Shine Justice Ltd. (SHJ) AI Stock Analysis

• Market Cap: AU$118.57M
• Dividend Yield: 7.14%
• Average Volume (3M): 60.57K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.17
• Revenue Growth: 4.44%
• EPS Growth: -90.57%
• Country: AU
• Employees: 995
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.04
• Shares Outstanding: 169,390,400
• 10 Day Avg. Volume: 16,607
• 30 Day Avg. Volume: 60,569
• PEG Ratio: -2.42
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 6.98
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.08
• Revenue Forecast (FY): AU$219.60M

• Rating: 57 Neutral
• Price Target: AU$0.77 ▲(4.19% Upside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

The score is driven primarily by middling financial performance: stable revenue and a solid balance sheet are outweighed by very low profitability and weaker cash flow trends. Technical signals are mostly neutral with only mild momentum, while valuation is a key drag due to the extremely high P/E despite the strong dividend yield.

Positive Factors

Prudent leverage / solid equity base

Shine Justice's low debt-to-equity (0.38) and ~45.5% equity ratio indicate conservative leverage and a solid equity cushion. This durable balance sheet gives management flexibility to fund investments, withstand downturns, and prioritize strategic allocation without forcing distress financing.

Stable gross margin

A stable gross margin near 40.7% suggests consistent cost control and a resilient product/service mix. Over a multi-month horizon this supports predictable contribution margins, helping the company maintain pricing discipline and absorb moderate input cost changes without eroding core profitability.

Moderate recurring revenue growth

Sustained revenue growth of ~4.2% reflects stable demand and organic expansion in the company’s end markets. Over 2-6 months this trend underpins operating scale, supports investment in distribution or product development, and gives a base for potential margin recovery if efficiency improves.

Negative Factors

Very low net profitability

A net margin of 0.28% is extremely low for sustaining operations and returns. Persistently thin bottom-line profitability restricts retained earnings, limits reinvestment and dividends, and leaves little buffer against cost inflation or demand shocks, posing a durable constraint on strategic flexibility.

Weak operating cash flow and declining FCF

Significantly lower operating cash flow and a -16.17% decline in free cash flow indicate weakening cash generation. Over months this limits capacity to fund capex, reduce debt, or sustain dividends without tapping reserves, increasing reliance on external financing and reducing financial resilience.

Margin compression and poor ROE

Declining operating margins combined with an ROE near 0.22% point to deteriorating operational efficiency and very low capital returns. Structural margin pressure and poor ROE constrain growth investments and make it difficult to generate shareholder value over time without fundamental operational improvements.

Shine Justice Ltd. Business Overview & Revenue Model

Company Description

Shine Justice Ltd, through its subsidiaries, provides damages-based plaintiff litigation legal and insurance recovery consulting services in Australia and New Zealand. It operates through two segments, Personal Injury and New Practice Areas. The Personal Injury segment provides services related to public liability, workers' compensation, and motor vehicle accidents. The New Practice Areas segment offers abuse law, disability insurance and superannuation claims, asbestos and dust disease, federal compensation law, medical law, class actions, commercial disputes, employment, private client services, and catastrophic injuries. It operates 54 branches. The company was formerly known as Shine Corporate Ltd and changed its name to Shine Justice Ltd in April 2020. Shine Justice Ltd was founded in 1976 and is based in Brisbane, Australia.

How the Company Makes Money

Shine Justice Ltd. generates revenue through a combination of subscription fees for its software products, consulting services, and licensing agreements. The primary revenue stream comes from monthly or annual subscriptions for its case management and legal research platforms, which are charged based on the number of users or the size of the client organization. Additionally, the company offers specialized consulting services that help clients optimize their legal processes, which are billed on a project basis. Strategic partnerships with law firms and government entities also contribute to revenue, as these collaborations often lead to bulk licensing agreements and increased visibility in the market. Furthermore, Shine Justice benefits from ongoing maintenance and support contracts, ensuring a steady flow of income from existing clients.

