Shape Australia Corporation Limited (SHA) AI Stock Analysis

• Market Cap: AU$557.71M
• Dividend Yield: 3.68%
• Average Volume (3M): 331.52K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.17
• Revenue Growth: 13.94%
• EPS Growth: 32.57%
• Country: AU
• Employees: 645
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• 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$7.21
• Price Target Upside: 7.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: AU$7.00 ▲(4.79% Upside)

Shape Australia Corporation Limited's overall stock score is driven primarily by its strong financial performance, characterized by consistent revenue growth and effective profitability management. Technical analysis suggests strong upward momentum, though caution is advised due to overbought indicators. Valuation concerns arise from a relatively high P/E ratio, but the dividend yield offers some compensation. The absence of recent earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Consistent Revenue Growth

Sustained ~14% top-line growth reflects repeat client wins and expanding project scale across commercial and public fit-outs. Durable revenue expansion supports backlog, improves fixed-cost absorption, and enables reinvestment in project capabilities over the next several months.

Strong Free Cash Flow Generation

High free cash flow growth indicates effective conversion of project revenue into cash, supporting working capital and capex without heavy new borrowing. For a project-based construction firm this underpins financial flexibility and resiliency against timing swings in collections.

High Return on Equity with Moderate Leverage

Robust ROE shows efficient use of shareholders' capital to generate profits, while a D/E ~0.66 signals measured leverage. This combination supports attractive equity returns and the ability to pursue new contracts while maintaining reasonable financial flexibility in the medium term.

Negative Factors

Cash Flow and Leverage Volatility

Historical swings in operating cash flow and episodes of higher leverage highlight cyclical risk in project billing and timing. Even with recent improvements, volatility can strain liquidity during delays or slower collections, limiting capacity to take on large projects or absorb cost overruns.

Declining EBITDA Margin

A shrinking EBITDA margin signals rising operational or subcontractor costs and pressure on fixed-price contracts. If cost inflation or procurement inefficiencies persist, margin compression will erode free cash flow and constrain reinvestment or dividend capacity over the coming months.

Unusual Gross Margin Reporting

A reported 100% gross margin suggests classification or reporting quirks that obscure direct project costs. Reduced transparency on cost recognition hinders assessment of sustainable margins and project profitability, complicating long-term risk assessment and comparability with peers.

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

Shape Australia Corporation Limited demonstrates a strong financial position with consistent revenue growth and effective profitability management. The balance sheet reflects a stable leverage position and strong equity returns, while the cash flow statement indicates robust cash generation capabilities. Despite some historical volatility in cash flows and leverage, the overall financial health of the company is solid, positioning it well for future growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	898.39M	947.64M	831.68M	856.93M	655.95M	569.97M
Gross Profit	62.66M	947.64M	75.54M	24.59M	52.33M	26.47M
EBITDA	30.64M	28.03M	28.22M	21.86M	15.47M	21.88M
Net Income	17.93M	21.12M	16.01M	10.50M	7.20M	12.37M
Balance Sheet
Total Assets	252.85M	275.07M	251.14M	259.32M	217.14M	185.22M
Cash, Cash Equivalents and Short-Term Investments	118.91M	128.34M	98.58M	90.55M	82.03M	114.98M
Total Debt	24.18M	24.12M	25.39M	31.45M	31.40M	5.43M
Total Liabilities	219.80M	238.37M	219.86M	233.38M	196.85M	161.59M
Stockholders Equity	33.06M	36.70M	31.29M	25.94M	20.29M	23.64M
Cash Flow
Free Cash Flow	42.09M	51.22M	28.49M	21.46M	-25.31M	-785.00K
Operating Cash Flow	44.42M	53.17M	30.00M	23.56M	-20.59M	446.00K
Investing Cash Flow	-18.53M	-11.50M	-30.31M	-2.31M	-13.58M	-1.28M
Financing Cash Flow	-21.72M	-21.79M	-20.36M	-12.72M	1.06M	-17.17M

Shape Australia Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 6.68 is above the 20-day moving average (MA) of 6.47, above the 50-day MA of 6.24, and above the 200-day MA of 4.73, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, 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
BSA	70 Outperform	AU$12.05M	3.18	87.22%	―	12.34%	-66.13%
SHA	66 Neutral	AU$557.71M	26.18	62.14%	3.68%	13.94%	32.57%
VBC	65 Neutral	AU$63.89M	16.28	17.38%	0.49%	-8.28%	89.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WSI	48 Neutral	AU$10.69M	-3.02	-11.81%	―	-36.40%	-192.91%

Shape Australia Corporation Limited Corporate Events

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.

SHAPE Australia Expands with Arden Group Acquisition

SHAPE Australia Corporation Limited announced the acquisition of the Arden Group, a move that signifies its strategic expansion in the construction industry. This acquisition is expected to enhance SHAPE’s market positioning and operational capabilities, potentially offering new opportunities for stakeholders and reinforcing its presence in diverse sectors.

The most recent analyst rating on (AU:SHA) stock is a Buy with a A$6.70 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 Expands with Arden Group Acquisition

Shape Australia Corporation Limited has announced the acquisition of Arden Group, a specialist in national retail fitout and facilities maintenance, for $25 million, with additional contingent payments. This acquisition is expected to enhance Shape’s capabilities and market reach, particularly in the retail sector, and is projected to be earnings accretive in its first year. The move aligns with Shape’s growth and diversification strategy, offering cross-selling opportunities and expanding its client base through Arden’s established relationships with blue-chip clients. The acquisition will be funded through a combination of cash and debt, with the existing Arden management team continuing to operate the business.

The most recent analyst rating on (AU:SHA) stock is a Buy with a A$6.70 price target. To see the full list of analyst forecasts on Shape Australia Corporation Limited stock, see the AU:SHA Stock Forecast page.