Qualitas Limited (QAL) AI Stock Analysis

• Market Cap: AU$1.14B
• Dividend Yield: 2.65%
• Average Volume (3M): 840.09K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.78
• Revenue Growth: 12.50%
• EPS Growth: 27.40%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Real Estate - Services
• EPS (TTM): 0.07
• Shares Outstanding: 301,424,530
• 10 Day Avg. Volume: 1,774,237
• 30 Day Avg. Volume: 840,086
• PEG Ratio: 1.39
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 8.81
• P/FCF Ratio: 65.29
• 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$4.26
• Price Target Upside: 13.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: AU$4.00 ▲(6.10% Upside)

Qualitas Limited shows strong financial performance with robust profitability and improved leverage. Positive technical indicators suggest bullish momentum. However, the high P/E ratio indicates a potentially overvalued stock, and liquidity challenges could pose risks.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates effective market strategies and a strong position in the real estate sector, supporting long-term expansion.

Leverage Reduction

Reduced leverage enhances financial stability and flexibility, allowing Qualitas to invest in growth opportunities without over-relying on debt.

Profitability Margins

Strong profitability margins reflect efficient cost management and competitive pricing power, supporting sustainable earnings over the long term.

Negative Factors

Free Cash Flow Decline

The decline in free cash flow growth poses liquidity challenges, potentially limiting the company's ability to fund operations and growth initiatives.

Cash Conversion Concerns

Lower cash conversion ratios suggest potential liquidity issues, affecting the company's ability to reinvest in its business and meet financial obligations.

Gross Margin Pressure

A decline in gross profit margin indicates rising costs or pricing pressures, which could impact future profitability if not managed effectively.

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 various channels, including the sale of agricultural products, rental income from real estate properties, and the management of investment funds. The company has established key partnerships with agricultural producers and real estate developers, enabling it to leverage expertise and resources in these sectors. Additionally, QAL may earn fees from managing investment portfolios and providing advisory services, which contribute significantly to its overall earnings.

Qualitas Limited Financial Statement Overview

Summary

Qualitas Limited demonstrates strong revenue growth and profitability with impressive margins. The company has improved its leverage, enhancing financial stability. However, the decline in free cash flow growth and lower cash conversion ratios highlight potential liquidity challenges.

Income Statement

Qualitas Limited has shown a strong revenue growth rate of 8.25% in the latest year, with a solid gross profit margin of 90.06% and a net profit margin of 28.46%. The EBIT and EBITDA margins are also robust at 47.15% and 48.33%, respectively. These figures indicate strong profitability and efficient cost management. However, the slight decline in gross profit margin from the previous year suggests potential pressure on cost control.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.14, indicating a significant reduction in leverage compared to previous years. The return on equity (ROE) of 8.78% reflects moderate profitability relative to shareholder equity. The equity ratio stands at 78.95%, showcasing a strong equity position. However, the historical high leverage levels pose a potential risk if not managed carefully.

Cash Flow

Qualitas Limited experienced a significant decline in free cash flow growth, with a negative rate of -226.56%. The operating cash flow to net income ratio is 0.49, indicating that cash generation from operations is less than net income, which could be a concern for liquidity. The free cash flow to net income ratio of 0.74 suggests that a substantial portion of earnings is being converted into free cash flow, although this has decreased from previous years.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	117.40M	117.40M	103.38M	94.13M	47.32M	70.88M
Gross Profit	117.22M	105.73M	102.31M	71.13M	39.60M	56.04M
EBITDA	56.74M	56.74M	59.93M	54.10M	14.37M	17.08M
Net Income	33.41M	33.41M	26.18M	22.54M	12.12M	10.97M
Balance Sheet
Total Assets	481.75M	481.75M	708.13M	742.79M	812.76M	815.87M
Cash, Cash Equivalents and Short-Term Investments	148.78M	148.78M	196.50M	192.37M	309.01M	308.63M
Total Debt	54.05M	54.05M	295.29M	340.74M	419.72M	453.40M
Total Liabilities	101.38M	101.38M	341.12M	380.74M	458.20M	479.46M
Stockholders Equity	380.37M	380.37M	367.01M	362.06M	354.57M	336.42M
Cash Flow
Free Cash Flow	15.83M	15.83M	72.06M	-23.36M	38.52M	6.51M
Operating Cash Flow	21.48M	21.48M	72.39M	-22.89M	38.85M	6.57M
Investing Cash Flow	-17.11M	-17.11M	-333.00K	-467.00K	9.47M	11.61M
Financing Cash Flow	-49.96M	-49.96M	-70.05M	-93.28M	260.69M	-30.61M

