Qualitas Limited (QAL) AI Stock Analysis

• Market Cap: AU$789.46M
• Dividend Yield: 3.14%
• Average Volume (3M): 219.41K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.49
• Revenue Growth: 6.57%
• EPS Growth: 22.30%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 81
• Industry: Real Estate - Services
• EPS (TTM): 0.10
• Shares Outstanding: 300,173,980
• 10 Day Avg. Volume: 374,184
• 30 Day Avg. Volume: 219,411
• PEG Ratio: 1.16
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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$3.47
• Price Target Upside: 31.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Qualitas Limited demonstrates strong financial health with rising revenues and cash flow, which are significant strengths. The technical indicators present mixed signals, suggesting caution. The stock is fairly valued with a reasonable dividend yield, contributing to a solid overall stock score.

Qualitas Limited Business Overview & Revenue Model

Company Description

Qualitas Limited (QAL) is a company operating in the financial services sector, providing asset management and investment solutions. With a focus on real estate and private credit markets, Qualitas Limited offers a range of investment products aimed at institutional investors, high-net-worth individuals, and retail clients. The company is dedicated to delivering robust financial returns through strategic investment in diverse asset classes, underpinned by market research and risk management expertise.

How the Company Makes Money

Qualitas Limited generates revenue primarily through management fees and performance fees associated with its asset management services. The company manages a variety of investment funds, each with specific investment strategies and objectives, generating consistent management fees based on the assets under management (AUM). Additionally, Qualitas earns performance fees when the funds exceed predefined performance benchmarks. The company's revenue is further supported by advisory services, where it provides strategic investment guidance and financial consultation to its clients. Significant partnerships with financial institutions and real estate developers contribute to its revenue by broadening its investment opportunities and optimizing portfolio returns.

Qualitas Limited Financial Statement Overview

Summary

Qualitas Limited exhibits strong financial performance with impressive revenue and profitability growth, a balanced capital structure, and significant cash flow improvements. Notable risks include substantial debt, but these are offset by robust cash flow generation and high profitability margins.

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
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
102.42M	94.13M	36.41M	70.88M	49.45M
	Gross Profit
102.31M	71.13M	28.68M	56.04M	31.17M
	EBIT
58.29M	32.37M	20.55M	15.15M	1.70M
	EBITDA
59.11M	34.28M	14.37M	17.08M	3.64M
	Net Income Common Stockholders
26.18M	22.54M	12.12M	10.97M	3.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
196.50M	192.37M	309.01M	308.63M	17.01M
	Total Assets
708.13M	742.79M	812.76M	815.87M	539.80M
	Total Debt
295.29M	340.74M	416.49M	453.40M	481.26M
	Net Debt
100.91M	148.37M	107.48M	144.78M	464.25M
	Total Liabilities
341.12M	380.74M	458.20M	479.46M	496.01M
	Stockholders Equity
367.01M	362.06M	354.57M	336.42M	40.34M
Cash Flow		Free Cash Flow
72.06M	-23.36M	38.52M	6.51M	1.06M
	Operating Cash Flow
72.39M	-22.89M	38.85M	6.57M	1.30M
	Investing Cash Flow
-333.00K	-467.00K	9.47M	11.61M	-2.57M
	Financing Cash Flow
-70.05M	-93.28M	260.69M	-30.61M	41.78M

Qualitas Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.63
• 50DMA: Positive
• 100DMA: Positive
• 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:QAL, the sentiment is Positive. The current price of 2.63 is above the 20-day moving average (MA) of 2.45, above the 50-day MA of 2.47, and above the 200-day MA of 2.49, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 71.73 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
QAL	75 Outperform	AU$789.46M	25.78	8.22%	3.14%	6.57%	22.30%
WMI	74 Outperform		6.56	16.99%	7.15%	235.23%	171.50%
BKI	72 Outperform		22.16	4.44%	4.70%	-4.33%	-13.07%
ARG	68 Neutral		26.77	3.96%	4.13%	-3.41%	-4.97%
AFI	68 Neutral		29.57	3.68%	3.74%	1.81%	0.50%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%

Qualitas Limited Corporate Events

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.

Qualitas Limited Relocates Registered Office to Enhance Operations

Qualitas Limited has announced a change in its Registered and Principal Administrative Office to Level 41, 101 Collins Street, Melbourne, Victoria, effective April 22, 2025. This move is part of the company’s ongoing efforts to enhance its operational efficiency and maintain its strong market presence in the real estate investment sector.

Qualitas Limited Appoints New Director

Qualitas Limited has announced the appointment of Bruce Ian MacDiarmid as a director, effective April 15, 2025. The company has disclosed that MacDiarmid currently does not hold any relevant interests in securities, contracts, or trusts associated with the company. This appointment is part of the company’s ongoing governance and leadership strategy, potentially impacting its operations and stakeholder relations.

Qualitas Limited Appoints Bruce MacDiarmid as Non-Executive Director

Qualitas Limited has announced the appointment of Bruce MacDiarmid as an independent non-executive director to its Board. With over 30 years of experience in investment banking and capital markets, including his recent role as Chairman of Investment Banking at Goldman Sachs, Australia and New Zealand, MacDiarmid is expected to contribute significantly to Qualitas’ growth plans. His expertise in property, energy transition, and infrastructure, along with his extensive networks, will enhance the company’s strategic positioning and operational capabilities.

Qualitas Limited Relocates Sydney Registry Office

Qualitas Limited announced the relocation of its registry office in Sydney to Liberty Place, effective from April 14, 2025, while maintaining the same contact details. This move is part of the company’s ongoing efforts to streamline operations and enhance its market presence, potentially impacting its stakeholders by reinforcing its operational infrastructure.

Qualitas Limited Announces Change in Director’s Interest

Qualitas Limited has announced a change in the director’s interest notice concerning Andrew Fairley AM. The notice details the acquisition of additional units in the Qualitas Real Estate Income Fund (QRI) by entities associated with Fairley. This acquisition was made under a QRI entitlement offer, reflecting an increase in Fairley’s investment in the fund, which could indicate a strategic move to strengthen his position within the company.

Qualitas Limited Releases Interim Financial Results for 2024

Qualitas Limited has released its interim financial results for the six-month period ending December 31, 2024. The announcement highlights the company’s continued focus on leveraging its broad platform and industry knowledge to drive performance and growth. With a strong market position in real estate investment management, Qualitas aims to provide flexible capital solutions and maintain long-term partnerships, benefiting shareholders and the communities it serves.

Qualitas Limited Reports Robust Growth in First Half of FY25

Qualitas Limited reported significant financial growth for the first half of fiscal year 2025, with a 19% increase in funds management revenue and a 30% rise in statutory group net profit after tax. The company achieved a record half-year deployment of $2.4 billion in private credit, leading to a 41% growth in Fee Earning Funds Under Management (FUM). This expansion positions Qualitas well for continued growth, supported by strong residential sector activity and favorable economic conditions anticipated later in the year. The company remains optimistic about the future of private credit in Australia and its ability to leverage institutional capital for long-term growth.