Qualitas Limited (QAL) AI Stock Analysis

• Market Cap: AU$1.10B
• Dividend Yield: 2.3%
• Average Volume (3M): 262.97K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.62
• Revenue Growth: 6.57%
• EPS Growth: 22.30%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 59
• Industry: Real Estate - Services
• EPS (TTM): 0.05
• Shares Outstanding: 300,173,980
• 10 Day Avg. Volume: 282,980
• 30 Day Avg. Volume: 262,973
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: AU$3.73
• Price Target Upside: 3.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: AU$4.00 ▲(11.11% Upside)

Qualitas Limited's overall stock score is driven by strong financial performance and positive technical indicators, although the valuation appears high. The company's ability to generate cash efficiently and maintain profitability supports its financial health, while the technical analysis suggests a positive market trend. However, the high P/E ratio indicates that the stock may be overvalued, which could limit upside potential.

Qualitas Limited Business Overview & Revenue Model

Company Description

Qualitas is a real estate investment firm which focuses on direct investment in all real estate classes and geographies, acquisitions and restructuring of distressed debt, third party capital raisings and consulting services. It seeks to provide bridge loans in the major markets of the Australian east coast, and particularly the medium and high density residential development sector. Qualitas is based in Melbourne, Australia with an additional office in Sydney, Australia. It operates as a subsidiary of Qualitas Group.

How the Company Makes Money

Qualitas Limited generates revenue through multiple streams, primarily from its property investment and management activities. The company earns income through rental yields from its real estate portfolio, which includes commercial, residential, and industrial properties. Additionally, QAL profits from development projects by selling newly developed properties or through fees associated with project management. The company also engages in capital raising activities, securing funds from investors for specific projects, which provides further revenue opportunities. Significant partnerships with institutional investors and joint ventures enhance its funding capabilities and broaden its investment reach, contributing to overall earnings.

Qualitas Limited Financial Statement Overview

Summary

Qualitas Limited displays strong financial performance with significant revenue growth, high profit margins, and improved cash flow generation. The company has a balanced capital structure, though significant debt levels are a potential risk. Overall, the financial health is robust, supported by efficient cost management and enhanced profitability.

Income Statement

Qualitas Limited has demonstrated strong revenue growth with a notable increase from $94.1 million to $104.4 million, resulting in a revenue growth rate of 10.9%. The company's gross profit margin is exceptionally high at 99.9%, indicating efficient cost management. Net profit margin has improved to 25.1%, reflecting enhanced profitability. The EBIT margin is robust at 59.8%, and the EBITDA margin is also strong at 56.6%. Overall, the income statement reflects solid financial health, with rising revenues and improving profitability metrics.

Balance Sheet

The balance sheet shows a healthy equity position with stockholders' equity at $367 million. The debt-to-equity ratio is 0.80, indicating moderate leverage. Return on equity is strong at 7.1%, reflecting efficient use of equity to generate profits. The equity ratio is 51.8%, suggesting a balanced capital structure with more than half of the assets financed by equity. However, total debt remains significant at $295 million, highlighting a potential risk if earnings fluctuate.

Cash Flow

Qualitas Limited has shown a remarkable turnaround in cash flow, with free cash flow improving from -$23.4 million to $72.1 million, resulting in a significant free cash flow growth rate. The operating cash flow to net income ratio is favorable at 2.77, showcasing strong cash generation relative to net income. The free cash flow to net income ratio is also impressive at 2.75, indicating effective conversion of earnings into cash flow. This strong cash flow performance supports operational flexibility and potential for future investments.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	108.45M	102.42M	94.13M	36.41M	70.88M	49.45M
Gross Profit	108.11M	102.31M	71.13M	28.68M	56.04M	31.17M
EBITDA	61.06M	59.11M	34.28M	14.37M	17.08M	3.64M
Net Income	43.52M	26.18M	22.54M	12.12M	10.97M	3.68M
Balance Sheet
Total Assets	447.25M	708.13M	742.79M	812.76M	815.87M	539.80M
Cash, Cash Equivalents and Short-Term Investments	105.10M	196.50M	192.37M	309.01M	308.63M	17.01M
Total Debt	41.91M	295.29M	340.74M	416.49M	453.40M	481.26M
Total Liabilities	79.39M	341.12M	380.74M	458.20M	479.46M	496.01M
Stockholders Equity	367.87M	367.01M	362.06M	354.57M	336.42M	40.34M
Cash Flow
Free Cash Flow	-12.51M	72.06M	-23.36M	38.52M	6.51M	1.06M
Operating Cash Flow	-11.04M	72.39M	-22.89M	38.85M	6.57M	1.30M
Investing Cash Flow	-12.94M	-333.00K	-467.00K	9.47M	11.61M	-2.57M
Financing Cash Flow	-95.00M	-70.05M	-93.28M	260.69M	-30.61M	41.78M

