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Matrix Composites & Engineering Ltd (AU:MCE)
ASX:MCE
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Matrix Composites & Engineering Ltd (MCE) AI Stock Analysis

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AU:MCE

Matrix Composites & Engineering Ltd

(Sydney:MCE)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
AU$0.39
â–˛(54.00% Upside)
Action:Upgraded
Date:04/01/26
The score is primarily dragged down by weak financial performance (declining revenue, ongoing losses, high leverage, and cash flow pressure). Technical indicators provide some support due to strong recent price momentum, but overbought RSI elevates short-term risk. Valuation remains unattractive/uncertain given a negative P/E and no dividend yield data.
Positive Factors
Niche subsea product expertise
Matrix’s core capability in syntactic foam buoyancy and advanced composite components represents a durable technological moat in subsea markets. These products require specialized engineering, qualification and testing, creating high entry barriers and long project lead times that support multi-month revenue visibility and customer stickiness when contracts are won.
Negative Factors
Material revenue decline
A sharp, persistent revenue decline erodes scale and weakens the company’s ability to absorb fixed manufacturing and engineering costs. Over a multi-month horizon, lower project intake reduces backlog visibility, pressures utilization of specialized facilities and personnel, and can lead to margin compression even if unit economics remain favorable.
Read all positive and negative factors
Positive Factors
Negative Factors
Niche subsea product expertise
Matrix’s core capability in syntactic foam buoyancy and advanced composite components represents a durable technological moat in subsea markets. These products require specialized engineering, qualification and testing, creating high entry barriers and long project lead times that support multi-month revenue visibility and customer stickiness when contracts are won.
Read all positive factors

Matrix Composites & Engineering Ltd (MCE) vs. iShares MSCI Australia ETF (EWA)

Matrix Composites & Engineering Ltd Business Overview & Revenue Model

Company Description
Matrix Composites & Engineering Ltd (MCE.AX), an Australian company headquartered in Henderson and established in 1990, specializes in the global design, engineering, manufacturing, and distribution of sophisticated composite and material technolo...
How the Company Makes Money
MCE makes money primarily by selling engineered composite products and associated services to customers operating in offshore/subsea environments. Its key revenue streams include: (1) Product sales of syntactic foam buoyancy and related subsea/off...

Matrix Composites & Engineering Ltd Financial Statement Overview

Summary
Weak fundamentals: revenue declined sharply (-23.49%), profitability is negative (net profit and EBIT margins), leverage is elevated (debt-to-equity 1.26) with negative ROE, and cash generation is challenged (negative free cash flow growth and weak operating cash flow vs. net income).
Income Statement
45
Neutral
Balance Sheet
40
Negative
Cash Flow
35
Negative
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue62.24M74.77M85.04M47.20M28.63M17.62M
Gross Profit2.46M10.77M17.53M3.99M1.20M-3.56M
EBITDA-2.95M3.67M11.77M14.64M-42.00K-21.18M
Net Income-12.66M-2.22M3.65M8.68M-4.78M-27.92M
Balance Sheet
Total Assets78.49M80.78M95.15M79.89M33.22M36.50M
Cash, Cash Equivalents and Short-Term Investments18.03M18.34M23.32M20.02M7.59M7.16M
Total Debt69.94M37.06M39.39M35.48M27.26M27.72M
Total Liabilities58.15M51.45M64.14M53.12M34.52M39.36M
Stockholders Equity20.34M29.32M31.02M26.77M-1.30M-2.86M
Cash Flow
Free Cash Flow3.04M-5.27M6.54M-13.23M-5.66M-7.04M
Operating Cash Flow5.67M-416.00K10.88M-10.68M-4.11M-3.91M
Investing Cash Flow-3.19M-5.14M2.99M-9.99M-1.45M-3.13M
Financing Cash Flow-482.00K-50.00K-3.10M25.63M5.99M-475.00K

Matrix Composites & Engineering Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.25
Price Trends
50DMA
0.39
Positive
100DMA
0.35
Positive
200DMA
0.30
Positive
Market Momentum
MACD
<0.01
Positive
RSI
66.78
Neutral
STOCH
40.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MCE, the sentiment is Positive. The current price of 0.25 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.39, and below the 200-day MA of 0.30, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 66.78 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MCE.

