Gale Pacific Limited (GAP) AI Stock Analysis

• Market Cap: AU$27.04M
• Dividend Yield: N/A
• Average Volume (3M): 76.62K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -1.14%
• EPS Growth: -1037.50%
• Country: AU
• Employees: 550
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.01
• Shares Outstanding: 284,637,630
• 10 Day Avg. Volume: 60,395
• 30 Day Avg. Volume: 76,620
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -8.49
• 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: 48 Neutral
• Price Target: AU$0.09 ▼(-6.00% Downside)

Gale Pacific Limited's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and weak cash flow. Technical analysis suggests a mild upward trend, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the score.

Positive Factors

Cash Flow Strength

Strong cash flow performance indicates operational efficiency and provides financial flexibility for investments and debt management.

Balance Sheet Stability

Improved debt management and stable equity ratio enhance financial stability, reducing risk and supporting long-term growth.

Gross Profit Margin Improvement

Higher gross profit margins reflect effective cost management, which can support profitability and competitive pricing strategies.

Negative Factors

Revenue Decline

Declining revenues indicate potential market challenges or competitive pressures, which could impact long-term growth prospects.

Negative Net Income

Negative net income reflects profitability issues that may hinder reinvestment capabilities and shareholder returns.

US Market Challenges

US market challenges from tariffs and consumer demand issues could affect revenue and profitability, necessitating strategic adjustments.

Gale Pacific Limited Business Overview & Revenue Model

Company Description

Gale Pacific Limited, together with its subsidiaries, manufactures, markets, and distributes screening, architectural shading, and commercial agricultural/horticultural fabric products for domestic, commercial, and industrial applications. It offers fabrics for agricultural, architectural, industrial, horticultural, mining, and construction applications under the GALE Pacific brand; face masks under the GALE GUARD brand; and window furnishings, such as a range of venetian and roller blinds, as well as curtain accessories for hanging curtains under the Zone Interiors brand. The company also provides a range of outdoor leisure and garden products for home and garden, including gazebos, umbrellas and shade sails, synthetic grass, weed mat, bird nets, and screenings for protection under the Coolaroo brand. It markets its products to consumer and industrial markets, including the retail and home furnishing, architectural, construction, and agribusiness markets in Australia, New Zealand, China, Australasia, the Americas, the Middle East, North Africa, and internationally. The company was founded in 1951 and is based in Braeside, Australia.

How the Company Makes Money

Gale Pacific Limited generates revenue primarily through the sale of its outdoor shade and shelter products. The company's revenue model is built on manufacturing and distributing a wide range of products that appeal to both commercial and residential customers. Key revenue streams include direct sales to retailers, partnerships with construction firms, and contracts for large-scale projects in the outdoor and landscaping sectors. Additionally, GAP benefits from strategic partnerships with suppliers and distributors that enhance its market reach and operational efficiency. The company also focuses on innovation in product development, which allows it to command premium pricing and meet the evolving needs of its customers, thereby contributing to its overall earnings.

Gale Pacific Limited Financial Statement Overview

Summary

Gale Pacific Limited faces significant financial challenges, particularly in terms of profitability and cash flow generation. Despite a strong gross profit margin, the company struggles with negative net and EBIT margins, declining revenue, and weak cash flow performance.

Income Statement

Gale Pacific Limited has experienced declining revenue over the past few years, with a significant drop in the latest year. The gross profit margin is relatively strong at 54%, but the company is struggling with profitability, as indicated by negative net and EBIT margins. The revenue growth rate is negative, highlighting a challenging market environment.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.62, suggesting a balanced approach to leverage. However, the return on equity is negative, indicating inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the balance sheet shows a stable asset base.

Cash Flow

Cash flow performance is weak, with negative free cash flow growth and a low operating cash flow to net income ratio. The free cash flow to net income ratio is also negative, reflecting challenges in converting earnings into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	171.99M	171.99M	173.98M	187.56M	205.54M	205.22M
Gross Profit	90.60M	92.93M	30.74M	29.56M	31.21M	104.28M
EBITDA	3.98M	10.37M	13.23M	19.54M	22.03M	27.43M
Net Income	-5.18M	-5.18M	-332.00K	3.70M	7.62M	12.33M
Balance Sheet
Total Assets	175.64M	175.64M	186.59M	197.73M	210.24M	188.41M
Cash, Cash Equivalents and Short-Term Investments	18.60M	18.60M	29.17M	23.64M	28.46M	30.41M
Total Debt	56.25M	56.25M	56.08M	71.26M	62.78M	51.28M
Total Liabilities	85.52M	85.52M	91.29M	102.85M	112.26M	95.49M
Stockholders Equity	90.13M	90.13M	95.30M	94.88M	97.98M	92.92M
Cash Flow
Free Cash Flow	-1.78M	-3.08M	20.43M	-1.15M	1.87M	31.28M
Operating Cash Flow	75.00K	75.00K	26.66M	8.37M	6.72M	35.13M
Investing Cash Flow	-3.10M	-3.10M	-6.11M	-9.51M	-4.73M	-3.76M
Financing Cash Flow	-7.76M	-7.76M	-15.04M	-4.46M	-6.16M	-26.60M

Gale Pacific Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GAP, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 171.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GAP.

