Academies Australasia Group Limited (AKG) AI Stock Analysis

• Market Cap: AU$14.59M
• Dividend Yield: N/A
• Average Volume (3M): 17.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: 1.42%
• EPS Growth: 86.97%
• Country: AU
• Employees: 44
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): >-0.01
• Shares Outstanding: 132,614,470
• 10 Day Avg. Volume: 19,243
• 30 Day Avg. Volume: 17,139
• PEG Ratio: 0.11
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 3.39
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: AU$0.12 ▲(6.36% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily constrained by weak financial performance—ongoing losses and high leverage—despite better gross margins and improving free cash flow. Technicals add further pressure as the stock trades below major moving averages with subdued momentum. Valuation is also limited by negative earnings (negative P/E) and no dividend support.

Positive Factors

Accredited education business model

Operating accredited higher‑education and VET programs gives the company structurally stable demand and repeatable tuition revenue. Accreditation and a range of disciplines (business, accounting, IT) support credential value, predictable enrollment cycles and long‑term revenue durability.

Improving gross margins

A materially higher gross margin indicates better cost management or pricing power in course delivery. Sustained margin expansion preserves cash generation from revenues, improves resilience to enrollment volatility and enhances the ability to reinvest in curriculum and delivery over the medium term.

Stronger free cash flow conversion

Growing free cash flow and near‑par conversion of net income into FCF reduce reliance on external funding. Durable FCF supports working capital, program investment or gradual deleveraging, improving financial flexibility even if accounting profits remain weak.

Negative Factors

High leverage

A debt/equity ratio of 2.46 signals significant leverage that increases interest burden and refinancing risk. High leverage constrains strategic flexibility, magnifies the impact of enrollment or revenue shocks, and requires sustained cash generation before the capital structure can be normalized.

Negative profitability and ROE

Persistently negative net margins and ROE reflect underlying unit economics issues and loss‑making operations. Continued losses erode equity, limit internal funding for growth or improvements, and may force reliance on debt or equity raises that dilute stakeholders or increase leverage.

Weak operating cash flow vs income

Low operating cash flow relative to reported income and low EBIT/EBITDA margins indicate operational inefficiency and limited cash buffer. This reduces resilience to cyclical enrollment dips and increases dependence on financing to cover operational needs until margins and OCF convert sustainably.

Academies Australasia Group Limited Business Overview & Revenue Model

Company Description

Academies Australasia Group Limited provides training and education services in Australia and Singapore. The company offers English language, senior high school, Singapore government school preparatory certificate, diploma, advanced diploma, and bachelor degree courses. It operates 18 licensed colleges and offers approximately 150 qualifications. The company was formerly known as Garratt's Limited. Academies Australasia Group Limited was incorporated in 1908 and is based in Sydney, Australia.

How the Company Makes Money

Academies Australasia Group Limited generates revenue primarily through tuition fees from students enrolled in their various programs. The company caters to both domestic and international students, with a significant portion of its income derived from international student enrollments, which often pay higher fees. Additionally, AKG may receive government funding and grants for specific vocational training programs, contributing to its revenue streams. The company's partnerships with educational institutions, industry associations, and employers also play a crucial role in enhancing its course offerings and attracting students, further bolstering its financial performance.

Academies Australasia Group Limited Financial Statement Overview

Summary

Modest revenue growth (1.7%) and improved gross margin (52.3%) are positives, but overall profitability is weak with a negative net margin (-2.7%). High leverage (debt-to-equity 2.46) and negative ROE add financial risk, partly offset by improved free cash flow generation.

Income Statement

The company has shown a slight revenue growth of 1.7% in the latest year, but profitability remains a concern with a negative net profit margin of -2.7%. The gross profit margin improved significantly to 52.3%, indicating better cost management. However, EBIT and EBITDA margins are low, suggesting challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio is high at 2.46, indicating significant leverage and potential financial risk. Return on equity is negative, reflecting losses and inefficiencies in generating returns for shareholders. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