Shine Justice Ltd. Financial Statement Overview

Summary

Moderate revenue growth (+4.18%) and stable gross margin (~40.67%) are offset by very weak profitability (net margin 0.28%) and declining EBIT/EBITDA margins. Balance sheet leverage is prudent (debt-to-equity 0.38), but ROE is very low (0.22%). Cash generation is pressured with significantly lower operating cash flow and negative free cash flow growth (-16.17%).

Income Statement

Shine Justice Ltd. shows moderate revenue growth with a 4.18% increase in the latest year, but the net profit margin has significantly decreased to 0.28%, indicating pressure on profitability. The gross profit margin remains stable at around 40.67%, suggesting consistent cost management. However, the decline in EBIT and EBITDA margins highlights challenges in operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.38, indicating prudent leverage management. The equity ratio stands at approximately 45.47%, reflecting a solid equity base. However, the return on equity has decreased to 0.22%, suggesting reduced profitability from shareholders' investments.

Cash Flow

Operating cash flow has decreased significantly, impacting the operating cash flow to net income ratio, which is now at 0.15. Free cash flow growth is negative at -16.17%, indicating challenges in generating cash. The free cash flow to net income ratio remains strong at 0.92, suggesting efficient cash conversion from earnings.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	213.28M	204.94M	195.73M	223.14M	213.19M	185.44M
Gross Profit	146.43M	83.35M	79.85M	107.22M	101.61M	88.30M
EBITDA	30.59M	16.28M	34.67M	29.61M	63.43M	55.46M
Net Income	10.00M	572.00K	6.04M	3.31M	31.14M	25.56M
Balance Sheet
Total Assets	589.49M	575.52M	592.58M	638.75M	654.24M	590.17M
Cash, Cash Equivalents and Short-Term Investments	1.07M	18.06M	34.83M	21.09M	51.86M	55.99M
Total Debt	128.07M	99.03M	85.99M	111.88M	92.71M	93.33M
Total Liabilities	327.39M	314.22M	319.95M	367.91M	376.44M	335.03M
Stockholders Equity	263.40M	261.65M	272.46M	270.68M	277.64M	255.00M
Cash Flow
Free Cash Flow	6.63M	17.93M	48.45M	707.00K	4.89M	44.60M
Operating Cash Flow	8.40M	19.49M	49.44M	8.33M	10.63M	49.08M
Investing Cash Flow	-1.14M	-47.00K	-3.92M	-9.50M	-5.01M	-5.46M
Financing Cash Flow	-27.56M	-30.82M	-37.19M	-29.62M	-9.71M	-20.43M

Shine Justice Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.74
• 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:SHJ, the sentiment is Neutral. The current price of 0.74 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.70, and above the 200-day MA of 0.67, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 63.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SHJ.

Shine Justice Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AFL	59 Neutral	AU$16.23M	8.46	―	―	27.43%	-90.52%
SHJ	57 Neutral	AU$118.57M	4.04	0.21%	7.14%	4.44%	-90.57%

Shine Justice Ltd. Corporate Events

Shine Justice Flags Improved Profitability in FY26 Half-Year Update

Shine Justice Ltd. has released its FY26 half-year results presentation, highlighting an improvement in profitability during the period. The company reports that it is positioned for future growth, indicating that recent performance has strengthened its operational footing and may enhance its competitive standing and prospects for stakeholders.

The board authorised the release of the results presentation, underscoring the formal communication of these financial and strategic updates to the market. This disclosure is likely aimed at informing shareholders and investors of Shine Justice’s current trajectory as it seeks to build on its improved earnings profile in the coming periods.

The most recent analyst rating on (AU:SHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Shine Justice Ltd. stock, see the AU:SHJ Stock Forecast page.

