Bubs Australia Ltd. (BUB) AI Stock Analysis

• Market Cap: AU$151.83M
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: 30.54%
• EPS Growth: 88.42%
• Country: AU
• Employees: 87
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): <0.01
• Shares Outstanding: 893,130,070
• 10 Day Avg. Volume: 1,063,125
• 30 Day Avg. Volume: 1,913,305
• PEG Ratio: -0.33
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.31
• 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: AU$0.19
• Price Target Upside: 5.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• 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. Business Overview & Revenue Model

Company Description

Bubs 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 Money

Bubs 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	79.70M	60.11M	89.30M	39.31M	54.64M
Gross Profit	38.70M	-11.68M	26.21M	-10.68M	6.64M
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 Assets	66.75M	65.60M	125.94M	105.92M	161.51M
Cash, Cash Equivalents and Short-Term Investments	17.52M	26.05M	16.31M	27.88M	26.03M
Total Debt	7.00M	4.41M	4.92M	4.16M	4.59M
Total Liabilities	29.88M	23.92M	37.73M	18.90M	29.61M
Stockholders Equity	36.87M	41.68M	88.21M	87.02M	131.90M
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 Flow	17.99M	60.48M	-643.21K	30.09M	33.35M

Bubs Australia Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLV	69 Neutral	AU$96.86M	21.40	6.80%	2.59%	15.48%	135.65%
Sector *	65 Neutral	$26.91B	15.40	-4.43%	2.85%	1.05%	4.97%
NUC	49 Neutral	AU$22.00M	―	-47.74%	―	43.14%	51.35%
BUB	48 Neutral	AU$151.83M	―	-21.85%	―	30.54%	88.42%
NOU	42 Neutral	AU$34.64M	―		―	4.22%	-199.40%
F9H	―	€17.45M	―	-23.00%	―	―	―
MBH	47 Neutral	AU$22.31M	―	-33.40%	―	-13.09%	-139.06%

Bubs Australia Ltd. Corporate Events

Bubs Australia Appoints Joe Coote as CEO to Drive Global Expansion

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

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

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

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

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.