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Ashley Services Group Ltd. (AU:ASH)
:ASH
Australian Market
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Ashley Services Group Ltd. (ASH) AI Stock Analysis

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AU

Ashley Services Group Ltd.

(Sydney:ASH)

Rating:64Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Ashley Services Group Ltd. shows strong revenue growth and an attractive valuation with a high dividend yield. However, challenges are evident in profitability, cash flow, and technical indicators, which weigh down the score. Improvement in these areas is necessary for a more favorable outlook.

Ashley Services Group Ltd. (ASH) vs. iShares MSCI Australia ETF (EWA)

Ashley Services Group Ltd. Business Overview & Revenue Model

Company DescriptionAshley Services Group Limited provides labor hire, recruitment, and training services in Australia. It operates through two segments, Labor Hire and Training. The company offers white-collar recruitment services, including permanent, temporary, and contract placements through multi-specialist providers under Concept Recruitment Specialists brand name; and labor hire and workforce solutions under the Action Workforce, Concept Engineering, Concept Retail Solutions, CCL Labour, CCL Traffic, and Track Safety Australia brands. It also provides nationally accredited qualifications training and assessment services under the Ashley Institute of Training, Integracom, Australian Institute of Vocational Development, National Institute of Training, Tracmin, The Institution Company, and Concept GTO brands. The company was founded in 1968 and is headquartered in Sydney, Australia.
How the Company Makes MoneyAshley 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
60
Neutral
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
75
Positive
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
65
Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue531.92M556.54M549.22M449.78M383.67M336.84M
Gross Profit19.38M22.24M31.24M28.09M22.46M15.17M
EBITDA8.45M9.43M20.53M18.96M15.50M9.83M
Net Income2.19M1.35M10.79M11.31M9.15M4.67M
Balance Sheet
Total Assets91.87M90.12M112.30M81.88M70.17M56.89M
Cash, Cash Equivalents and Short-Term Investments344.00K158.00K2.52M2.25M3.48M8.57M
Total Debt22.91M15.61M11.74M8.83M3.30M2.44M
Total Liabilities59.94M59.67M78.03M50.34M42.22M31.06M
Stockholders Equity31.93M30.45M33.84M31.55M28.01M25.83M
Cash Flow
Free Cash Flow467.00K787.00K19.49M4.98M4.63M13.43M
Operating Cash Flow2.07M3.53M22.80M6.70M5.42M14.13M
Investing Cash Flow-3.71M-3.79M-14.68M-2.79M-3.18M-5.37M
Financing Cash Flow1.14M-2.13M-7.33M-5.14M-7.33M-7.47M

Ashley Services Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.17
Price Trends
50DMA
0.18
Negative
100DMA
0.18
Negative
200DMA
0.18
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
46.38
Neutral
STOCH
23.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ASH, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and below the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ASH.

Ashley Services Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUHIT
73
Outperform
AU$69.79M10.2571.98%6.06%-5.61%16.01%
65
Neutral
$10.94B15.635.18%1.91%3.14%-27.13%
AUASH
64
Neutral
AU$24.48M11.186.96%6.12%-7.92%-61.32%
DEC4R
€13.69M74.9913.66%2.36%
AUWWG
58
Neutral
AU$25.94M25.415.21%2.58%37.72%-4.69%
AUPPE
57
Neutral
AU$76.08M18.92-2.93%3.28%-3.90%-142.61%
AUHMI
45
Neutral
AU$7.94M-79.98%19.94%58.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ASH
Ashley Services Group Ltd.
0.17
-0.08
-32.00%
DE:C4R
Ignite Limited
2.86
0.00
0.00%
AU:HIT
Hitech Group Australia Limited
1.65
-0.21
-11.29%
AU:WWG
Wiseway Group Ltd.
0.16
0.05
45.45%
AU:HMI
Hiremii Ltd.
0.05
0.01
25.00%
AU:PPE
Peoplein Limited
0.70
-0.22
-23.91%

Ashley Services Group Ltd. Corporate Events

Ashley Services Group Projects EBITDA Amidst Victorian Market Challenges
Jul 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 11, 2025