BSA Limited (BSA) AI Stock Analysis

• Market Cap: AU$25.23M
• Dividend Yield: N/A
• Average Volume (3M): 192.24K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 3.27
• Revenue Growth: 12.34%
• EPS Growth: -66.13%
• Country: AU
• Employees: 234
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.08
• Shares Outstanding: 75,300,260
• 10 Day Avg. Volume: 179,227
• 30 Day Avg. Volume: 192,244
• PEG Ratio: -0.02
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 0.19
• 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: 61 Neutral
• Price Target: AU$0.38 ▲(137.50% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by improving operations and very strong cash flow, offset by weak profitability margins and balance-sheet stability concerns due to low equity. Technicals show a strong uptrend but overbought signals increase near-term risk, while valuation appears moderate based on the P/E.

Positive Factors

Strong free cash flow generation

A very large improvement in free cash flow and near‑one-to-one conversion of net income to free cash flow provide durable internal funding. This strengthens liquidity, funds capex and working capital, lowers reliance on external financing and supports operational resilience over months.

Improving operational efficiency

Recovering revenue and improved EBIT/EBITDA margins point to better cost control and operational execution. Sustained margin uplift increases cash generation potential per unit of revenue, helping the business scale profitably and making future earnings more predictable over the medium term.

Reduced leverage

A materially lower debt-to-equity ratio reduces financial vulnerability and interest burden. Lower leverage increases flexibility for investment or selective M&A, and makes the company more resilient to cyclical swings in engineering and construction demand over the coming quarters.

Negative Factors

Very low equity base

An unusually high ROE driven by a thin equity base signals a weak capital buffer. Low equity reduces shock absorption for project setbacks, increases refinancing and covenant risk, and constrains capacity to pursue larger contracts without diluting or adding external funding.

Compressed gross and net margins

Sharp gross margin compression and a near‑breakeven net margin reflect structural cost pressure or poor pricing power. Persistently thin margins limit reinvestment, reduce the cushion for overruns in project work, and weaken long‑term profitability even if revenues recover modestly.

Historic volatility in revenue and EPS

Large historical declines in revenue and EPS indicate volatile project flows or cyclicality in end markets. This undermines forecasting reliability, complicates capacity planning and financing, and means current operational gains may be vulnerable if backlog or market conditions reverse.

BSA Limited Business Overview & Revenue Model

Company Description

BSA Limited, together with its subsidiaries, provides services for communications and utilities infrastructure, and property solutions in Australia. It operates through two segments, Communications & Utility Infrastructure (CUI) and Advanced Property Solutions (APS). The CUI segment engages in the delivery of bundled services over fixed line and wireless networks; and installation of subscription television and smart meters to the telecommunications, subscription television, and utility industries. The APS segment designs, installs, maintains, and optimizes building services for various hard assets in facilities and infrastructures, including fire detection and suppression, mechanical services, heating, ventilation, air conditioning, refrigeration, electrical, and building management systems. BSA Limited was incorporated in 1999 and is based in Chatswood, Australia.

How the Company Makes Money

BSA generates revenue primarily through its service contracts with clients in telecommunications and utilities, where it charges for network deployment, maintenance, and management services. The company also earns income from technology consulting and project management services, which are often billed on a contractual basis. Key revenue streams include long-term contracts with major telecommunications firms for infrastructure development and maintenance, as well as partnerships with technology providers to deliver integrated solutions. Additionally, BSA may benefit from government contracts related to public infrastructure projects, contributing further to its earnings.

BSA Limited Financial Statement Overview

Summary

Income statement shows modest revenue growth and improved EBIT/EBITDA efficiency, but profitability remains thin and gross margin has compressed sharply. Balance sheet is mixed with lower leverage but low equity levels creating stability risk, while cash flow is a clear strength with strong free cash flow growth and solid cash conversion.

