Redox Limited (RDX) AI Stock Analysis

• Market Cap: AU$1.74B
• Dividend Yield: 4.24%
• Average Volume (3M): 671.96K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.83
• Revenue Growth: 9.36%
• EPS Growth: -14.60%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.08
• Shares Outstanding: 525,081,400
• 10 Day Avg. Volume: 540,372
• 30 Day Avg. Volume: 671,962
• PEG Ratio: -1.25
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 26.55
• 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$3.45
• Price Target Upside: 4.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): AU$1.36B

• Rating: 62 Neutral
• Price Target: AU$3.00 ▼(-9.37% Downside)
• Action: Downgraded Date: 02/20/26
• Date: Action: Downgraded 02/20/26

The score is primarily driven by solid profitability and a much-improved balance sheet, but is held back by a sharp free-cash-flow decline and weak near-term technical momentum. Valuation (P/E 17.3 and ~4.31% yield) provides partial support.

Positive Factors

Low Leverage

A very low debt-to-equity ratio (0.09) materially reduces financial risk and interest burden, preserving capacity to fund R&D, clinical programs or strategic deals. Over 2-6 months this stronger balance sheet increases resilience to sector volatility and financing shocks.

Stable Margins & Revenue

Consistent revenue growth with stable gross margin (~21.6%) and a healthy net margin (6.2%) demonstrates enduring product demand and pricing capacity. This steady top-line and margin profile supports recurring profitability and funding for ongoing development over the medium term.

Cash Conversion Relative to Earnings

A high free-cash-flow-to-net-income ratio (89.3%) indicates the company converts reported earnings into cash efficiently. Even with absolute FCF decline, this structural conversion ability supports medium-term funding of operations, dividends or R&D without immediate financing.

Negative Factors

Sharp FCF Decline

A 63.7% drop in free cash flow materially weakens the firm's internal funding ability, limiting cash available for R&D, clinical trials or capital projects. Persistently lower FCF raises reliance on external financing and heightens execution risk over the coming months.

Weak OCF Quality

A low operating cash flow to net income ratio (0.31) signals earnings contain significant non-cash items or working-capital swings, reducing earnings quality. This makes reported profits less reliable as a funding base and increases vulnerability if revenue or collections pressure emerges.

Margin Compression Risk

Noticeable declines in EBIT/EBITDA margins suggest rising costs or pricing pressure that could erode operating resilience. If margin contraction continues, it will constrain cash flow and reinvestment capacity, pressuring long-term competitive positioning and profitability.

Redox Limited Business Overview & Revenue Model

Company Description

Redox Limited supplies and distributes chemicals, ingredients, and raw materials in Australia, New Zealand, the United States, and internationally. It offers antioxidants, proteins and fibres, leaving agents, acidity regulator, sweeteners, thickeners, stabilisers and gums, vitamins, amino acids, mineral salts, preservatives, phosphates, humectants, essential and vegetable oils, herb and spice extracts, natural colours, emulsifier, dairy products, wine and brewing, cleaning and sanitation, specialities, additives, emollients, emulsifiers, hair care, solvents, sunscreens, surfactants, thickeners, vegetable oils, processing aids and fining, cleaning and sanitation, waxes and fatty acids, and functional products. The company also offers feed trace elements and minerals, fats and oils, fertilisers, fertiliser trace elements, herbicides, fungicides, pool chlorination and bromination, water softeners, water hardeners, PH adjusters, UV stabilisers, flocculants and coagulants, filter vessels, manganese remover, dechlorination, bore anti-fouling agents, anti-foams, odour control, boiler treatments, oxygen scavengers, corrosion inhibitors, organophosphonate sequestering agents, tannins, biocides, slimacides, algaecides and bactericides, polymeric dispersants homopolmers, polymeric dispersants copolymers, activated carbon, ion exchange resins, esters, polyalphaolefins, and polybutene. In addition, it offers chemical products for roading, glass and glass insulation, wood preservatives, gypsum, plasterboard and drywall, concrete and admixtures, insulation, and ceramic and brick. The company serves food and beverages, human health, crop production and protection, detergents, animal health and nutrition, personal care, surface coatings, metals, building construction, textile and leather, lubricants, mining, oil and gas, and water treatment, as well as rubber, and plastics and foam industry sectors. Redox Limited was founded in 1965 and is headquartered in Minto, Australia.

