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Salter Brothers Emerging Companies Ltd. (AU:SB2)
ASX:SB2
Australian Market

Salter Brothers Emerging Companies Ltd. (SB2) AI Stock Analysis

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AU:SB2

Salter Brothers Emerging Companies Ltd.

(Sydney:SB2)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
AU$0.77
▲(6.25% Upside)
The score is driven primarily by solid balance-sheet strength (no debt, strong equity base) but is held back by volatile revenue and inconsistent cash flows. Technical signals are neutral-to-weak, while valuation is supported by a high dividend yield but tempered by a moderate P/E.
Positive Factors
Balance Sheet Strength
A debt-free balance sheet with a strong equity base enhances financial resilience and provides flexibility for future investments.
Strategic Buyback Program
The ongoing buyback program reflects a strategic focus on optimizing capital structure, potentially enhancing shareholder value and market perception.
Portfolio Performance
Consistent positive portfolio performance indicates effective investment strategies and positions the company for sustained growth.
Negative Factors
Revenue Volatility
Significant revenue volatility undermines earnings predictability, posing challenges to long-term financial planning and stability.
Inconsistent Cash Flows
Inconsistent cash flows increase execution risk and may hinder the company's ability to fund operations and investments reliably.
Earnings Durability Concerns
Volatile earnings reduce confidence in the company's ability to maintain stable financial performance over the long term.

Salter Brothers Emerging Companies Ltd. (SB2) vs. iShares MSCI Australia ETF (EWA)

Salter Brothers Emerging Companies Ltd. Business Overview & Revenue Model

Company DescriptionSalter Brothers Emerging Companies Limited, an investment company, focuses on a portfolio of investment opportunities, primarily in Australian listed and unlisted securities. The company was incorporated in 2020 and is based in Melbourne, Australia.
How the Company Makes MoneySB2 makes money through a structured revenue model centered around investment management and advisory services. The company generates income from management fees charged to investors, typically calculated as a percentage of the total assets under management (AUM). Additionally, SB2 may earn performance fees, which are contingent on achieving specific investment return benchmarks or outperforming certain market indices. These performance fees are designed to align the company's interests with those of its investors. SB2's revenue streams are further bolstered by strategic partnerships with institutional investors and other financial entities, which provide additional capital and resources to enhance the company's investment capabilities. The firm's success is also driven by its ability to identify promising companies early in their development, thus benefiting from significant capital appreciation as these companies grow and succeed in their respective markets.

Salter Brothers Emerging Companies Ltd. Financial Statement Overview

Summary
Salter Brothers Emerging Companies Ltd. exhibits a strong financial performance, with notable strengths in profitability and financial stability. The income statement and balance sheet are particularly robust, with high margins and zero debt. However, the cash flow's past volatility slightly tempers the overall financial score.
Income Statement
Salter Brothers Emerging Companies Ltd. has demonstrated a remarkable turnaround in its income statement over the TTM. The company reported a Gross Profit Margin of 100% and an EBIT Margin of 90.8%, indicating strong operational efficiency. The Net Profit Margin stood at 61.9%, showcasing significant profitability improvement. Revenue Growth Rate from the previous annual period to TTM is impressive, transitioning from a negative revenue in 2022 to positive growth in 2024. The absence of EBITDA data in several periods limits further analysis, but the trends suggest robust financial performance.
Balance Sheet
The company's balance sheet is exceptionally strong with a Debt-to-Equity Ratio of 0, reflecting no leverage and full equity funding. The Equity Ratio is a high 98.6%, which implies excellent financial stability and low risk. Return on Equity (ROE) at 13.9% for the TTM signifies effective management of equity to generate profits. The consistently increasing stockholders' equity and total assets over the years further highlight the company's robust financial standing.
Cash Flow
Cash flow analysis reveals a positive Operating Cash Flow to Net Income Ratio of 0.26 in the TTM, indicating that the company is generating sufficient cash from operations. However, Free Cash Flow showed significant volatility, turning positive in the latest period after a negative phase, resulting in a Free Cash Flow to Net Income Ratio of 0.26. The Free Cash Flow Growth Rate from the previous period to TTM is positive, marking a recovery, but past fluctuations suggest potential cash management challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.96M6.96M8.00M-2.92M-8.27M12.57M
Gross Profit6.96M6.96M8.00M-2.92M-8.27M12.57M
EBITDA0.000.000.00-3.08M-13.15M4.41M
Net Income3.15M3.15M4.22M-1.82M-8.19M3.09M
Balance Sheet
Total Assets87.70M87.70M89.68M86.38M90.99M100.06M
Cash, Cash Equivalents and Short-Term Investments84.72M84.72M85.65M80.92M86.83M99.98M
Total Debt0.000.000.000.000.000.00
Total Liabilities927.00K927.00K438.00K270.00K1.72M2.60M
Stockholders Equity86.78M86.78M89.24M86.11M89.27M97.46M
Cash Flow
Free Cash Flow6.08M6.08M-2.69M-437.00K5.04M-16.42M
Operating Cash Flow6.08M6.08M-2.69M-437.00K5.04M-16.42M
Investing Cash Flow0.000.000.000.000.000.00
Financing Cash Flow-5.61M-5.61M-1.09M-1.33M0.0021.27M

