Avada Group Limited (AVD) AI Stock Analysis

• Market Cap: AU$9.77M
• Dividend Yield: N/A
• Average Volume (3M): 3.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -10.48%
• EPS Growth: -1025.87%
• Country: AU
• Employees: 1,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): -0.19
• Shares Outstanding: 84,935,030
• 10 Day Avg. Volume: 3,390
• 30 Day Avg. Volume: 3,625
• PEG Ratio: <0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 1.32
• 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: 48 Neutral
• Price Target: AU$0.11 ▼(-18.57% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weak profitability and a clearly bearish price trend (below all key moving averages with negative MACD). These risks are partially offset by improving cash generation (strong free cash flow growth and positive operating cash flow vs. net loss), but losses and the negative P/E keep the overall outlook below average.

Positive Factors

Cash generation

Very strong free cash flow growth (over 800%) and positive operating cash flow despite accounting losses indicate the business is converting operations into cash. Durable cash generation improves funding for capex, working capital and deleveraging without relying solely on equity raises.

Gross margin resilience

A positive gross profit margin shows core activities produce margin before overhead. This structural efficiency means the company can return to net profitability by scaling revenue or tightening SG&A, supporting sustainable margins if top-line trends stabilize.

Stable equity ratio

A relatively stable equity ratio implies assets are not over-levered and the balance sheet retains structural balance. This provides resilience to shocks, preserves borrowing capacity, and supports strategic flexibility for investment or refinancing over the medium term.

Negative Factors

Weak profitability

Persistent net losses and negative return on equity erode shareholder value and reduce retained earnings. Over time this constrains reinvestment, dividend potential and makes it harder to attract capital, lengthening the recovery path to sustainable earnings.

Revenue decline

Declining revenue reduces operating leverage and puts pressure on margins and cash conversion. A shrinking top line complicates recovery efforts, limits scale benefits, and heightens reliance on cost cuts or new business development to restore medium-term growth.

Rising leverage

Increased leverage raises fixed servicing obligations and interest sensitivity, reducing financial flexibility. Over 2-6 months this can limit the company's ability to invest, respond to downturns or refinance on favorable terms, elevating solvency and credit risks.

Avada Group Limited Business Overview & Revenue Model

Company Description

AVADA Group Limited, together with its subsidiaries, engages in the traffic management operations in Queensland, New South Wales, and Victoria, Australia. It offers integrated traffic management services, including planning and permit, traffic control, equipment hire, event management, and incident response services. The company operates through a network of 27 depots and approximately 900 vehicles. It serves state and local governments, federally funded contractors, and other contractors in the utilities, infrastructure, construction, telecommunications, and other industrial sectors. AVADA Group Limited was founded in 2008 and is based in Brisbane, Australia.

How the Company Makes Money

Avada Group Limited generates revenue through multiple streams including the sale of software solutions to businesses, royalties from patented medical technologies, and contracts for renewable energy projects. The company's software development segment is a significant contributor, providing licensing fees and subscription services. Additionally, revenue from healthcare products comes from direct sales to hospitals and clinics, while renewable energy projects yield income through government contracts and partnerships with utility providers. Strategic alliances with tech firms and healthcare organizations further bolster AVD's market presence and revenue potential.

Avada Group Limited Financial Statement Overview

Summary

Financials are mixed: revenue declined (-5.69%) and profitability is weak (negative net income and negative ROE), while leverage has increased. Offsetting this, cash flow is a bright spot with very strong free cash flow growth (over 800%) and positive operating cash flow relative to net income, suggesting improving underlying cash generation despite accounting losses.

