Ashley Services Group Ltd. (ASH) AI Stock Analysis

• Market Cap: AU$35.03M
• Dividend Yield: 5.2%
• Average Volume (3M): 36.92K
• Price to Earnings (P/E): 15.9
• Beta (1Y): -1.43
• Revenue Growth: -7.29%
• EPS Growth: 60.64%
• Country: AU
• Employees: 355
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): <0.01
• Shares Outstanding: 145,975,900
• 10 Day Avg. Volume: 40,473
• 30 Day Avg. Volume: 36,920
• PEG Ratio: 0.18
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 2.97
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: AU$0.27 ▲(57.06% Upside)

The score is driven primarily by stable financials and improving cash generation, offset by weak profitability and negative recent revenue growth. Technicals show an uptrend but are overbought, adding near-term risk, while reasonable valuation and a strong dividend yield provide support.

Positive Factors

Improving cash generation

Strong free cash flow growth and an improving operating cash flow to net income ratio provide durable financial flexibility. This helps fund dividends, service debt, and invest in operations or technology without relying on external financing over the next several months.

Healthy equity base and moderate leverage

A moderate debt-to-equity profile and a healthy equity ratio give the company resilience to economic swings and capacity to support working capital needs. This structural balance reduces refinancing risk and supports long-term contract performance and bidding capacity.

Diversified staffing model and tech investment

A diversified offering across recruitment, labor hire and training with long-term contracts in construction and resources reduces client concentration and cyclicality. Investment in workforce management technology enhances efficiency and client retention, strengthening competitive position over time.

Negative Factors

Negative recent revenue growth

A persistent decline in revenue growth erodes scale benefits and hampers margin recovery. Over a multi-month horizon, continued top-line weakness limits earnings leverage, reduces pricing power with clients, and constrains investment in training and technology initiatives.

Low net profit margin and falling ROE

Low net margins and declining ROE indicate difficulty converting operational performance into shareholder returns. Structurally weak profitability reduces retained earnings, limits reinvestment capacity, and makes the business more vulnerable to cost inflation or contract margin pressure.

Weak free cash flow conversion

Despite free cash flow growth, weak conversion of net income into FCF signals earnings quality and working capital drag. Over months this can restrict capital allocation flexibility, limit debt reduction or dividend sustainability, and raise sensitivity to cash cycles.

Ashley Services Group Ltd. Business Overview & Revenue Model

Company Description

Ashley Services Group Ltd. (ASH) is a diversified workforce solutions provider based in Australia, specializing in recruitment, labor hire, and workforce management services across various sectors including construction, engineering, and mining. The company focuses on delivering tailored staffing solutions and training services to meet the specific needs of its clients, ensuring optimal workforce efficiency and effectiveness.

How the Company Makes Money

Ashley Services Group generates revenue primarily through its recruitment and labor hire services, charging clients for the placement of temporary and permanent staff. Key revenue streams include fees for recruitment services, hourly rates for labor hire, and training services provided to both clients and employees. The company also benefits from long-term contracts and partnerships with major organizations in the construction and resources sectors, which provide a steady flow of income. Additionally, ASH's investment in workforce management technology enhances service efficiency, contributing to increased client satisfaction and repeat business.

Ashley Services Group Ltd. Financial Statement Overview

Summary

Financials are stable but not strong: operating margins (EBIT/EBITDA) are positive and cash flow is improving with strong free cash flow growth, but net profit margin is low and recent revenue growth is negative. Balance sheet leverage is moderate with a healthy equity base, though ROE has declined.

Income Statement

Ashley Services Group Ltd. shows a mixed performance in its income statement. The company has maintained a positive EBIT and EBITDA margin, indicating operational efficiency. However, the net profit margin is quite low, reflecting challenges in translating revenue into net income. The revenue growth rate has been negative recently, which is a concern for future revenue generation.

