Redox Limited (RDX) AI Stock Analysis

• Market Cap: AU$1.44B
• Dividend Yield: 4.43%
• Average Volume (3M): 671.96K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.68
• Revenue Growth: 9.36%
• EPS Growth: -14.60%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.07
• 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$3.50
• Price Target Upside: 24.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: AU$3.00 ▲(6.38% Upside)

Redox Limited's strong financial performance, particularly in revenue growth and profitability, is a key strength. The positive technical indicators further support a favorable outlook. Valuation metrics are reasonable, with an attractive dividend yield. However, attention to cash flow management could enhance the company's financial health.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective sales strategies, supporting long-term business expansion.

Financial Stability

Improved debt-to-equity ratio enhances financial stability, reducing leverage risk and increasing the company's resilience to economic fluctuations.

Profitability

Stable profitability margins indicate effective cost management and pricing strategies, ensuring sustainable earnings over time.

Negative Factors

Cash Flow Management

Declining free cash flow suggests potential issues in cash generation, which could impact the company's ability to finance operations and growth.

Margin Contraction

Margin contraction may indicate rising costs or pricing pressures, potentially affecting future profitability if not addressed.

Cash Flow to Net Income Ratio

A low operating cash flow to net income ratio suggests inefficiencies in converting income into cash, which could strain liquidity.

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

Redox Limited demonstrates strong revenue growth and profitability, supported by a stable gross profit margin and improved leverage. However, declining cash flow metrics and slight margin contractions highlight areas for improvement in cost control and cash management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	937.82M	1.24B	1.14B	1.26B	1.08B	796.34M
Gross Profit	202.59M	268.63M	265.93M	262.03M	243.79M	164.92M
EBITDA	84.95M	122.94M	138.41M	137.07M	136.82M	80.18M
Net Income	58.65M	77.10M	90.24M	80.73M	88.02M	47.58M
Balance Sheet
Total Assets	732.21M	732.21M	702.38M	579.86M	639.56M	428.72M
Cash, Cash Equivalents and Short-Term Investments	123.83M	123.83M	179.29M	35.03M	40.60M	23.24M
Total Debt	49.99M	49.99M	47.04M	217.86M	261.82M	154.28M
Total Liabilities	187.94M	187.94M	171.11M	344.90M	405.74M	246.60M
Stockholders Equity	544.27M	544.27M	531.27M	234.96M	233.82M	182.13M
Cash Flow
Free Cash Flow	25.86M	42.72M	112.06M	131.63M	-50.56M	29.88M
Operating Cash Flow	29.89M	47.83M	115.89M	134.74M	-48.98M	32.24M
Investing Cash Flow	11.42M	11.42M	-125.25M	-2.81M	-1.22M	-2.09M
Financing Cash Flow	-73.30M	-73.30M	30.88M	-137.05M	67.75M	-25.48M

Redox Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.82
• 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:RDX, the sentiment is Positive. The current price of 2.82 is below the 20-day moving average (MA) of 2.82, above the 50-day MA of 2.80, and above the 200-day MA of 2.58, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 23.98 is Neutral, 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	71 Outperform	AU$1.44B	18.66	14.34%	4.43%	9.36%	-14.60%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ANO	60 Neutral	AU$77.37M	62.37	3.53%	―	24.88%	―
HZR	46 Neutral	AU$130.01M	-14.85	-55.86%	―	―	64.63%
A4N	45 Neutral	AU$852.95M	-26.22	-13.97%	―	620.73%	-21.19%
ATC	39 Underperform	AU$98.73M	-5.21	-39.14%	―	―	57.49%

Redox Limited Corporate Events

Redox Limited Updates Director’s Interest Notice for Compliance

Redox Limited has amended its Appendix 3Y to include an indirect interest held by Director Renato Coneliano, which was previously omitted in the release dated 10 October 2025. This update reflects the indirect interest in shares held by a closely related party, highlighting the company’s commitment to transparency and compliance with ASX regulations. The announcement underscores the importance of accurate reporting in maintaining stakeholder trust and adherence to corporate governance standards.

Redox Limited Director Increases Shareholding

Redox Limited announced a change in the director’s interest, with Mary Verschuer acquiring an additional 9,055 ordinary shares through Verschuer Investments Pty Ltd, increasing her indirect interest to 28,663 shares. This acquisition, conducted via an on-market trade, reflects a strategic move that could potentially strengthen the company’s leadership stake and influence in its operations.

Redox Limited Announces Director’s Interest Change

Redox Limited has announced a change in the interest of its director, Richard Raymond Coneliano, with the acquisition of 161,108 Long Term Incentive (LTI) Performance Rights. This change, approved at the company’s Annual General Meeting, reflects a strategic move to align the director’s incentives with the company’s long-term goals, potentially impacting the company’s operational focus and stakeholder interests.

Redox Limited Announces Director’s Interest Change

Redox Limited has announced a change in the director’s interest, specifically for Renato Coneliano, who has been granted 158,819 Long Term Incentive (LTI) Performance Rights. This change was approved by the shareholders at the Annual General Meeting on 8 October 2025, and it reflects the company’s commitment to aligning director incentives with long-term performance goals, potentially impacting the company’s strategic direction and stakeholder value.

Redox Limited Updates Director’s Interest with New Incentive Plan

Redox Limited has announced a change in the director’s interest notice, specifically regarding Raimond Heath Coneliano. The company has granted 421,883 Long Term Incentive Performance Rights to Mr. Coneliano under its Long Term Incentive Plan, which was approved at the Annual General Meeting on October 8, 2025. This move reflects Redox Limited’s commitment to aligning its leadership incentives with long-term company performance, potentially impacting its strategic direction and shareholder value.

Redox Limited Reports Strong Financial Performance and ESG Commitment at 2025 AGM

At its 2025 Annual General Meeting, Redox Limited reported strong financial performance despite global economic challenges, with a 9.4% increase in sales revenue and a 1% rise in gross profit. The company emphasized its commitment to Environmental, Social, and Governance (ESG) initiatives and shareholder returns, paying out 12.5 cents per share, surpassing its dividend policy. The board highlighted its focus on maintaining a straightforward executive remuneration strategy centered on total shareholder return, while expressing confidence in the company’s financial strength with $124 million in cash and $185 million in unused debt facilities.