Gale Pacific Limited (GAP) AI Stock Analysis

• Market Cap: AU$21.92M
• Dividend Yield: N/A
• Average Volume (3M): 76.62K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.30
• 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$0.08 ▼(-13.33% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

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

High gross profit margin

A ~54% gross margin indicates durable product-level pricing power for technical fabrics. This buffer helps absorb raw material or input cost swings and supports investment in product development, marketing and channel support, enabling long-term competitiveness despite downstream margin pressure.

Diversified routes to market and international sales

Multiple channels (fabricators, distributors, retailers and project/spec) and international presence reduce customer and geographic concentration risk. Structural diversification helps stabilize revenue streams across construction cycles and seasonality, improving resilience over several months.

Moderate leverage

A debt-to-equity of ~0.62 signals a measured approach to leverage, leaving room to fund working capital or targeted investment without extreme interest burden. This financial flexibility supports operational continuity and strategic responses to market opportunities or disruptions.

Negative Factors

Declining revenue trend

A near-term double-digit revenue decline points to weakening demand or market share loss. Sustained top-line contraction erodes fixed-cost absorption, pressures margins and scale economics, and limits the company's ability to invest in growth initiatives or recover profitability over the medium term.

Negative operating and net profitability

Failure to convert relatively high gross margins into positive EBIT and net income suggests structural cost or operating inefficiencies. Persistent negative profitability undermines retained earnings, limits reinvestment capacity and raises the bar for management to deliver sustainable margin improvements.

Weak cash flow conversion

Negative free cash flow growth and poor OCF-to-net-income conversion reduce internal funding for capex, inventory and working capital. Weak cash conversion increases reliance on external financing, heightening liquidity risk and constraining strategic actions during market downturns.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	162.95M	171.99M	173.98M	187.56M	205.54M	205.22M
Gross Profit	52.04M	92.93M	30.74M	29.56M	31.21M	104.28M
EBITDA	3.71M	10.37M	13.23M	19.54M	22.03M	27.43M
Net Income	-7.47M	-5.18M	-332.00K	3.70M	7.62M	12.33M
Balance Sheet
Total Assets	163.16M	175.64M	186.59M	197.73M	210.24M	188.41M
Cash, Cash Equivalents and Short-Term Investments	25.71M	18.60M	29.17M	23.64M	28.46M	30.41M
Total Debt	68.08M	56.25M	56.08M	71.26M	62.78M	51.28M
Total Liabilities	76.33M	85.52M	91.29M	102.85M	112.26M	95.49M
Stockholders Equity	86.84M	90.13M	95.30M	94.88M	97.98M	92.92M
Cash Flow
Free Cash Flow	16.20M	-3.08M	20.43M	-1.15M	1.87M	31.28M
Operating Cash Flow	17.53M	75.00K	26.66M	8.37M	6.72M	35.13M
Investing Cash Flow	-2.18M	-3.10M	-6.11M	-9.51M	-4.73M	-3.76M
Financing Cash Flow	-11.80M	-7.76M	-15.04M	-4.46M	-6.16M	-26.60M

Gale Pacific Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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, above the 50-day MA of 0.09, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.02 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 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 *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GLB	60 Neutral	AU$117.11M	13.83	12.77%	7.43%	-7.21%	-14.55%
MBH	54 Neutral	AU$36.29M	-1.98	-31.14%	―	-15.07%	29.45%
GAP	48 Neutral	AU$21.92M	-2.93	-5.59%	―	-1.14%	-1037.50%
AKG	45 Neutral	AU$14.59M	-13.58	-7.51%	―	1.42%	86.97%
GLE	44 Neutral	AU$8.52M	-2.33	-2.78%	―	-4.48%	61.66%

Gale Pacific Limited Corporate Events

Gale Pacific Director Increases Indirect Shareholding Through On-Market Purchase

Gale Pacific Limited has disclosed a change in director David Allman’s relevant interests in the company’s securities, reflecting ongoing compliance with Australian listing and corporate governance requirements. The update concerns Allman’s indirect holdings via his superannuation fund, where Perpetual Custodians Ltd acts as trustee and the director is a beneficiary.

Allman acquired 500,000 additional ordinary fully paid shares in Gale Pacific on 26 February 2026 through on-market trades, increasing his indirect holding from 4,500,000 to 5,000,000 shares for a total consideration of $40,219.02. The company reported that there were no related changes in contracts or trades during a closed period, indicating that the transaction occurred under standard market conditions with no special clearances required.

The most recent analyst rating on (AU:GAP) stock is a Hold with a A$0.08 price target. To see the full list of analyst forecasts on Gale Pacific Limited stock, see the AU:GAP Stock Forecast page.

