IDT Australia Limited (IDT) AI Stock Analysis

• Market Cap: AU$20.56M
• Dividend Yield: N/A
• Average Volume (3M): 336.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 45.30%
• EPS Growth: -24.18%
• Country: AU
• Employees: 156
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 427,425,570
• 10 Day Avg. Volume: 373,970
• 30 Day Avg. Volume: 336,941
• PEG Ratio: -0.21
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 1.92
• P/FCF Ratio: -5.03
• 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: 45 Neutral
• Price Target: AU$0.05 ▲(6.00% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 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

Fee-for-service CDMO business model

A fee-for-service CDMO model generates recurring contractual revenue from development, manufacturing and supply-chain services, aligning cash generation with customer project pipelines. This model supports durable demand from pharma sponsors and creates sticky customer relationships over multiple project lifecycles.

Consistent modest revenue growth

Repeated positive top-line growth, even if modest, signals sustained market demand for IDT's services. Over 2-6 months this trend supports utilization of capacity, underpins incremental margin improvement potential, and provides a base for scaling higher-margin development and technical services.

Specialized manufacturing and service capabilities

Specialization in sterile/non-sterile production plus ancillary packaging and logistics creates a differentiated service set. This vertical integration increases customer switching costs, supports premium project work, and helps capture more value across development-to-supply chains over the medium term.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flows constrain the company's ability to fund working capital, maintenance or capacity upgrades internally. Over several months this increases dependency on external financing, heightens liquidity risk, and limits operational flexibility for winning larger CDMO contracts.

Ongoing losses and weak margins

Persistent negative net profit and EBIT margins and a falling gross margin indicate structural cost or pricing pressure. Without margin recovery, profitability will remain elusive, reducing reinvestment capacity and undermining long-term ability to convert revenue growth into sustainable free cash generation.

Rising leverage amid losses

Increasing debt levels while ROE is negative raises solvency and covenant risks. Higher leverage reduces balance sheet flexibility to weather project delays or customer concentration issues and can force prioritization of servicing debt over strategic investments in capacity or quality systems.

IDT Australia Limited Business Overview & Revenue Model

Company Description

IDT 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 Money

IDT generates revenue through multiple streams, primarily from contract manufacturing services for pharmaceutical companies, which involves producing drugs on behalf of clients. This includes the formulation and production of both generic and branded medications. Additionally, IDT earns income from its proprietary product development, where it develops its own drugs and seeks to commercialize them. Partnerships with other pharmaceutical firms enhance its revenue potential, as IDT often collaborates on product development and manufacturing agreements. The company also benefits from government and regulatory approvals which can bolster its market position and drive sales. Overall, IDT's revenue model is heavily reliant on its ability to secure and maintain contracts with pharmaceutical clients, along with successful product launches in the market.

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

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

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

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.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	19.00M	19.77M	13.23M	6.93M	12.11M	15.99M
Gross Profit	7.10M	9.69M	10.42M	-3.53M	2.82M	4.88M
EBITDA	-4.11M	-6.54M	-5.56M	-8.83M	-340.00K	2.75M
Net Income	-6.13M	-8.06M	-5.41M	-8.50M	-1.16M	2.10M
Balance Sheet
Total Assets	34.55M	36.92M	31.37M	28.29M	30.08M	34.13M
Cash, Cash Equivalents and Short-Term Investments	1.93M	4.11M	904.00K	4.43M	9.21M	6.93M
Total Debt	9.86M	10.40M	4.47M	740.00K	881.00K	766.00K
Total Liabilities	14.23M	15.03M	7.93M	4.15M	3.46M	6.51M
Stockholders Equity	20.31M	21.89M	23.44M	24.14M	26.63M	27.61M
Cash Flow
Free Cash Flow	-885.00K	-7.55M	-10.30M	-8.42M	1.95M	-156.00K
Operating Cash Flow	609.00K	-6.25M	-9.60M	-7.90M	2.86M	370.00K
Investing Cash Flow	-3.19M	-4.50M	-1.09M	-522.00K	-912.00K	-526.00K
Financing Cash Flow	3.46M	10.75M	6.77M	3.64M	337.00K	224.00K

IDT Australia Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.05
• 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:IDT, the sentiment is Neutral. The current price of 0.05 is above the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 63.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:IDT.

IDT Australia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIT	57 Neutral	AU$28.50M	35.83	7.64%	3.28%	0.13%	-12.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MVP	46 Neutral	AU$50.13M	-114.10	0.19%	―	17.82%	―
IDT	45 Neutral	AU$20.56M	-3.47	-35.58%	―	45.30%	-24.18%

IDT Australia Limited Corporate Events

IDT Australia Cancels 164,000 Shares After Conditional Rights Lapse

IDT Australia Limited has announced the cessation of 164,000 ordinary fully paid shares following the lapse of conditional rights to these securities, after the specified conditions were not met or became incapable of being satisfied as of 29 September 2025. The reduction in potential issued capital reflects the non-vesting of these conditional rights, which may marginally affect future dilution expectations for existing shareholders but does not alter the company’s current issued share capital structure.

The most recent analyst rating on (AU:IDT) stock is a Sell 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.

IDT Australia Director Increases Shareholding

IDT Australia Limited announced a change in the director’s interest, with Geoffrey Sam acquiring 98,039 ordinary fully paid shares through an on-market trade. This acquisition reflects a direct interest change and indicates a potential increase in confidence or strategic positioning by the director within the company.

The most recent analyst rating on (AU:IDT) stock is a Sell 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.

IDT Australia Limited Successfully Concludes Annual General Meeting

IDT Australia Limited announced the results of its Annual General Meeting, where all resolutions were successfully carried. Key resolutions included the adoption of the remuneration report, the re-election of Dr. Jane Ryan as a director, and the approval of increased placement capacity. These outcomes reflect strong shareholder support and are likely to positively impact the company’s governance and operational capacity.

IDT Australia Limited’s Cautious Approach in AGM Presentation

IDT Australia Limited’s recent presentation at their Annual General Meeting emphasized the general nature of the information provided, highlighting that it is not intended for investment decision-making. The release underscores the inherent risks and uncertainties in the pharmaceutical industry and advises stakeholders to conduct independent assessments. The company stresses that the presentation is not a financial offer or solicitation, and any forward-looking statements are subject to change without obligation for updates.