How the Company Makes Money

Redox Limited generates revenue through multiple streams, including the sale of proprietary drug delivery systems and biopharmaceutical products to healthcare providers and pharmaceutical companies. Additionally, the company engages in strategic partnerships and collaborations with other biotech firms and research institutions, allowing it to share resources and technologies while participating in joint ventures. These collaborations often result in milestone payments and royalties from licensed products, contributing significantly to RDX's revenue. The company also pursues grant funding and government contracts for research initiatives, further diversifying its income sources.

Redox Limited Financial Statement Overview

Summary

Income statement strength (revenue up 4.76%, stable ~21.6% gross margin, 6.2% net margin) and improved leverage (debt-to-equity 0.09, ROE 14.2%) are offset by weaker cash generation (free cash flow down 63.7% and low operating cash flow to net income of 0.31) and slight EBIT/EBITDA margin decline.

Income Statement

Redox Limited shows a consistent revenue growth trend with a 4.76% increase in the latest year, indicating positive market demand. The gross profit margin is stable at around 21.6%, and the net profit margin is healthy at 6.2%. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, suggesting potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.09, reflecting strong financial stability and reduced leverage risk. Return on equity is solid at 14.2%, indicating efficient use of equity capital. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Free cash flow has decreased by 63.7%, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is low at 0.31, suggesting potential cash flow management issues. However, the free cash flow to net income ratio remains robust at 89.3%, indicating that the company is still generating cash relative to its net income.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	979.58M	1.24B	1.14B	1.26B	1.08B	796.34M
Gross Profit	210.63M	268.63M	265.93M	262.03M	243.79M	164.92M
EBITDA	108.15M	122.94M	138.41M	137.07M	136.82M	80.18M
Net Income	62.23M	77.10M	90.24M	80.73M	88.02M	47.58M
Balance Sheet
Total Assets	743.93M	732.21M	702.38M	579.86M	639.56M	428.72M
Cash, Cash Equivalents and Short-Term Investments	145.58M	123.83M	179.29M	35.03M	40.60M	23.24M
Total Debt	69.51M	49.99M	47.04M	217.86M	261.82M	154.28M
Total Liabilities	192.71M	187.94M	171.11M	344.90M	405.74M	246.60M
Stockholders Equity	551.22M	544.27M	531.27M	234.96M	233.82M	182.13M
Cash Flow
Free Cash Flow	76.29M	42.72M	112.06M	131.63M	-50.56M	29.88M
Operating Cash Flow	80.17M	47.83M	115.89M	134.74M	-48.98M	32.24M
Investing Cash Flow	-1.92M	11.42M	-125.25M	-2.81M	-1.22M	-2.09M
Financing Cash Flow	-79.86M	-73.30M	30.88M	-137.05M	67.75M	-25.48M

Redox Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDX, the sentiment is Positive. The current price of 3.31 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 3.04, and above the 200-day MA of 2.65, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.31 is Neutral, neither overbought nor oversold. The STOCH value of 96.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RDX.

Redox Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDX	62 Neutral	AU$1.74B	20.90	14.34%	4.24%	9.36%	-14.60%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ANO	60 Neutral	AU$61.08M	42.39	3.53%	―	24.88%	―
HZR	46 Neutral	AU$103.62M	-15.35	-55.86%	―	―	64.63%
VUL	43 Neutral	AU$1.62B	-9.93	-17.30%	―	16.06%	-50.94%
A4N	43 Neutral	AU$813.89M	-18.26	-13.97%	―	620.73%	-21.19%
ATC	42 Neutral	AU$65.38M	-3.38	-39.14%	―	―	57.49%

Redox Limited Corporate Events

Redox to Unveil 1H FY26 Results with Investor Briefing on 19 February

Redox Limited has announced it will release its half-year financial results for the first half of fiscal 2026 on 19 February 2026, followed by an investor conference call and webcast featuring a Q&A session. The scheduled briefing underscores the company’s efforts to maintain active engagement and transparency with investors as it continues to grow its global chemicals distribution business across key markets in Australasia, Southeast Asia and the United States.

The most recent analyst rating on (AU:RDX) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Redox Limited stock, see the AU:RDX Stock Forecast page.