Shape Australia Corporation Limited (SHA) AI Stock Analysis

• Market Cap: AU$556.04M
• Dividend Yield: 3.68%
• Average Volume (3M): 331.52K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.15
• 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: 23.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.35
• Revenue Forecast (FY): AU$1.16B

• Rating: 72 Outperform
• Price Target: AU$7.00 ▲(5.11% 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 organic revenue growth (~14.4%) indicates recurring demand for fit-out and construction services and successful project win and delivery capabilities. Over 2-6 months this supports backlog replenishment, pricing leverage on repeat clients and resilience versus one-off cycles.

Strong Cash Generation

High free cash flow growth (~21.7%) demonstrates the company converts project revenues into cash, enabling reinvestment, working capital coverage and debt reduction. Durable cash generation reduces reliance on external funding for project cycles and supports execution on multi-month contracts.

High Return on Equity & Improved Leverage

A robust ROE (~57.6%) combined with an improved debt-to-equity (~0.66) signals efficient use of equity and prudent balance sheet management. This structural strength aids competitive reinvestment, supports panel/preferred-supplier positioning, and enhances financial flexibility across business cycles.

Negative Factors

Cash Flow Volatility

Despite strong FCF growth, historical cash flow swings reflect project timing, milestone billing and working-capital variability inherent in contracting. Over months this can stress liquidity around large projects, increasing reliance on careful cash collection and contingency funding.

Historical High Leverage Risk

Although D/E has improved to 0.66, prior periods of higher leverage reveal susceptibility to capital structure stress. In a downturn or delayed client payments, the company may face refinancing or covenant pressure, which is a structural vulnerability in project-centric businesses.

Margin Pressure / Rising Operating Costs

A declining EBITDA margin points to rising labour, subcontractor or input costs that can erode project margins over time. If cost inflation persists or bidding discipline weakens, sustained margin compression could reduce free cash flow and constrain reinvestment into growth initiatives.

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

Shape Australia generates revenue primarily through its project-based contracts in construction and engineering services. The company's key revenue streams include management fees from project execution, consultancy services, and design solutions for infrastructure projects. Additionally, SHA benefits from long-term partnerships with government entities and private sector clients, which provide a steady flow of contracts. The company's earnings are further bolstered by its expertise in niche markets such as renewable energy and environmental sustainability, capitalizing on the growing demand for eco-friendly solutions. Overall, SHA's diverse portfolio and strategic partnerships play a critical role in its revenue generation.

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: 6.66
• 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:SHA, the sentiment is Neutral. The current price of 6.66 is below the 20-day moving average (MA) of 6.80, above the 50-day MA of 6.44, and above the 200-day MA of 5.02, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 25.81 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$556.04M	21.50	62.14%	3.68%	13.94%	32.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VBC	63 Neutral	AU$79.60M	20.16	17.38%	0.49%	-8.28%	89.71%
BSA	61 Neutral	AU$25.23M	11.63	87.22%	―	12.34%	-66.13%
WSI	50 Neutral	AU$11.20M	-3.16	-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.

SHAPE Australia Completes Acquisition of Retail Fitout Specialist Arden Group

SHAPE Australia has completed its acquisition of the business and assets of Arden Group, a national retail fitout and facilities maintenance specialist, following satisfaction of all conditions precedent. The deal strengthens SHAPE’s national footprint and aligns with its growth and diversification strategy by adding Arden’s multi-site retail capabilities and maintenance services, with management highlighting strong cultural alignment and the potential to expand market share and deliver greater value to clients across new sectors in Australia.

The most recent analyst rating on (AU:SHA) stock is a Buy with a A$7.10 price target. To see the full list of analyst forecasts on Shape Australia Corporation Limited stock, see the AU:SHA Stock Forecast page.