Income Statement

BSA Limited has shown a positive revenue growth rate of 1.55% in the latest year, indicating a recovery from previous declines. The gross profit margin has decreased significantly from 27.14% to 15.25%, suggesting increased cost pressures. However, the net profit margin remains low at 1.30%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved, indicating better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.23, showing reduced leverage compared to previous years. However, the return on equity is exceptionally high at 53.66%, driven by low equity levels, which could indicate financial instability. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

BSA Limited has demonstrated a significant improvement in free cash flow, with a growth rate of 676.77%. The operating cash flow to net income ratio is strong at 0.85, indicating good cash generation relative to net income. The free cash flow to net income ratio is nearly 1, showing efficient cash conversion.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	286.98M	255.46M	239.67M	244.10M	418.35M
Gross Profit	43.77M	69.34M	23.55M	5.80M	18.90M
EBITDA	30.95M	22.21M	16.25M	-38.98M	12.75M
Net Income	3.73M	10.63M	-2.96M	-42.24M	9.00K
Balance Sheet
Total Assets	46.60M	59.28M	62.52M	127.63M	125.20M
Cash, Cash Equivalents and Short-Term Investments	23.97M	1.57M	1.96M	13.44M	12.82M
Total Debt	1.57M	10.78M	9.94M	22.30M	9.22M
Total Liabilities	39.65M	57.67M	72.12M	134.72M	101.09M
Stockholders Equity	6.95M	1.60M	-9.61M	-7.09M	24.11M
Cash Flow
Free Cash Flow	30.43M	-1.60M	-20.02M	-16.06M	-11.32M
Operating Cash Flow	30.48M	-1.05M	-17.93M	-13.77M	-7.58M
Investing Cash Flow	-404.00K	-1.46M	17.72M	-2.32M	-2.34M
Financing Cash Flow	-7.67M	2.12M	-11.27M	16.71M	-15.00M

BSA Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BSA, the sentiment is Positive. The current price of 0.16 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.19, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 74.05 is Negative, neither overbought nor oversold. The STOCH value of 72.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BSA.

BSA Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVZ	65 Neutral	AU$35.84M	14.25	3.66%	―	-9.21%	-42.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VBC	63 Neutral	AU$79.60M	20.16	17.38%	0.49%	-8.28%	89.71%
BSA	61 Neutral	AU$25.23M	11.63	87.22%	―	12.34%	-66.13%
WSI	49 Neutral	AU$11.20M	-3.16	-11.81%	―	-36.40%	-192.91%
SOP	44 Neutral	AU$13.50M	-1.77	-90.66%	―	-6.10%	12.50%

BSA Limited Corporate Events

BSA Limited Profit Holds Up as Balance Sheet Strengthens Despite Revenue Slump

BSA Limited reported a sharp 84% decline in revenue and other income from ordinary activities to $23.36 million for the half-year ended 31 December 2025, while profit after tax attributable to owners fell 19% to $6.34 million, and no dividends were paid or declared. Despite the revenue contraction, EBITDA was revised upward from $4.7 million to $5.9 million following a reassessment of a previously recognised provision, and net tangible assets per ordinary share improved markedly from a negative 2.72 cents to 17.80 cents, signalling a stronger balance sheet position for shareholders.

The most recent analyst rating on (AU:BSA) stock is a Hold with a A$0.30 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Director Daniel Raihani Increases Indirect Shareholding via On-Market Trades

BSA Limited has reported a change in director Daniel Raihani’s indirect shareholding, with his beneficial interest held through 7 Enterprises Pty Ltd increasing via on-market purchases. The transaction involved the acquisition of 1,000,000 fully paid ordinary shares over 9 and 10 February 2026 for a total consideration of $205,924.85.

Following the trades, Raihani’s indirect holding rose from 13,500,000 to 14,500,000 fully paid ordinary shares, representing a further alignment of his financial stake with the company’s performance. The company confirmed the trades did not occur during a closed period requiring prior written clearance, and no related changes were disclosed in director contracts.

The most recent analyst rating on (AU:BSA) stock is a Buy with a A$0.22 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Updates Securities Trading Policy to Strengthen Governance

BSA Limited has announced that it has revised its Securities Trading Policy in accordance with ASX Listing Rule 12.10, reflecting an update to its corporate governance framework. The updated policy, authorised by the Board of Directors, will be made available in the corporate governance section of the company’s website, reinforcing BSA’s commitments to regulatory compliance and transparent securities trading practices.

The revision underscores BSA’s ongoing efforts to align its internal trading controls and governance documentation with current market and regulatory expectations. By formally updating and publishing the policy, the company signals to investors and stakeholders that it is actively managing trading conduct risks and maintaining oversight of dealings in its securities by directors, executives, and other relevant personnel.

