ALS (ALQ) AI Stock Analysis

• Market Cap: $8.45B
• Dividend Yield: 2.25%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.05
• Revenue Growth: 17.15%
• EPS Growth: -97.70%
• Country: AU
• Employees: 19,565
• Sector: Industrials
• Sector Strength: 90
• Industry: Consulting Services
• EPS (TTM): 0.33
• Shares Outstanding: 505,832,280
• 10 Day Avg. Volume: 1,457,372
• 30 Day Avg. Volume: 1,296,843
• PEG Ratio: 0.11
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.71
• 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: $17.90
• Price Target Upside: 7.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 56 Neutral
• 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 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 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.70B	2.46B	2.28B	2.11B	1.76B	1.83B
	Gross Profit
805.80M	2.19B	2.03B	1.88B	1.58B	1.64B
	EBIT
668.60M	401.80M	449.40M	318.40M	286.20M	277.20M
	EBITDA
585.90M	353.80M	591.30M	454.60M	415.40M	320.40M
	Net Income Common Stockholders
6.20M	12.90M	291.20M	190.50M	172.60M	127.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
254.60M	299.90M	179.60M	122.80M	168.60M	424.40M
	Total Assets
3.80B	3.70B	3.33B	2.84B	2.48B	2.93B
	Total Debt
2.01B	1.87B	1.45B	1.24B	967.70M	1.45B
	Net Debt
1.76B	1.57B	1.27B	1.11B	799.10M	1.02B
	Total Liabilities
2.66B	2.50B	1.95B	1.71B	1.40B	1.82B
	Stockholders Equity
1.13B	1.18B	1.37B	1.12B	1.07B	1.10B
Cash Flow		Free Cash Flow
233.90M	198.40M	293.80M	167.90M	184.70M	137.90M
	Operating Cash Flow
374.80M	350.10M	439.90M	286.80M	265.80M	259.00M
	Investing Cash Flow
-334.30M	-235.90M	-267.00M	-405.90M	-124.70M	-166.30M
	Financing Cash Flow
28.70M	-3.10M	-121.20M	77.40M	-379.90M	172.70M

ALS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.62
• 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 16.62 is below the 20-day moving average (MA) of 16.98, above the 50-day MA of 16.47, and above the 200-day MA of 15.57, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 72.44 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
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
ALQ	56 Neutral	$8.45B	31.56	21.29%	2.25%	17.15%	-97.70%
DNE		€2.28B	50.00	3.35%	4.00%	―	―
8MP		€965.79M	20.96	15.97%	4.13%	―	―
3NR		€741.88M	10.59	18.01%	5.98%	―	―
MGH	74 Outperform	AU$1.53B	19.82	9.50%	1.65%	-1.30%	-7.78%
VNT	68 Neutral	AU$4.07B	18.84	36.67%	4.38%	7.56%	16.00%

ALS Corporate Events

ALS Limited Reports Resilience Amid Market Volatility and Positive Growth

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

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.