Austal (ASB) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 79.1
• Beta (1Y): 0.94
• Revenue Growth: 3.23%
• EPS Growth: 402.60%
• Country: AU
• Employees: 4,324
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): 0.07
• Shares Outstanding: 421,180,050
• 10 Day Avg. Volume: 876,120
• 30 Day Avg. Volume: 1,394,885
• PEG Ratio: 0.88
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.35
• 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: $5.97
• Price Target Upside: -1.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: AU$6.00 ▼(-0.66%Downside)

Austal Limited's overall stock score is primarily impacted by its strong balance sheet but offset by liquidity issues and a high P/E ratio. Technical analysis suggests positive momentum, though overbought signals indicate caution. The lack of a dividend yield and high valuation further reduce the stock's attractiveness.

Austal Business Overview & Revenue Model

Company Description

Austal Limited engages in the design, manufacture, and support of vessels for commercial and defense customers worldwide. It operates in four segments: USA Shipbuilding, USA Support, Australasia Shipbuilding, and Australasia Support. The company designs, constructs, and supports passenger ferries, vehicle passenger ferries, and offshore and windfarm vessels; naval and other defense vessels; and patrol boats for government law enforcement and border protection agencies. It also develops and integrates advanced vessel control and information management systems, including MARINELINK, an integrated monitoring and control system; and motion control systems and interceptors. In addition, the company provides life capability management and vessel support services, such as crew training and instruction, vessel servicing, repair and maintenance, integrated logistics support, vessel sustainment, and information management systems support to naval, government, and commercial operators; and refit services and manages annual dockings. Austal Limited was founded in 1988 and is headquartered in Henderson, Australia.

How the Company Makes Money

Austal makes money primarily through shipbuilding contracts and services. The company generates revenue by designing and constructing ships for governmental defense agencies and commercial operators worldwide. Key revenue streams include the sale of new ships, maintenance and support services, and through partnerships with defense departments, particularly in the United States, Australia, and other allied nations. Austal often secures long-term contracts for shipbuilding and maintenance, which provide sustained income. Additionally, by leveraging its expertise in aluminum vessels, Austal has established a competitive edge in producing high-speed ferries and naval ships, contributing significantly to its earnings.

Austal Financial Statement Overview

Summary

Austal Limited shows a mixed financial performance. The balance sheet is strong with a good equity ratio and manageable debt, earning a score of 75. However, the income statement reveals operational challenges with fluctuating revenue and past negative EBIT, scored at 60. The cash flow score of 50 highlights liquidity concerns due to negative free cash flow and declining operating cash flow.

Income Statement

Austal Limited's revenue has shown fluctuations, with a notable decrease in 2024 compared to 2023. The gross profit margin has remained positive, but the company experienced negative EBIT for the past two years, indicating operational challenges. Net income has improved from a loss in 2023 to a profit in 2024, suggesting some recovery in bottom-line performance despite revenue pressures.

Balance Sheet

The company's balance sheet is relatively strong with a moderate debt-to-equity ratio, indicating a balanced capital structure. Stockholders' equity has increased steadily, bolstering the company's equity ratio. Despite rising total assets, the firm maintains a manageable level of total debt, reflecting financial stability.

Cash Flow

Austal Limited's cash flow performance shows concerning trends with a negative free cash flow in recent years. Operating cash flow has declined significantly, highlighting potential liquidity issues. However, the company has managed to maintain a level of financing cash flow to support its operations.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.47B	1.59B	1.43B	1.57B	2.09B
Gross Profit	172.51M	99.10M	230.28M	222.56M	239.29M
EBITDA	127.64M	56.76M	153.96M	160.69M	177.52M
Net Income	14.88M	-13.77M	79.56M	81.06M	88.98M
Balance Sheet
Total Assets	2.09B	1.93B	1.69B	1.45B	1.43B
Cash, Cash Equivalents and Short-Term Investments	173.51M	179.20M	240.11M	346.90M	396.67M
Total Debt	281.06M	240.46M	234.12M	204.60M	175.26M
Total Liabilities	1.09B	885.12M	675.97M	615.78M	631.87M
Stockholders Equity	1.00B	948.82M	924.28M	774.04M	748.74M
Cash Flow
Free Cash Flow	-82.96M	-41.91M	-127.42M	30.18M	146.11M
Operating Cash Flow	-13.05M	86.71M	37.50M	107.33M	164.47M
Investing Cash Flow	-12.70M	-102.78M	-127.51M	-85.05M	-18.18M
Financing Cash Flow	19.52M	-38.06M	-38.33M	-46.31M	-27.24M

Austal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ASB, the sentiment is Positive. The current price of 6.04 is above the 20-day moving average (MA) of 5.98, above the 50-day MA of 5.83, and above the 200-day MA of 4.27, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 74.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ASB.