The most recent analyst rating on (AU:BSA) stock is a Buy with a A$0.20 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Limited to Issue Up to 5.5 Million Performance Rights

BSA Limited has announced a proposed issue of up to 5.5 million performance rights (ASX code: BSAAF), to be listed on the Australian Securities Exchange. The securities are to be issued via a placement or similar mechanism, with a proposed issue date of 16 April 2026, signalling a move to expand or adjust the company’s capital structure, which may have implications for existing shareholders through potential future dilution once performance conditions are met and rights vest.

The most recent analyst rating on (AU:BSA) stock is a Buy with a A$0.18 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Board Targets Long-Term Value with Performance Rights Plan

BSA Limited has moved to deepen alignment between its board and shareholders by proposing the issue of 5.5 million performance rights to its directors for no cash consideration, subject to shareholder approval. The rights, allocated across three tranches to directors Daniel Raihani, Piers Lewis and Nick Yates, will convert into ordinary shares only if the company’s 20-day volume-weighted average price reaches specified hurdles of $0.23, $0.27 and $0.31 over two- to three-year periods. The structure is designed to incentivise long-term share price appreciation and value creation, with a general meeting to be convened for investors to vote on the package, highlighting governance and remuneration settings that directly tie director rewards to market performance.

The most recent analyst rating on (AU:BSA) stock is a Buy with a A$0.18 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Limited Announces Departure of Director Paul Heick With No Related Security Interests

BSA Limited has announced that director Paul Heick ceased to be a director of the company effective 26 January 2026, as disclosed under ASX listing rule 3.19A.3 and the Corporations Act. The filing confirms that Heick held no relevant interests in BSA securities as a registered or non-registered holder and had no interests in any related contracts at the time of his departure, indicating no immediate shareholding or contractual implications for existing shareholders arising from this board change.

The most recent analyst rating on (AU:BSA) stock is a Buy with a A$0.18 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Limited Announces Departure of Director Warwick Sauer

BSA Limited has announced that director Warwick Sauer has ceased to be a director of the company as of 26 January 2026. In his final director’s interest notice to the ASX, Sauer disclosed that he holds 466 ordinary shares in BSA and has no additional relevant interests in securities or contracts linked to the company, indicating a straightforward exit with limited equity exposure and no disclosed contractual ties that might affect future governance or shareholder interests.

The most recent analyst rating on (AU:BSA) stock is a Buy with a A$0.18 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Delivers Profit and Strong Margins Amid Sharp Revenue Decline After Contract Losses

BSA Limited reported second-quarter FY2026 revenue of $5.3 million and EBITDA of $0.9 million, translating to a 16.4% EBITDA margin, as the company completed a major restructuring that reduced headcount from about 150 to 40 and sharpened its focus on select customers and service lines including Foxtel, wireless projects and electrical services such as smart meter installations. While profit of $0.9 million in the quarter marks a recovery after the loss of key contracts with NBN, Bluecurrent and Intellihub and an 85% year-on-year revenue decline to $22.8 million year-to-date, management highlights healthy margins driven by cost control, breakeven operating cash flow (excluding restructuring costs) and a net cash position of $17.1 million, but cautions there is still a risk of losses in the second half even as it pursues new growth opportunities and seeks to stabilise activity in its remaining contracts and project pipeline.

The most recent analyst rating on (AU:BSA) stock is a Buy with a A$0.18 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Limited Appoints New Director Piers Lewis and Discloses Indirect Shareholding

BSA Limited has appointed Piers Lewis as a director effective 23 January 2026. An initial director’s interest notice lodged with the ASX shows Lewis holds no BSA shares directly, but has an indirect interest in 122,636 ordinary shares through Cranley Consulting Pty Ltd, providing investors with transparency over his equity exposure as he joins the board.

The most recent analyst rating on (AU:BSA) stock is a Buy with a A$0.18 price target. To see the full list of analyst forecasts on BSA Limited stock, see the AU:BSA Stock Forecast page.

BSA Limited Launches Cost-Effective Share Sale Facility for Small Shareholders

BSA Limited has introduced a share sale facility aimed at reducing administrative costs associated with maintaining small shareholdings, defined as those with a market value under $500. This initiative allows shareholders with ‘Less than Marketable Parcels’ to sell their shares without incurring brokerage fees, thereby offering a cost-effective solution for disposing of small shareholdings. The company will manage the sale process and cover associated costs, excluding tax implications for shareholders. This move is expected to streamline operations and potentially enhance shareholder value by reducing overhead costs.

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