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Bubs Australia Ltd. (AU:BUB)
ASX:BUB
Australian Market
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Bubs Australia Ltd. (BUB) AI Stock Analysis

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AU:BUB

Bubs Australia Ltd.

(Sydney:BUB)

Rating:48Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall stock score is primarily influenced by weak financial performance due to ongoing losses and cash flow challenges. Technical analysis provides some positive signals with strong upward momentum, but overbought conditions pose a risk. Valuation metrics are unfavorable with a negative P/E ratio and no dividend yield.

Bubs Australia Ltd. (BUB) vs. iShares MSCI Australia ETF (EWA)

Bubs Australia Ltd. Business Overview & Revenue Model

Company DescriptionBubs Australia Limited, together with its subsidiaries, engages in the production and sale of various infant nutrition products in Australia, China, and internationally. The company offers organic baby food, goat milk, organic cow's milk infant and supreme formula, adult goat milk powder, and fresh dairy products, as well as pouches, cereals and porridges, rusks, and snacks under the Bubs brand name. It also provides children's vitamin and mineral supplement products under the Vita Bubs name; canning services for nutritional dairy products; and holds IP and trademarks. The company was incorporated in 1993 and is based in Frenchs Forest, Australia.
How the Company Makes MoneyBubs Australia Ltd. generates revenue primarily through the sale of its infant nutrition products, which are distributed both domestically within Australia and internationally. The company's key revenue streams include the sale of goat milk infant formula, which is a significant contributor to its earnings due to the growing demand for alternative dairy sources in infant nutrition. Additionally, Bubs Australia's organic baby food products provide a revenue stream that caters to health-conscious parents seeking organic and natural food options for their children. The company also benefits from strategic partnerships and distribution agreements that expand its market reach, including agreements with major retailers and e-commerce platforms. These partnerships are crucial in enhancing the company's sales channels and increasing its brand visibility across different markets.

Bubs Australia Ltd. Financial Statement Overview

Summary
Bubs Australia Ltd. displays a mixed financial performance with some revenue growth but persistent losses and cash flow challenges. The low leverage is a positive, but the focus needs to be on enhancing profitability and cash generation.
Income Statement
45
Neutral
Bubs Australia Ltd. shows fluctuating revenue figures with a notable increase in the latest year. However, the company consistently reports negative EBIT and net income, indicating ongoing operational challenges. The gross profit margin has improved significantly, but net profit margins remain negative, reflecting profitability issues.
Balance Sheet
40
Negative
The company's debt-to-equity ratio is relatively low, suggesting limited leverage. However, the return on equity is negative due to persistent losses, and the equity ratio indicates a moderate proportion of equity financing. The balance sheet overall shows a stable asset base but needs improvement in profitability and equity returns.
Cash Flow
38
Negative
Cash flows are negative, with the operating and free cash flow being significantly negative, indicating cash burn. There is a slight improvement in free cash flow growth, but the company faces challenges in generating positive operating cash flow. The cash flow to net income ratios are not favorable, reflecting poor cash conversion from operations.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue79.70M60.11M89.30M39.31M54.64M
Gross Profit38.70M-11.68M26.21M-10.68M6.64M
EBITDA-19.42M-104.29M-7.82M-73.04M-11.14M
Net Income-20.99M-108.35M-11.38M-74.74M-7.77M
Balance Sheet
Total Assets66.75M65.60M125.94M105.92M161.51M
Cash, Cash Equivalents and Short-Term Investments17.52M26.05M16.31M27.88M26.03M
Total Debt7.00M4.41M4.92M4.16M4.59M
Total Liabilities29.88M23.92M37.73M18.90M29.61M
Stockholders Equity36.87M41.68M88.21M87.02M131.90M
Cash Flow
Free Cash Flow-26.52M-46.74M-9.93M-23.24M-22.14M
Operating Cash Flow-26.33M-46.49M-9.37M-22.63M-21.92M
Investing Cash Flow-189.82K-4.25M-1.56M-5.60M-8.70M
Financing Cash Flow17.99M60.48M-643.21K30.09M33.35M

Bubs Australia Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.16
Positive
100DMA
0.14
Positive
200DMA
0.13
Positive
Market Momentum
MACD
<0.01
Positive
RSI
57.79
Neutral
STOCH
77.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BUB, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.16, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BUB.