Qualitas Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.60
• 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:QAL, the sentiment is Positive. The current price of 3.6 is above the 20-day moving average (MA) of 3.53, above the 50-day MA of 3.28, and above the 200-day MA of 2.76, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 69.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:QAL.

Qualitas Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWP	76 Outperform	AU$596.55M	11.27	11.86%	3.71%	32.36%	109.17%
QAL	75 Outperform	AU$1.10B	35.98	8.22%	2.30%	6.57%	22.30%
CNI	71 Outperform	AU$1.57B	21.50	4.97%	6.76%	13.48%	-8.15%
Sector *	63 Neutral	$6.81B	14.06	-1.43%	7.27%	4.68%	-34.18%
COF	55 Neutral	AU$758.62M	―	-8.21%	7.77%	-9.52%	47.94%
CMW	54 Neutral	AU$1.13B	―	-12.54%	7.23%	-52.49%	47.09%
ABG	54 Neutral	AU$1.06B	―	-6.24%	7.20%	―	―

Qualitas Limited Corporate Events

Qualitas Limited to Release Shares from Voluntary Escrow, Boosting Market Liquidity

Qualitas Limited has announced the release of 30,123,526 shares from voluntary escrow, increasing the proportion of shares available for trade on a free float basis to 72.4% as of July 29, 2025. This decision, approved by the Board, allows for the early release of shares initially set to be released in December 2026, aiming to prevent potential incorrect calculations of free float and improve market liquidity.

The most recent analyst rating on (AU:QAL) stock is a Buy with a A$3.75 price target. To see the full list of analyst forecasts on Qualitas Limited stock, see the AU:QAL Stock Forecast page.

Qualitas Director Increases Stake in Real Estate Income Fund

Qualitas Limited has announced a change in the director’s interest notice concerning Darren Steinberg. The change involves the acquisition of 62,500 units in the Qualitas Real Estate Income Fund by DJS Investment Holdings Pty Ltd on behalf of the Steinberg Family Trust, with no disposals reported. This on-market acquisition reflects an increase in the director’s indirect interest in the company’s securities, potentially indicating confidence in the company’s financial products and market position.

The most recent analyst rating on (AU:QAL) stock is a Buy with a A$3.75 price target. To see the full list of analyst forecasts on Qualitas Limited stock, see the AU:QAL Stock Forecast page.

Qualitas Limited Announces Cessation of Securities

Qualitas Limited announced the cessation of certain securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This cessation affects a total of 111,538 securities, including options and share rights, with expiration dates ranging from 2033 to 2035. The announcement may impact Qualitas Limited’s capital structure and could influence stakeholder perceptions regarding the company’s future financial strategies.

The most recent analyst rating on (AU:QAL) stock is a Buy with a A$3.75 price target. To see the full list of analyst forecasts on Qualitas Limited stock, see the AU:QAL Stock Forecast page.

Qualitas Limited Showcases Strength at 2025 Macquarie Conference

Qualitas Limited has presented at the 2025 Macquarie Conference, highlighting its strong position in the real estate investment sector. With a broad platform and deep industry knowledge, Qualitas continues to drive performance and create long-term value for shareholders and communities, managing assets valued at over A$27 billion across all real estate sectors.