Bubs Australia Ltd. (BUB) AI Stock Analysis

• Market Cap: AU$125.04M
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: 30.54%
• EPS Growth: 88.42%
• Country: AU
• Employees: 87
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): -0.01
• Shares Outstanding: 893,130,070
• 10 Day Avg. Volume: 2,228,386
• 30 Day Avg. Volume: 1,559,572
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.85
• 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$0.17
• Price Target Upside: 21.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Bubs Australia Ltd.'s stock score is primarily impacted by financial performance challenges, including consistent losses and cash flow issues, despite revenue growth. Technical analysis shows positive trends, contributing to a moderate score. Valuation remains unattractive due to negative profitability metrics.

Bubs Australia Ltd. Business Overview & Revenue Model

Company Description

Bubs Australia Ltd. (BUB) is an Australian company primarily engaged in the production and distribution of premium infant nutrition products. The company specializes in goat milk infant formula, organic baby food, and other nutritional products tailored for infants and toddlers. Bubs Australia operates within the consumer goods sector, focusing on offering high-quality, organic, and health-conscious options to meet the dietary needs of young children.

How the Company Makes Money

Bubs Australia Ltd. generates revenue through the sale of its infant nutrition products, with a strong focus on goat milk infant formula and organic baby food. The company's key revenue streams include retail sales through supermarkets, pharmacies, and online platforms both domestically and in international markets, particularly in Asia. Bubs Australia has established significant partnerships and distribution agreements to expand its market presence. The company's earnings are also bolstered by its emphasis on premium, organic products, positioning itself as a trusted brand among health-conscious parents seeking high-quality nutrition for their children.

Bubs Australia Ltd. Financial Statement Overview

Summary

Bubs Australia Ltd. shows some revenue growth but suffers from consistent losses and considerable cash flow challenges. Profitability and cash generation need improvement, despite a low leverage balance sheet.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
88.82M	79.70M	60.11M	89.30M	39.31M	54.64M
	Gross Profit
43.91M	38.70M	-11.68M	26.21M	-10.68M	6.64M
	EBIT
-20.44M	-20.58M	-70.29M	-10.53M	-31.71M	-15.14M
	EBITDA
-15.07M	-19.42M	-104.29M	-7.82M	-73.04M	-11.14M
	Net Income Common Stockholders
-9.76M	-20.99M	-108.35M	-11.38M	-74.74M	-7.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.24M	17.52M	26.05M	16.31M	27.88M	26.03M
	Total Assets
69.59M	66.75M	65.60M	125.94M	105.92M	161.51M
	Total Debt
6.35M	7.00M	4.41M	4.92M	4.16M	4.59M
	Net Debt
-10.89M	-10.53M	-21.65M	-11.39M	-23.72M	-21.44M
	Total Liabilities
30.90M	29.88M	23.92M	37.73M	18.90M	29.61M
	Stockholders Equity
38.69M	36.87M	41.68M	88.21M	87.02M	131.90M
Cash Flow		Free Cash Flow
-14.73M	-26.52M	-46.74M	-9.93M	-23.24M	-22.14M
	Operating Cash Flow
-14.58M	-26.33M	-46.49M	-9.37M	-22.63M	-21.92M
	Investing Cash Flow
-169.76K	-189.82K	-4.25M	-1.56M	-5.60M	-8.70M
	Financing Cash Flow
4.08M	17.99M	60.48M	-643.21K	30.09M	33.35M

Bubs Australia Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 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:BUB, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.95 is Negative, neither overbought nor oversold. The STOCH value of 75.00 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
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
BGA	65 Neutral	AU$1.71B	50.00	3.35%	2.14%	4.28%	―
BUB	51 Neutral	AU$125.04M	―	-21.85%	―	30.54%	88.42%

Bubs Australia Ltd. Corporate Events

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.

Bubs Australia Reports Strong Q3 FY25 Performance with Positive Cash Flow

Bubs Australia Limited reported a positive operating cash flow for the second consecutive quarter, with a notable improvement in financial performance for Q3 FY25. The company achieved a group net revenue of $23.2 million, a 52.6% increase from the previous corresponding period, and a significant reduction in EBITDA loss. Bubs is making progress in the USA market, with strong sales growth on platforms like Amazon and in physical stores, partly due to competitors’ supply shortages. The company is also advancing its clinical trials in the USA, aiming for FDA approval later in the year, which could further enhance its market positioning.

Bubs Australia Director Increases Shareholding

Bubs Australia Ltd. announced a change in the indirect interest of its director, Paul Jensen, who acquired an additional 40,000 ordinary shares, bringing his total to 500,000 shares. This transaction, conducted through an on-market purchase, reflects a strategic move that could potentially impact the company’s stock market perception and investor confidence.