Matrix Composites & Engineering Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
AU$837.82M28.4542.55%5.24%-16.50%-24.00%
72
Outperform
AU$727.49M20.4822.89%2.51%1.87%-23.48%
69
Neutral
AU$919.87M22.955.61%4.17%-34.08%-36.57%
64
Neutral
AU$5.18B32.927.97%3.11%-4.99%120.98%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
AU$2.79B26.8920.27%2.65%26.80%40.18%
44
Neutral
AU$89.31M-7.01-50.97%―-36.31%-245.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MCE
Matrix Composites & Engineering Ltd
0.40
0.14
55.69%
AU:DOW
Downer EDI Limited
7.87
1.28
19.35%
AU:LYL
Lycopodium Limited
18.44
7.07
62.17%
AU:MND
Monadelphous Group Limited
28.22
10.74
61.44%
AU:GNG
GR Engineering Services Ltd
4.97
1.68
51.29%
AU:CVL
Civmec Singapore Limited Shs Chess Deposit Interests Repr 1 Sh
1.77
0.68
61.94%

Matrix Composites & Engineering Ltd Corporate Events

Matrix Composites & Engineering to Be Acquired as ASX Suspends Trading
Jul 14, 2026
Matrix Composites Engineering Ltd, an ASX-listed Australian engineering and composites company, has operated within regulated capital markets by offering its shares to public investors under the ticker MCE. The business provides specialised compo...
Matrix Director Converts 1.97m Performance Rights into Ordinary Shares
Jul 14, 2026
Matrix Composites Engineering Ltd has disclosed a change in director Brendan Cocks&#8217; interests, involving the accelerated vesting and conversion of 1,970,887 performance rights into an equivalent number of fully paid ordinary shares on 14 Ju...
Matrix Director Converts 2.8m Performance Rights Into Ordinary Shares
Jul 14, 2026
Matrix Composites Engineering Ltd has disclosed a change in director Aaron Begley&#8217;s interests, following the accelerated vesting and conversion of 2,839,257 performance rights into fully paid ordinary shares. The transaction, effective 14 J...
Matrix Composites & Engineering Expands ASX-Listed Share Capital
Jul 14, 2026
Matrix Composites Engineering Ltd has applied for the quotation of 8,779,787 new fully paid ordinary shares on the ASX. The securities, issued on July 14, 2026 following the exercise or conversion of existing options or other convertible instrume...
Matrix Composites & Engineering to Be Acquired and Delisted After Court-Approved Scheme
Jul 14, 2026
Matrix Composites Engineering Ltd has confirmed that the Federal Court of Australia has approved Advanced Innergy Solutions Australia Pty Ltd&#8217;s acquisition of 100% of Matrix via a members&#8217; scheme of arrangement, which has now become l...
Court clears Matrix Composites & Engineering takeover and ASX delisting
Jul 13, 2026
The Federal Court of Australia has approved the acquisition of all issued shares in Matrix Composites Engineering Ltd by Advanced Innergy Solutions Australia Pty Ltd, a wholly owned subsidiary of Advanced Innergy Holdings Limited, via a members&#...
Matrix shareholders back Advanced Innergy takeover ahead of delisting
Jul 6, 2026
Matrix Composites Engineering shareholders have overwhelmingly approved a scheme of arrangement for Advanced Innergy Solutions Australia Pty Ltd, a subsidiary of Advanced Innergy Holdings, to acquire 100 per cent of the company&#8217;s issued sha...
Matrix shareholders vote on Advanced Innergy takeover scheme
Jul 6, 2026
Matrix Composites Engineering Ltd, based in Henderson, Western Australia, provides composite and advanced material technology solutions to oil and gas, civil and infrastructure, resources, defence and transportation markets. With operations in Au...
Matrix wins A$34m subsea contract, boosting FY27 outlook
Jun 23, 2026
Matrix Composites Engineering has secured a new subsea components contract worth about A$34 million from a large multinational energy services contractor, with options that could further expand the project scope and value. Work will begin immedia...
Matrix sets court timetable for Advanced Innergy takeover scheme
Jun 23, 2026
