Kelsian Group Limited (KLS) AI Stock Analysis

• Market Cap: AU$1.19B
• Dividend Yield: 4%
• Average Volume (3M): 491.83K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.79
• Revenue Growth: 9.52%
• EPS Growth: -8.76%
• Country: AU
• Employees: 11,130
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.20
• Shares Outstanding: 271,594,900
• 10 Day Avg. Volume: 325,407
• 30 Day Avg. Volume: 491,826
• PEG Ratio: -3.98
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 25.39
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: AU$4.50 ▲(4.41% Upside)

Kelsian Group Limited's overall stock score is primarily influenced by its strong financial performance, despite challenges in profitability margins and increased financial leverage. The technical analysis indicates bearish momentum, which negatively impacts the score. Valuation is moderate, with a reasonable dividend yield but a P/E ratio that does not offer significant upside potential. The absence of earnings call data and corporate events means these factors do not contribute to the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling reinvestment in operations and potential debt reduction.

Business Model

Stable government contracts provide reliable income, reducing revenue volatility and supporting long-term growth.

Negative Factors

Profitability Margins

Declining profitability margins can impact overall financial health, limiting the company's ability to invest in growth initiatives.

Financial Leverage

Increased reliance on debt raises financial risk, potentially affecting the company's creditworthiness and future borrowing costs.

Operational Efficiency

Decreasing operational efficiency can hinder the company's ability to maintain competitive pricing and profitability in the long term.

Kelsian Group Limited Business Overview & Revenue Model

Company Description

Kelsian Group Limited provides land and marine transport and tourism services in Australia, Singapore, and the United Kingdom. It operates through Marine & Tourism, Australian Bus, and International Bus segments. The Marine & Tourism segment operates vehicle and passenger ferry services, barging, coach tours and package holidays, lunch, dinner, charter cruises, and accommodation facilities. The Australian Bus segment operates metropolitan public bus services on behalf of governments in Sydney, Melbourne, Perth, Adelaide, and Darwin. The International Bus segment operates metropolitan public bus services on behalf of governments in London and Singapore. The company also provides finance, sales and marketing, information and technology, business development, fleet management, health and safety, and administration and risk management support services. It operates 4,134 buses, 115 vessels, and 24 light rail vehicles, as well as 1,125 buses comprising 297 electric vehicles in London. The company was formerly known as SeaLink Travel Group Limited and changed its name to Kelsian Group Limited in November 2021. Kelsian Group Limited was founded in 1989 and is headquartered in Adelaide, Australia.

How the Company Makes Money

Kelsian Group generates revenue primarily through its public transport contracts with government agencies and local councils, which provide funding for the operation of bus and ferry services. The company earns income from passenger fares, subsidies for public transport services, and additional revenue from charter services and tourism activities. Key partnerships with state and local governments enable Kelsian to secure long-term contracts, ensuring a stable revenue stream. Additionally, the company may benefit from ancillary services such as advertising on vehicles and in stations, further contributing to its earnings.

Kelsian Group Limited Financial Statement Overview

Summary

Kelsian Group Limited shows strong revenue growth and improved gross profit margins. However, profitability margins are under pressure, and the company is increasingly reliant on debt financing, raising financial risk. Cash flow generation is strong, but efficiency in cash conversion could be improved.

Income Statement

Kelsian Group Limited has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 17.4% in 2024 to 30.9% in 2025. However, the net profit margin has slightly decreased from 2.9% to 2.4% in the same period. The EBIT and EBITDA margins have also shown a slight decline, indicating some pressure on operational efficiency. Overall, the company demonstrates strong revenue growth but faces challenges in maintaining profitability margins.

Balance Sheet

The company's debt-to-equity ratio has increased from 0.68 in 2020 to 1.12 in 2025, indicating a higher reliance on debt financing. Return on equity has decreased from 8.3% in 2022 to 5.7% in 2025, reflecting reduced profitability for shareholders. The equity ratio has also declined, suggesting increased financial leverage. While the company is expanding, it is doing so with higher financial risk.

