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Aurizon Holdings Ltd. (AU:AZJ)
ASX:AZJ

Aurizon Holdings (AZJ) AI Stock Analysis

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AU

Aurizon Holdings

(Sydney:AZJ)

Rating:71Outperform
Price Target:
AU$3.50
▲(10.41%Upside)
Aurizon Holdings Ltd. scores well due to its solid financial performance and attractive valuation metrics. The company's strong cash flow and consistent revenue growth support a stable financial outlook, while the fair P/E ratio and high dividend yield enhance its investment appeal. Technical indicators suggest a stable price trend with mild bullish signals.

Aurizon Holdings (AZJ) vs. iShares MSCI Australia ETF (EWA)

Aurizon Holdings Business Overview & Revenue Model

Company DescriptionAurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. The company operates through Network, Coal, Bulk, and Other segments. It transports various commodities, including mining, agricultural, industrial, and retail products; and retail goods and groceries across small and big towns, and cities, as well as coal and iron ore. The company also operates and manages the Central Queensland Coal Network that consists of 2,670 kilometers of track network; and provides various specialist services, such as rail design, engineering, construction, management, and maintenance, as well as supply chain solutions. It serves miners, primary producers, and the industry. The company was formerly known as QR National Limited and changed its name to Aurizon Holdings Limited in December 2012. Aurizon Holdings Limited was incorporated in 2010 and is headquartered in Fortitude Valley, Australia.
How the Company Makes MoneyAurizon Holdings Ltd. generates revenue primarily through its rail freight services, which include transporting bulk commodities such as coal and iron ore, as well as agricultural and general freight. The company's key revenue streams are divided into several segments: coal transport, network operations, and bulk freight services. The coal segment is a major contributor, as Aurizon facilitates the transport of coal from mines to ports and domestic customers. Network operations involve managing and maintaining the rail infrastructure, generating access fees from other rail operators using Aurizon's network. Partnerships with mining companies and long-term contracts also play a significant role in securing consistent revenue, as they provide stable demand and predictable cash flows.

Aurizon Holdings Financial Statement Overview

Summary
Aurizon Holdings Ltd. demonstrates solid financial health with consistent revenue growth and strong cash flow generation. The company maintains stable profitability margins and a balanced capital structure, though attention to rising debt levels is necessary to sustain long-term financial stability.
Income Statement
75
Positive
Aurizon Holdings Ltd. has shown consistent revenue growth with a notable increase of 9.25% from 2023 to 2024. The company maintains a healthy gross profit margin of 22.6% and an improved net profit margin of 10.8%. While the EBIT margin at 22.2% and EBITDA margin at 43.2% indicate strong operational efficiency, the slight decline in net income over the years could be a concern.
Balance Sheet
70
Positive
The company's balance sheet reflects stability with a moderate debt-to-equity ratio of 1.15. The equity ratio of 37.6% indicates a balanced capital structure, and a return on equity of 9.15% suggests reasonable profitability. However, the increase in total debt over recent years could pose a risk if not managed effectively.
Cash Flow
80
Positive
Aurizon Holdings Ltd. exhibits strong cash flow generation capabilities, with a significant growth in free cash flow by 395.6% from 2023 to 2024. The operating cash flow to net income ratio of 3.14 suggests robust cash generation relative to earnings. The company’s ability to convert earnings to cash is evident from the free cash flow to net income ratio of 1.11.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue3.88B3.76B3.44B3.00B2.96B3.02B
Gross Profit1.25B1.56B712.00M796.00M870.10M903.90M
EBITDA1.64B1.64B1.38B1.46B1.50B1.58B
Net Income402.00M406.00M276.00M513.00M730.30M615.90M
Balance Sheet
Total Assets9.62B11.82B11.89B9.85B10.00B10.04B
Cash, Cash Equivalents and Short-Term Investments65.30M49.00M92.00M172.10M148.80M29.30M
Total Debt3.37B5.08B5.28B3.34B3.88B3.75B
Total Liabilities5.06B7.38B7.54B5.44B5.72B5.68B
Stockholders Equity4.56B4.44B4.35B4.41B4.27B4.36B
Cash Flow
Free Cash Flow697.00M451.00M91.00M641.50M580.60M568.00M
Operating Cash Flow1.47B1.27B849.00M1.19B1.10B1.09B
Investing Cash Flow-670.00M-692.00M-2.85B-527.00M-361.00M-367.40M
Financing Cash Flow-795.00M-626.00M1.92B-639.70M-615.00M-720.80M

Aurizon Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.17
Price Trends
50DMA
3.02
Positive
100DMA
3.06
Positive
200DMA
3.17
Positive
Market Momentum
MACD
0.03
Negative
RSI
71.01
Negative
STOCH
93.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AZJ, the sentiment is Positive. The current price of 3.17 is above the 20-day moving average (MA) of 3.06, above the 50-day MA of 3.02, and above the 200-day MA of 3.17, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 71.01 is Negative, neither overbought nor oversold. The STOCH value of 93.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AZJ.