Matrix Composites Engineering has confirmed the timetable for court approval of its proposed acquisition by Advanced Innergy Solutions Australia, a subsidiary of Advanced Innergy Holdings, via a members&#8217; scheme of arrangement. The scheme, w...
Harvest Lane lifts stake in Matrix Composites & Engineering
Jun 22, 2026
Harvest Lane Asset Management and its associated entities have increased their substantial shareholding in Matrix Composites Engineering Ltd, lifting their voting power from 11.5% to 13.1%. The change reflects additional acquisitions of ordinary ...
Matrix Advances Court-Backed Takeover by Advanced Innergy With Scheme Booklet Dispatch
Jun 5, 2026
Matrix Composites Engineering has dispatched its scheme booklet to shareholders as it progresses a proposed acquisition by Advanced Innergy Solutions Australia, a subsidiary of Advanced Innergy Holdings. The Federal Court has ordered a scheme mee...
Matrix Wins ASIC Nod for Scheme Booklet on Advanced Innergy Takeover
Jun 4, 2026
Matrix Composites Engineering Ltd has had its scheme booklet for the proposed acquisition by Advanced Innergy Solutions Australia Pty Ltd registered by the Australian Securities and Investments Commission. The document outlines the terms of the p...
Harvest Lane Lifts Stake in Matrix Composites & Engineering to 11.5%
Jun 3, 2026
Harvest Lane Asset Management and its associated entities have increased their substantial shareholding in Matrix Composites Engineering Limited. Their voting interest in the company&#8217;s ordinary shares has risen from 10.42% to 11.50%, based ...
Matrix Wins Court Nod to Put Advanced Innergy Takeover to Shareholder Vote
Jun 3, 2026
Matrix Composites Engineering has secured Federal Court approval to convene a shareholder meeting on 6 July 2026 to vote on a proposed scheme of arrangement under which Advanced Innergy Solutions Australia, a subsidiary of Advanced Innergy Holdin...
Harvest Lane Lifts Stake in Matrix Composites & Engineering to Over 10%
May 12, 2026
Harvest Lane Asset Management and its associated entities have increased their substantial holding in Matrix Composites Engineering, lifting their stake from 8.48% to 10.42% of the company&#8217;s voting shares. The higher holding, spread across ...
Harvest Lane Lifts Stake in Matrix Composites & Engineering to 8.48%
May 6, 2026
Harvest Lane Asset Management and its associated entities have increased their substantial shareholding in Matrix Composites Engineering Ltd, lifting their voting power from 7.47% to 8.48% of the company&#8217;s ordinary shares. The higher stake,...
Matrix Composites & Engineering Cancels 146,144 Lapsed Performance Rights
Apr 29, 2026
Matrix Composites Engineering has reported the lapse of 146,144 performance rights, which ceased after conditions attached to those rights were not met or became incapable of being satisfied as of 28 April 2026. The cancellation modestly reduces ...
Harvest Lane Lifts Stake in Matrix Composites & Engineering to 7.47%
Apr 28, 2026
Harvest Lane Asset Management and its associated entities have increased their substantial shareholding in Matrix Composites Engineering Limited. Their voting power has risen from 5.35% to 7.47% of the company&#8217;s ordinary shares, based on 22...
Advanced Innergy moves to acquire Matrix Composites & Engineering in all-cash deal
Apr 19, 2026
Advanced Innergy Holdings Limited has agreed to acquire all ordinary shares of Matrix Composites Engineering Ltd for $0.40 in cash per share via a scheme of arrangement, with the offer described as best and final in the absence of a superior prop...
Matrix backs Advanced Innergy’s premium cash bid in agreed takeover
Apr 19, 2026
Matrix Composites Engineering has agreed to be acquired by Advanced Innergy Holdings under a scheme of arrangement in which AIH will purchase 100% of Matrix&#8217;s shares for $0.40 in cash per share. The offer represents substantial premiums to ...
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: Apr 01, 2026