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Ashley Services Group Ltd. (AU:ASH)
ASX:ASH
Australian Market

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)
The overall stock score reflects the company's strong revenue growth but highlights concerns regarding profitability and cash flow challenges. Technical indicators suggest the stock may be oversold, while the valuation metrics indicate potential undervaluation and a high dividend yield, providing some attractiveness to income-focused investors.

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. 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 strong revenue growth, but profitability challenges are apparent with declining gross and net profit margins. The balance sheet remains healthy with moderate leverage, though cash flow issues highlight the need for better cash generation.
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 Price0.16
Price Trends
50DMA
0.18
Negative
100DMA
0.18
Negative
200DMA
0.18
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
30.68
Neutral
STOCH
>-0.01
Positive
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 0.16 is below 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 bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 30.68 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUASH
64
Neutral
AU$23.76M10.866.96%9.70%-7.92%-61.32%
58
Neutral
$1.33B4.26-2.93%7.57%3.58%-52.48%
$2.70B43.31-33.95%4.54%
DENMN
€600.13M10.5274.00%9.18%
DE3NR
€752.04M10.5918.01%4.75%
AUSRG
69
Neutral
AU$1.03B24.5011.36%2.93%25.40%41.18%
AURCR
42
Neutral
AU$3.51M-14.99%60.71%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ASH
Ashley Services Group Ltd.
0.16
-0.08
-33.33%
MALRF
Mineral Resources Limited
13.60
-22.17
-61.98%
DE:NMN
Mcmillan Shakespeare Limited
8.40
-0.98
-10.45%
DE:3NR
NRW Holdings Limited
1.63
-0.14
-7.91%
AU:SRG
SRG Global Limited
1.72
0.93
117.72%
AU:RCR
Rincon Resources Ltd.
0.01
-0.11
-91.67%

Ashley Services Group Ltd. Corporate Events

Ashley Services Group Announces Dividend Distribution
Feb 21, 2025

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
Feb 21, 2025

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
Feb 21, 2025

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.

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: Jun 27, 2025