Qualitas Limited (QAL) AI Stock Analysis

• Market Cap: AU$801.79M
• Dividend Yield: 2.65%
• Average Volume (3M): 840.09K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.87
• 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$4.19
• Price Target Upside: 36.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.15
• Revenue Forecast (FY): AU$136.09M

• Rating: 67 Neutral
• Price Target: AU$3.00 ▼(-1.96% Downside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

High profitability margins

Very high gross (90.06%) and net (28.46%) margins indicate durable pricing power and an efficient cost base. Sustained margins support reinvestment in origination and servicing, provide a buffer in downturns, and enable consistent return generation for shareholders over time.

Low leverage and strong equity base

A debt-to-equity ratio of 0.14 and equity ratio near 79% signal materially improved leverage and a strong capital base. This structural strength improves financial flexibility, lowers refinancing risk, and enables opportunistic growth or shareholder returns without excessive funding strain.

Consistent revenue and EPS growth

Double-digit revenue growth and mid-teens-plus EPS growth demonstrate expanding business scale and improving earnings quality. These durable growth trends support margin sustainability, strengthen competitive positioning, and provide capacity for disciplined capital allocation over the medium term.

Negative Factors

Weak free cash flow conversion

A dramatic -226.56% decline in free cash flow growth and operating cash flow only 0.49x of net income reveal weakening cash conversion. Over months, constrained cash generation can limit reinvestment, increase reliance on external funding, and pressure liquidity during stress periods.

History of higher leverage

Although current leverage is low, management's note of historically high leverage is a structural risk reminder. Prior elevated gearing can recur in growth cycles or under stress, increasing refinancing and covenant vulnerability and potentially amplifying downside in downturns.

Early signs of margin pressure

A small decline in gross margin, despite very high absolute margins, suggests rising input costs or competitive pricing pressure. If persistent, this trend can erode the company's margin advantage and reduce its ability to fund organic growth or absorb shock without margin recovery.

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 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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	121.64M	117.40M	103.38M	94.13M	47.32M	70.88M
Gross Profit	117.62M	105.73M	102.31M	71.13M	39.60M	56.04M
EBITDA	56.32M	56.74M	59.93M	54.10M	14.37M	17.08M
Net Income	37.87M	33.41M	26.18M	22.54M	12.12M	10.97M
Balance Sheet
Total Assets	473.34M	481.75M	708.13M	742.79M	812.76M	815.87M
Cash, Cash Equivalents and Short-Term Investments	33.20M	148.78M	196.50M	192.37M	309.01M	308.63M
Total Debt	62.34M	54.05M	295.29M	340.74M	419.72M	453.40M
Total Liabilities	88.55M	101.38M	341.12M	380.74M	458.20M	479.46M
Stockholders Equity	384.80M	380.37M	367.01M	362.06M	354.57M	336.42M
Cash Flow
Free Cash Flow	-49.46M	15.83M	72.06M	-23.36M	38.52M	6.51M
Operating Cash Flow	-44.94M	21.48M	72.39M	-22.89M	38.85M	6.57M
Investing Cash Flow	-4.52M	-17.11M	-333.00K	-467.00K	9.47M	11.61M
Financing Cash Flow	-22.45M	-49.96M	-70.05M	-93.28M	260.69M	-30.61M

Qualitas Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:QAL, the sentiment is Negative. The current price of 3.06 is above the 20-day moving average (MA) of 3.00, below the 50-day MA of 3.22, and below the 200-day MA of 3.39, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 29.30 is Positive, neither overbought nor oversold. The STOCH value of 15.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$696.77M	4.51	14.27%	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$801.79M	12.66	8.94%	2.65%	12.50%	27.40%
ABG	57 Neutral	AU$924.94M	5.68	1.70%	7.11%	4.69%	―
CNI	56 Neutral	AU$1.40B	8.41	5.59%	6.26%	38.64%	-21.14%
CMW	54 Neutral	AU$1.06B	3.08	-9.33%	6.12%	-5.64%	89.16%
COF	53 Neutral	AU$597.34M	2.79	-1.91%	8.63%	-4.50%	88.28%

Qualitas Limited Corporate Events

Qualitas Sets 2026 Financial Results Briefing Schedule

Qualitas Limited has scheduled its 2026 financial results briefings, confirming that the half-year results will be presented on 17 February 2026 and the full-year results on 12 August 2026, both via webcast and teleconference. The announcement underlines the firm’s ongoing investor engagement as it continues to grow its alternative real estate investment platform, providing stakeholders with clear visibility on upcoming performance disclosures that are important for assessing its position in the real estate private credit and equity markets.

The most recent analyst rating on (AU:QAL) stock is a Buy with a A$4.26 price target. To see the full list of analyst forecasts on Qualitas Limited stock, see the AU:QAL Stock Forecast page.

Qualitas Trims Potential Dilution as Options and Rights Lapse

Qualitas Limited has notified the ASX of changes to its issued capital, detailing the cessation of several classes of equity-based securities, including options and share rights. The securities, amounting to over 180,000 instruments, have either lapsed because vesting or performance conditions were not met or been cancelled by agreement with the holders, signalling an adjustment to the company’s long-term incentive and capital structure that marginally reduces potential future dilution for existing shareholders.

The most recent analyst rating on (AU:QAL) stock is a Buy with a A$4.26 price target. To see the full list of analyst forecasts on Qualitas Limited stock, see the AU:QAL Stock Forecast page.

Perpetual Limited Ceases Substantial Holding in Qualitas Limited

Perpetual Limited and its related bodies corporate have ceased to be substantial holders in Qualitas Limited as of December 15, 2025. This change in substantial holding may impact Qualitas Limited’s shareholder structure and could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (AU:QAL) stock is a Buy with a A$4.26 price target. To see the full list of analyst forecasts on Qualitas Limited stock, see the AU:QAL Stock Forecast page.

Qualitas Limited Announces Change in Director’s Shareholding

Qualitas Limited announced a change in the director’s interest, specifically regarding Andrew Schwartz’s holdings. Schwartz acquired 1,250,529 ordinary shares under the company’s Long Term Incentive Loan Plan, with these shares subject to a performance vesting period from July 2025 to June 2029. This change reflects the company’s ongoing commitment to aligning executive interests with long-term performance goals, potentially impacting shareholder value and market perception.

The most recent analyst rating on (AU:QAL) stock is a Buy with a A$4.26 price target. To see the full list of analyst forecasts on Qualitas Limited stock, see the AU:QAL Stock Forecast page.

Qualitas Limited Announces Quotation of New Securities on ASX

Qualitas Limited has announced the quotation of 1,250,529 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of an employee incentive scheme, allowing these securities to be traded without transfer restrictions. The issuance of these securities is expected to enhance liquidity and potentially improve market perception of the company, benefiting stakeholders by aligning employee interests with company performance.

The most recent analyst rating on (AU:QAL) stock is a Buy with a A$4.26 price target. To see the full list of analyst forecasts on Qualitas Limited stock, see the AU:QAL Stock Forecast page.