Salter Brothers Emerging Companies Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.72
Price Trends
50DMA
0.74
Positive
100DMA
0.72
Positive
200DMA
0.71
Positive
Market Momentum
MACD
<0.01
Negative
RSI
64.55
Neutral
STOCH
90.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SB2, the sentiment is Positive. The current price of 0.72 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.74, and above the 200-day MA of 0.71, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 90.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SB2.

Salter Brothers Emerging Companies Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
AU$77.74M10.9032.22%6.39%22.67%19.47%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
AU$43.72M21.412.40%1.79%-5.10%
61
Neutral
AU$63.90M21.053.57%6.89%30.36%-31.47%
60
Neutral
AU$87.38M16.2215.40%7.14%13.65%-33.93%
55
Neutral
AU$62.94M13.108.35%7.22%21.16%47.24%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SB2
Salter Brothers Emerging Companies Ltd.
0.76
-0.02
-2.56%
AU:TIP
Teaminvest Private Group Ltd
1.61
-0.41
-20.30%
AU:MAM
Microequities Asset Management Group Ltd.
0.60
0.05
10.19%
AU:CAF
Centrepoint Alliance Limited
0.42
0.12
41.89%
AU:PFG
Prime Financial Group Limited
0.25
0.04
22.50%

Salter Brothers Emerging Companies Ltd. Corporate Events

Salter Brothers Emerging Companies Reports November Portfolio Performance
Dec 11, 2025

Salter Brothers Emerging Companies Limited reported a 2.96% decline in its portfolio for November, although it showed a 2.63% increase over the last three months. The company remains compliant with the Australian Significant Investor Visa regime and continues to focus on transactions across unlisted securities. The announcement highlighted the acquisition of ARC Europe by Credit Clear Ltd, expanding its UK footprint, and the strategic positioning of WRKR Ltd in response to new legislation. The investment team also made strategic adjustments in their holdings, such as trimming and repurchasing shares of Alfabs Australia Ltd.

Salter Brothers Announces On-Market Buy-Back of Securities
Nov 18, 2025

Salter Brothers Emerging Companies Ltd. has announced a new on-market buy-back of its ordinary fully paid securities, as indicated by the ASX security code SB2. This move is part of the company’s strategic efforts to optimize its capital structure and potentially enhance shareholder value, reflecting a proactive approach to managing its financial resources.

Salter Brothers Emerging Companies Ltd. Announces AGM Results
Nov 14, 2025

Salter Brothers Emerging Companies Limited announced the results of its annual general meeting held on November 14, 2025. All resolutions, except one which was withdrawn, were passed by a poll. This outcome reflects shareholder support for the company’s current strategies and management, potentially strengthening its position in the investment fund industry and assuring stakeholders of its ongoing commitment to delivering value.

