Gale Pacific Limited (GAP) AI Stock Analysis

• Market Cap: AU$25.05M
• Dividend Yield: N/A
• Average Volume (3M): 213.23K
• Price to Earnings (P/E): 8.0
• Beta (1Y): -0.08
• Revenue Growth: 9.13%
• EPS Growth: N/A
• Country: AU
• Employees: 550
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Apparel - Manufacturers
• EPS (TTM): >-0.01
• Shares Outstanding: 284,637,630
• 10 Day Avg. Volume: 319,455
• 30 Day Avg. Volume: 213,233
• PEG Ratio: -2.35
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.25
• 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

• Rating: 55 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall stock score is primarily influenced by financial performance, highlighting strong cash flow and a stable balance sheet despite revenue challenges and negative net income. The technical analysis suggests bearish momentum, and valuation considerations indicate reasonable pricing but lack of dividend appeal.

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 advanced polymer fabrics and shade solutions. The company's key revenue streams include wholesale distribution to retailers, online sales, and direct sales to commercial and industrial clients. Gale Pacific also benefits from strategic partnerships and collaborations with other businesses in the construction, agriculture, and home improvement industries. The company leverages its established brand reputation and innovative product offerings to maintain a competitive edge in the market. Additionally, Gale Pacific may engage in licensing agreements and international sales, contributing to its earnings. The global demand for sustainable and energy-efficient shading solutions further supports the company's revenue growth.

Gale Pacific Limited Financial Statement Overview

Summary

Gale Pacific Limited exhibits a mixed financial picture. Despite declining revenues and a negative net income, the company demonstrates strong cash flows and a stable balance sheet with manageable leverage.

Income Statement

Gale Pacific Limited faced challenges with declining revenues over recent years, dropping from $205.5M in 2022 to $174M in 2024. The gross profit margin increased to 54.3% in 2024, indicating cost management improvements, but net income turned negative at -$332K, reflecting profitability issues. The EBIT and EBITDA margins also showed a downward trend, with 2024 figures at 0.8% and 7.6% respectively, down from previous years.

Balance Sheet

The company's debt-to-equity ratio improved to 0.59 in 2024, showing reduced leverage compared to previous years. Stockholders' equity remained stable, contributing to an equity ratio of 51.1%. While the return on equity turned negative due to net losses, the balance sheet shows moderate financial stability with manageable debt levels.

Cash Flow

Gale Pacific Limited demonstrated strong cash flow performance with a significant free cash flow improvement to $20.4M in 2024 from negative levels in 2023. The operating cash flow to net income ratio was robust, though the free cash flow to net income ratio was affected by negative net income, reflecting operational cash strength despite profitability challenges.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	187.35M	173.98M	187.56M	205.54M	205.22M	156.34M
Gross Profit	102.58M	94.45M	95.44M	95.91M	104.28M	22.20M
EBITDA	10.49M	13.23M	19.54M	22.03M	27.43M	17.86M
Net Income	3.12M	-332.00K	3.70M	7.62M	12.33M	3.72M
Balance Sheet
Total Assets	194.36M	186.59M	197.73M	210.24M	188.41M	191.69M
Cash, Cash Equivalents and Short-Term Investments	23.43M	29.17M	23.64M	28.46M	30.41M	27.81M
Total Debt	54.49M	56.08M	71.26M	62.78M	51.28M	66.27M
Total Liabilities	95.39M	91.29M	102.85M	112.26M	95.49M	103.32M
Stockholders Equity	98.97M	95.30M	94.88M	97.98M	92.92M	88.37M
Cash Flow
Free Cash Flow	2.44M	20.43M	-1.15M	1.87M	31.28M	3.26M
Operating Cash Flow	4.75M	26.66M	8.37M	6.72M	35.13M	7.16M
Investing Cash Flow	-5.43M	-6.11M	-9.51M	-4.73M	-3.76M	-3.66M
Financing Cash Flow	-11.74M	-15.04M	-4.46M	-6.16M	-26.60M	-5.90M

Gale Pacific Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GAP, the sentiment is Negative. The current price of 0.09 is above the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.10, and below the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 19.38 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	68 Neutral	S$3.41B	16.80	-11.82%	6.53%	5.14%	-8.01%
GAP	55 Neutral	AU$25.05M	8.00	3.32%	―	9.13%	―
MBH	49 Neutral	AU$23.38M	―	-33.40%	―	-13.09%	-139.06%
AKG	42 Neutral	AU$12.73M	―	-17.65%	―	-0.14%	67.13%
GLE	41 Neutral	AU$7.78M	―	-2.22%	―	2.16%	69.16%
GLB		AU$122.84M	10.83	14.98%	6.67%	―	―
BFC		AU$5.99M	―		―	―	―

Gale Pacific Limited Corporate Events

Gale Pacific Launches Facility for Small Shareholders

Gale Pacific Limited has introduced a Small Shareholding Sale Facility to assist shareholders with holdings valued under A$500 to sell their shares without brokerage costs. This initiative aims to streamline administrative expenses and simplify the process for small shareholders, potentially enhancing operational efficiency and shareholder engagement.

GALE Pacific Revises EBITDA Guidance Amid US Market Challenges

GALE Pacific Limited has announced a trading update highlighting challenges in the US market due to new tariffs affecting consumer demand and inventory replenishment. The company is revising its full-year EBITDA guidance down to between $10 million and $12 million from the previous $18 million to $20 million, citing declining consumer confidence and ongoing tariff negotiations. Despite these challenges, the company’s performance in Australia, New Zealand, and developing markets remains stable, and efforts to diversify manufacturing outside of China are progressing well.