Bubs Australia Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$96.86M21.406.80%2.59%15.48%135.65%
65
Neutral
$26.91B15.40-4.43%2.85%1.05%4.97%
49
Neutral
AU$22.00M-47.74%43.14%51.35%
48
Neutral
AU$151.83M-21.85%30.54%88.42%
42
Neutral
AU$34.64M
4.22%-199.40%
€17.45M-23.00%
47
Neutral
AU$22.31M-33.40%-13.09%-139.06%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BUB
Bubs Australia Ltd.
0.18
0.06
50.00%
AU:NOU
Noumi Limited
0.13
0.01
8.33%
DE:F9H
Australian Dairy Nutritionals Group
0.02
0.01
100.00%
AU:NUC
Nuchev Pty Ltd
0.16
-0.02
-11.11%
AU:CLV
Clover Corporation Limited
0.58
0.11
23.40%
AU:MBH
Maggie Beer Holdings Ltd.
0.06
0.00
0.00%

Bubs Australia Ltd. Corporate Events

Bubs Australia Appoints Joe Coote as CEO to Drive Global Expansion
Jul 28, 2025

Bubs Australia Ltd. has appointed Joe Coote as its new Chief Executive Officer, effective immediately. Coote, with over 20 years of leadership experience in the FMCG, dairy, and infant nutrition sectors, is expected to drive the company’s domestic and international growth. His extensive expertise and global networks are anticipated to support Bubs’ strategic priorities and expansion plans, particularly as the company aims to secure permanent market access in the USA later in 2025.

The most recent analyst rating on (AU:BUB) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Bubs Australia Ltd. stock, see the AU:BUB Stock Forecast page.

Bubs Australia Reports Strong FY25 Financial Performance and Expands Market Reach
Jul 28, 2025

Bubs Australia Ltd. reported significant financial growth for the fiscal year 2025, with a 29% increase in net revenue to $102.5 million and a positive EBITDA of $5.5-$6 million, marking a turnaround from the previous year’s loss. The company also achieved positive operating cash flow and has substantial cash reserves. The US market led growth with a 52% increase in revenue, while China, Australia, and other international markets also showed strong performance. Bubs’ submission to the US FDA for its New Infant Formula is expected to enhance its market presence further.

The most recent analyst rating on (AU:BUB) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Bubs Australia Ltd. stock, see the AU:BUB Stock Forecast page.

Bubs Australia Ltd. Issues Unquoted Securities for Employee Incentive
Jul 4, 2025

Bubs Australia Ltd. announced the issuance of over 10 million unquoted securities as part of an employee incentive scheme, set to vest in June 2027. This move is likely aimed at aligning employee interests with long-term company performance, potentially impacting the company’s operational strategy and market positioning by fostering a motivated workforce.

The most recent analyst rating on (AU:BUB) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Bubs Australia Ltd. stock, see the AU:BUB Stock Forecast page.

Bubs Australia Advances Towards Permanent US Market Access with FDA Submission
Jun 15, 2025

Bubs Australia Ltd. has submitted its New Infant Formula Submission to the US FDA, marking a crucial step towards securing permanent regulatory approval in the US market. This move is part of Bubs’ strategy to solidify its position in the US, its largest market, and is expected to enhance its growth prospects. The successful completion of a large-scale clinical trial in the US underscores Bubs’ technical and operational capabilities, positioning it as a credible global manufacturer in the dairy industry.

The most recent analyst rating on (AU:BUB) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Bubs Australia Ltd. stock, see the AU:BUB Stock Forecast page.

Bubs Australia Wins $26.5 Million in Legal Dispute
Apr 29, 2025

Bubs Australia Ltd. announced a favorable outcome in a legal dispute involving its subsidiary, The Infant Food Co. Pty Limited, against Alice Trading Limited and Willis Trading Limited, subsidiaries of Alpha Professional Holdings Ltd. The Australian Centre for International Commercial Arbitration awarded Bubs a total of $26.5 million for debt, breach of contract, and damages claims. This outcome strengthens Bubs’ financial position and underscores its ability to successfully navigate complex legal challenges, potentially enhancing its standing in the industry.

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: Jun 27, 2025