Imdex Ltd (IMD) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: 0.7%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.19
• Revenue Growth: -3.12%
• EPS Growth: 69.50%
• Country: AU
• Employees: 816
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.04
• Shares Outstanding: 511,841,830
• 10 Day Avg. Volume: 1,186,872
• 30 Day Avg. Volume: 1,163,075
• PEG Ratio: 0.35
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 3.23
• P/FCF Ratio: 21.06
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.63
• Enterprise Value/Gross Profit: 9.29
• Enterprise Value/Ebitda: 16.26
• 1Y Price Target: $3.66
• Price Target Upside: -3.34% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: AU$4.00 ▲(5.54% Upside)

Imdex Ltd's strong financial performance is offset by bearish technical indicators and a high valuation. The company's profitability and balance sheet strength are positives, but the stock's current technical weakness and high P/E ratio suggest caution.

Positive Factors

High margins and improving profitability

Very high gross margin and improving net margin indicate robust pricing power and cost control tied to differentiated products and services. Sustainable margins support reinvestment in R&D, field support and digital tools, enhancing long-term competitive positioning and cash generation.

Low leverage and strong balance sheet

A low debt-to-equity ratio and solid equity base materially reduce financial risk and borrowing costs. This balance sheet strength provides flexibility to fund capex, M&A or cyclical downturns without stressing liquidity, supporting durable operational continuity and strategic optionality.

Diversified recurring revenue model

The mix of consumables, hardware with recurring parts/service and software subscriptions creates recurring revenue and higher customer switching costs. An integrated tools+consumables+software workflow supports customer retention and steady revenue per rig, improving long-term revenue visibility and unit economics.

Negative Factors

Slowing revenue growth trend

A decelerating top-line growth rate suggests the company may be facing market saturation, weaker drilling activity, or competitive pressure. Persistent slowdown reduces operating leverage, limits scalability of fixed-cost investments, and could constrain the company’s ability to accelerate strategic initiatives over the medium term.

Declining free cash flow growth

Negative FCF growth signals pressure on cash available for reinvestment, dividends or M&A even though FCF to net income remains adequate. If the decline persists, management may need to prioritize cash conservation, which could delay product development, field expansion or digital investments over the medium term.

Exposure to mining exploration cyclicality

Revenue and equipment consumption scale with drilling activity and commodity cycles, making demand volatile across downturns. Structural cyclicality can lead to earnings variability and underutilized fixed capacity, challenging long-term planning and potentially forcing countercyclical cost measures or reduced investment.

Imdex Ltd Business Overview & Revenue Model

Company Description

Imdex Limited, together with its subsidiaries, provides drilling optimization products and sensors for the minerals industry in the Asia-Pacific, Africa, Europe, and the Americas. The company sells and rents drilling optimization products, including drilling fluids, solids removal units, remote fluid testing technologies, rig alignment technologies, and drilling productivity technologies; and rents rock knowledge sensors, which include downhole survey, core orientation, gamma logging, and structural orientation sensors. It also provides real-time data and analytics solutions, such as a cloud-based data collection and validation platform; an advanced reporting software; a geoscience analytics software; an interpretive mineralogy software; and a 3D visualisation software. In addition, the company offers software, mining technology, drilling optimization, downhole navigation, structural geology, in-field geoanalysis, and driller operable geophysics solutions. It provides its products and services under the AMC and REFLEX brands to drilling contractors and resource companies. The company was formerly known as Pilbara Gold NL and changed its name to Imdex Limited in July 1985. Imdex Limited was incorporated in 1980 and is headquartered in Balcatta, Australia.

How the Company Makes Money

Imdex generates revenue through multiple key streams, including the sale of drilling fluids and related products, equipment rentals, and software solutions. The company's primary revenue model is based on the direct sale of its proprietary products and services to mining companies and exploration firms. Additionally, Imdex earns significant income through ongoing contracts and partnerships with major players in the mining sector, providing tailored solutions and support. The recurring nature of these contracts, along with the demand for innovative and efficient exploration technologies, contributes substantially to its earnings. Imdex also benefits from strategic collaborations and joint ventures that expand its market reach and enhance its product offerings.

Imdex Ltd Financial Statement Overview

Summary

Imdex Ltd exhibits strong profitability with a high gross profit margin and improved net profit margin. The balance sheet is robust with low leverage and efficient equity utilization. However, the slowing revenue growth and negative free cash flow growth require attention.

Income Statement

Imdex Ltd has shown consistent revenue growth over the years, with a notable increase in gross profit margins, reaching 72.4% in 2025. The net profit margin improved to 12.8% in 2025, indicating enhanced profitability. However, the revenue growth rate has slowed down to 2.2% in 2025 from previous years, which could be a concern if the trend continues. Overall, the company demonstrates strong profitability and stable growth.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.16 in 2025, reflecting a solid capital structure with low leverage. Return on equity has increased to 8.8%, showing efficient use of equity to generate profits. The equity ratio remains strong, indicating a stable financial position. Overall, Imdex Ltd maintains a healthy balance sheet with low financial risk.

