Ashley Services Group Ltd. (ASH) AI Stock Analysis

• Market Cap: AU$25.92M
• Dividend Yield: 5.78%
• Average Volume (3M): 22.98K
• Price to Earnings (P/E): 11.8
• Beta (1Y): -1.18
• Revenue Growth: -7.92%
• EPS Growth: -61.32%
• Country: AU
• Employees: 355
• Sector: Industrials
• Sector Strength: 84
• Industry: Staffing & Employment Services
• EPS (TTM): 0.01
• Shares Outstanding: 143,975,900
• 10 Day Avg. Volume: 25,966
• 30 Day Avg. Volume: 22,979
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

The overall stock score is primarily driven by stable financial performance with strong revenue growth, countered by declining profitability and cash flow challenges. Technical analysis suggests a neutral outlook, lacking strong momentum. A reasonable valuation and high dividend yield provide some appeal, but operational efficiencies need addressing for improved future performance.

Ashley Services Group Ltd. Business Overview & Revenue Model

Company Description

Ashley Services Group Ltd. is a leading provider of integrated labor hire, recruitment, and training services in Australia. The company operates across several sectors including resources, infrastructure, manufacturing, and logistics, serving a diverse client base with tailored workforce solutions. Its core services include temporary and permanent staffing, workforce management, and vocational training programs, designed to meet the evolving needs of industries and individuals.

How the Company Makes Money

Ashley Services Group Ltd. makes money primarily through its staffing and recruitment services, where it charges client companies for providing temporary and permanent workforce solutions. The company earns revenue by placing skilled labor in various industries and receiving a fee based on the duration and type of employment. Additionally, Ashley Services generates income through its training division, which offers vocational education and training programs. These programs are often government-funded, providing a steady stream of revenue. Partnerships with industry leaders and government contracts further enhance the company's revenue streams by expanding its service offerings and client base.

Ashley Services Group Ltd. Financial Statement Overview

Summary

Ashley Services Group Ltd. has shown strong revenue growth over recent years, but faces profitability challenges with declining margins and cash flow issues. The balance sheet is stable with moderate leverage, but there is a need for improvement in cash generation and operational efficiency.

Income Statement

Ashley Services Group Ltd. has shown consistent revenue growth over recent years, increasing from $287.57M in 2019 to $556.54M in 2024. However, the Gross Profit Margin and Net Profit Margin in 2024 were lower than expected due to a significant drop in Gross Profit. The EBIT and EBITDA margins also saw a decline compared to previous years, indicating potential efficiency issues in operations.

Balance Sheet

The company maintains a reasonable Debt-to-Equity Ratio, although it slightly increased to 0.51 in 2024, indicating moderate leverage. The Return on Equity (ROE) has decreased to 4.43% in 2024, down from previous years, showing decreased profitability from shareholders’ equity. However, the Equity Ratio remains healthy, indicating a strong equity base relative to assets.

Cash Flow

Free Cash Flow has decreased considerably from 2023 to 2024, impacting the Free Cash Flow Growth Rate negatively. The Operating Cash Flow to Net Income Ratio has also weakened, reflecting potential challenges in converting income into cash. The company needs to address its cash generation capabilities to ensure sustainable growth.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	531.92M	556.54M	549.22M	449.78M	383.67M	336.84M
Gross Profit	19.38M	22.24M	31.24M	28.09M	22.46M	15.17M
EBITDA	8.45M	9.43M	20.53M	18.96M	15.50M	9.83M
Net Income	2.19M	1.35M	10.79M	11.31M	9.15M	4.67M
Balance Sheet
Total Assets	91.87M	90.12M	112.30M	81.88M	70.17M	56.89M
Cash, Cash Equivalents and Short-Term Investments	344.00K	158.00K	2.52M	2.25M	3.48M	8.57M
Total Debt	22.91M	15.61M	11.74M	8.83M	3.30M	2.44M
Total Liabilities	59.94M	59.67M	78.03M	50.34M	42.22M	31.06M
Stockholders Equity	31.93M	30.45M	33.84M	31.55M	28.01M	25.83M
Cash Flow
Free Cash Flow	467.00K	787.00K	19.49M	4.98M	4.63M	13.43M
Operating Cash Flow	2.07M	3.53M	22.80M	6.70M	5.42M	14.13M
Investing Cash Flow	-3.71M	-3.79M	-14.68M	-2.79M	-3.18M	-5.37M
Financing Cash Flow	1.14M	-2.13M	-7.33M	-5.14M	-7.33M	-7.47M

Ashley Services Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 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:ASH, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.17, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ASH.

Ashley Services Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIT	74 Outperform	AU$77.20M	11.34	71.98%	5.48%	-5.61%	16.01%
ASH	66 Neutral	AU$25.92M	11.84	6.96%	5.78%	-7.92%	-61.32%
Sector *	59 Neutral	AU$1.64B	10.27	-5.90%	3.52%	9.84%	11.11%
WWG	57 Neutral	AU$25.10M	24.59	5.21%	2.67%	37.72%	-4.69%
PPE	56 Neutral	AU$70.11M	18.92	-2.93%	3.28%	-3.90%	-142.61%
HMI	46 Neutral	AU$6.65M	―	-79.98%	―	19.94%	58.99%

Ashley Services Group Ltd. Corporate Events

Ashley Services Group Projects EBITDA Amidst Victorian Market Challenges

Ashley Services Group Ltd. announced its expected EBITDA for FY25 to be between $8.5 million and $8.8 million, impacted by delays in new work and reduced government funding in Victoria. Despite these challenges, the company secured significant project work in its Victorian construction-related businesses, expecting a return to historical revenue levels by FY26. The company generated $1.3 million in free cash flow, reducing net debt to $11.2 million, and decided not to pay a final dividend for FY25 to focus on debt reduction and future growth.