Gale Pacific Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GLB	60 Neutral	AU$104.82M	11.38	12.77%	7.43%	-7.21%	-14.55%
MBH	54 Neutral	AU$38.98M	-1.65	-31.14%	―	-15.07%	29.45%
GAP	48 Neutral	AU$27.04M	-5.22	-5.59%	―	-1.14%	-1037.50%
AKG	48 Neutral	AU$14.59M	-11.46	-7.51%	―	1.42%	86.97%
GLE	44 Neutral	AU$8.52M	-3.95	-2.78%	―	-4.48%	61.66%

Gale Pacific Limited Corporate Events

Gale Pacific Limited Reports Positive Outcomes from 2025 AGM

Gale Pacific Limited announced the results of its 2025 Annual General Meeting, with all resolutions carried on a poll. The meeting outcomes, including details of the resolutions and voting results, reflect strong shareholder support and are expected to positively influence the company’s governance and strategic initiatives.

Gale Pacific Limited Updates on Financial Performance and Strategic Initiatives

Gale Pacific Limited has provided an update on its financial performance and strategic initiatives. The company reported its FY25 results and offered a Q1FY26 trading update, indicating a focus on refining its strategy and refreshing its brand and website. These efforts are part of Gale Pacific’s key priorities and outlook, which aim to enhance its market positioning and operational efficiency.

Gale Pacific Limited Faces Challenges Amid Tariff Disruptions, Implements Strategic Restructuring

Gale Pacific Limited faced a challenging fiscal year 2025, with financial results falling short of expectations due to disruptions in the Americas region caused by new international tariff arrangements. The company reported an EBITDA of $12.0 million, with normalized figures at $19.5 million. In response to these challenges, Gale Pacific has restructured its US operations to enhance competitiveness and is diversifying its supply chain to reduce reliance on China-produced products. The company remains committed to long-term growth and shareholder value, focusing on cost management and supply chain resilience.

Gale Pacific Limited Announces 2025 Annual General Meeting

Gale Pacific Limited has announced its 2025 Annual General Meeting (AGM) scheduled for November 28, 2025, at 10:00 am AEDT. The meeting will be conducted in a hybrid format, allowing both in-person attendance at The Westin Melbourne and virtual participation. Key agenda items include the consideration of financial reports and the adoption of the Remuneration Report, which, while non-binding, reflects the company’s commitment to transparency and governance. This AGM offers stakeholders an opportunity to engage with the company’s financial and strategic direction, reinforcing Gale Pacific’s dedication to stakeholder involvement and corporate responsibility.

Gale Pacific Sees Stabilized Trading and Strategic Restructuring in Q1 FY26

Gale Pacific Limited reported a stabilization in trading conditions for the first quarter of FY26, with notable growth in Australia’s commercial sales of grain fabric and a restructuring of its U.S. operating model expected to save $3.1 million in cash expenditure for FY26. Despite a 4.5% decline in overall group sales due to earlier inventory sell-in, the company is actively exploring diversification of its manufacturing footprint, including a successful trial in Vietnam, to enhance long-term shareholder benefits.

Gale Pacific Schedules 2025 AGM and Director Nominations Deadline

Gale Pacific Limited has announced that its Annual General Meeting (AGM) will take place on November 28, 2025, during which the re-election and appointment of directors will be addressed. The deadline for director nominations is set for October 13, 2025. This announcement is crucial for stakeholders as it outlines the timeline for potential changes in the company’s leadership, which could impact its strategic direction and governance.

Gale Pacific to Present at Coffee Microcaps Conference

Gale Pacific Limited announced its participation in the Coffee Microcaps Conference, an online investor event where CEO Troy Mortleman will present and engage in a Q&A session. This briefing is an opportunity for the company to showcase its strategic initiatives to investors, potentially enhancing its market visibility and stakeholder engagement.

Gale Pacific to Begin Quarterly Reporting

Gale Pacific Limited has announced that it will begin lodging quarterly cash flow and activity reports in compliance with ASX Listing Rule 4.7B. This move is expected to enhance transparency and provide stakeholders with timely updates on the company’s financial and operational activities, potentially impacting its market positioning and stakeholder confidence.