Cash Flow

Kelsian Group Limited has shown significant improvement in free cash flow growth, with an 89.3% increase in 2025. The operating cash flow to net income ratio is stable, indicating good cash generation relative to net income. However, the free cash flow to net income ratio remains low, suggesting limited cash available after capital expenditures. The company shows strong cash flow growth but needs to improve its cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.22B	2.22B	2.02B	1.42B	1.30B	1.17B
Gross Profit	688.69M	688.69M	351.91M	257.90M	233.30M	192.11M
EBITDA	255.93M	255.93M	268.72M	133.11M	157.99M	160.98M
Net Income	54.49M	54.49M	58.01M	21.00M	52.91M	37.80M
Balance Sheet
Total Assets	2.50B	2.50B	2.40B	2.18B	1.42B	1.37B
Cash, Cash Equivalents and Short-Term Investments	182.78M	182.78M	134.47M	157.94M	141.09M	103.50M
Total Debt	1.07B	1.07B	1.02B	806.38M	459.12M	464.63M
Total Liabilities	1.54B	1.54B	1.47B	1.25B	783.57M	761.86M
Stockholders Equity	957.91M	957.91M	927.37M	923.60M	640.01M	608.10M
Cash Flow
Free Cash Flow	40.67M	40.67M	-3.13M	28.05M	70.75M	70.15M
Operating Cash Flow	205.17M	205.17M	146.70M	128.98M	115.04M	111.85M
Investing Cash Flow	-140.47M	-140.47M	-262.98M	-650.24M	-86.08M	-69.56M
Financing Cash Flow	-19.54M	-19.54M	92.75M	535.68M	8.42M	-58.41M

Kelsian Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KLS, the sentiment is Negative. The current price of 4.31 is below the 20-day moving average (MA) of 4.41, below the 50-day MA of 4.62, and above the 200-day MA of 3.87, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 56.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:KLS.

Kelsian Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNP	73 Outperform	AU$1.14B	31.76	25.18%	0.57%	36.30%	82.20%
KSC	70 Neutral	AU$466.65M	15.84	8.00%	4.73%	-9.67%	-6.49%
JLG	67 Neutral	AU$1.14B	30.25	7.98%	1.80%	1.81%	-23.89%
SRG	66 Neutral	AU$1.87B	36.94	13.62%	1.85%	23.76%	21.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AZJ	60 Neutral	AU$6.27B	21.61	7.03%	4.29%	3.01%	-23.84%
KLS	58 Neutral	AU$1.19B	21.42	5.78%	4.00%	9.52%	-8.76%

Kelsian Group Limited Corporate Events

Kelsian Group Limited Issues Performance Rights to Employees

Kelsian Group Limited announced the issuance of 909,476 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to align employee interests with corporate goals, potentially enhancing operational performance and stakeholder value.

Kelsian Group Limited’s 2025 AGM Highlights Strong Shareholder Support

Kelsian Group Limited held its 2025 Annual General Meeting in Adelaide, where several resolutions were passed, including the adoption of the Remuneration Report and the re-election of directors. Resolution 8, a conditional board spill, was not put to the meeting. The outcomes of these resolutions reflect strong shareholder support, indicating stability and confidence in the company’s leadership and strategic direction.

Kelsian Group Reports Strong Financial Growth and Future Outlook at 2025 AGM

Kelsian Group Limited held its 2025 Annual General Meeting, highlighting significant transformations and achievements over the financial year. The company reported a 9.5% increase in group revenue to $2.2 billion, driven by growth across all sectors and geographies, and a 2.4% rise in underlying net profit after tax to $94.8 million. The company reaffirmed its FY26 EBITDA expectations, reflecting a stable and predictable earnings base with 93% of revenue being contracted or non-discretionary. These developments position Kelsian strongly for future opportunities in sustainable transport.

Kelsian Group Limited Announces Director’s Share Acquisition

Kelsian Group Limited has announced a change in the director’s interest in securities, specifically regarding Diane Grady. The change involves the acquisition of 682 ordinary shares under the Kelsian Dividend Reinvestment Plan, increasing the total number of shares held to 36,019. This update reflects the company’s ongoing commitment to shareholder engagement and financial growth strategies.