Qualitas Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.77
• 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 3.77 is above the 20-day moving average (MA) of 3.75, above the 50-day MA of 3.74, and above the 200-day MA of 3.23, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 74.36 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	69 Neutral	AU$743.56M	14.98	10.13%	3.32%	14.95%	18.79%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QAL	67 Neutral	AU$1.14B	32.95	8.94%	2.65%	12.50%	27.40%
CNI	65 Neutral	AU$1.72B	20.76	5.59%	6.26%	38.64%	-21.14%
ABG	57 Neutral	AU$1.11B	41.20	1.70%	7.11%	4.69%	―
CMW	54 Neutral	AU$1.28B	-21.88	-9.33%	6.12%	-5.64%	89.16%
COF	53 Neutral	AU$674.99M	-34.14	-1.91%	8.63%	-4.50%	88.28%

Qualitas Limited Corporate Events

Qualitas Limited Passes All Resolutions at 2025 AGM

Qualitas Limited announced that all resolutions at its 2025 Annual General Meeting were passed. This outcome supports the company’s strategic direction and may enhance its operational stability and market confidence. The successful resolutions are expected to positively impact stakeholders, affirming Qualitas’s commitment to creating long-term value for shareholders and the communities it serves.

Qualitas Limited Prepares for 2025 AGM with Strategic Focus on Real Estate Investment

Qualitas Limited has announced the details of its upcoming 2025 Annual General Meeting, including speeches and presentations from key executives. The company continues to position itself as a leader in the alternative real estate investment sector, with a strong focus on creating long-term value for shareholders and partners through its diverse investment offerings.

Qualitas Limited Announces Director’s Share Disposal

Qualitas Limited announced a change in the director’s interest, specifically involving Andrew Schwartz, who disposed of 15,100,000 ordinary shares. This off-market sale, valued at $3.51 per share, reflects a significant adjustment in Schwartz’s holdings, potentially impacting investor perceptions and the company’s market positioning.

Qualitas Limited Announces 2025 AGM Details

Qualitas Limited has released its 2025 Annual General Meeting Notice, including a proxy form and a virtual AGM guide. This announcement underscores the company’s commitment to transparent communication with its stakeholders, reflecting its strategic focus on maintaining strong investor relations. The AGM serves as a platform for discussing the company’s performance and future plans, reinforcing its position in the real estate investment sector.

Qualitas Limited Releases 2025 Annual Report Highlighting Strategic Growth

Qualitas Limited has released its 2025 Annual Report, highlighting its continued growth and strategic positioning in the real estate investment sector. The company emphasizes its broad platform and diverse investment solutions as key drivers for accelerating business growth and enhancing shareholder performance.

Qualitas Co-Founder Sells Shares, Boosting Global Investor Confidence

Qualitas Limited announced that Andrew Schwartz, the Group Managing Director and Co-Founder, sold 15.1 million shares to a large global listed equities manager, reducing his holding to 19% of the company’s issued capital. This transaction, marking Schwartz’s first sale since the company’s IPO, reflects confidence in Qualitas’ growth trajectory and enhances its profile among global investors. The company continues to see strong momentum in its credit and equity strategies, with a growing pipeline of investments and increased investor interest, positioning it well for future growth.

Qualitas Limited Announces Cessation of Securities

Qualitas Limited has announced the cessation of certain securities, specifically 15,000 share rights canceled by agreement and 5,000 share rights that lapsed due to unmet conditions. This announcement indicates a reduction in the company’s issued capital, which may affect its market positioning and stakeholder interests.

Qualitas Limited Director Acquires 40,000 Shares

Qualitas Limited has announced a change in the director’s interest notice involving Bruce Ian MacDiarmid. The company disclosed that MacDiarmid has acquired 40,000 ordinary shares at $3.30 per share through an on-market acquisition, marking his indirect interest in the company via the Northwood Superannuation Fund. This acquisition reflects a strategic move by the director, potentially signaling confidence in the company’s future prospects and could influence investor perception and stakeholder confidence.

Qualitas Limited Issues New Employee Incentive Options

Qualitas Limited has announced the issuance of 1,455,000 options to acquire ordinary shares in the company. These securities are part of an employee incentive scheme and are not intended to be quoted on the ASX. This move could potentially enhance employee engagement and align their interests with the company’s growth objectives.

Qualitas Limited Announces 2025 Hybrid AGM

Qualitas Limited has announced that its 2025 Annual General Meeting will be held on November 19, 2025, as a hybrid event. The meeting will provide an opportunity for stakeholders to engage with the company’s strategic direction and governance. The announcement underscores Qualitas’ commitment to transparency and stakeholder engagement, reflecting its ongoing efforts to align with market expectations and regulatory requirements.