FOS Capital Ltd (FOS) AI Stock Analysis

• Market Cap: AU$14.78M
• Dividend Yield: 4%
• Average Volume (3M): 19.94K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.12
• Revenue Growth: 3.94%
• EPS Growth: 45.76%
• Country: AU
• Employees: 75
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 68,734,474
• 10 Day Avg. Volume: 29,219
• 30 Day Avg. Volume: 19,939
• PEG Ratio: 0.40
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 7.58
• 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: 68 Neutral
• Price Target: AU$0.23 ▼(-8.40% Downside)

The score is driven primarily by strong financial performance (rapid revenue growth, improving margins, and a solid balance sheet), partially offset by very weak technical signals (below all major moving averages, negative MACD, extremely low RSI). Valuation is supportive with a moderate P/E and a healthy dividend yield.

Positive Factors

Revenue Growth

Significant revenue growth indicates successful investment strategies and market expansion, enhancing long-term business sustainability.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment capacity, crucial for sustaining growth and managing debt.

Operational Efficiency

Improved margins reflect efficient operations, enhancing profitability and competitive positioning in the long term.

Negative Factors

Net Profit Margin

Despite improvements, the relatively low net profit margin suggests limited profitability, which could hinder reinvestment and growth.

Cash Flow Management

Inconsistent cash flow management could impact liquidity and financial stability, necessitating careful oversight to ensure ongoing operations.

Debt Monitoring

While current debt levels are manageable, vigilant monitoring is essential to prevent financial strain and ensure long-term stability.

FOS Capital Ltd Business Overview & Revenue Model

Company Description

FOS Capital Ltd, through its subsidiaries, manufactures and distributes commercial luminaires, outdoor fittings, linear extruded lighting, and architectural lighting solutions in Australia and New Zealand. Its brand portfolio includes JSB Lighting, FORMA Lighting, VEKTA PROFILES, FREND Lighting, MEGABAY, and LIGHTING YOUNGKONG. The company was incorporated in 2019 and is based in Richmond, Australia. FOS Capital Limited is a subsidiary of SKM Investment Group Pty Ltd.

How the Company Makes Money

FOS Capital Ltd generates revenue primarily through capital appreciation and management fees associated with its investment funds. The company earns a percentage of the profits from successful exits of its portfolio companies, including initial public offerings (IPOs) and mergers and acquisitions (M&A). Additionally, FOS charges management fees based on the assets under management (AUM) in its venture capital and private equity funds. Strategic partnerships with other investment firms and industry experts also bolster its investment strategy, allowing FOS to access exclusive deals and enhance its portfolio's performance, contributing to its overall earnings.

FOS Capital Ltd Financial Statement Overview

Summary

Strong income statement performance with 74.3% revenue growth and improved gross/EBIT/EBITDA margins, but net margin remains low at 3.7%. Balance sheet is solid (debt-to-equity 0.48, equity ratio 55%) with stable ROE (6.6%). Cash flow improved (free cash flow +42.4%) but prior negative operating cash flow and modest OCF-to-net-income (0.32) temper the score.

Income Statement

FOS Capital Ltd has demonstrated strong revenue growth, with a 74.3% increase in the latest year. Gross profit margin improved to 44.2%, indicating effective cost management. The net profit margin increased to 3.7%, showing enhanced profitability. EBIT and EBITDA margins also improved, reflecting operational efficiency. However, the net profit margin remains relatively low, suggesting room for further profitability improvements.

Balance Sheet

The company's debt-to-equity ratio decreased to 0.48, indicating a balanced approach to leveraging. Return on equity is stable at 6.6%, reflecting consistent shareholder returns. The equity ratio stands at 55%, showing a strong equity base relative to total assets. While the balance sheet is solid, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