Income Statement

Avada Group Limited has experienced a decline in revenue over the past year, with a negative revenue growth rate of -5.69%. The company also reported a negative net income, resulting in a negative net profit margin. However, the gross profit margin remains positive, indicating some level of operational efficiency. The EBIT and EBITDA margins are relatively low, suggesting challenges in maintaining profitability.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if not managed properly. The return on equity is negative, reflecting the company's struggles to generate profits from shareholders' equity. However, the equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Avada Group Limited has shown significant improvement in free cash flow growth, with an impressive increase of over 800%. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from its operations despite reporting a net loss. This suggests a potential for future financial stability if the trend continues.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	193.42M	183.09M	204.54M	177.00M	72.93M	0.00
Gross Profit	14.00M	19.02M	16.39M	156.51M	65.02M	-173.00K
EBITDA	13.76M	9.20M	15.41M	7.04M	-8.94M	0.00
Net Income	-24.52M	-17.60M	1.51M	-5.63M	-12.54M	-415.00K
Balance Sheet
Total Assets	93.50M	108.18M	131.47M	130.19M	89.81M	97.66M
Cash, Cash Equivalents and Short-Term Investments	4.13M	7.33M	8.50M	10.83M	2.75M	192.00K
Total Debt	46.34M	40.20M	47.83M	46.66M	15.18M	360.00K
Total Liabilities	70.73M	71.53M	77.00M	83.73M	37.73M	38.46M
Stockholders Equity	22.76M	36.65M	54.47M	46.46M	52.09M	59.20M
Cash Flow
Free Cash Flow	1.96M	7.63M	3.03M	3.42M	-2.59M	-169.00K
Operating Cash Flow	4.12M	10.33M	6.71M	4.96M	-950.00K	-169.00K
Investing Cash Flow	-1.53M	-3.38M	-13.74M	-26.78M	-35.01M	0.00
Financing Cash Flow	-2.44M	-8.01M	4.86M	31.90M	36.31M	361.00K

Avada Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AVD, the sentiment is Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.13, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AVD.

Avada Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KLS	69 Neutral	AU$1.23B	18.39	5.78%	4.06%	9.52%	-8.76%
DOW	64 Neutral	AU$5.69B	35.76	6.66%	3.11%	-4.53%	97.67%
VNT	64 Neutral	AU$4.84B	18.08	42.87%	3.56%	1.48%	25.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AVD	48 Neutral	AU$9.77M	-0.43	-33.41%	―	-10.48%	-1025.87%

Avada Group Limited Corporate Events

Avada Group lifts cash receipts and expands funding as it deepens national traffic management push

Avada Group Limited reported a solid second quarter of FY26, with cash receipts rising 24% from the prior quarter to A$52.0 million on the back of strong December sales, while operating cash expenditures increased 14.4% in line with higher revenues and mobilisation costs. Despite a net operating cash outflow of A$2.5 million, cash and cash equivalents nearly doubled to A$4.1 million quarter-on-quarter and unused financing facilities expanded to A$15.3 million after the group’s trade finance facility was increased from A$17.5 million to A$20 million, providing additional liquidity headroom. Operationally, Avada continued to build out its national Avada Traffic model, secured multiple project wins and panel appointments mainly in Queensland and New South Wales, strengthened leadership with key appointments, and advanced an enterprise transformation program aimed at tightening commercial governance, pricing discipline and contract execution, which together are intended to reinforce its market positioning and support future growth in the civil infrastructure and maintenance sector.

The most recent analyst rating on (AU:AVD) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on Avada Group Limited stock, see the AU:AVD Stock Forecast page.

Avada Group Limited Reports Strong Shareholder Support at 2025 AGM

Avada Group Limited announced the results of its 2025 Annual General Meeting, highlighting the approval of key resolutions including directors’ remuneration, re-election of directors, and additional capacity under listing rules. These outcomes indicate strong shareholder support and are expected to enhance the company’s governance and operational capacity, reinforcing its position in the industry.

AVADA Group Limited Strengthens Market Position Amidst Challenges

AVADA Group Limited’s CEO, Donald Montgomery, highlighted the company’s transformation and consolidation efforts over the past year, which included streamlining operations under a single brand and improving safety measures. Despite financial challenges due to weather disruptions and competitive pressures, AVADA has strengthened its market position and is poised for growth with new client accounts and increased revenue in the first quarter of 2026. The company is focused on operational transformation, improving margins, and maintaining its reputation for safety and high-quality service.

AVADA Group Limited Navigates Transformation Amidst Market Challenges

AVADA Group Limited’s 2025 Annual General Meeting highlighted a year of consolidation and transformation despite challenging market conditions. The company integrated eleven Australian businesses into a single operating platform under the AVADA Traffic brand, enhancing safety, streamlining processes, and reducing costs. Despite a 10.5% decline in revenue and a statutory net loss after tax of $15.6 million, the company undertook strategic reviews and leadership changes to address performance declines, particularly in New Zealand. The market outlook remains positive with planned infrastructure investments, positioning AVADA as a leader in the traffic management industry, although challenges such as project delays and weather disruptions persist.