Shape Australia Corporation Limited (SHA) AI Stock Analysis

• Market Cap: AU$551.86M
• Dividend Yield: 3.68%
• Average Volume (3M): 331.52K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.27
• Revenue Growth: 13.94%
• EPS Growth: 32.57%
• Country: AU
• Employees: 645
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.17
• Shares Outstanding: 83,489,260
• 10 Day Avg. Volume: 92,708
• 30 Day Avg. Volume: 331,517
• PEG Ratio: 0.57
• Price to Book (P/B): 10.37
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 7.43
• 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$8.25
• Price Target Upside: 25.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): AU$1.18B

• Rating: 72 Outperform
• Price Target: AU$7.50 ▲(13.98% Upside)
• Action: Upgraded Date: 02/19/26
• Date: Action: Upgraded 02/19/26

The score is driven primarily by solid financial performance (consistent growth, stable profitability, strong cash generation) and supportive technicals (price above key moving averages with positive MACD). Valuation is reasonable but not cheap (P/E ~21), with the dividend yield (~3.07%) providing partial support.

Positive Factors

Consistent revenue growth

Sustained top-line expansion (recent 5.48% period increase and fundamentals RevenueGrowth ~14.4%) signals persistent demand for fit-out and refurbishment services. This supports backlog conversion, improves visibility on project pipelines, and underpins recurring revenue potential over the next 2–6 months.

Strong free cash flow generation

High free cash flow growth (21.69%) and a strong free-cash-flow-to-net-income ratio indicate the business converts earnings to cash effectively. This durable cash generation enhances the company's ability to fund working capital, pay dividends, reduce debt, and invest in capacity without reliance on markets.

High ROE and improved leverage

A very strong ROE (57.56%) alongside a reduced debt-to-equity (0.66) shows efficient use of shareholders' equity and a more balanced capital structure. This combination supports sustainable profitability and provides financial flexibility to pursue projects or weather cyclical downturns.

Negative Factors

Rising operational cost pressure

A declining EBITDA margin signals pressure from higher labour, subcontractor or materials costs. In a project-based model, margin erosion reduces buffers for contract overruns and lessens operating leverage, requiring persistent cost discipline and margin management to sustain long-term profitability.

Cash flow volatility history

Despite recent strong FCF growth, historical cash-flow swings indicate execution and timing sensitivity. For a construction fit-out company, this volatility can strain working capital during peak project phases, increase reliance on short-term financing, and amplify operational risk across multiple projects.

Inherent project delivery and contract risk

Revenue depends on project execution and fixed-price or milestone contracts. Structural exposure to variations, procurement delays, rework and defects means execution failures or scope creep can materially impair margins and cash flow. Long-term stability requires strong project controls and risk allocation.

Shape Australia Corporation Limited Business Overview & Revenue Model

Company Description

SHAPE Australia Corporation Limited, together with its subsidiaries, engages in the construction, fit-out, and refurbishment of commercial properties in Australia. The company serves hospitality, healthcare, education, and retail sectors, as well as commercial customers. SHAPE Australia Corporation Limited was founded in 1989 and is based in Sydney, Australia.

How the Company Makes Money

SHA primarily makes money by contracting to deliver construction and interior fit-out/refurbishment projects for clients. Revenue is generated through project-based contracts where the company is paid for delivering an agreed scope of works, typically priced as a lump-sum (fixed price) or other contract structures common in construction (e.g., cost-plus or schedule-of-rates, where applicable). Its key revenue stream is the value of completed work performed on client projects (progress claims/milestone payments), which is recognized as projects advance under applicable accounting rules. Earnings are driven by (1) the gross margin between contract revenue and direct project costs (labour, subcontractors, materials, site costs), and (2) the company’s ability to manage delivery risk (program, variations, procurement, rework, and defects) and overheads. Additional income can arise from approved contract variations/changes, project management fees where separately stated, and repeat work won through client relationships and panel/preferred-supplier arrangements; specific partnership details are null.

