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Alliance Aviation Services Limited (AU:AQZ)
ASX:AQZ
Australian Market

Alliance Aviation Services Limited (AQZ) AI Stock Analysis

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AU

Alliance Aviation Services Limited

(Sydney:AQZ)

Rating:73Outperform
Price Target:
AU$3.00
▲(17.65%Upside)
The overall stock score reflects strong financial performance and an attractive valuation driven by a low P/E ratio. Technical analysis presents mixed signals, indicating some caution. The absence of earnings call insights and corporate events limits additional context.

Alliance Aviation Services Limited (AQZ) vs. iShares MSCI Australia ETF (EWA)

Alliance Aviation Services Limited Business Overview & Revenue Model

Company DescriptionAlliance Aviation Services Limited provides contract, charter, and allied aviation services to the mining, energy, tourism, and government sectors in Australia and internationally. The company also offers specialized aviation services, including aircraft wet leasing, airport management, aircraft trading, parts sales, engine leasing, and engineering to other airlines and clients. As of June 30, 2022, it operated a fleet of 5 Fokker 50 turboprops aircraft, 13 Fokker 70 jet aircraft, and 24 Fokker 100 jet aircraft, as well as 19 Embraer aircraft. The company was founded in 2002 and is based in Brisbane, Australia.
How the Company Makes MoneyAlliance Aviation Services Limited generates revenue through multiple streams, predominantly through its contract and charter flight operations. The company provides FIFO transportation services, which are in high demand in Australia's mining and energy industries, ensuring a steady stream of contract-based income. Additionally, the company engages in aircraft leasing, offering its fleet to other airlines and operators, which provides a significant source of revenue. The company also capitalizes on specialized aviation services, such as maintenance and training, further diversifying its income. Strategic partnerships and long-term contracts with major companies in the resource sector contribute significantly to its earnings, ensuring consistent revenue and financial stability.

Alliance Aviation Services Limited Financial Statement Overview

Summary
Alliance Aviation Services demonstrates strong revenue growth and profitability, with notable improvements in gross profit margin. The balance sheet is stable with manageable leverage, but an increase in debt requires attention. Cash flow is under pressure due to high capital expenditures, impacting free cash flow despite positive operating cash flow.
Income Statement
85
Very Positive
Alliance Aviation Services has demonstrated strong revenue growth, with a significant increase from 2023 to 2024. The gross profit margin improved, indicating better cost management. The company maintains a healthy net profit margin, showing efficiency in operations. However, the EBIT and EBITDA margins, while strong, suggest some pressure on operational costs.
Balance Sheet
75
Positive
The balance sheet reflects a reasonable debt-to-equity ratio that suggests a manageable leverage level. Return on Equity (ROE) is healthy, showcasing effective utilization of shareholders' funds. The equity ratio is robust, indicating solid asset backing by equity, although the increase in debt warrants monitoring.
Cash Flow
70
Positive
The cash flow statement reveals challenges in free cash flow, primarily due to high capital expenditures. Operating cash flow remains positive, indicating adequate cash generation from core operations. The ratio of operating cash flow to net income points to a strong cash conversion cycle, though the free cash flow to net income ratio is under pressure.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
674.25M637.19M506.42M365.45M307.28M297.96M
Gross Profit
178.77M119.52M75.81M23.42M60.46M59.70M
EBIT
153.64M95.59M53.95M8.78M50.35M47.34M
EBITDA
199.28M177.53M122.27M47.61M86.55M78.58M
Net Income Common Stockholders
63.04M60.45M36.46M-5.21M33.67M26.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.60M31.23M22.32M20.89M36.22M98.79M
Total Assets
1.13B998.79M779.78M666.49M605.73M435.87M
Total Debt
484.43M366.84M263.37M219.50M185.42M62.71M
Net Debt
464.83M335.61M241.05M198.61M149.19M-36.08M
Total Liabilities
690.64M588.05M430.01M353.04M287.59M153.81M
Stockholders Equity
440.31M410.74M349.77M313.45M318.14M282.06M
Cash FlowFree Cash Flow
-178.58M-90.41M-56.06M-46.86M-165.88M13.23M
Operating Cash Flow
-2.43M24.74M40.88M52.45M39.80M44.05M
Investing Cash Flow
-176.07M-115.09M-81.91M-99.31M-205.68M-30.81M
Financing Cash Flow
161.16M99.26M42.45M31.53M103.30M75.89M

Alliance Aviation Services Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.55
Price Trends
50DMA
2.58
Negative
100DMA
2.62
Negative
200DMA
2.72
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.74
Neutral
STOCH
79.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AQZ, the sentiment is Negative. The current price of 2.55 is above the 20-day moving average (MA) of 2.54, below the 50-day MA of 2.58, and below the 200-day MA of 2.72, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AQZ.

Alliance Aviation Services Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUAQZ
73
Outperform
AU$410.43M6.5115.44%16.98%12.16%
66
Neutral
$4.48B12.265.32%248.53%4.10%-12.36%
DE1K1
€4.34B31.217.24%2.35%
$1.89B25.039.61%3.16%
$10.15B12.16321.42%2.58%
$1.20B2.761.65%
DER4L
€36.38M
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AQZ
Alliance Aviation Services Limited
2.55
-0.39
-13.27%
DE:1K1
Qube Holdings
2.40
0.21
9.59%
FGETF
Flight Centre Travel Group Limited
8.58
-3.96
-31.58%
QUBSF
Qantas Airways Limited
7.00
3.02
75.88%
WEBJF
WEB Travel Group
0.93
-3.47
-78.86%
DE:R4L
Regional Express Holdings Limited
0.31
-0.09
-22.50%

Alliance Aviation Services Limited Corporate Events

Alliance Aviation Hosts Investor Day with Key Updates
May 14, 2025

Alliance Aviation Services Limited hosted an Investor Day on May 14, 2025, featuring presentations from key executives including the Chief Financial Officer and Managing Director. The event included a financial update and discussions on aviation services, providing stakeholders with insights into the company’s operational strategies and future plans.

The most recent analyst rating on (AU:AQZ) stock is a Buy with a A$4.47 price target. To see the full list of analyst forecasts on Alliance Aviation Services Limited stock, see the AU:AQZ Stock Forecast page.

Alliance Aviation Announces Registry Office Relocation
Apr 15, 2025

Alliance Aviation Services Limited has announced a change in the address of its registry office, MUFG Corporate Markets IR Pty Ltd, effective from April 14, 2025. The new location is at Liberty Place, Level 41, 161 Castlereagh Street, Sydney, NSW 2000. This change reflects the company’s ongoing administrative updates and is unlikely to impact its operational performance or stakeholder relations.

Viburnum Increases Stake in Alliance Aviation Services
Apr 4, 2025

Alliance Aviation Services Limited has experienced a change in the interests of its substantial holder, Viburnum Funds Pty Ltd. Viburnum, along with its associates, has increased its voting power in the company from 9.27% to 10.31% through market purchases of shares. This change in shareholding reflects Viburnum’s growing influence and potential strategic interest in Alliance Aviation Services, which could impact the company’s future decision-making and stakeholder dynamics.

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.