$5.71M-69.70%-308.85%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AJL
AJ Lucas Group
0.01
>-0.01
-9.09%
AU:JAL
Jameson Resources Limited
0.04
0.01
33.33%
AU:REY
Rey Resources Ltd
0.03
-0.04
-57.14%
AU:WEC
White Energy Company Limited
0.04
<0.01
9.38%
AU:AUH
AustChina Holdings Limited
AU:NCR
NuCoal Resources Limited
0.01
0.00
0.00%

AJ Lucas Group Corporate Events

AJ Lucas Group Completes Debt Refinancing, Reduces Costs
May 9, 2025

AJ Lucas Group Limited has successfully refinanced its debt, extending its Senior Syndicated Finance Facility to April 2027 and increasing its limit to $50 million. This refinancing allows the company to fully repay its Junior Facility, significantly reducing interest costs and providing flexibility for future investments. The improved terms reflect the company’s strategic focus on capital discipline and targeted reinvestment in equipment, supporting its growth and operational efficiency.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.