tiprankstipranks
Trending News
More News >
Ava Risk Group Ltd. (AU:AVA)
ASX:AVA
Australian Market

Ava Risk Group Ltd. (AVA) AI Stock Analysis

Compare
8 Followers

Top Page

AU

Ava Risk Group Ltd.

(Sydney:AVA)

Rating:49Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Ava Risk Group Ltd. faces significant challenges with financial performance due to continued losses and cash flow issues, which are the primary drivers of the score. While the balance sheet remains robust with low leverage, the lack of positive earnings and cash flow are critical risks. Technical analysis provides a neutral outlook, but poor valuation metrics further weigh down the stock score.

Ava Risk Group Ltd. (AVA) vs. iShares MSCI Australia ETF (EWA)

Ava Risk Group Ltd. Business Overview & Revenue Model

Company DescriptionAva Risk Group Ltd. (AVA) is a global leader in risk management services and technologies. The company operates in sectors such as security, logistics, and technology, offering products and services designed to protect critical infrastructure and high-value assets. Ava Risk Group's core offerings include advanced perimeter security solutions, access control systems, and secure logistics services, catering to a diverse range of industries including defense, transportation, and utilities.
How the Company Makes MoneyAva Risk Group Ltd. generates revenue through the sale and servicing of its security and risk management solutions. Key revenue streams include product sales of its high-tech security systems, recurring income from service and maintenance contracts, and fees from secure logistics and monitoring services. The company also capitalizes on strategic partnerships and collaborations with governments and large corporations, which enhance its market reach and contribute to its earnings. Additionally, Ava Risk Group may earn revenue from licensing its technologies and from consulting services provided to clients seeking tailored risk management solutions.

Ava Risk Group Ltd. Financial Statement Overview

Summary
Ava Risk Group Ltd. faces financial pressures with a net loss impacting profitability metrics. Despite a strong balance sheet with low leverage, cash flow issues pose risks to sustainability. The company needs strategic shifts towards operational efficiency and cash flow generation to improve financial performance.
Income Statement
45
Neutral
Ava Risk Group Ltd. has witnessed volatility in its revenue with recent growth driven by a significant rise in revenue from 2022 to 2023. However, the financials show a concerning trend as the company posted a net loss for consecutive years between 2023 and 2024. Both EBIT and EBITDA margins are negative, indicating operational inefficiencies. A declining gross profit margin further adds pressure to improving the bottom line.
Balance Sheet
60
Neutral
The balance sheet reflects a strong equity position with a healthy equity ratio and low leverage, as evidenced by a moderate debt-to-equity ratio. However, the company's return on equity has suffered due to recent net losses. On a positive note, the company holds a solid cash position, which provides a cushion against financial instability.
Cash Flow
40
Negative
Cash flow analysis reveals challenges, with negative free cash flow and operating cash flow in recent years. Despite a positive financing cash flow indicating successful capital raising, the core operations are struggling to generate cash, resulting in a poor operating cash flow to net income ratio. The significant decline in free cash flow growth highlights the need for improved cash management practices.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
33.02M30.14M28.60M18.62M24.70M46.13M
Gross Profit
20.39M18.00M5.65M3.95M10.43M9.16M
EBIT
2.98M-3.39M453.00K-416.00K7.42M5.47M
EBITDA
1.45M-2.52M1.42M1.36M8.57M7.44M
Net Income Common Stockholders
-2.89M-5.20M-1.05M1.22M13.75M4.94M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.67M5.08M5.52M15.23M17.29M7.70M
Total Assets
37.96M36.06M37.08M30.41M43.25M33.68M
Total Debt
3.36M3.02M2.83M284.00K430.00K713.00K
Net Debt
-1.31M-2.06M-2.69M-14.94M-16.86M-6.99M
Total Liabilities
9.19M8.11M7.82M4.46M11.21M8.27M
Stockholders Equity
28.77M27.95M29.25M25.95M32.04M25.41M
Cash FlowFree Cash Flow
1.50M-3.26M-4.60M1.09M16.50M4.88M
Operating Cash Flow
1.91M-535.00K-2.18M2.48M17.58M5.96M
Investing Cash Flow
-2.65M-2.73M-7.94M35.07M-1.08M-1.08M
Financing Cash Flow
3.51M2.92M-1.34M-39.73M-6.70M-178.00K

Ava Risk Group Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.10
Price Trends
50DMA
0.10
Positive
100DMA
0.10
Negative
200DMA
0.11
Negative
Market Momentum
MACD
<0.01
Positive
RSI
50.91
Neutral
STOCH
37.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AVA, the sentiment is Neutral. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:AVA.

Ava Risk Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUBVS
71
Outperform
AU$1.10B15.3257.04%0.66%18.63%
66
Neutral
$4.50B12.285.32%248.52%4.13%-12.36%
AUAVA
49
Neutral
AU$29.05M-10.45%13.25%13.71%
AUAR9
47
Neutral
AU$19.29M-45.31%-28.80%32.87%
AUSEN
44
Neutral
AU$31.46M-31.58%22.29%64.62%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AVA
Ava Risk Group Ltd.
0.10
-0.03
-23.08%
AU:SEN
Senetas Corporation Limited
0.02
0.01
100.00%
AU:AR9
archTIS Ltd.
0.07
-0.02
-22.22%
AU:BVS
Bravura Solutions Limited
2.44
1.54
171.11%

Ava Risk Group Ltd. Corporate Events

Ava Risk Group Secures A$1.1 Million Contract with Honeywell for ADNOC Project
May 15, 2025

Ava Risk Group has secured a contract valued at A$1.1 million with Honeywell Middle East Company Ltd-AD to supply its Aura Ai-X Distributed Acoustic Sensing technology to the Abu Dhabi National Oil Company (ADNOC). This contract, which will be delivered in the current quarter, strengthens Ava’s long-standing relationship with Honeywell and underscores its position as a preferred technology provider for critical infrastructure protection in the oil and gas sector. The deployment of this technology will help monitor and identify risks to critical infrastructure across a major oil and gas field operated by ADNOC, further demonstrating trust in Ava’s reliable solutions.

The most recent analyst rating on (AU:AVA) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Ava Risk Group Ltd. stock, see the AU:AVA Stock Forecast page.

Ava Risk Group Secures Contract with GAIL for Indian Gas Pipeline
May 13, 2025

Ava Risk Group has secured a contract with GAIL (India) Limited to deploy its fibre sensing technology along a critical gas pipeline in India, valued at A$0.9 million. This deployment will enhance the security of the Kochi–Koottanad–Bangalore–Mangalore pipeline, a vital infrastructure project connecting South India to the national gas grid. The contract underscores Ava’s competitive advantage in rapid deployment and strengthens its position as a trusted provider of critical infrastructure protection in the energy sector.

The most recent analyst rating on (AU:AVA) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Ava Risk Group Ltd. stock, see the AU:AVA Stock Forecast page.

Ava Risk Group Reports Q3 FY2025 Trading Update with Strategic Milestones
Apr 30, 2025

Ava Risk Group Ltd. reported a Q3 FY2025 sales order intake of $6.5 million, with a year-to-date total of $22.8 million. Despite a slight dip due to geopolitical instability, the company remains optimistic about Q4, supported by a strong sales pipeline and significant orders expected in the transportation and telecommunications sectors. The company has secured a $0.3 million order from Telstra for its Aura Ai-X system to protect a subsea cable, marking a strategic milestone in expanding its market presence and enhancing its commercial capabilities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.