Shape Australia Corporation Limited (SHA) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 5.74%
• Average Volume (3M): 62.20K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.42
• Revenue Growth: 7.04%
• EPS Growth: 35.80%
• Country: AU
• Employees: 645
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 0.11
• Shares Outstanding: 83,489,260
• 10 Day Avg. Volume: 41,138
• 30 Day Avg. Volume: 62,204
• PEG Ratio: 1.46
• Price to Book (P/B): 8.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.41
• 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$5.00
• Price Target Upside: 51.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ―

Shape Australia's stock demonstrates a solid financial foundation with strong cash flow management and enhanced operational efficiency, despite slight revenue decline. The technical analysis suggests stability but with cautious sentiment, while valuation metrics indicate an attractive dividend yield and moderate P/E ratio. These factors contribute to a robust but vigilant investment outlook.

Shape Australia Corporation Limited Business Overview & Revenue Model

Company Description

Shape Australia Corporation Limited (SHA) is a leading Australian construction and fit-out company specializing in delivering high-quality commercial interiors and project management services. Operating across various sectors including commercial, education, healthcare, and government, Shape Australia is renowned for its expertise in creating innovative and sustainable spaces tailored to client needs.

How the Company Makes Money

Shape Australia Corporation Limited generates revenue primarily through its comprehensive construction and fit-out services. The company's key revenue streams include project management fees, design and build contracts, and ongoing maintenance services. Additional income is derived from strategic partnerships with suppliers and subcontractors, enabling efficient project delivery and cost management. Shape Australia's ability to secure contracts from both private and public sector clients contributes significantly to its earnings, along with its focus on sustainability and innovation which enhances its competitive edge in the marketplace.

Shape Australia Corporation Limited Financial Statement Overview

Summary

Shape Australia's financial health appears stable with strong cash flow management and improved net profitability. While revenue has declined slightly, operational efficiency has improved, offsetting some concerns. The balance sheet shows moderate leverage, but the decrease in the equity ratio suggests a need for cautious management of liabilities. Overall, the company is positioned well but should monitor revenue trends closely.

Income Statement

Shape Australia's income statement shows a mixed performance. The gross profit margin decreased slightly from 3.6% to 3.5%, indicating a stable profitability level. The net profit margin improved from 1.2% to 1.9%, showing enhanced net profitability. Revenue decreased by 2.95% from the previous year, which might be concerning if the trend continues. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity position with a debt-to-equity ratio of 0.81, indicating moderate leverage and potential for future borrowing. The return on equity (ROE) increased to 51.2%, showcasing efficient use of equity to generate profits. However, the equity ratio decreased to 12.5%, suggesting a relatively high reliance on liabilities compared to equity.

Cash Flow

Cash flow statements indicate robust cash management with a significant improvement in free cash flow, growing by 30.71%. The operating cash flow to net income ratio is favorable at 1.87, indicating strong cash generation from operations relative to net income. The free cash flow to net income ratio of 1.75 further underscores efficient cash utilization.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
902.63M	831.68M	856.93M	655.95M	569.97M	747.91M
	Gross Profit
66.90M	30.08M	24.59M	52.33M	26.47M	33.78M
	EBIT
35.62M	20.62M	14.39M	10.39M	16.25M	20.65M
	EBITDA
30.64M	28.22M	21.86M	15.47M	19.40M	25.42M
	Net Income Common Stockholders
17.93M	16.01M	10.50M	7.20M	12.37M	14.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
118.91M	98.58M	90.55M	82.03M	114.98M	133.15M
	Total Assets
252.85M	251.14M	259.32M	217.14M	185.22M	214.92M
	Total Debt
24.18M	25.39M	31.45M	31.40M	5.43M	5.43M
	Net Debt
-60.12M	-44.49M	-59.10M	-50.63M	-109.55M	-127.72M
	Total Liabilities
219.80M	219.86M	233.38M	196.85M	161.59M	194.11M
	Stockholders Equity
33.06M	31.29M	25.94M	20.29M	23.64M	20.81M
Cash Flow		Free Cash Flow
42.09M	28.05M	21.46M	-25.31M	-785.00K	17.67M
	Operating Cash Flow
44.42M	30.00M	23.56M	-20.59M	446.00K	18.43M
	Investing Cash Flow
-18.53M	-30.31M	-2.31M	-13.58M	-1.28M	-8.84M
	Financing Cash Flow
-21.72M	-20.36M	-12.72M	1.06M	-17.17M	-13.85M

Shape Australia Corporation 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:SHA, the sentiment is Positive. The current price of 3.31 is above the 20-day moving average (MA) of 3.27, above the 50-day MA of 3.17, and above the 200-day MA of 2.86, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 67.18 is Neutral, neither overbought nor oversold. The STOCH value of 97.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform		15.63	58.29%	5.74%	7.04%	35.80%
VCX	72 Outperform	$11.22B	13.72	7.73%	5.23%	1.97%	156.14%
SCG	68 Neutral	$19.20B	18.24	5.94%	4.77%	5.05%	500.30%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
DXS	58 Neutral	$7.57B	―	-9.22%	5.87%	0.32%	28.89%
MGR	55 Neutral	$9.15B	―	-6.29%	4.98%	22.66%	-3.80%
GPT	54 Neutral	$9.16B	―	-1.94%	5.14%	8.59%	16.36%

Shape Australia Corporation Limited Corporate Events

Shape Australia Announces Cessation of Performance Rights

Shape Australia Corporation Limited announced the cessation of 66,044 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic focus.

Shape Australia Director Increases Shareholding

Shape Australia Corporation Limited has announced a change in the director’s interest involving Rhonda Jane Lloyd. The director, through Brighton Boulevard Investments Pty Limited for RJL Superannuation Fund, acquired 10,000 fully paid ordinary shares at $2.97 per share, increasing her total holdings to 38,500 shares. This transaction was conducted as an on-market trade and did not occur during a closed period, indicating compliance with trading regulations.