Free cash flow has grown substantially, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not strong relative to net income. However, the free cash flow to net income ratio is nearly 1, indicating that most of the net income is being converted into free cash flow.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	45.64M	47.03M	46.37M	46.51M	36.04M	42.62M
Gross Profit	14.89M	24.59M	2.07M	3.82M	2.94M	2.49M
EBITDA	1.13M	1.40M	-4.09M	5.77M	4.51M	7.18M
Net Income	-1.07M	-1.27M	-9.78M	-2.76M	-1.30M	-1.24M
Balance Sheet
Total Assets	70.35M	73.77M	83.86M	93.39M	85.07M	87.03M
Cash, Cash Equivalents and Short-Term Investments	2.02M	2.71M	5.83M	8.05M	15.96M	12.37M
Total Debt	62.06M	39.90M	46.17M	41.70M	29.83M	37.07M
Total Liabilities	54.87M	57.58M	66.20M	65.98M	57.07M	57.31M
Stockholders Equity	15.48M	16.20M	17.66M	26.84M	27.59M	29.13M
Cash Flow
Free Cash Flow	5.71M	3.75M	164.00K	-25.00K	8.76M	3.44M
Operating Cash Flow	5.72M	3.82M	441.00K	420.00K	9.32M	3.79M
Investing Cash Flow	-285.00K	-345.00K	-263.00K	-445.00K	-920.00K	-433.00K
Financing Cash Flow	-6.66M	-6.73M	-1.16M	-5.38M	-4.82M	-7.89M

Academies Australasia Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AKG, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.13, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.28 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AKG.

Academies Australasia Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDU	73 Outperform	AU$79.34M	8.09	60.13%	1.17%	120.57%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3PL	53 Neutral	AU$122.81M	119.49	0.15%	―	-1.08%	―
KME	48 Neutral	AU$30.21M	4.70	10.80%	1.67%	-2.81%	-503.02%
AKG	45 Neutral	AU$14.59M	-4.84	-7.51%	―	1.42%	86.97%
NXD	45 Neutral	AU$41.16M	-25.24	-53.18%	―	-13.91%	53.37%
CLU	38 Underperform	AU$17.66M	-2.37	-126.76%	―	-14.55%	70.98%

Academies Australasia Group Limited Corporate Events

Academies Australasia Narrows Half-Year Loss, Boosted by Adjusted Profit and Capital Restructuring

Academies Australasia Group Limited reported a 6% decline in half-year revenue to $22.5 million for the period to 31 December 2025, but narrowed its after-tax loss attributable to members to $754,000, reflecting a 21% improvement year on year. Adjusted profit before tax rose to $141,000 and adjusted EBITDA reached $3.2 million, supported by lower student refund outflows and a write-back on impaired employee loan assets, although the group again paid no dividends.

The company’s balance sheet shows cash declining to $5.6 million while reliance on director funding increased, with unsecured loans from directors rising to $6.2 million and generating $245,000 in interest over the half. Post period-end, the board approved the buy-back and cancellation of 5 million employee incentive plan shares and the associated non-recourse loans, a move that will modestly reduce shares on issue and simplify the capital structure while removing ongoing valuation adjustments tied to those loans.

The most recent analyst rating on (AU:AKG) stock is a Hold with a A$0.15 price target. To see the full list of analyst forecasts on Academies Australasia Group Limited stock, see the AU:AKG Stock Forecast page.

Academies Australasia Announces Director’s Interest Change

Academies Australasia Group Limited announced a change in the director’s interest, specifically regarding Dr. John Lewis Schlederer. The notice details the acquisition of 75,091 ordinary shares, reflecting a continued investment in the company. This change may indicate confidence in the company’s future prospects and could impact stakeholders’ perceptions of the company’s stability and growth potential.

The most recent analyst rating on (AU:AKG) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on Academies Australasia Group Limited stock, see the AU:AKG Stock Forecast page.

Academies Australasia Updates Director’s Interest Notice

Academies Australasia Group Limited announced a change in the director’s interest notice concerning Dr. John Lewis Schlederer. The change involved the acquisition of 26,804 ordinary shares, valued at $3,471.79, through indirect interests. This update is part of the company’s compliance with ASX listing rules and reflects the ongoing management of director interests within the organization.

The most recent analyst rating on (AU:AKG) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on Academies Australasia Group Limited stock, see the AU:AKG Stock Forecast page.