Alliance Aviation Services Limited (AQZ) AI Stock Analysis

• Market Cap: AU$410.43M
• Dividend Yield: N/A
• Average Volume (3M): 58.62K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.93
• Revenue Growth: 16.98%
• EPS Growth: 12.16%
• Country: AU
• Employees: 1,430
• Sector: Industrials
• Sector Strength: 93
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.18
• Shares Outstanding: 160,951,000
• 10 Day Avg. Volume: 83,552
• 30 Day Avg. Volume: 58,619
• PEG Ratio: 1.22
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.33
• 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$3.80
• Price Target Upside: 49.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• 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 Business Overview & Revenue Model

Company Description

Alliance 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 Money

Alliance 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
674.25M	637.19M	506.42M	365.45M	307.28M	297.96M
	Gross Profit
178.77M	119.52M	75.81M	23.42M	60.46M	59.70M
	EBIT
153.64M	95.59M	53.95M	8.78M	50.35M	47.34M
	EBITDA
199.28M	177.53M	122.27M	47.61M	86.55M	78.58M
	Net Income Common Stockholders
63.04M	60.45M	36.46M	-5.21M	33.67M	26.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.60M	31.23M	22.32M	20.89M	36.22M	98.79M
	Total Assets
1.13B	998.79M	779.78M	666.49M	605.73M	435.87M
	Total Debt
484.43M	366.84M	263.37M	219.50M	185.42M	62.71M
	Net Debt
464.83M	335.61M	241.05M	198.61M	149.19M	-36.08M
	Total Liabilities
690.64M	588.05M	430.01M	353.04M	287.59M	153.81M
	Stockholders Equity
440.31M	410.74M	349.77M	313.45M	318.14M	282.06M
Cash Flow		Free Cash Flow
-178.58M	-90.41M	-56.06M	-46.86M	-165.88M	13.23M
	Operating Cash Flow
-2.43M	24.74M	40.88M	52.45M	39.80M	44.05M
	Investing Cash Flow
-176.07M	-115.09M	-81.91M	-99.31M	-205.68M	-30.81M
	Financing Cash Flow
161.16M	99.26M	42.45M	31.53M	103.30M	75.89M

Alliance Aviation Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AQZ	73 Outperform	AU$410.43M	6.51	15.44%	―	16.98%	12.16%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
1K1		€4.34B	31.21	7.24%	2.35%	―	―
FGETF		$1.89B	25.03	9.61%	3.16%	―	―
QUBSF		$10.15B	12.16	321.42%	2.58%	―	―
WEBJF		$1.20B	2.76	1.65%	―	―	―
R4L		€36.38M	―		―	―	―

Alliance Aviation Services Limited Corporate Events

Alliance Aviation Hosts Investor Day with Key Updates

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

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

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.