ALS (ALQ) AI Stock Analysis

• Market Cap: AU$11.23B
• Dividend Yield: 1.77%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 40.2
• Beta (1Y): 0.88
• Revenue Growth: 18.18%
• EPS Growth: 4272.22%
• Country: AU
• Employees: 19,565
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.35
• Shares Outstanding: 507,542,540
• 10 Day Avg. Volume: 1,514,219
• 30 Day Avg. Volume: 1,429,263
• PEG Ratio: 0.02
• Price to Book (P/B): 5.83
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 30.50
• 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: AU$22.54
• Price Target Upside: 1.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: AU$22.00 ▼(-0.54% Downside)

ALS's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. Technical analysis indicates a bullish trend, though caution is advised due to overbought signals. The valuation suggests the stock may be overvalued, which slightly offsets the positive financial and technical outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's expanding market reach and successful business model, supporting long-term stability.

Profitability

Improved profitability reflects efficient operations and cost management, enhancing the company's ability to reinvest and grow.

Cash Flow Generation

Strong cash flow generation supports operational needs and strategic investments, ensuring financial flexibility and resilience.

Negative Factors

Leverage Management

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest and grow.

Operational Cost Pressures

Decreasing EBIT margins indicate rising operational costs, which could pressure profitability if not managed effectively.

Cash Conversion Efficiency

Inefficient cash conversion can hinder the company's ability to fund operations and growth, affecting long-term financial health.

ALS Business Overview & Revenue Model

Company Description

ALS Limited (ALQ) is a global company providing testing, inspection, certification, and advisory services across a variety of sectors, including mining, environmental, and food industries. The company is dedicated to delivering high-quality and reliable services that ensure compliance with industry standards and regulations. ALS operates in multiple geographical regions, leveraging its extensive laboratory network to support clients in making informed decisions based on accurate data.

How the Company Makes Money

ALS generates revenue through a diversified model that includes several key streams. Primarily, it earns money from laboratory testing services, where clients pay for the analysis of samples related to soil, water, air, and food safety. Additionally, the company provides inspection and certification services, which involve auditing and validating compliance with industry standards. ALS also offers technical consulting and advisory services, helping clients navigate regulatory frameworks and optimize their operations. Strategic partnerships with various industries enhance its service offerings and expand its client base, contributing to stable revenue growth. Seasonal fluctuations in demand for certain services can impact earnings, but the company's broad portfolio helps mitigate risks associated with specific market trends.

ALS Financial Statement Overview

Summary

ALS exhibits robust financial health with strong revenue growth and profitability. The balance sheet shows improved leverage, though it remains a point of attention. Cash flow generation is solid, supporting the company's operational and strategic initiatives.

Income Statement

ALS has demonstrated strong revenue growth with a 10.95% increase in the latest year, supported by a high gross profit margin of 89.80%. The net profit margin improved significantly to 8.54%, indicating enhanced profitability. However, the EBIT margin slightly decreased, suggesting some operational cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating better leverage management, but remains relatively high. Return on equity is strong at 21.30%, reflecting efficient use of equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

ALS has shown positive free cash flow growth of 4.58%, and the operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio suggests room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.19B	3.00B	2.46B	2.28B	1.95B	1.76B
Gross Profit	810.60M	2.69B	2.19B	828.60M	693.90M	561.70M
EBITDA	678.20M	675.00M	641.40M	591.30M	439.10M	415.40M
Net Income	271.10M	256.20M	12.90M	291.20M	190.50M	169.60M
Balance Sheet
Total Assets	4.11B	4.06B	3.70B	3.33B	2.84B	2.48B
Cash, Cash Equivalents and Short-Term Investments	211.20M	268.00M	299.90M	179.60M	122.80M	168.60M
Total Debt	1.76B	2.09B	1.87B	1.45B	1.24B	967.70M
Total Liabilities	2.43B	2.77B	2.50B	1.95B	1.71B	1.40B
Stockholders Equity	1.68B	1.28B	1.18B	1.37B	1.12B	1.07B
Cash Flow
Free Cash Flow	194.00M	244.60M	198.40M	293.80M	167.90M	184.70M
Operating Cash Flow	441.80M	409.60M	350.10M	439.90M	286.80M	265.80M
Investing Cash Flow	-253.50M	-327.70M	-226.80M	-267.00M	-405.90M	-120.50M
Financing Cash Flow	-251.40M	-120.00M	-3.10M	-121.20M	77.40M	-379.90M

ALS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ALQ, the sentiment is Positive. The current price of 22.12 is above the 20-day moving average (MA) of 21.79, above the 50-day MA of 21.66, and above the 200-day MA of 18.41, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 51.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ALQ.

