Academies Australasia Group Limited (AKG) AI Stock Analysis

• Market Cap: AU$13.92M
• Dividend Yield: N/A
• Average Volume (3M): 17.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• 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$0.10 ▼(-7.27% Downside)
• 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

High gross margin

A sustained gross margin above 50% indicates solid pricing power or effective course-cost control across delivery channels. Over the next 2-6 months this margin cushion helps absorb enrollment volatility, funds reinvestment in programs, and creates a clearer path to operational breakeven as scale improves.

Improving free cash flow

Near-100% conversion of accounting earnings into free cash flow shows the business is translating reported results into real liquidity. Durable FCF strength reduces reliance on external funding, supports debt servicing or strategic investment, and materially improves financial flexibility over coming quarters.

Stable tuition-based revenue model

A tuition-fee business with multiple colleges and VET/higher-education offerings provides recurring, cohort-driven revenue. This structural model yields predictable cash inflows, benefits from steady demand for vocational skills, and supports long-term planning and program investment even if growth is gradual.

Negative Factors

High leverage

A debt-to-equity ratio above 2x is a durable financial constraint: it raises refinancing and interest-rate risk, limits strategic flexibility, and forces prioritization of cash to servicing debt rather than growth. In a cyclical enrollment environment this leverage amplifies downside risk over months ahead.

Negative profitability

A persistent negative net margin and negative ROE signal the company is not yet generating shareholder returns. Even with gross margin improvements, ongoing losses constrain retained earnings, make equity weaker, and require sustained operational or revenue improvements to achieve durable profitability.

Weak/sluggish revenue growth

Near-flat revenue limits operating leverage that would convert healthy gross margins into strong EBITDA and net profits. Slow top-line growth also magnifies sensitivity to enrollment cycles and policy changes for domestic/international students, making margin recovery and debt reduction harder to sustain.

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

AKG primarily makes money by charging tuition and course-related fees to students enrolled in its higher education and vocational education and training (VET) programs. Revenue is earned as students commence and progress through programs delivered by the group’s colleges/training entities, including fees for accredited diplomas, degrees and other structured education offerings. Additional income can be generated from ancillary student-related charges that are tied to delivering education services (for example, administrative/enrolment-related charges and other course delivery fees where applicable). Material, specific details about the split of revenue by segment (e.g., higher education vs VET), the proportion of domestic vs international tuition, or named significant partnerships and commission-based arrangements are null.

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: Positive
• 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 0.11, 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 25.60 is Positive, 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	70 Outperform	AU$82.49M	8.09	71.63%	1.17%	120.57%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3PL	52 Neutral	AU$73.68M	119.49	0.87%	―	-1.08%	―
KME	48 Neutral	AU$29.24M	4.70	-22.15%	1.67%	-2.81%	-503.02%
AKG	45 Neutral	AU$13.92M	-4.84	-6.74%	―	1.42%	86.97%
NXD	42 Neutral	AU$38.01M	-25.24	-34.51%	―	-13.91%	53.37%
CLU	41 Neutral	AU$13.96M	-2.37	-111.42%	―	-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.