Ashley Services Group Ltd. (ASH) AI Stock Analysis

• Market Cap: AU$26.64M
• Dividend Yield: 5.62%
• Average Volume (3M): 74.62K
• Price to Earnings (P/E): 12.2
• Beta (1Y): -1.11
• Revenue Growth: -7.92%
• EPS Growth: -61.32%
• Country: AU
• Employees: 355
• Sector: Industrials
• Sector Strength: 83
• Industry: Staffing & Employment Services
• EPS (TTM): 0.01
• Shares Outstanding: 143,975,900
• 10 Day Avg. Volume: 49,179
• 30 Day Avg. Volume: 74,624
• PEG Ratio: 0.22
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.04
• 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: N/A
• Number of Analyst Covering: 0

Ashley Services Group Ltd.'s stock score is primarily influenced by its financial performance, with solid revenue growth but declining profitability and cash flow metrics. Technical indicators show limited momentum, while valuation metrics suggest the stock is attractively priced but reflect market caution. These factors combined result in a moderate overall score.

Ashley Services Group Ltd. Business Overview & Revenue Model

Company Description

Ashley Services Group Ltd. (ASH) is an Australian company specializing in labor hire, recruitment, and training services. The company operates across various sectors, including construction, resources, transport, logistics, and manufacturing. Its core offerings encompass providing skilled workforce solutions and delivering vocational education and training programs to meet the diverse needs of its clients.

How the Company Makes Money

Ashley Services Group Ltd. generates revenue primarily through its labor hire and recruitment services. The company earns fees by placing skilled workers with businesses that need temporary or permanent staffing solutions. Additionally, revenue is generated from its training services, which involve providing vocational education and training programs that are often funded by government subsidies or client payments. Significant partnerships with industry players and government bodies enhance its service offerings and expand its market reach, contributing to its overall earnings.

Ashley Services Group Ltd. Financial Statement Overview

Summary

Ashley Services Group Ltd. has shown consistent revenue growth but is facing profitability challenges due to declining margins and cash flows. The moderate leverage is a positive aspect, yet declining profitability metrics and cash generation issues are concerns that need addressing.

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
	EBIT
19.38M	8.55M	17.29M	17.19M	13.38M	5.72M
	EBITDA
8.45M	9.43M	20.53M	18.96M	15.50M	9.83M
	Net Income Common Stockholders
2.19M	1.35M	10.79M	11.31M	9.15M	4.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
344.00K	158.00K	2.52M	2.25M	3.48M	8.57M
	Total Assets
91.87M	90.12M	112.30M	81.88M	70.17M	56.89M
	Total Debt
22.91M	15.61M	11.74M	8.83M	3.30M	2.44M
	Net Debt
22.56M	15.47M	9.22M	6.58M	-174.00K	-6.13M
	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: Negative
• 100DMA: Positive
• 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:ASH, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.18, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 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
NWH	70 Outperform	AU$1.29B	11.21	18.01%	6.21%	13.68%	24.51%
SRG	69 Neutral	AU$788.17M	18.75	11.36%	3.57%	25.40%	41.18%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%
ASH	62 Neutral	AU$26.64M	12.17	6.96%	5.62%	-7.92%	-61.32%
MMS	61 Neutral	AU$1.13B	12.42	74.00%	10.09%	43.44%	165.54%
MIN	51 Neutral	AU$4.11B	50.78	-33.95%	4.54%	2.22%	-411.10%
RCR	42 Neutral	AU$4.10M	―	-14.99%	―	―	60.71%

Ashley Services Group Ltd. Corporate Events

Ashley Services Group Announces Dividend Distribution

Ashley Services Group Limited has announced a dividend distribution related to its ordinary fully paid shares, reflecting its financial performance for the period ending June 30, 2025. The dividend amount is set at AUD 0.008 per share, with the record date on March 5, 2025, and payment scheduled for March 14, 2025. This announcement signifies the company’s commitment to providing returns to its shareholders and could positively impact investor confidence.

Ashley Services Group Ltd. Sees 80% NPAT Growth Amid Revenue Decline

Ashley Services Group Ltd. reported a significant growth in its net profit after tax (NPAT) for the first half of 2025, with an increase of 80% from the previous year. Despite a decline in overall revenue due to challenges in the construction and engineering sectors in Victoria, the company managed to improve its profit margins through effective cost management and successful contract negotiations. The labor hire division experienced a decrease in EBITDA due to reduced revenues and increased compensation costs, yet showed signs of margin recovery. Meanwhile, the training division faced revenue and EBITDA declines due to funding constraints and reduced training opportunities, but expects growth from new service courses.

Ashley Services Posts Strong Profit Increase Despite Revenue Decline

Ashley Services Group Ltd. reported a decrease in revenues from ordinary activities by 8.5% to $266,166 for the half-year ending 31 December 2024. However, the company achieved a significant increase in profit after tax, which rose by 80% to $1,828, signaling strong financial performance despite lower revenues. Additionally, the company’s interim dividend for the year ending 30 June 2025 was declared at 0.8 cents per share, maintaining a stable return for shareholders. The company’s net tangible assets also improved from $6,867,000 to $8,727,000 during this period.