Cash Flow

Operating cash flow has increased, with a strong coverage ratio of 1.46 in 2025, indicating good cash generation relative to net income. However, free cash flow growth has been negative at -21.05% in 2025, which could impact future investments. The free cash flow to net income ratio remains healthy at 0.54, suggesting adequate cash flow generation. Overall, cash flow management is stable but requires attention to reverse the decline in free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	431.39M	431.39M	445.28M	411.40M	341.84M	264.38M
Gross Profit	214.96M	312.44M	139.67M	136.89M	234.54M	180.84M
EBITDA	122.89M	129.19M	113.06M	99.83M	100.40M	76.69M
Net Income	55.19M	55.19M	32.40M	34.99M	44.71M	31.67M
Balance Sheet
Total Assets	830.15M	830.15M	786.14M	806.14M	393.61M	366.11M
Cash, Cash Equivalents and Short-Term Investments	42.51M	42.51M	47.13M	58.13M	36.37M	58.48M
Total Debt	100.31M	100.31M	127.65M	161.35M	46.82M	50.00M
Total Liabilities	200.79M	200.79M	214.87M	249.94M	96.38M	113.06M
Stockholders Equity	629.36M	629.36M	571.28M	556.21M	297.23M	253.05M
Cash Flow
Free Cash Flow	76.47M	66.11M	74.54M	55.35M	18.05M	29.90M
Operating Cash Flow	123.50M	123.50M	108.05M	82.51M	55.72M	57.04M
Investing Cash Flow	-64.00M	-64.00M	-35.90M	-346.13M	-53.04M	-28.14M
Financing Cash Flow	-64.70M	-64.70M	-79.39M	285.86M	-24.72M	-8.40M

Imdex Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IMD, the sentiment is Positive. The current price of 3.79 is above the 20-day moving average (MA) of 3.77, above the 50-day MA of 3.52, and above the 200-day MA of 3.19, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 46.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IMD.

Imdex Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYL	75 Outperform	AU$619.40M	14.78	29.67%	2.51%	-3.08%	-16.35%
GNG	71 Outperform	AU$736.89M	21.21	50.61%	5.24%	12.96%	8.19%
SRG	66 Neutral	AU$1.89B	37.56	13.62%	1.85%	23.76%	21.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
IMD	59 Neutral	$1.94B	35.16	9.03%	0.70%	-3.12%	69.50%
NWH	56 Neutral	AU$2.39B	85.97	4.71%	3.20%	12.18%	-73.81%

Imdex Ltd Corporate Events

IMDEX Sets Date for 1H26 Results and Investor Webcast

IMDEX Limited has announced that it will release its half-year 2026 financial results on 23 February 2026, accompanied by an interactive webcast for investors and stakeholders. Managing Director and CEO Paul House and Chief Financial Officer Linda Lim will present the company’s 1H26 performance, progress on its growth strategy, and outlook, followed by a Q&A session, underscoring IMDEX’s focus on transparency and engagement with the market as it executes its strategic plans.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Performance Rights Lapse Following Unmet Vesting Conditions

Imdex Limited has informed the market that 69,750 performance rights under the security code IMDAC have lapsed as of 1 January 2026 because the conditions attached to these rights were not met or became incapable of being satisfied. The cessation of these conditional securities slightly reduces the company’s potential future share dilution under its incentive arrangements, but does not involve any cash outflow or issuance of new shares, indicating a technical adjustment to its capital structure rather than a change in operating strategy.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Discloses Change in Director Anthony Wooles’ Shareholding

Imdex Limited has notified the ASX of a change in director Anthony Wooles’ indirect interest in the company’s ordinary shares, lodged via an Appendix 3Y. Wooles, through entities AEW Holdings Pty Ltd and the A & A Super Fund, has adjusted his holdings via an on-market trade at $3.51 per share, resulting in a revised total indirect holding of 1,267,310 shares under AEW Holdings and 132,690 shares under the super fund. The disclosure reflects routine compliance with ASX corporate governance requirements on director shareholdings, providing transparency to investors regarding insider equity positions and any shifts in board members’ financial exposure to the company.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Ltd Announces Change in Director’s Shareholding

Imdex Ltd has announced a change in the director’s interest, specifically regarding Mr. Anthony Wooles. The notice details a reduction in the number of shares held indirectly by Mr. Wooles, with a total of 150,000 shares disposed of through an on-market trade. This change may have implications for the company’s governance and shareholder dynamics.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

IMDEX Expands with Acquisition of ALT and MSI

IMDEX Limited announced the acquisition of ALT and MSI, signaling a strategic expansion in its service offerings. The acquisition is expected to strengthen IMDEX’s market position by enhancing its capabilities in exploration and production, potentially benefiting stakeholders through improved operational efficiencies.

The most recent analyst rating on (AU:IMD) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

Imdex Ltd Expands Through Acquisition of ALT and MSI

Imdex Ltd has announced the acquisition of Advanced Logic Technology (ALT) and Mount Sopris Instruments (MSI), which is expected to bolster its position in the mining technical services industry. This strategic move is anticipated to enhance Imdex’s capabilities and expand its market reach, potentially benefiting stakeholders by improving service offerings and operational efficiencies.

The most recent analyst rating on (AU:IMD) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

IMDEX Expands Earth Science Capabilities with Strategic Acquisition

IMDEX Ltd has announced the acquisition of Advanced Logic Technology S.A. and its subsidiary, Mount Sopris Instruments Inc, for €55.8 million. This acquisition significantly expands IMDEX’s capabilities in earth science sensors and software, integrating industry-leading technologies like WellCAD software and borehole geophysical equipment. The transaction is expected to enhance IMDEX’s market position and customer offerings, driving growth in mining and adjacent markets. Financially, the acquisition is projected to be earnings per share accretive in the first full fiscal year and contribute significantly to revenue and EBITDA.

The most recent analyst rating on (AU:IMD) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.

First Sentier Investors Ceases Substantial Holding in Imdex Ltd

Imdex Ltd has announced that First Sentier Investors, a substantial holder, has ceased to hold a significant interest in the company as of November 12, 2025. This change in substantial holding may impact the company’s shareholder structure and could have implications for its market positioning and stakeholder relations.

The most recent analyst rating on (AU:IMD) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Imdex Ltd stock, see the AU:IMD Stock Forecast page.