Salter Brothers Emerging Companies Limited Reports Strong FY25 Performance and Strategic Initiatives
Nov 14, 2025

Salter Brothers Emerging Companies Limited (SB2) reported a positive performance for the 2024/25 financial year, driven by a favorable interest rate environment that boosted the small-cap sector. The company achieved a 7.31% increase in its portfolio, with a notable 15% allocation to unlisted investments, and paid its first dividends in 2025. SB2 also extended its share buyback program, reflecting its commitment to enhancing shareholder value. The company’s strategic focus on smaller-cap stocks, which are trading at compelling valuations, positions it well for continued outperformance against larger caps.

Salter Brothers Emerging Companies Ltd. Reports Positive October Performance
Nov 13, 2025

Salter Brothers Emerging Companies Ltd. reported a positive portfolio performance with a 3.95% return in October 2025, contributing to a 5.67% return over the last three months. The company highlighted significant developments, including Cash Converters’ expansion and Symal Group’s road upgrade project, which positively impacted the portfolio. However, Eroad Ltd. faced challenges due to market softness and a strategic pivot. The portfolio’s investment strategy remains aligned with emerging company investment requirements, and the company anticipates continued positive momentum in its holdings.

Salter Brothers Announces Cessation of 200,000 Securities
Nov 9, 2025

Salter Brothers Emerging Companies Ltd. announced the cessation of 200,000 ordinary fully paid securities due to an on-market buy-back, effective October 31, 2025. This move is part of the company’s strategic financial management, potentially impacting its capital structure and signaling a focus on optimizing shareholder value.

Salter Brothers Cancels 200,000 Shares in Strategic Buyback
Nov 9, 2025

Salter Brothers Emerging Companies Limited announced the cancellation of 200,000 fully paid ordinary shares as part of its on-market share buyback program conducted in October 2025. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting its active approach to investment management and commitment to delivering long-term returns.

Salter Brothers Updates on Share Buy-Back Progress
Oct 29, 2025

Salter Brothers Emerging Companies Ltd. has announced an update on its ongoing share buy-back program, revealing that it purchased an additional 100,000 shares on the previous day, bringing the total number of shares bought back to 1,374,947. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value, reflecting a commitment to managing its equity base effectively.

Salter Brothers Emerging Companies Cancels Shares in Strategic Buyback
Oct 28, 2025

Salter Brothers Emerging Companies Limited has announced the cancellation of 621,577 fully paid ordinary shares as part of its on-market share buyback program in October 2025. This move is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value, reflecting its commitment to delivering attractive returns to investors.

Salter Brothers Announces Cessation of Securities
Oct 28, 2025

Salter Brothers Emerging Companies Ltd. announced the cessation of 621,577 ordinary fully paid securities due to an on-market buy-back, effective October 28, 2025. This move is part of the company’s strategy to manage its capital structure and could potentially enhance shareholder value by reducing the number of outstanding shares.

Salter Brothers Updates on Share Buy-Back Program
Oct 27, 2025

Salter Brothers Emerging Companies Ltd. has announced an update on its ongoing share buy-back program, with a total of 1,174,947 securities bought back before the previous day and an additional 100,000 securities acquired on the previous day. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure, reflecting a proactive approach in managing its financial resources.

Salter Brothers Emerging Companies Limited Releases General Information Document
Oct 23, 2025

Salter Brothers Emerging Companies Limited has released a document providing a general overview of its current activities. The document emphasizes that it is not a formal offer or investment proposal and highlights the importance of independent investigation and professional advice before making investment decisions. It also includes a disclaimer about the forward-looking statements and potential risks associated with investments.

Salter Brothers Extends Buy-Back Program for SB2 Securities
Oct 23, 2025

Salter Brothers Emerging Companies Ltd. has announced an extension of its on-market buy-back program for its ordinary fully paid securities, identified by the ASX code SB2. This extension signifies the company’s ongoing commitment to optimizing its capital structure and potentially enhancing shareholder value. The continuation of the buy-back program may impact the company’s stock liquidity and market perception, reflecting a strategic move to manage its financial resources effectively.