FOS Capital Ltd achieved a 42.4% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.32, and the free cash flow to net income ratio is 0.99, suggesting efficient cash conversion. However, the company experienced negative operating cash flow in previous years, highlighting the need for consistent cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.49M	25.49M	24.53M	17.12M	13.51M	8.16M
Gross Profit	11.28M	11.28M	9.15M	5.79M	5.72M	3.28M
EBITDA	1.96M	3.44M	2.46M	1.58M	1.29M	1.46M
Net Income	932.65K	932.65K	632.16K	583.94K	348.94K	742.11K
Balance Sheet
Total Assets	25.67M	25.67M	21.78M	13.62M	11.79M	10.98M
Cash, Cash Equivalents and Short-Term Investments	2.50M	2.50M	1.68M	1.41M	1.89M	2.97M
Total Debt	6.72M	6.72M	5.20M	1.09M	1.46M	1.31M
Total Liabilities	11.55M	11.55M	11.87M	4.34M	4.25M	4.06M
Stockholders Equity	14.12M	14.12M	9.91M	9.29M	7.54M	6.92M
Cash Flow
Free Cash Flow	2.29M	2.29M	949.96K	-347.76K	609.17K	-902.38K
Operating Cash Flow	2.30M	2.30M	1.01M	-115.56K	704.63K	-902.38K
Investing Cash Flow	-4.32M	-4.32M	-2.33M	-830.45K	-849.76K	1.20M
Financing Cash Flow	2.81M	2.81M	1.59M	441.96K	-831.95K	2.02M

FOS Capital Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.25
• 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:FOS, the sentiment is Neutral. The current price of 0.25 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.24, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:FOS.

FOS Capital Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOS	68 Neutral	AU$14.78M	12.50	7.76%	4.00%	3.94%	45.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RFT	43 Neutral	AU$5.53M	-16.67	-4.55%	―	-39.95%	-220.00%
H2G	42 Neutral	AU$5.56M	-5.56	-35.32%	―	―	47.06%
EGY	38 Underperform	AU$10.00M	-0.80	―	―	-37.44%	10.36%

FOS Capital Ltd Corporate Events

FOS Capital Targets Cost Savings and Acquisition Synergies Amid Softer 1H26 Trading

FOS Capital has reported softer trading for the first half of FY26, with expected sales of $12–12.2 million and EBITDA of $600,000–$700,000, down on the prior corresponding period, though modestly ahead of the second half of FY25. Despite longer lead times to secure orders, management anticipates a half-on-half sales improvement in the second half supported by a $9 million order book, $110 million quote pipeline and contributions from recent acquisitions, while a program of headcount reductions and import replacement is forecast to deliver $1.5 million in annualised cost savings and gross profit improvements from the third quarter of FY26. The turnaround of the Aldridge Traffic Systems business, acquired in June 2025, is progressing with a dedicated team now in place, $1 million of sales and orders secured, $5.5 million in active quotes, $0.7 million generated from non-core asset sales and profitability targeted by June 2026. Meanwhile, the integration of Glowing Structures, acquired in May 2025, has broadened FOS Capital’s lighting services capability and generated $2 million in orders and specifications since acquisition that are expected to support second-half sales, enhancing the group’s ability to convert design specifications into product revenue.

The most recent analyst rating on (AU:FOS) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on FOS Capital Ltd stock, see the AU:FOS Stock Forecast page.

FOS Capital Ltd Director Increases Shareholding

FOS Capital Ltd has announced a change in the director’s interest, specifically concerning Mr. Constantin Scrinis. Mr. Scrinis, who holds indirect interests through Boom Capital Pty Ltd and SKM Investment Group Pty Ltd, has increased his holdings by acquiring additional shares on the market. This acquisition reflects a strategic move by the director, potentially signaling confidence in the company’s future performance and stability, which could have implications for stakeholders and market perception.

The most recent analyst rating on (AU:FOS) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on FOS Capital Ltd stock, see the AU:FOS Stock Forecast page.

FOS Capital Announces Change of Auditor to Support Growth Strategy

FOS Capital Limited has announced a change in its auditing firm, with William Buck Audit resigning and Connect National Audit Pty Ltd being appointed as the new auditor, pending shareholder approval. This change is part of the company’s ongoing efforts to enhance its operational framework as it continues to pursue growth in a fragmented market, aiming for a significant increase in market share.

The most recent analyst rating on (AU:FOS) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on FOS Capital Ltd stock, see the AU:FOS Stock Forecast page.

FOS Capital Director Increases Shareholding

FOS Capital Ltd announced a change in the director’s interest, specifically regarding Mr. Alexander Beard’s acquisition of 150,000 ordinary shares through an on-market purchase. This change increases his total holdings to 480,000 shares. The transaction, valued at $39,924.90, reflects a significant increase in Mr. Beard’s investment in the company, potentially indicating confidence in the company’s future prospects.

The most recent analyst rating on (AU:FOS) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on FOS Capital Ltd stock, see the AU:FOS Stock Forecast page.