Balance Sheet

The balance sheet of Ashley Services Group Ltd. is relatively stable. The debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. Return on equity has decreased over time, indicating a decline in profitability from shareholders' investments. The equity ratio is healthy, showing a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth, which is a positive indicator of financial flexibility. The operating cash flow to net income ratio is improving, suggesting better cash generation from operations. However, the free cash flow to net income ratio indicates that a significant portion of net income is not being converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	515.94M	515.94M	556.54M	549.22M	449.78M	383.67M
Gross Profit	515.94M	515.94M	22.24M	31.24M	28.09M	22.46M
EBITDA	9.02M	9.29M	9.24M	20.53M	18.96M	15.71M
Net Income	2.17M	2.17M	1.35M	10.79M	11.31M	9.15M
Balance Sheet
Total Assets	86.58M	86.58M	90.12M	112.30M	81.88M	70.17M
Cash, Cash Equivalents and Short-Term Investments	146.00K	146.00K	158.00K	2.52M	2.25M	3.48M
Total Debt	14.46M	14.46M	15.61M	11.74M	8.83M	3.30M
Total Liabilities	55.45M	55.45M	59.67M	78.03M	50.34M	42.22M
Stockholders Equity	31.12M	31.12M	30.45M	33.84M	31.55M	28.01M
Cash Flow
Free Cash Flow	8.11M	8.00M	787.00K	19.49M	4.98M	4.63M
Operating Cash Flow	8.87M	8.87M	3.53M	22.80M	6.70M	5.42M
Investing Cash Flow	-4.68M	-4.68M	-3.79M	-14.68M	-2.79M	-3.18M
Financing Cash Flow	-4.21M	-4.21M	-2.13M	-7.33M	-5.14M	-7.33M

Ashley Services Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.17 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.22, and below the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
WWG	74 Outperform	AU$55.95M	12.40	20.77%	4.55%	66.80%	625.00%
HIT	73 Outperform	AU$70.64M	11.00	60.81%	6.25%	6.72%	5.68%
ASH	68 Neutral	AU$35.03M	15.89	7.05%	5.20%	-7.29%	60.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PPE	52 Neutral	AU$76.61M	-5.79	-8.39%	―	-6.45%	-364.91%
HMI	38 Underperform	AU$8.62M	-5.06	-215.06%	―	-0.80%	-6.58%

Ashley Services Group Ltd. Corporate Events

Ashley Services Group Calls February Extraordinary General Meeting, Pushes Digital Engagement

Ashley Services Group Limited has called an Extraordinary General Meeting of shareholders for 20 February 2026 at its Sydney offices, with limited physical attendance and an option for virtual participation. The company is continuing its shift toward digital communications by releasing the Notice of Meeting online, discouraging paper mail-outs, and promoting electronic proxy voting, while urging shareholders to lodge proxies and submit questions ahead of the meeting to ensure broad participation in the resolutions to be considered.

The most recent analyst rating on (AU:ASH) stock is a Hold with a A$0.26 price target. To see the full list of analyst forecasts on Ashley Services Group Ltd. stock, see the AU:ASH Stock Forecast page.

Ashley Services Group Seeks ASX Quotation for 2 Million New Shares

Ashley Services Group Limited has applied to the ASX for quotation of 2,000,000 new fully paid ordinary shares, with an issue date of 6 January 2026. The additional securities, issued as part of a previously announced transaction, will expand the company’s quoted share capital and may influence its market liquidity and capital structure, with potential implications for existing shareholders as the enlarged register reflects this corporate action.

The most recent analyst rating on (AU:ASH) stock is a Buy with a A$0.23 price target. To see the full list of analyst forecasts on Ashley Services Group Ltd. stock, see the AU:ASH Stock Forecast page.

Ashley Services Group Plans Placement of Up to 2 Million New Shares

Ashley Services Group Limited has announced a proposed issue of up to 2,000,000 new fully paid ordinary shares under a placement or similar capital-raising structure, with the issue scheduled for 7 January 2026. The move signals an intention to bolster the company’s capital base, which may support future operational or strategic initiatives and could lead to dilution for existing shareholders depending on pricing and allocation, although further details on use of proceeds were not disclosed in the announcement.

The most recent analyst rating on (AU:ASH) stock is a Buy with a A$0.23 price target. To see the full list of analyst forecasts on Ashley Services Group Ltd. stock, see the AU:ASH Stock Forecast page.