AJ Lucas Group (AJL) AI Stock Analysis

• Market Cap: $8.25M
• Dividend Yield: N/A
• Average Volume (3M): 815.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 3.26%
• EPS Growth: -800.00%
• Country: AU
• Employees: 331
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Coal
• EPS (TTM): >-0.01
• Shares Outstanding: 1,375,729,600
• 10 Day Avg. Volume: 927,522
• 30 Day Avg. Volume: 815,568
• PEG Ratio: -0.02
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.22
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• 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 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 exploration and degasification of coal mines, which includes recovery and commercialization of coal seam gas and associated services. The Oil and Gas segment engages in the exploration, development, and commercialization of unconventional and conventional hydrocarbons in the United Kingdom. In addition, the company offers engineering services, including design of wells, drilling optimisation, professional steering services, and specialised equipment for directional drilling programmes. It serves the energy, mining, and infrastructure sectors. The company was incorporated in 1993 and is headquartered in Brisbane, Australia. AJ Lucas Group Limited is a subsidiary of Kerogen Investments No. 1 (HK) Limited.

How the Company Makes Money

AJ 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
157.41M	159.10M	157.61M	123.23M	111.09M	146.75M
	Gross Profit
38.94M	40.27M	36.09M	26.62M	27.62M	30.18M
	EBIT
19.64M	21.69M	16.74M	11.73M	14.49M	14.30M
	EBITDA
24.06M	28.98M	-135.61M	13.63M	20.58M	23.80M
	Net Income Common Stockholders
-9.62M	-702.00K	-152.06M	-11.32M	3.34M	-8.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.55M	16.85M	14.04M	3.06M	5.14M	4.48M
	Total Assets
99.60M	108.32M	104.14M	220.70M	232.00M	238.56M
	Total Debt
127.24M	126.38M	126.91M	110.12M	107.39M	114.56M
	Net Debt
118.69M	109.53M	112.86M	107.06M	102.25M	110.08M
	Total Liabilities
169.39M	166.16M	161.20M	143.88M	137.56M	151.62M
	Stockholders Equity
-69.73M	-57.79M	-57.03M	75.66M	93.27M	85.81M
Cash Flow		Free Cash Flow
14.47M	17.78M	-4.46M	9.28M	17.89M	-13.00M
	Operating Cash Flow
29.94M	32.03M	1.39M	12.56M	19.62M	2.00M
	Investing Cash Flow
-14.95M	-13.75M	-5.84M	-3.27M	-1.65M	-19.75M
	Financing Cash Flow
-22.91M	-15.46M	15.35M	-12.84M	-15.88M	8.66M

AJ Lucas Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AJL	53 Neutral	$8.25M	―		―	3.26%	-800.00%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
WECFF		$7.08M	―		―	―	―
AUH	39 Underperform	AU$4.54M	―	-10.84%	―	―	-60.00%
JAL	38 Underperform	AU$28.36M	―	-2.89%	―	―	50.00%
NCR	38 Underperform	AU$3.84M	―	-12.38%	―	―	33.33%
REY	33 Underperform	AU$5.71M	―	-69.70%	―	―	-308.85%

AJ Lucas Group Corporate Events

AJ Lucas Group Completes Debt Refinancing, Reduces Costs

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.