Salter Brothers Extends Share Buy-Back Program for Another Year
Oct 23, 2025

Salter Brothers Emerging Companies Limited has announced a further extension of its on-market share buy-back program for an additional 12 months. This decision reflects the company’s strategy to maintain flexibility in its capital management to enhance shareholder value. The buy-back will operate within the legal limits set by the Corporations Act 2001, allowing the acquisition of up to 8,447,902 shares. This move is expected to positively impact the company’s operations by optimizing capital allocation and potentially improving market perception.

Salter Brothers Updates on Buy-Back Program
Oct 20, 2025

Salter Brothers Emerging Companies Ltd. has announced an update regarding its ongoing on-market buy-back program, with a total of 974,947 securities bought back prior to the previous day and an additional 100,000 securities purchased on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Salter Brothers Updates on Securities Buy-Back
Oct 20, 2025

Salter Brothers Emerging Companies Ltd. has announced an update regarding its ongoing buy-back of ordinary fully paid securities, identified by the ASX code SB2. As of October 20, 2025, the company has repurchased a total of 774,947 securities, with an additional 200,000 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Salter Brothers Emerging Companies Ltd. Announces 2025 Annual General Meeting
Oct 15, 2025

Salter Brothers Emerging Companies Ltd. has announced its 2025 Annual General Meeting, scheduled for November 14, 2025, at the Intercontinental Hotel in Melbourne. Shareholders are encouraged to vote via proxy and submit questions in advance, reflecting the company’s commitment to shareholder engagement and transparency. The meeting will address potential changes due to evolving conditions, highlighting the company’s adaptability in maintaining effective communication with its stakeholders.

Salter Brothers Emerging Companies Announces AGM and Key Resolutions
Oct 15, 2025

Salter Brothers Emerging Companies Limited has announced its Annual General Meeting scheduled for November 14, 2025, at the Intercontinental Hotel in Melbourne. The agenda includes the consideration of financial reports, the adoption of the remuneration report, the re-election of Mr. Robert Salter as a director, and the approval of a 10% placement facility. These resolutions aim to strengthen the company’s governance and financial flexibility, potentially impacting its strategic growth and shareholder value.

Salter Brothers Emerging Companies Reports Positive Portfolio Performance
Oct 13, 2025

Salter Brothers Emerging Companies Limited reported a positive portfolio performance with a 1.73% return in September, contributing to an 8.79% increase over the last three months. The company remains optimistic about its investment strategy, particularly in the small industrials sector, and has been actively reassessing holdings and exploring new opportunities. Key portfolio contributors included Ai-Media Technologies, which saw a significant price increase, while detractors included BETR Entertainment and PYC Therapeutics. The company’s investment strategy aligns with the Australian Significant Investor Visa regime, and it continues to focus on both listed and unlisted assets.

Salter Brothers Updates on Buy-Back Program
Oct 7, 2025

Salter Brothers Emerging Companies Ltd. has announced an update regarding its ongoing on-market buy-back program. As of the latest update, the company has repurchased a total of 687,653 securities, with an additional 87,294 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure.

Salter Brothers Announces Cessation of Securities in Strategic Buy-Back
Oct 3, 2025

Salter Brothers Emerging Companies Ltd. announced the cessation of 54,333 ordinary fully paid securities as part of an on-market buy-back, effective September 30, 2025. This move is part of the company’s capital management strategy, potentially impacting its market positioning by optimizing its capital structure and enhancing shareholder value.

Salter Brothers Emerging Companies Ltd. Cancels Shares in Strategic Buyback
Oct 3, 2025

Salter Brothers Emerging Companies Limited has announced the cancellation of 54,333 fully paid ordinary shares as part of its on-market share buyback program. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting its commitment to optimizing returns for its investors.

Salter Brothers Updates on Share Buy-Back Progress
Oct 2, 2025

Salter Brothers Emerging Companies Ltd. has announced an update regarding its ongoing share buy-back program. As of October 2, 2025, the company has repurchased a total of 653,370 securities, with an additional 34,283 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Salter Brothers Updates on Share Buy-Back Progress
Oct 1, 2025

Salter Brothers Emerging Companies Ltd. has announced an update on its ongoing share buy-back program, with a total of 54,333 ordinary fully paid securities bought back on the previous day, adding to a cumulative total of 599,037 securities. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting a proactive approach in its market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025