ALS (ALQ) AI Stock Analysis

• Market Cap: $10.98B
• Dividend Yield: 1.75%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.13
• 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: 1.14
• Enterprise Value/Revenue: 3.92
• Enterprise Value/Gross Profit: 15.45
• Enterprise Value/Ebitda: 18.47
• 1Y Price Target: $26.24
• Price Target Upside: 21.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.75
• Revenue Forecast (FY): $3.36B

• Rating: 66 Neutral
• Price Target: AU$24.50 ▲(13.27% Upside)
• Action: Reiterated Date: 10/02/25
• Date: Action: Reiterated 10/02/25

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 trend

ALS has delivered durable top-line growth (income statement cites a 10.95% increase and fundamentals show elevated revenue growth), which supports higher lab utilization, recurring contract expansion and geographic/service diversification. Sustained revenue growth enhances predictability of cash flows and underpins investment in capacity and technical services over the next 2–6 months.

High gross margin and profit recovery

Extremely high gross margins and a recovering net margin indicate strong pricing power and a service-led cost structure with limited variable processing costs. This structural margin profile gives ALS durable buffer versus volume swings, allowing reinvestment in specialized testing capabilities and supporting sustainable profitability even if volumes moderate.

Cash generation and capital efficiency

Positive free cash flow growth and healthy operating cash flow relative to earnings show the business converts profits into cash, enabling debt reduction, capex funding and targeted M&A. Reliable cash generation improves financial flexibility and supports strategic investments in labs and technology over the medium term.

Negative Factors

Elevated leverage remains

Although leverage has improved, remaining relatively high debt levels constrain financial flexibility. Elevated debt increases interest and refinancing risk, which can limit the company’s ability to pursue larger acquisitions, raise capex or absorb prolonged downturns in volumes over the next several quarters.

EBIT margin pressure

A decline in EBIT margin signals rising operating costs or adverse mix shifts despite top-line growth. If cost pressures persist, they could erode operating leverage and limit the translation of revenue growth into net earnings and free cash flow in the coming 2–6 months, constraining reinvestment capacity.

Cyclicality from commodity exposure

ALS’s revenue is materially tied to mining sample volumes and environmental project activity, exposing it to commodity-cycle swings and project timing. This structural exposure can cause meaningful revenue and margin volatility across quarters, complicating medium-term forecasting and capital allocation.

ALS Business Overview & Revenue Model

Company Description

ALS Limited provides professional technical services primarily in the areas of testing, measurement, and inspection in Africa, Asia/Pacific, Europe, the Middle East, North Africa, and the Americas. The company operates through three segments: Life Sciences, Commodities, and Industrial. The Commodities segment offers assaying and analytical testing, and metallurgical services for the mining and mineral exploration companies in geochemistry, metallurgy, inspection, and coal quality streams. Its testing and consulting services cover the resource life cycle, including exploration, feasibility, optimization, production, design, development, trade, and rehabilitation. This segment also provides coal sampling, analysis and certification, formation evaluation, and related analytical testing services. The Life Sciences segment offers analytical testing and sampling, and remote monitoring services for the environmental, food, pharmaceutical, and consumer products markets; and microbiological, physical, and chemical testing services. This segment also provides analytical testing data to assist consulting and engineering firms, industries, and governments. The Industrial segment offers diagnostic testing and engineering solutions for the energy, resources, transportation, and infrastructure sectors. This segment serves asset owners, operators, constructors, and equipment manufacturers in the power, petrochemical, mining, minerals processing, water, infrastructure, and transportation industries. The company was formerly known as Campbell Brothers Limited and changed its name to ALS Limited in August 2012. ALS Limited was founded in 1863 and is headquartered in Milton, Australia.

How the Company Makes Money

ALS primarily makes money by charging fees for testing and analytical services delivered through its laboratories and on-site/field operations. Key revenue streams typically include: (1) Commodities/minerals services—sample preparation, geochemical analysis, metallurgical and related technical services for mining companies and exploration programs, where revenue is driven by sample volumes and project activity levels; (2) Environmental services—testing of water, soil, air and other environmental matrices, plus monitoring and compliance-related services for industrial customers and government/regulated projects, with revenue supported by recurring compliance and monitoring requirements as well as project-based work; and (3) Other specialized testing/service lines operated within ALS’s portfolio (exact sub-lines vary over time), generally monetized through contracted laboratory analyses and technical services. Earnings are influenced by factors such as customer demand tied to commodity exploration/production cycles and environmental regulatory compliance, utilization of laboratory capacity, pricing per test or per sample, and the company’s ability to win and retain customer contracts. Specific material partnerships, contract terms, and segment revenue splits are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 21.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ALQ, the sentiment is Negative. The current price of 21.63 is below the 20-day moving average (MA) of 24.18, below the 50-day MA of 23.85, and above the 200-day MA of 20.54, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 30.13 is Neutral, neither overbought nor oversold. The STOCH value of 5.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ALQ.

ALS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALQ	66 Neutral	$10.98B	17.54	18.38%	1.75%	18.18%	4272.22%
MND	65 Neutral	AU$2.69B	10.17	20.27%	2.65%	7.20%	32.60%
DOW	64 Neutral	AU$4.96B	14.22	6.66%	3.11%	-4.53%	97.67%
VNT	64 Neutral	AU$4.51B	18.35	47.41%	3.56%	1.48%	25.46%
NWH	64 Neutral	€2.60B	8.10	4.71%	3.20%	12.18%	-73.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGH	59 Neutral	AU$1.79B	12.97	9.26%	1.30%	15.14%	-7.23%

ALS Corporate Events

ALS Issues New Unquoted Performance Rights Under Employee Incentive Scheme

ALS Limited has notified the market of the issue of 6,068 unquoted performance rights under its employee incentive scheme, which are not intended to be quoted on the ASX. The new securities, to be issued on 29 October 2025, underscore the company’s ongoing use of equity-based remuneration to align employee interests with shareholders, modestly increasing its pool of unquoted incentive securities without affecting its quoted share capital.

The most recent analyst rating on (AU:ALQ) stock is a Buy with a A$26.00 price target. To see the full list of analyst forecasts on ALS stock, see the AU:ALQ Stock Forecast page.

ALS Limited Announces Lapse of 27,926 Performance Rights

ALS Limited has disclosed that 27,926 performance rights (ASX code: ALQAA) have lapsed after the conditional rights to securities failed to meet, or became incapable of meeting, the required vesting conditions. The cessation of these securities, effective 24 November 2025, modestly reduces the company’s pool of potential equity-based incentives, signalling that certain performance hurdles tied to these rights were not achieved and slightly tightening the company’s issued capital profile.

The most recent analyst rating on (AU:ALQ) stock is a Buy with a A$26.00 price target. To see the full list of analyst forecasts on ALS stock, see the AU:ALQ Stock Forecast page.

ALS Limited Announces Quotation of New Securities

ALS Limited has announced an application for the quotation of 342,915 fully paid ordinary securities under the ASX code ALQ, issued through a dividend or distribution plan on December 17, 2025. This move underscores the company’s proactive steps towards enhancing shareholder value and capital operations, reflecting its commitment to maintaining robust financial strategies within the market landscape.

The most recent analyst rating on (AU:ALQ) stock is a Buy with a A$26.00 price target. To see the full list of analyst forecasts on ALS stock, see the AU:ALQ Stock Forecast page.