Shape Australia Corporation Limited Financial Statement Overview

Summary

Overall financials are solid: the income statement shows consistent revenue growth with stable profitability, cash flow indicates strong free cash flow growth but with some historical volatility, and the balance sheet is stable with improved leverage (debt-to-equity 0.66) and very strong ROE.

Income Statement

Shape Australia Corporation Limited has shown consistent revenue growth over the past years, with a notable 5.48% increase in the most recent period. The gross profit margin is exceptionally high at 100% due to the nature of the reported figures, indicating all revenue is considered gross profit. Net profit margin and EBIT margin are stable, reflecting efficient cost management. However, the EBITDA margin has slightly decreased, suggesting rising operational costs. Overall, the income statement reflects a strong growth trajectory with stable profitability.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, currently at 0.66, indicating a balanced approach to leveraging. Return on equity is robust at 57.56%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure. However, past high leverage could pose potential risks if not managed carefully. Overall, the balance sheet reflects a stable financial position with effective equity utilization.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate of 21.69%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is high, reflecting strong cash generation relative to net income. However, past fluctuations in cash flow highlight potential volatility. Overall, the cash flow statement indicates strong cash generation with some historical volatility.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.02B	947.64M	831.68M	856.93M	655.95M	569.97M
Gross Profit	926.09M	947.64M	75.54M	24.59M	52.33M	26.47M
EBITDA	32.09M	28.03M	28.22M	21.86M	15.47M	21.88M
Net Income	25.70M	21.12M	16.01M	10.50M	7.20M	12.37M
Balance Sheet
Total Assets	345.57M	275.07M	251.14M	259.32M	217.14M	185.22M
Cash, Cash Equivalents and Short-Term Investments	136.44M	128.34M	98.58M	90.55M	82.03M	114.98M
Total Debt	62.29M	24.12M	25.39M	31.45M	31.40M	5.43M
Total Liabilities	303.84M	238.37M	219.86M	233.38M	196.85M	161.59M
Stockholders Equity	41.73M	36.70M	31.29M	25.94M	20.29M	23.64M
Cash Flow
Free Cash Flow	50.17M	51.22M	28.49M	21.46M	-25.31M	-785.00K
Operating Cash Flow	53.57M	53.17M	30.00M	23.56M	-20.59M	446.00K
Investing Cash Flow	-23.46M	-11.50M	-30.31M	-2.31M	-13.58M	-1.28M
Financing Cash Flow	-8.28M	-21.79M	-20.36M	-12.72M	1.06M	-17.17M

Shape Australia Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.58
• 50DMA: Negative
• 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:SHA, the sentiment is Neutral. The current price of 6.58 is below the 20-day moving average (MA) of 6.66, below the 50-day MA of 6.63, and above the 200-day MA of 5.28, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 56.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SHA.

Shape Australia Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHA	72 Outperform	AU$551.86M	9.10	62.14%	3.68%	13.94%	32.57%
BSA	68 Neutral	AU$23.34M	0.45	21.63%	―	12.34%	-66.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VBC	61 Neutral	AU$58.17M	7.32	17.89%	0.49%	-8.28%	89.71%
WSI	44 Neutral	AU$8.63M	4.84	-11.81%	―	-36.40%	-192.91%

Shape Australia Corporation Limited Corporate Events

SHAPE Australia Sets Date for 1H FY26 Results and Investor Webinar

SHAPE Australia Corporation Limited has scheduled the release of its half-year FY26 financial results, covering the period ended 31 December 2025, for Wednesday, 18 February 2026, and will host an investor webinar on the same day led by CEO Peter Marix-Evans and CFO Scott Jamieson. The webinar, which will include a Q&A session and allows investors to submit questions in advance or during the event, underscores the company’s focus on transparency and engagement with stakeholders ahead of its mid-year financial update, which may provide further insight into its performance and outlook in the national fitout and construction market.

The most recent analyst rating on (AU:SHA) stock is a Buy with a A$7.50 price target. To see the full list of analyst forecasts on Shape Australia Corporation Limited stock, see the AU:SHA Stock Forecast page.