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IDT Australia Limited (AU:IDT)
ASX:IDT
Australian Market

IDT Australia Limited (IDT) AI Stock Analysis

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AU:IDT

IDT Australia Limited

(Sydney:IDT)

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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
AU$0.04
▼(-18.00% Downside)
Action:ReiteratedDate:02/19/26
The score is primarily held back by weak financial performance, including ongoing losses and negative operating/free cash flow. Technical signals are mixed with neutral momentum but a weaker longer-term trend, while valuation is also pressured due to loss-making earnings and no dividend support.
Positive Factors
Recurring CDMO model
IDT's fee-for-service CDMO business creates recurring, contract-driven revenue across manufacturing, development and supply-chain services. This diversified services mix supports steady utilization, customer stickiness and predictable cash inflows when contracts are sustained, a durable fundamental advantage for 2-6 months.
Modest revenue growth
Consistent, positive top-line growth (+5.28%) indicates ongoing demand for IDT's services. Over the medium term this trend supports better capacity utilization and provides a platform to improve margins and operating leverage if cost control and pricing are addressed, making it a durable operational tailwind.
Stable equity ratio
A stable equity ratio signals a reasonable asset-to-equity foundation, which underpins solvency and borrowing capacity. Even with increased leverage, this relative balance provides resilience against shocks and preserves strategic flexibility to fund operations or invest in capacity over the coming months.
Negative Factors
Negative operating/free cash flow
Persistent negative operating and free cash flows erode liquidity and force reliance on external financing or equity raises. This limits the company's ability to self-fund capital expenditures, working capital needs or strategic investments, posing a material constraint on sustainable operations over the next 2-6 months.
Ongoing losses and weak margins
Negative net profit and EBIT margins alongside a declining gross margin indicate structural cost or pricing pressure. Without margin recovery, revenue growth may not translate into profitability, undermining the company's ability to generate retained earnings and weakening long-term viability.
Rising leverage & negative ROE
Increasing debt combined with negative ROE heightens financial risk: leverage raises fixed obligations while poor returns fail to cover cost of capital. This dynamic can tighten lender covenants, elevate financing costs, and constrain strategic choices, weakening resilience over the medium term.

IDT Australia Limited (IDT) vs. iShares MSCI Australia ETF (EWA)

IDT Australia Limited Business Overview & Revenue Model

Company DescriptionIDT Australia Limited engages in the research, development, manufacture, and sale of active pharmaceutical ingredients (APIs) and finished dose form products in Australia and internationally. It offers analytical method development, stability chambers, and chemistry and microbiology quality control laboratory services. The company also provides project management, chemical, analytical chemistry, pharmacy, clinical packaging, and regulatory affairs, as well as pharmaceutical development services in various dosage forms. In addition, it offers medicinal cannabis products, as well as various contract manufacturing services. The company was founded in 1975 and is headquartered in Boronia, Australia.
How the Company Makes MoneyIDT primarily makes money by providing fee-for-service pharmaceutical contract development and manufacturing (CDMO) work. Key revenue streams include: (1) manufacturing services, where customers pay IDT to produce drug products (including sterile and non-sterile medicines) under contract; (2) development and technical services, where customers pay for formulation/development support, process development/scale-up, analytical and quality-related services associated with getting products ready for commercial manufacture; and (3) ancillary supply-chain services, where customers pay for activities such as packaging, release-related support, warehousing, and distribution/logistics. IDT’s earnings are driven by utilization of its manufacturing capacity, the volume and complexity of customer projects, and long-term supply/manufacturing agreements with pharmaceutical companies and other healthcare product sponsors. null

IDT Australia Limited Financial Statement Overview

Summary
Despite modest revenue growth (+5.28%), profitability and liquidity are weak: negative net profit and EBIT margins, declining gross margin, and concerning negative operating and free cash flows. Leverage has increased and ROE is negative, partially offset by a stable equity ratio.
Income Statement
35
Negative
IDT Australia Limited has shown some revenue growth, with a 5.28% increase in the latest year. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has also declined compared to previous years, suggesting challenges in cost management or pricing power.
Balance Sheet
45
Neutral
The company's debt-to-equity ratio has increased, indicating higher leverage, but it remains relatively low compared to industry standards. The return on equity is negative, reflecting ongoing losses. However, the equity ratio is stable, suggesting a solid asset base relative to equity.
Cash Flow
30
Negative
IDT Australia Limited's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio indicates inefficiencies in converting income into cash. This poses liquidity risks.
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue19.00M19.77M13.23M6.93M12.11M15.99M
Gross Profit7.10M9.69M10.42M-3.53M2.82M4.88M
EBITDA-4.11M-6.54M-5.56M-8.83M-340.00K2.75M
Net Income-6.13M-8.06M-5.41M-8.50M-1.16M2.10M
Balance Sheet
Total Assets34.55M36.92M31.37M28.29M30.08M34.13M
Cash, Cash Equivalents and Short-Term Investments1.93M4.11M904.00K4.43M9.21M6.93M
Total Debt9.86M10.40M4.47M740.00K881.00K766.00K
Total Liabilities14.23M15.03M7.93M4.15M3.46M6.51M
Stockholders Equity20.31M21.89M23.44M24.14M26.63M27.61M
Cash Flow
Free Cash Flow-885.00K-7.55M-10.30M-8.42M1.95M-156.00K
Operating Cash Flow609.00K-6.25M-9.60M-7.90M2.86M370.00K
Investing Cash Flow-3.19M-4.50M-1.09M-522.00K-912.00K-526.00K
Financing Cash Flow3.46M10.75M6.77M3.64M337.00K224.00K

IDT Australia Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.05
Price Trends
50DMA
0.05
Negative
100DMA
0.05
Negative
200DMA
0.06
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
28.80
Positive
STOCH
-16.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IDT, the sentiment is Negative. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 28.80 is Positive, neither overbought nor oversold. The STOCH value of -16.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IDT.

IDT Australia Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
AU$25.18M-12.067.64%3.28%0.13%-12.90%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
AU$45.63M-69.17-0.79%17.82%
45
Neutral
AU$17.27M-4.15-29.05%45.30%-24.18%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IDT
IDT Australia Limited
0.04
-0.06
-58.00%
AU:LGP
Little Green Pharma Ltd.
0.09
-0.04
-29.23%
AU:MVP
Medical Developments International Limited
0.41
-0.16
-27.68%
AU:VIT
Cronos Australia Ltd.
0.04
-0.03
-47.95%

IDT Australia Limited Corporate Events

IDT Australia Director Increases Indirect Shareholding via On-Market Purchase
Feb 23, 2026

IDT Australia has disclosed a change in director Mark Simari’s interests, with an indirect on-market purchase of 501,936 ordinary fully paid shares at $0.048 per share. The transaction, executed via entities Charkaroo Pty Ltd and Jodmar Pty Ltd, lifts his indirect holding to 1,087,912 shares while maintaining 6,000,000 unlisted options and was carried out during a closed period under prior written clearance, signaling increased director alignment with shareholders.

The notified acquisition underscores board-level confidence in the company’s prospects, as a director increases his exposure to equity rather than reducing it. For investors and other stakeholders, such a move can be interpreted as a positive governance signal, though it does not in itself alter the company’s operations, strategy, or capital structure beyond the incremental change in market ownership.

The most recent analyst rating on (AU:IDT) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on IDT Australia Limited stock, see the AU:IDT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 19, 2026