Desane Group Holdings Ltd (DGH) AI Stock Analysis

• Market Cap: AU$34.77M
• Dividend Yield: N/A
• Average Volume (3M): 352.00
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.28
• Revenue Growth: 3.56%
• EPS Growth: 101.74%
• Country: AU
• Employees: 7
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.06
• Shares Outstanding: 40,909,990
• 10 Day Avg. Volume: 195
• 30 Day Avg. Volume: 352
• PEG Ratio: 0.10
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 14.59
• P/FCF Ratio: -34.72
• 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: 53 Neutral
• Price Target: AU$0.85 ▲(0.35% Upside)

The score is held back primarily by inconsistent fundamentals (persistent negative EBIT and unreliable operating/free cash flow) and bearish technical conditions (below major moving averages with negative MACD). A conservatively financed balance sheet and a modest P/E provide partial offset, but not enough to overcome cash-flow and operating-performance concerns.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to pursue growth opportunities without excessive risk.

Strategic Positioning

Strategic focus on high-demand property sectors positions the company to benefit from structural industry trends, supporting long-term growth and profitability.

Enhanced Refinancing

Enhanced refinancing terms improve financial flexibility, enabling the company to fund new projects and support growth initiatives effectively.

Negative Factors

Negative EBIT

Consistently negative EBIT indicates weak operational performance, suggesting challenges in generating profits from core business activities.

Revenue Volatility

Significant revenue fluctuations undermine predictability and stability, complicating long-term planning and investment decisions.

Inconsistent Cash Flow

Inconsistent cash flow generation raises concerns about the company's ability to sustain operations and fund growth without external financing.

Desane Group Holdings Ltd Business Overview & Revenue Model

Company Description

Desane Group Holdings Limited, engages in the property development and investment activities in Australia. The company operates through Property Development, Property Investment, Property Project Management and Resale, and Property Services segments. It is involved in the development, management, and resale of commercial, industrial, and residential properties; leasing of properties; and provision of property and related services. The company was incorporated in 1986 and is based in Pyrmont, Australia.

How the Company Makes Money

DGH generates revenue primarily through its investment and development activities in the real estate sector. Key revenue streams include rental income from property holdings, profits from property sales, and fees from property management services. The company also engages in urban renewal and development projects, which contribute to earnings through the appreciation and sale of redeveloped properties. Strategic partnerships with construction firms, architects, and urban planners play a significant role in enhancing the value and profitability of its development projects.

Desane Group Holdings Ltd Financial Statement Overview

Summary

Balance sheet strength (low leverage and growing equity) is a clear positive, but it is outweighed by weak operating quality and cash generation: EBIT has been negative across FY2021–FY2025 and operating/free cash flow has been frequently negative, including FY2025. Revenue volatility (FY2025 down 34%) also reduces confidence in earnings durability.

Income Statement

Revenue has been volatile, with a sharp decline in FY2025 (-34%) after modest growth in FY2023–FY2024. Reported net income is positive and improved in FY2025, but operating profitability looks weak and inconsistent: EBIT is negative in every year from FY2021–FY2025 (only FY2020 was positive), suggesting earnings quality is driven by non-operating items rather than core operations. Margins are erratic year-to-year, which reduces confidence in the durability of profits.

Balance Sheet

The balance sheet appears conservatively financed with low leverage: debt-to-equity sits around ~0.18–0.22 in recent years and improved in FY2025 as total debt fell. Equity has steadily increased over time, supporting asset growth and providing a cushion. Return on equity remains modest (generally low-single-digits, peaking in FY2022), indicating the company is not generating strong returns on its capital base despite the solid balance sheet.

