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Avada Group Limited (AU:AVD)
ASX:AVD
Australian Market

Avada Group Limited (AVD) AI Stock Analysis

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AU:AVD

Avada Group Limited

(Sydney:AVD)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
AU$0.16
▲(12.14% Upside)
Avada Group Limited's overall stock score is primarily impacted by its financial performance, which shows challenges in revenue and profitability but potential for recovery due to strong cash flow growth. Technical analysis indicates a bearish trend with mixed signals for a rebound. Valuation is weak due to negative profitability and lack of dividend yield.
Positive Factors
Cash Flow Growth
Strong free cash flow growth indicates robust cash generation ability, providing financial flexibility and potential for future stability.
Operational Efficiency
Positive gross profit margin suggests the company can manage costs effectively, supporting long-term operational sustainability.
Diversified Revenue Streams
Diversified revenue streams reduce dependency on a single market, enhancing resilience against sector-specific downturns.
Negative Factors
Declining Revenue
Declining revenue growth poses a challenge to maintaining market position and could impact long-term profitability.
Increased Leverage
Higher leverage can strain financial resources and limit flexibility, potentially impacting long-term financial health.
Negative Profitability
Negative profitability indicates challenges in cost management and revenue generation, affecting long-term growth prospects.

Avada Group Limited (AVD) vs. iShares MSCI Australia ETF (EWA)

Avada Group Limited Business Overview & Revenue Model

Company DescriptionAVADA 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 MoneyAvada 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
Avada Group Limited faces challenges with declining revenue and profitability, as reflected in the income statement. The balance sheet shows increased leverage, which could be a risk if not managed effectively. However, the cash flow statement provides a positive outlook with strong free cash flow growth, indicating potential for recovery and financial stability in the future.
Income Statement
45
Neutral
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
50
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue183.09M183.09M204.54M177.00M72.93M0.00
Gross Profit19.02M19.02M16.39M156.51M65.02M-173.00K
EBITDA9.20M9.20M15.41M7.04M-8.94M0.00
Net Income-17.60M-17.60M1.51M-5.63M-12.54M-415.00K
Balance Sheet
Total Assets108.18M108.18M131.47M130.19M89.81M97.66M
Cash, Cash Equivalents and Short-Term Investments7.33M7.33M8.50M10.83M2.75M192.00K
Total Debt40.20M40.20M47.83M46.66M15.18M360.00K
Total Liabilities71.53M71.53M77.00M83.73M37.73M38.46M
Stockholders Equity36.65M36.65M54.47M46.46M52.09M59.20M
Cash Flow
Free Cash Flow7.63M7.63M3.03M3.42M-2.59M-169.00K
Operating Cash Flow10.33M10.33M6.71M4.96M-950.00K-169.00K
Investing Cash Flow-3.38M-3.38M-13.74M-26.78M-35.01M0.00
Financing Cash Flow-8.01M-8.01M4.86M31.90M36.31M361.00K

Avada Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.14
Price Trends
50DMA
0.17
Negative
100DMA
0.18
Negative
200DMA
0.21
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
15.47
Positive
STOCH
42.11
Neutral
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 below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.17, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 15.47 is Positive, neither overbought nor oversold. The STOCH value of 42.11 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
AU$4.85B19.6942.87%3.64%1.48%25.46%
64
Neutral
AU$5.27B38.966.66%3.14%-4.53%97.67%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
AU$1.18B21.575.78%4.03%9.52%-8.76%
46
Neutral
AU$11.89M-0.75-33.41%-10.48%-1025.87%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AVD
Avada Group Limited
0.14
-0.34
-70.83%
AU:DOW
Downer EDI Limited
7.94
2.76
53.19%
AU:VNT
Ventia Services Group Limited
5.86
2.45
71.85%
AU:KLS
Kelsian Group Limited
4.34
0.88
25.43%

Avada Group Limited Corporate Events

Avada Group Limited Reports Strong Shareholder Support at 2025 AGM
Nov 18, 2025

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
Nov 18, 2025

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
Nov 18, 2025

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.

AVADA Group Reports Revenue Growth and Operational Efficiency in Q1 FY26
Oct 30, 2025

AVADA Group Limited reported an increase in revenue for the first quarter of FY26 compared to the same period in FY25, despite the conclusion of a major contract with Brisbane City Council. The company has focused on cost reduction and operational efficiency, which resulted in decreased operating cash outflows. A strategic review of its New Zealand operations has been completed, emphasizing cost efficiency amid challenging market conditions. The company is also optimizing its fleet and resources to improve margins and has made progress in centralizing its core operating systems, which is expected to enhance productivity and operational efficiencies.

Avada Group Limited Announces Details for 2025 AGM
Oct 16, 2025

Avada Group Limited has announced its 2025 Annual General Meeting (AGM) will be held on November 18th in Brisbane, with a live webcast available for viewing. Shareholders attending in person will have the opportunity to ask questions and vote, while those unable to attend are encouraged to vote by proxy. The AGM will address financial statements, directors’ remuneration, re-election of directors, and approval of additional equity issuance capacity.

Avada Group Limited Announces FY25 Financial Adjustments
Sep 30, 2025

Avada Group Limited has announced adjustments to its FY25 financial results, specifically concerning income tax expenses, borrowing classifications, and reallocations of profits and liabilities across its operating segments. These changes, resulting from finalized tax calculations and ERP software implementation, do not affect the company’s operating revenue or cash flow but have led to a reduction in the loss after tax by $2.04 million and an increase in net assets by the same amount.

Avada Group Limited Releases 2025 Corporate Governance Statement
Sep 30, 2025

Avada Group Limited has released its corporate governance statement for the financial year ending June 30, 2025, confirming compliance with the ASX Corporate Governance Council’s principles and recommendations. The statement, approved by the board and available on their website, outlines the company’s adherence to governance practices, including board responsibilities and director appointment processes, which are crucial for maintaining transparency and accountability.

Avada Group Limited Announces Adjustments to FY25 Financial Results
Sep 30, 2025

Avada Group Limited announced adjustments to its FY25 financial results, highlighting changes in income tax expenses, borrowings classification, and asset-liability reallocation between operating segments. These adjustments resulted in a $2.04 million reduction in loss after tax and an increase in net assets, while also affecting the classification of borrowings and the accurate reflection of assets and liabilities across cash-generating units.

AVADA Group Limited Releases 2025 Annual Report Highlighting Strategic Market Position
Sep 30, 2025

AVADA Group Limited, a leading provider in the traffic management industry in Australia and New Zealand, has released its annual report for 2025. The report highlights the company’s extensive operations and its strategic positioning in the market, which is supported by a robust network of depots, vehicles, and personnel. This positions AVADA Group to potentially enhance its market share and influence within the traffic management and civil sectors.

Avada Group Director Increases Shareholding
Sep 22, 2025

Avada Group Limited has announced a change in the director’s interest notice, specifically for Director Courtney Black. The change involves an on-market acquisition of 64,739 ordinary shares, increasing Black’s total holding to 231,406 shares. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future prospects.

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: Nov 13, 2025