Gale Pacific Delivers Strong Cash Generation Amid Softer First-Half Trading

Gale Pacific reported a softer first half for FY26, with revenue down 9.5% to $82 million and a net loss after tax widening to $3.3 million, as weaker U.S. retail demand, adverse weather in Australia and New Zealand, and geopolitical instability in some Middle East markets weighed on sales. Despite the decline in top-line performance, the company delivered EBITDA of $5.3 million, above prior guidance, and materially strengthened its balance sheet, generating $15.1 million in operating cash flow and moving to a net cash position of $1.9 million through tighter working capital management, cost efficiencies and a more disciplined inventory fulfillment strategy with major North American retailers.

In Australia and New Zealand, revenue fell 5.4% as lower grain storage fabric volumes and a weather-impacted start to the summer retail season hit sales, but EBITDA improved 11.3% due to margin focus and cost control and was supported by a long-term contract extension with a key commercial customer. In the Americas, revenue dropped 19.9% and EBITDA fell sharply as the company deliberately reset inventory flows to retailers and faced weaker consumer sentiment and U.S. trade-policy uncertainty, yet management highlighted progress in securing new retail customers and range extensions, positioning the business for future growth while operating on a more streamlined cost base.

The most recent analyst rating on (AU:GAP) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on Gale Pacific Limited stock, see the AU:GAP Stock Forecast page.

Gale Pacific Swings to Deeper Half-Year Loss as Revenue Declines

Gale Pacific Limited has reported a weaker first half for the period ended 31 December 2025, with revenue from ordinary activities falling 9.5% to $82.0 million. The company remains loss-making, underscoring ongoing operating and market challenges for its product portfolio.

The loss after tax attributable to owners widened sharply to $3.3 million from $1.0 million a year earlier, and no interim or final dividends were declared for the current or prior periods. An independent review of the interim accounts highlighted a material uncertainty related to going concern, signalling heightened risk for shareholders and other stakeholders despite net tangible assets of 25.60 cents per share.

The most recent analyst rating on (AU:GAP) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on Gale Pacific Limited stock, see the AU:GAP Stock Forecast page.

Gale Pacific Sets Date for H1 FY26 Results and Investor Webinar

Gale Pacific Limited has announced that it will release its half-year financial results for the 2026 financial year on Wednesday, 25 February 2026, and will hold an investor and analyst briefing on the same day. The session, to be led by CEO Troy Mortleman and CFO Dexter Clarke via an online webinar, signals the company’s continuing engagement with capital markets and provides stakeholders an opportunity to gain direct insight into the latest trading performance and outlook.

By arranging a dedicated webcast, the company is emphasizing transparency and proactive communication with investors ahead of what may be a pivotal trading update. The structured registration process and encouragement to attend indicate that Gale Pacific sees this half-year result as sufficiently material to warrant focused attention from the investment community and analysts who follow the stock.

The most recent analyst rating on (AU:GAP) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on Gale Pacific Limited stock, see the AU:GAP Stock Forecast page.

Gale Pacific Performance Rights Lapse Reduces Potential Equity Dilution

Gale Pacific Limited has reported the lapse of 6,199,000 performance rights, which have ceased due to the underlying conditions not being met or becoming incapable of being satisfied as of 2 February 2026. The cessation of these performance rights reduces the company’s potential future equity dilution and may signal that previously set performance hurdles were not achieved, with implications for management incentives and capital structure planning.

The most recent analyst rating on (AU:GAP) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on Gale Pacific Limited stock, see the AU:GAP Stock Forecast page.

Gale Pacific Beats EBITDA Guidance as Cost Cuts Offset Softer Revenue

Gale Pacific reported that its strategic focus on operational discipline and structural change is beginning to pay off, with Q2 FY26 EBITDA of $4.4 million driving first-half EBITDA to $5.7 million, ahead of prior guidance and slightly above the previous year. Positive operating cash flow of $15.3 million in the second quarter lifted first-half operating cash flow to $11.6 million and shifted the company into a modest net cash position of $1.7 million at December-end, despite a 9% year-on-year revenue decline to $82.1 million due to weaker U.S. demand, a slow Australian peak retail season and lower grain fabric sales. Management highlighted margin improvement in Australian retail, resilient U.S. retail margins amid tariff uncertainty, cost reductions of $3.8 million, benefits from a U.S. operating model restructure, and promising commercial and market development initiatives—including progress with U.S. retailers, a new sales team in Thailand, and sustained but lower-than-record Australian grain fabric volumes—underscoring a pivot toward efficiency and selective growth in challenging market conditions.

The most recent analyst rating on (AU:GAP) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on Gale Pacific Limited stock, see the AU:GAP Stock Forecast page.

Gale Pacific Director Increases Shareholding Significantly

Gale Pacific Limited announced a significant change in the shareholding of its director, Donna McMaster, who acquired 200,000 ordinary shares through an on-market trade, increasing her total holdings to 250,000 shares. This acquisition reflects a substantial personal investment in the company, indicating confidence in its future prospects and potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (AU:GAP) stock is a Hold with a A$0.09 price target. To see the full list of analyst forecasts on Gale Pacific Limited stock, see the AU:GAP Stock Forecast page.