Aurizon Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUAZJ
71
Outperform
$5.55B14.429.38%5.86%2.21%-5.71%
71
Outperform
¥252.71B13.078.49%3.07%6.30%13.10%
DE1K1
€4.20B30.177.24%1.91%
DEDNE
€2.39B52.113.35%3.36%
AUGNG
76
Outperform
AU$540.55M13.8958.99%6.10%25.12%31.13%
AUDBI
72
Outperform
AU$2.13B26.007.48%5.48%19.38%10.66%
AUVNT
69
Neutral
AU$4.29B19.8936.67%4.16%7.56%16.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AZJ
Aurizon Holdings
3.17
-0.23
-6.85%
DE:1K1
Qube Holdings
2.32
0.11
4.98%
DE:DNE
Downer EDI Limited
3.42
0.67
24.36%
AU:DBI
Dalrymple Bay Infrastructure Ltd.
4.35
1.49
52.10%
AU:VNT
Ventia Services Group Limited
5.12
1.26
32.64%
AU:GNG
GR Engineering Services Ltd
3.23
1.28
65.64%

Aurizon Holdings Corporate Events

Aurizon Holdings Updates Director’s Interest Notice
Jul 2, 2025

Aurizon Holdings has announced a change in the director’s interest notice for Dr. Sarah Ryan, reflecting an acquisition of 5,000 ordinary shares at $2.98 per share through Avoch Holdings Pty Ltd as trustee for Cedar Creek Investment A/C. This update indicates a strategic move in the company’s governance, potentially impacting stakeholder perceptions and the company’s market positioning.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Announces Director’s Share Acquisition
Jul 2, 2025

Aurizon Holdings Limited has announced a change in the director’s interest, specifically for Mr. Lyell Strambi, who acquired 3,300 ordinary shares at $3.02 per share, increasing his total holdings to 71,392 shares. This change reflects ongoing adjustments in the company’s governance and may influence stakeholder perceptions regarding leadership stability and strategic direction.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Announces Change in Substantial Shareholder Interests
Jul 1, 2025

Aurizon Holdings Limited has announced a change in the interests of a substantial holder, L1 Capital Pty Ltd, and its associated entities. The notice indicates a shift in voting power, with the current voting power at 7.28%, up from a previous 6.10%. This change reflects a strategic adjustment in the company’s shareholder structure, potentially impacting its governance and decision-making processes.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Executes Significant On-Market Buy-Back
Jun 30, 2025

Aurizon Holdings Limited announced the cessation of 22,789,744 ordinary fully paid securities due to an on-market buy-back, effective June 30, 2025. This move is part of the company’s capital management strategy, potentially impacting its share value and market perception positively by reducing the number of outstanding shares, thereby increasing shareholder value.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Completes AUD 300 Million Share Buy-Back
Jun 30, 2025

Aurizon Holdings Limited has announced the finalization of its on-market buy-back program, purchasing a total of 90,259,994 ordinary fully paid securities for approximately AUD 300 million. This buy-back is part of the company’s strategic efforts to optimize its capital structure and enhance shareholder value, reflecting its strong financial position and commitment to returning capital to investors.

The most recent analyst rating on (AU:AZJ) stock is a Sell with a A$3.03 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Updates on Market Buy-Back Progress
Jun 26, 2025

Aurizon Holdings Limited has announced an update regarding its ongoing on-market buy-back program, with a total of 90,095,857 securities bought back prior to the previous day and an additional 164,137 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Announces FY2025 EBITDA Expectations and Leadership Restructure
Jun 25, 2025

Aurizon Holdings has announced an expected underlying EBITDA of approximately $1,575 million for FY2025, influenced by lower than anticipated network volumes and adjustments related to bulk contract receivables. The company plans to defer $50 million of FY2025 earnings to FY2027 due to revenue under-recovery, while also increasing its provision for impairment of trade debtors by $50 million. Additionally, Aurizon is restructuring its leadership to integrate Bulk and Containerised Freight operations under a single executive to enhance synergies and accountability, with new appointments effective from July 1, 2025.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Australian Retirement Trust Acquires Significant Stake in Aurizon Holdings
Jun 23, 2025

Australian Retirement Trust Pty Ltd has become a substantial holder in Aurizon Holdings Limited, acquiring a 5% voting power through fully paid ordinary shares. This development signifies a notable investment in Aurizon Holdings, potentially impacting the company’s shareholder structure and influencing its strategic decisions.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Secures Major Logistics Contracts with BHP in South Australia
Jun 16, 2025

