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ALS Ltd. (AU:ALQ)
ASX:ALQ

ALS (ALQ) AI Stock Analysis

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AU

ALS

(Sydney:ALQ)

Rating:56Neutral
Price Target:
ALS Ltd. demonstrates stable revenue growth and operational efficiency; however, concerns about profitability, cash flow, and high financial leverage are significant. The stock's overvaluation, indicated by an exceptionally high P/E ratio, further impacts its attractiveness. Neutral technical indicators and an overbought Stochastic suggest potential price volatility. The absence of earnings call data limits insight into management's outlook.

ALS (ALQ) vs. iShares MSCI Australia ETF (EWA)

ALS Business Overview & Revenue Model

Company DescriptionALS 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 MoneyALS Ltd. generates revenue through a diverse portfolio of services primarily within its four key sectors: life sciences, minerals, energy, and industrial. In the life sciences sector, the company provides pharmaceutical testing, environmental testing, and food testing services, catering to companies that require stringent compliance and quality assurance. The minerals sector revenue comes from geochemistry, metallurgy, and mine site services, assisting mining companies in exploration, extraction, and processing. In the energy sector, ALS offers analytical services for oil and gas exploration and production, ensuring efficiency and safety. Lastly, the industrial sector includes testing and inspection services for infrastructure, electronics, and manufacturing industries to maintain operational standards and safety. ALS Ltd. also benefits from strategic partnerships with industry leaders and governments, which enhance its service offerings and broaden its market reach, contributing significantly to its revenue.

ALS Financial Statement Overview

Summary
ALS Ltd. shows steady revenue growth and operational efficiency but faces challenges in profitability and cash flow generation. The higher debt levels raise concerns about financial leverage, though the stable equity ratio provides some balance. Overall, the company needs to address profitability and cash flow issues to strengthen its financial position.
Income Statement
65
Positive
The revenue growth rate is strong at 8.0% year-over-year, indicating a positive trend in sales. Gross profit margin decreased significantly from the previous year, suggesting increased cost pressure. The net profit margin dropped to 0.5%, which is a concern for profitability. However, the EBIT and EBITDA margins remained stable, reflecting operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio increased to 1.58, indicating a higher reliance on debt financing. Return on equity (ROE) decreased to 1.1%, showing reduced profitability for shareholders. However, the equity ratio is stable at 32.0%, suggesting a balanced asset financing strategy.
Cash Flow
55
Neutral
Free cash flow declined by 32.5%, highlighting a potential concern in cash generation. The operating cash flow to net income ratio is robust at 27.1, indicating strong cash generation relative to net income. However, the significant drop in free cash flow is a risk factor.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
2.70B2.46B2.28B2.11B1.76B1.83B
Gross Profit
805.80M778.60M2.03B1.88B1.58B1.64B
EBIT
668.60M401.80M467.20M379.20M286.20M295.10M
EBITDA
585.90M357.80M591.30M454.60M415.40M325.10M
Net Income Common Stockholders
6.20M12.90M291.20M190.50M172.60M127.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
299.90M299.90M179.60M122.80M168.60M424.40M
Total Assets
3.70B3.70B3.33B2.84B2.48B2.93B
Total Debt
1.87B1.87B1.45B1.24B967.70M1.45B
Net Debt
1.57B1.57B1.27B1.11B799.10M1.02B
Total Liabilities
2.50B2.50B1.95B1.71B1.40B1.82B
Stockholders Equity
1.18B1.18B1.37B1.12B1.07B1.10B
Cash FlowFree Cash Flow
233.90M198.40M293.80M167.90M184.70M137.90M
Operating Cash Flow
374.80M350.10M439.90M286.80M265.80M259.00M
Investing Cash Flow
-334.30M-235.90M-267.00M-405.90M-124.70M-166.30M
Financing Cash Flow
28.70M-3.10M-121.20M77.40M-379.90M172.70M

ALS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.45
Price Trends
50DMA
16.42
Positive
100DMA
16.25
Positive
200DMA
15.56
Positive
Market Momentum
MACD
-0.15
Positive
RSI
43.12
Neutral
STOCH
22.10
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 16.45 is below the 20-day moving average (MA) of 17.15, above the 50-day MA of 16.42, and above the 200-day MA of 15.56, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 22.10 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.50B12.285.32%248.52%4.13%-12.36%
AUALQ
56
Neutral
$8.32B31.0721.29%2.31%17.15%-97.70%
DEDNE
€2.34B50.603.35%3.96%
DE8MP
€981.39M20.9615.97%4.13%
DE3NR
€742.24M10.5918.01%5.98%
AUMGH
74
Outperform
AU$1.55B20.019.50%1.64%-1.30%-7.78%
AUVNT
68
Neutral
AU$4.08B18.8836.67%4.11%7.56%16.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ALQ
ALS
16.45
2.38
16.95%
DE:DNE
Downer EDI Limited
3.36
0.75
28.74%
DE:8MP
Monadelphous Group Limited
9.75
2.08
27.12%
DE:3NR
NRW Holdings Limited
1.63
-0.11
-6.32%
AU:VNT
Ventia Services Group Limited
4.86
1.39
40.06%
AU:MGH
MAAS Group Holdings Ltd.
4.27
0.09
2.15%

ALS Corporate Events

ALS Limited Reports Resilience Amid Market Volatility and Positive Growth
Apr 27, 2025

ALS Limited reports that recent global market volatility and tariff announcements have not materially impacted their input costs. The company maintains flexibility in its operations and remains focused on its value creation framework. For the fiscal year ending March 2025, ALS anticipates an underlying net profit after tax between AUD $310-$313 million. The Minerals division in Commodities has seen a positive turnaround in sample volumes, while the Environmental division in Life Sciences achieved 10% organic growth. Recent acquisitions are integrating ahead of expectations, and the Food and Pharma divisions are under new leadership.

ALS Limited Appoints Catharine Farrow as Non-Executive Director
Mar 3, 2025

ALS Limited has appointed Catharine Farrow as an independent Non-Executive Director, effective March 24, 2025. Farrow’s extensive experience in the mining industry, including her focus on innovation and technology, aligns with ALS’s strategic priorities and enhances the board’s understanding of its major customers’ needs.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.