Austal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$11.05B	15.76	5.13%	1.92%	3.11%	-24.90%
ASB	54 Neutral	$2.57B	79.07	2.82%	―	3.23%	402.60%
EOPSF	―	$421.95M	―	-16.26%	―	―	―
OBTEF	―	$16.82M	11.11	7.02%	―	―	―
IPH	78 Outperform	AU$1.34B	17.32	11.01%	6.98%	26.54%	23.20%
MGH	68 Neutral	AU$1.48B	19.35	9.50%	1.71%	-1.30%	-7.78%
VEE	66 Neutral	AU$127.82M	28.77	8.82%	1.07%	9.97%	-22.07%

Austal Corporate Events

Austal Ltd Updates Director Onboarding Process to Ensure Compliance

Austal Ltd addressed a late filing of the Appendix 3X due to an administrative oversight in the onboarding process of new directors. The company has reviewed and updated its procedures to prevent future occurrences, ensuring compliance with the Australian Securities Exchange’s disclosure obligations.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Appoints New Director with No Prior Securities Interests

Austal Limited has announced the appointment of Richard Boyce Massey Gibb as a director, effective June 3, 2025. The initial director’s interest notice indicates that Gibb currently holds no relevant interests in securities or contracts related to the company, suggesting a fresh start in his role without prior commitments that could influence his decisions.

The most recent analyst rating on (AU:ASB) stock is a Buy with a A$3.33 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Austal Limited

State Street Corporation and its subsidiaries have ceased to be substantial holders in Austal Limited as of July 9, 2025. This change in substantial holding may impact Austal’s shareholder composition and influence within the market, potentially affecting its strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:ASB) stock is a Buy with a A$3.33 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Sees Shift in Substantial Holdings

Austal Limited has announced a significant change in its substantial holdings, with various financial institutions such as Citibank NA, UBS Securities Australia Ltd, and State Street Global Advisors Europe Limited acquiring substantial voting power in the company. This development indicates a strategic shift in the ownership structure, potentially impacting Austal’s decision-making processes and its market positioning. The involvement of major financial entities suggests a vote of confidence in Austal’s future prospects, which could influence stakeholder perceptions and the company’s operational strategies.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Announces Change in Substantial Holding Status

Austal Limited has announced a change in its substantial holding status, indicating that a subsidiary of State Street Corporation has ceased to be a substantial holder in the company as of July 7, 2025. This change may impact Austal’s shareholder structure and could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Becomes Substantial Holder in Austal Limited

Austal Limited has announced a significant change in its shareholder structure, with State Street Corporation and its subsidiaries becoming substantial holders. This development indicates a strategic move by State Street to increase its influence and control over Austal’s voting shares, potentially impacting Austal’s future decisions and operations.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Global Advisors Ceases Substantial Holding in Austal Limited

State Street Global Advisors Limited, a subsidiary of State Street Corporation, has ceased to be a substantial holder in Austal Limited as of June 30, 2025. This change in substantial holding may impact Austal Limited’s shareholder structure and influence within the company, potentially affecting its strategic decisions and market positioning.

The most recent analyst rating on (AU:ASB) stock is a Buy with a A$3.33 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Secures $488 Million for U.S. Expansion, Strengthening Growth Prospects

Austal Limited has secured $488 million in credit facilities as part of its $1.2 billion capital expansion program in the United States, aimed at enhancing its shipbuilding and submarine capabilities. This refinancing replaces existing syndicated facilities, offering better pricing, longer tenors, and increased financial flexibility, positioning Austal for growth and supporting its $14.5 billion order book. The move strengthens Austal’s balance sheet, enabling efficient construction of ongoing projects and pursuit of new opportunities.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Austal Limited

Austal Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders of Austal’s voting securities as of June 23, 2025. This change in substantial holding could impact Austal’s shareholder structure and influence within the company, potentially affecting its strategic decisions and market positioning.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Becomes Substantial Holder in Austal Limited

State Street Corporation and its subsidiaries have become substantial holders in Austal Limited, a company involved in shipbuilding and defense contracting. This development indicates a significant investment and interest in Austal’s operations, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$2.55 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Awaits Confirmation on Hanwha’s Increased Equity Stake Approval

Austal Limited announced that Hanwha Group, a South Korean shipbuilder and significant shareholder, received approval from the Committee on Foreign Investment in the United States (CFIUS) to potentially increase its shareholding in Austal to 100 percent. However, Austal’s understanding of the approval differs from Hanwha’s claims, and the company is seeking written confirmation from CFIUS. Hanwha currently holds a 9.9 percent equity position in Austal and has applied to Australia’s Foreign Investment Review Board to increase its stake to 19.9 percent, which is still under consideration. The outcome of this decision will ultimately be determined by the FIRB and the Australian Treasurer, impacting Austal’s foreign ownership structure.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$2.55 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Strengthens Board with Appointment of Richard Gibb

Austal Limited has appointed Richard Gibb, a seasoned finance executive with extensive international experience, as a non-executive director. Gibb’s expertise in international finance and capital management is expected to enhance Austal’s board as the company expands its operations in the USA and strengthens its role in Australia. The board is also considering adding another non-executive director with manufacturing and contracting experience to support Austal’s growth and strategic objectives.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$2.55 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Receives Notice Under Takeovers Panel Guidance

Austal Limited has received a notice from HAA No.1 Pty Ltd, related to the Australian Takeovers Panel Guidance Note 20 on equity derivatives. This announcement, approved by Austal’s CEO, highlights the company’s ongoing regulatory compliance and its strategic positioning in the global shipbuilding industry.