AJ Lucas Group Limited (AU:AJL)
ASX:AJL
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AJ Lucas Group
(Sydney:AJL)
Select Model
Select Model
Rating:50Neutral
Price Target:
AU$0.02
▲(70.00% Upside)
Action:ReiteratedDate:03/25/26
The score is held back primarily by weak financial performance—negative profitability, sharply declining free cash flow, and a highly concerning balance sheet with negative equity. Technical indicators show strong recent momentum but with overbought signals that raise near-term risk. Valuation looks very low on P/E, providing some offset, but it is not enough to outweigh the financial stability concerns.
Positive Factors
High gross margin
A 71% gross margin signals durable production or asset economics and provides a protective earnings buffer. High gross margins support cash generation from core activities and make monetisation of oil & gas stakes more valuable, cushioning against revenue volatility over months.
Negative Factors
Negative shareholders' equity
Negative equity reflects an impaired capital structure that reduces borrowing capacity and raises insolvency risk. Over months, this constrains strategic options, forces dependence on asset sales or external recapitalisation, and weakens stakeholder confidence in long-term stability.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
A 71% gross margin signals durable production or asset economics and provides a protective earnings buffer. High gross margins support cash generation from core activities and make monetisation of oil & gas stakes more valuable, cushioning against revenue volatility over months.
Read all positive factors
AJ Lucas Group (AJL) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$15.13M
Dividend YieldN/A
Average Volume (3M)889.31K
Price to Earnings (P/E)<0.1
Beta (1Y)0.39
Revenue Growth-8.48%
EPS Growth-2080.00%
CountryAU
Employees331
SectorBasic Materials
Sector Strength58
IndustryCoal
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,375,729,600
10 Day Avg. Volume708,783
30 Day Avg. Volume889,307
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.09
Price to Sales (P/S)0.05
P/FCF Ratio2.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
AJ Lucas Group Business Overview & Revenue Model
Company Description
AJ Lucas Group Limited, together with its subsidiaries, provides drilling services in Australia. The company operates in two segments: Drilling, and Oil and Gas. Its Drilling segment provides integrated professional drilling services primarily for...
How the Company Makes Money
AJ Lucas Group’s earnings have primarily been linked to (1) returns or value realisation from its oil and gas investment(s), most notably through its interest in Cuadrilla Resources, and (2) any corporate transactions, asset sales, or restructurin...
AJ Lucas Group Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
30
Negative
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 136.65M | 145.61M | 159.10M | 157.61M | 123.23M | 111.09M |
| Gross Profit | 28.55M | 103.43M | 40.27M | 19.61M | 13.09M | 111.09M |
| EBITDA | 17.46M | 14.39M | 28.98M | -135.61M | 13.63M | 20.58M |
| Net Income | 35.04M | -15.01M | -702.00K | -152.06M | -11.32M | 3.34M |
Balance Sheet | ||||||
| Total Assets | 84.54M | 89.07M | 108.32M | 104.14M | 220.70M | 232.00M |
| Cash, Cash Equivalents and Short-Term Investments | 5.67M | 3.87M | 16.85M | 14.04M | 3.06M | 5.14M |
| Total Debt | 85.60M | 123.81M | 126.38M | 126.91M | 110.12M | 107.39M |
| Total Liabilities | 118.97M | 162.71M | 166.16M | 161.20M | 143.88M | 137.56M |
| Stockholders Equity | -34.61M | -73.55M | -57.79M | -57.03M | 75.66M | 93.27M |
Cash Flow | ||||||
| Free Cash Flow | 20.94M | 2.94M | 17.78M | -4.46M | 9.28M | 17.89M |
| Operating Cash Flow | 29.57M | 13.07M | 32.03M | 1.39M | 12.56M | 19.62M |
| Investing Cash Flow | -7.10M | -9.26M | -13.75M | -5.84M | -3.27M | -1.65M |
| Financing Cash Flow | -26.93M | -16.94M | -15.46M | 15.35M | -12.84M | -15.88M |
AJ Lucas Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | AU$58.64M | 6.72 | 3.13% | 3.70% | -27.31% | -93.93% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
51 Neutral | AU$259.42M | -11.28 | -10.31% | ― | ― | 77.26% | |
50 Neutral | AU$15.13M | 0.10 | -64.80% | ― | -8.48% | -2080.00% | |
49 Neutral | AU$173.14M | -0.96 | -41.52% | ― | -12.53% | -264.51% | |
46 Neutral | AU$17.66M | -1.17 | 366.05% | ― | ― | -57.46% | |
46 Neutral | AU$51.02M | -22.48 | -2.51% | ― | ― | 40.74% |
* Basic Materials Sector Average
AU:AJL
AJ Lucas Group
0.01
>-0.01
-15.38%
AU:WEC
White Energy Company Limited
0.04
<0.01
29.03%
AU:JAL
Jameson Resources Limited
0.07
0.03
86.49%
AU:MYE
Metarock Group Limited
0.19
0.01
5.71%
AU:VMM
Viridis Mining and Minerals Limited
1.98
1.76
818.60%
AU:TER
TerraCom Limited
0.09
0.02
31.43%
AJ Lucas Group Corporate Events
AJ Lucas Swings to Profit on One-Off UK Settlement and Lower Finance Costs
Feb 27, 2026
AJ Lucas Group reported a sharp turnaround in performance for the six months to 31 December 2025, with total reported EBITDA rising to $38.5 million and net profit reaching $38.9 million, despite an 11.8% fall in revenue from continuing operations...
AJ Lucas Swings to Profit Despite Lower Half-Year Revenue
Feb 27, 2026
AJ Lucas Group reported revenue from continuing operations of A$66.9 million for the half year to 31 December 2025, an 11.8% decline from the prior corresponding period, while net tangible assets per share remained negative at minus 3.1 cents and ...
AJ Lucas Lifts Earnings, Cuts Debt Amid Softer Revenue and UK Refocus
Jan 30, 2026
AJ Lucas Group reported a stronger quarterly performance for the period ended 31 December 2025, with Australian operations EBITDA rising 29% to $6.2 million for the quarter and 38% to $14.1 million for the half year, despite lower revenue caused b...
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.