Cash Flow

Cash generation is the key weak spot. Operating cash flow is inconsistent and frequently negative (including FY2022, FY2023, and FY2025), and free cash flow is also negative in those years, pointing to uneven cash conversion. While FY2024 showed positive operating and free cash flow, the reversal back to negative in FY2025 raises sustainability concerns and suggests profits are not reliably translating into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.33M	2.33M	2.25M	2.00M	1.80M	2.13M
Gross Profit	2.33M	2.33M	2.25M	2.00M	1.80M	2.09M
EBITDA	-984.00K	5.47M	3.21M	-862.00K	6.84M	2.76M
Net Income	3.32M	3.32M	1.64M	1.32M	4.64M	1.81M
Balance Sheet
Total Assets	104.80M	104.80M	101.65M	98.76M	97.62M	87.64M
Cash, Cash Equivalents and Short-Term Investments	5.53M	5.53M	8.57M	13.39M	13.21M	12.99M
Total Debt	12.80M	12.80M	13.90M	13.90M	13.90M	5.90M
Total Liabilities	35.11M	35.11M	35.27M	34.02M	34.20M	28.87M
Stockholders Equity	69.70M	69.70M	66.38M	64.74M	63.42M	58.78M
Cash Flow
Free Cash Flow	-968.00K	-978.00K	807.00K	-1.43M	-335.00K	109.00K
Operating Cash Flow	-968.00K	-968.00K	811.00K	-1.38M	-332.00K	120.00K
Investing Cash Flow	3.24M	3.24M	-49.00K	2.02M	-5.06M	-8.13M
Financing Cash Flow	-1.10M	-1.10M	0.00	0.00	7.10M	-1.84M

Desane Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DGH, the sentiment is Neutral. The current price of 0.85 is above the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.86, and below the 200-day MA of 0.87, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 46.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:DGH.

Desane Group Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APW	70 Outperform	AU$138.90M	2.64	27.48%	―	-52.10%	119.21%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
WOT	56 Neutral	AU$84.11M	-17.99	-2.01%	3.95%	-5.21%	-14350.00%
DGH	53 Neutral	AU$34.77M	10.48	4.87%	―	3.56%	101.74%
AOF	49 Neutral	AU$62.47M	-1.76	-23.55%	15.14%	-68.24%	42.03%
TOT	49 Neutral	AU$88.75M	67.21	1.03%	7.41%	-4.87%	―
MPX	38 Underperform	AU$19.82M	-7.58	-13.36%	―	-81.98%	-131.34%

Desane Group Holdings Ltd Corporate Events

Desane Group Holdings Announces AGM Results with Strong Shareholder Support

Desane Group Holdings Limited announced the results of its 2025 Annual General Meeting, where all resolutions were carried by a poll. The adoption of the Remuneration Report and the election of Mr. Peter Krejci as a director were both approved, reflecting strong shareholder support and potentially reinforcing the company’s strategic direction.

Desane Group Reports Strong Financial Performance Amidst Resilient Economy

Desane Group Holdings Limited has reported a strong financial performance for the fiscal year ending June 2025, with earnings before interest and tax amounting to $5.4 million and total assets reaching $104.8 million. The company’s focus on industrial, warehousing, and logistics properties has been beneficial, driven by employment trends and the upcoming Western Sydney Airport. This strategic positioning has resulted in increased demand for logistics properties, contributing to the company’s robust cash flow and asset growth. Despite inflation concerns, the Australian economy has remained resilient, supporting Desane’s profitability and future growth strategies.

Desane Group Holdings Ltd Announces Dividend Distribution

Desane Group Holdings Ltd has announced a dividend distribution of AUD 0.02 per share, with the ex-date set for December 2, 2025, and the payment date on December 17, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may enhance its attractiveness in the investment community.

Desane Group Declares Special Dividend Post-Property Sale

Desane Group Holdings Limited has announced a special partially franked dividend of 2 cents per share, following the sale of its property at 13 Sirius Road, Lane Cove. This dividend, totaling approximately $818,199.80, will be recorded on 3 December 2025 and paid on 17 December 2025, reflecting the company’s strategy to reward shareholders and enhance shareholder value.

Desane Group Secures Enhanced Refinancing with NAB

Desane Group Holdings Limited has successfully refinanced its corporate debt facilities with the National Australia Bank, increasing its funding capacity to $18.8 million. This refinancing, which includes improved terms and increased property valuations, will support Desane’s upcoming industrial project in Penrith, enhancing its financial flexibility and growth potential.

Desane Completes Sale of Lane Cove Property for $8.7 Million

Desane Properties Pty Ltd, a subsidiary of Desane Group Holdings Limited, has completed the sale of its commercial property at 13 Sirius Road, Lane Cove, NSW, for $8.7 million. The early settlement of this sale allows Desane to pursue future acquisitions and projects that align with its investment strategy, marking the end of over two decades of ownership of the asset.