Kelsian Group Director Increases Shareholding

Kelsian Group Limited announced a change in the director’s interest, specifically regarding Jacqueline McArthur. The change involved the acquisition of 1,349 fully paid ordinary shares under the company’s dividend reinvestment plan, increasing her total holdings to 71,349 shares. This adjustment signifies a continued investment in the company by its directors, potentially indicating confidence in the company’s future performance.

Kelsian Group Limited Announces Quotation of New Securities

Kelsian Group Limited announced the quotation of 52,052 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code KLS, effective October 22, 2025. This move is part of a dividend or distribution plan, potentially impacting the company’s market operations and offering stakeholders a chance to engage with the company’s financial strategies.

Kelsian Group Limited Issues New Securities

Kelsian Group Limited has announced the issuance of 22,464 ordinary fully paid securities, effective from October 8, 2025. This move involves the conversion or payment up of unquoted securities, indicating a strategic financial adjustment that could impact the company’s capital structure and market positioning.

Kelsian Group Updates Dividend Distribution Details

Kelsian Group Limited has announced an update to its previous dividend distribution announcement, specifically regarding the Dividend Reinvestment Plan (DRP) price. The update pertains to the dividend distribution for the six-month period ending June 30, 2025, with key dates including a record date of September 16, 2025, and an ex-date of September 15, 2025. This update may impact shareholders and stakeholders who are participating in the DRP.

Kelsian Group’s 2024–2025 Annual Report Highlights Cultural Commitment

Kelsian Group Limited has released its 2024–2025 Annual Report, highlighting its ongoing commitment to acknowledging the Traditional Owners and Custodians of Country throughout Australia. The report underscores the company’s respect for Aboriginal and Torres Strait Islander cultures, emphasizing their connection to the land and community.

Kelsian Group Limited Strengthens Corporate Governance Framework

Kelsian Group Limited has reaffirmed its commitment to robust corporate governance by adhering to the ASX Corporate Governance Principles and Recommendations during the reporting period ending June 2025. The Board of Directors is responsible for overseeing the company’s operational and financial performance, strategic direction, and risk management, ensuring compliance with legal and statutory obligations. This governance framework is designed to align with market practices and shareholder expectations, enhancing the company’s industry positioning and operational effectiveness.

Kelsian Group Releases 2025 Corporate Governance Statement

Kelsian Group Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s principles, detailing the roles and responsibilities of the board and management, as well as the processes for appointing directors and executives. This announcement underscores Kelsian’s commitment to transparency and accountability, potentially strengthening stakeholder confidence and enhancing its reputation in the industry.

Kelsian Group Announces 2025 AGM Details

Kelsian Group Limited has announced its 2025 Annual General Meeting (AGM) to be held on October 30, 2025, at the Adelaide Convention Centre. Shareholders are invited to participate in person or via a Zoom webcast, although only those attending in person can vote or ask questions. The company encourages shareholders to appoint proxies for voting if they cannot attend. The AGM will include presentations from the Chair and Group CEO, with results published via the ASX.

Kelsian Group Limited Announces Annual General Meeting Details

Kelsian Group Limited has announced the details for its upcoming Annual General Meeting, which will take place on October 30, 2025, at the Adelaide Convention Centre. The meeting will involve separate voting on each resolution by poll, and shareholders have been provided with information on how to access the meeting documents electronically or in hard copy. The announcement outlines important dates related to voting entitlements and proxy form submissions, ensuring shareholders are informed of the procedures and timelines.

Kelsian Group Limited Issues New Equity Securities

Kelsian Group Limited has announced the issuance of 42,768 ordinary fully paid securities as part of its strategy to manage unquoted equity securities. This move could potentially strengthen the company’s financial position and provide more flexibility in its operations, impacting its stakeholders positively.

Kelsian Group Director Adjusts Shareholding

Kelsian Group Limited has announced a change in the indirect interest of its director, Terry Dodd, involving the sale of 39,715 ordinary shares at $4.99 per share. This transaction reduces Dodd’s total shareholding to 5,806,724 ordinary shares across several entities. The sale was conducted through an on-market transaction, reflecting a minor adjustment in the director’s investment portfolio within the company.