Shine Justice Declares Interim Dividend for December 2025 Half

Shine Justice Ltd has declared an interim dividend of AUD 0.015 per ordinary fully paid share for the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 7 April 2026, with a record date of 8 April and payment scheduled for 24 April, signalling continued capital returns to shareholders and offering income-focused investors a defined timetable for cash distribution.

The announcement underlines the company’s willingness to distribute earnings back to its equity holders, which may be read as a sign of confidence in its recent financial performance and cash flow. For existing and prospective investors in the legal services sector, the payout details provide clarity on expected near-term returns and may influence valuation and yield comparisons across ASX-listed professional services peers.

The most recent analyst rating on (AU:SHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Shine Justice Ltd. stock, see the AU:SHJ Stock Forecast page.

Shine Justice Swings Back to Profit and Declares Interim Dividend

Shine Justice Ltd reported an 8% increase in revenue to $108.8 million for the half year ended 31 December 2025, with net profit attributable to members rebounding to $7.7 million from a loss a year earlier. The improvement in profitability marks a return to positive earnings, supported by reviewed interim financial statements with no audit qualifications.

The company declared a fully franked interim dividend of 1.5 cents per share for the year ending 30 June 2026, with a record date of 8 April and payment on 24 April 2026. Shine Justice does not operate a dividend reinvestment plan, and net tangible assets per security rose modestly to $1.32 from $1.28, indicating incremental balance sheet strengthening for shareholders.

The most recent analyst rating on (AU:SHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Shine Justice Ltd. stock, see the AU:SHJ Stock Forecast page.

Shine Justice Trims Equity Overhang as Performance Rights Lapse

Shine Justice Ltd has announced the lapse of 169,019 performance rights, which have ceased due to the relevant vesting conditions not being met or becoming incapable of being satisfied. The cessation of these securities slightly reduces the company’s potential share-based remuneration overhang, implying a modest tightening of its issued capital structure with limited immediate impact on ordinary shareholders.

The move may reflect performance hurdles or strategic settings within the company’s incentive schemes, as the unvested rights will no longer convert into equity. While the operational impact appears minor, the adjustment provides clarity to the market on Shine Justice’s outstanding equity-based incentives and signals a more conservative potential dilution profile going forward.

The most recent analyst rating on (AU:SHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Shine Justice Ltd. stock, see the AU:SHJ Stock Forecast page.

Shine Justice Sees 262,558 Performance Rights Lapse After Conditions Not Met

Shine Justice Ltd has reported the lapse of 262,558 performance rights, which were conditional rights to securities that ceased because their vesting conditions were not satisfied or became incapable of being met as of 30 January 2026. The lapse reduces the company’s pool of potential equity-based incentives, marginally affecting its issued capital structure and indicating that certain performance or service hurdles tied to these rights were not achieved, which may be relevant to investors monitoring management incentives and dilution levels.

The most recent analyst rating on (AU:SHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Shine Justice Ltd. stock, see the AU:SHJ Stock Forecast page.

Shine Justice Sets Date for FY26 Half-Year Results and Investor Briefing

Shine Justice Ltd has scheduled the release of its half-year financial results for the period ended 31 December 2025 for Friday, 27 February 2026. The company will host an analyst and investor briefing at 10:30am AEST on the same day following the announcement, signalling preparations for closer engagement with the investment community around its interim performance and outlook.

The most recent analyst rating on (AU:SHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Shine Justice Ltd. stock, see the AU:SHJ Stock Forecast page.

Shine Justice Flags Lapse of 274,772 Performance Rights

Shine Justice Ltd has notified the market that 274,772 performance rights (ASX code SHJAA) have lapsed after the conditions attached to those rights were not satisfied or became incapable of being met. The cessation of these conditional securities reduces the company’s pool of potential future equity issuance under its performance rights arrangements, which may have implications for the structure and quantum of future equity-based remuneration for eligible participants but does not affect currently issued ordinary shares.

The most recent analyst rating on (AU:SHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Shine Justice Ltd. stock, see the AU:SHJ Stock Forecast page.