Aurizon Holdings has secured contracts to provide a comprehensive logistics solution for BHP’s Copper operations in South Australia, with a potential term of up to 15 years. The contracts, starting in October 2025, are expected to generate approximately $1.5 billion in revenue over the initial 10 years, handling around 1.3 million tonnes annually. This strategic move enhances Aurizon’s market positioning by leveraging its existing assets and infrastructure, including new terminal developments, and supports the company’s expansion into future-facing commodities like copper, aligning with global demand trends. The shift to an integrated logistics model is set to improve road safety, reduce congestion, and lower emissions by replacing significant truck movements with rail transport.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Updates Director’s Interest Notice
May 22, 2025

Aurizon Holdings has announced a change in the director’s interest notice for Mr. Tim Poole, reflecting an update in his indirect interests in securities. This change, involving various trusts and superannuation funds, highlights the ongoing management of director-level investments within the company, which may influence stakeholder perceptions and governance practices.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Updates on Market Buy-Back Program
May 16, 2025

Aurizon Holdings Limited has announced an update regarding its ongoing on-market buy-back program, revealing that a total of 825,000 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 89,270,857 securities repurchased prior to that day. This buy-back initiative reflects Aurizon’s strategic effort to optimize its capital structure and potentially enhance shareholder value, indicating a proactive approach to managing its financial resources.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Updates on Market Buy-Back Program
May 15, 2025

Aurizon Holdings Limited has announced an update regarding its ongoing on-market buy-back program. As of May 15, 2025, the company has repurchased a total of 88,599,857 ordinary fully paid securities, with 671,000 securities bought back on the previous day. This buy-back initiative is part of Aurizon’s strategy to enhance shareholder value and optimize its capital structure, reflecting a proactive approach in managing its financial resources.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.57 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Updates on Market Buy-Back Program
May 14, 2025

Aurizon Holdings Limited has announced a daily update on its ongoing on-market buy-back program, revealing that it bought back 2,318,107 ordinary fully paid securities on the previous day, adding to a total of 86,281,750 securities repurchased before that day. This buy-back initiative is part of the company’s strategic efforts to optimize its capital structure and enhance shareholder value, reflecting a proactive approach in managing its financial resources and market positioning.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Updates on Market Buy-Back Progress
May 13, 2025

Aurizon Holdings Limited has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of the latest notification, the company has bought back a total of 84,465,774 securities, with an additional 1,815,976 securities repurchased on the previous day. This buy-back strategy is part of Aurizon’s efforts to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Aurizon Holdings Updates on Ongoing Buy-Back Program
May 12, 2025

Aurizon Holdings Limited has announced an update on its ongoing on-market buy-back program, with a total of 1,648,987 ordinary fully paid securities bought back on the previous day, adding to the cumulative total of 82,816,787 securities repurchased. This buy-back initiative is part of the company’s strategy to optimize its capital structure, potentially enhancing shareholder value and reflecting confidence in its financial position.

The most recent analyst rating on (AU:AZJ) stock is a Hold with a A$3.55 price target. To see the full list of analyst forecasts on Aurizon Holdings stock, see the AU:AZJ Stock Forecast page.

Change in Substantial Holding for Aurizon Holdings
May 12, 2025

Aurizon Holdings Limited has announced that Australian Retirement Trust Pty Ltd has ceased to be a substantial holder in the company as of May 8, 2025. This change in substantial holding could impact Aurizon Holdings’ shareholder dynamics and influence within the market, potentially affecting its strategic decisions and stakeholder interests.

Aurizon Holdings Launches A$500 Million Hybrid Issue to Strengthen Capital Structure
May 9, 2025

Aurizon Holdings has successfully priced its inaugural A$500 million hybrid issue, marking a significant step in its capital management strategy. The hybrid notes, due in 2055, will receive 50% equity credit from Moody’s and Standard & Poor’s, and the proceeds will be used to refinance existing debt and for general corporate purposes. This move is part of Aurizon’s broader effort to enhance financial flexibility and maintain strong investment-grade credit ratings, as well as to diversify its funding sources and extend its debt maturity profile.

Aurizon Holdings Reports Mixed Freight Volumes and Strategic Savings
May 6, 2025

Aurizon Holdings has released a business update ahead of the Macquarie Australia Conference, highlighting various operational metrics and strategic developments. The company reported a decrease in network volumes due to adverse weather conditions affecting mine production and port operations, while coal volumes saw a slight increase. Bulk volumes experienced a significant drop, mainly due to the cessation of production at the Kwinana refinery, although there was a recovery in Western Australia grain volumes. Containerized freight volumes increased significantly, reflecting a ramp-up in the National Interstate schedule. Additionally, Aurizon identified potential annual savings of $50 million, which could impact FY2025 Access revenue.

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: Jul 01, 2025