ALS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNT	73 Outperform	AU$4.85B	19.69	42.87%	3.64%	1.48%	25.46%
ALQ	66 Neutral	AU$11.23B	40.15	18.38%	1.77%	18.18%	4272.22%
MND	65 Neutral	AU$2.64B	31.06	17.57%	2.74%	7.20%	32.60%
DOW	64 Neutral	AU$5.27B	38.96	6.66%	3.14%	-4.53%	97.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NWH	56 Neutral	AU$2.33B	83.66	4.71%	3.25%	12.18%	-73.81%
MGH	56 Neutral	AU$1.77B	23.40	9.26%	1.54%	15.14%	-7.23%

ALS Corporate Events

ALS Limited Director Adjusts Shareholding for Tax Obligations

ALS Limited announced a change in the interest of its director, Malcolm Deane, who disposed of 7,356 ordinary shares through an on-market trade to meet taxation obligations. This transaction reduced Deane’s holding to 63,376 ordinary shares, while his performance and service rights remained unchanged. The disposal of shares is a routine adjustment for tax purposes and does not indicate any strategic shift or operational change within the company.

ALS Limited Announces H1 FY26 Financial Results and Reporting Changes

ALS Limited has released its H1 FY26 financial results for the six months ending September 30, 2025. The company has announced a reclassification of specific amounts in its financial reporting to provide a clearer representation of its core operating performance, starting in H2 FY26. This change aims to simplify the understanding of its financial results and enhance transparency for stakeholders.

ALS Reports Strong H1 FY26 Performance with Notable Growth in Commodities

ALS reported a strong financial performance for the first half of the fiscal year 2026, with a 14.7% increase in underlying EBIT and a 13.3% rise in revenue, driven by robust growth in the commodities sector. The company maintained resilient margins despite price discounting in previous quarters and achieved significant organic growth in its minerals and life sciences segments. ALS’s strategic capital deployment and balance sheet strength position it well for continued growth, with a declared interim dividend reflecting confidence in its financial health.

ALS Limited Announces Dividend Distribution for Shareholders

ALS Limited has announced a dividend distribution of AUD 0.194 per share for its ordinary fully paid shares, covering the six-month period ending September 30, 2025. The dividend will be paid on December 17, 2025, with an ex-date of November 26, 2025, and a record date of November 27, 2025, reflecting the company’s ongoing commitment to returning value to shareholders.

ALS Limited Releases Interim Financial Report for 2025

ALS Limited has released its condensed interim financial report for the half year ending 30 September 2025. The report provides a comprehensive overview of the company’s financial performance, including profit and loss, balance sheet, and cash flow statements. This release is crucial for stakeholders as it offers insights into the company’s operational efficiency and financial health during the period.

ALS Limited Addresses ASX Compliance Query on Performance Rights Lodgement

ALS Limited addressed a query from the ASX regarding the late lodgement of performance rights granted to Mr. Malcolm Deane. The company attributed the delay to human error within its Corporate Governance team and confirmed that necessary compliance procedures are in place. ALS has reviewed and enhanced its processes, embedding key regulatory obligations into new software and providing training to ensure future compliance. The company emphasizes its commitment to regulatory adherence and does not see the need for additional steps beyond enforcing existing protocols.

ALS Limited Announces Director’s Acquisition of Performance Rights

ALS Limited announced a change in the director’s interest, with Malcolm Deane acquiring 146,884 Performance Rights under the company’s 2025 Long-Term Incentive Plan, following shareholder approval at the 2025 AGM. This acquisition increases Deane’s total holdings and reflects ALS’s commitment to aligning executive interests with company performance, potentially impacting stakeholder confidence and the company’s market positioning.

ALS Limited Issues Unquoted Equity Securities for Employee Incentive

ALS Limited has announced the issuance of unquoted equity securities, specifically performance rights and service rights, as part of an employee incentive scheme. This move reflects ALS Limited’s ongoing commitment to employee engagement and retention, potentially enhancing its operational efficiency and market competitiveness.

ALS Limited Announces Issuance of Unquoted Equity Securities

ALS Limited has announced the issuance and conversion of unquoted equity securities, specifically ordinary fully paid shares, totaling 552,093 shares. This move reflects the company’s ongoing efforts to manage its capital structure and may impact its market positioning by potentially increasing liquidity and shareholder value.