Shine Justice Ltd. (SHJ) AI Stock Analysis

• Market Cap: AU$114.34M
• Dividend Yield: 7.14%
• Average Volume (3M): 60.57K
• Price to Earnings (P/E): 204.5
• Beta (1Y): 0.16
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: AU$0.70 ▼(-5.54% Downside)

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 and solid equity base

Low leverage and a ~45% equity base give Shine Justice durable financial flexibility. This conservative capital structure supports continued investment in product development, absorbs demand shocks, and preserves borrowing headroom for strategic partnerships or targeted M&A over the medium term.

Stable revenue growth and gross margin

Consistent revenue expansion and a stable ~40% gross margin indicate resilient unit economics in its software and services mix. For a subscription-led business, this supports predictable margins, steady cash conversion, and the ability to scale sales and support without eroding core profitability over time.

Recurring, diversified revenue model

A mix of subscription fees, licensing, consulting and maintenance yields recurring, diversified cash flows. This reduces revenue volatility, increases customer stickiness and enables cross-sell opportunities with law firms and government clients, supporting durable top-line visibility and renewal economics.

Negative Factors

Very low net profitability

Extremely slim net margins and falling operating profitability limit internal reinvestment capacity and resilience. Over months, this constrains funding for R&D, sales expansion, and margin improvement initiatives, leaving the business exposed to cost shocks or price pressure without external financing.

Weak operating cash flow and negative FCF growth

Declining operating cash and negative free cash flow growth impair Shine Justice's ability to finance growth, pay down debt, or sustain dividends from operations. Persistently weaker cash generation can force reliance on equity or debt, raising dilution or financial cost over the medium term.

Poor returns on invested capital

Severely depressed EPS growth and near-zero reported ROE indicate weak return generation on shareholder capital. This suggests challenges in monetizing product investments and risks poor capital allocation, making it harder to justify future investment without clear 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

Shine Justice Ltd. demonstrates stable revenue growth and effective cost management, but faces challenges in profitability and cash flow generation. The balance sheet remains strong with manageable leverage, but declining returns on equity indicate potential profitability concerns. Overall, the company needs to address operational efficiency and cash flow generation to enhance financial performance.

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

Shine Justice Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.74
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.69, above the 50-day MA of 0.69, and above the 200-day MA of 0.66, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 10.90 is Positive, 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
AFL	65 Neutral	AU$16.69M	163.64	―	―	27.43%	-90.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHJ	57 Neutral	AU$114.34M	204.55	0.21%	7.14%	4.44%	-90.57%

Shine Justice Ltd. Corporate Events

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.

Shine Justice Ltd Reaches $140 Million Settlement in Class Action

Shine Justice Ltd has announced an in-principle settlement of $140 million in a class action lawsuit against Colonial First State Investments Limited and associated parties. This settlement, which requires Federal Court approval, is expected to positively impact the company’s Gross Operating Cash Flow for the financial year ending June 2026, although it will not materially affect the financial results for FY2026 due to revenue recognition over the life of the case.

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 Ltd’s AGM Resolutions Passed Successfully

Shine Justice Ltd held its 2025 Annual General Meeting where all proposed resolutions were passed by the requisite majority. Key resolutions included the approval of the remuneration report, the re-election of director Graham Bradley AM, and the renewal of the proportional takeover bid approval provision. The successful passage of these resolutions indicates strong shareholder support and is likely to positively impact the company’s governance and strategic direction.

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 Ltd Focuses on Restructuring Amidst Financial Challenges

Shine Justice Ltd reported a challenging financial year for FY25, with a decrease in net profit after tax to $0.1 million from $6.0 million in FY24, despite a revenue increase to $204.4 million. The company undertook significant restructuring, divesting non-core areas and implementing cost reduction programs to streamline operations and position itself for future growth. Leadership changes were also made, with Simon Morrison transitioning to focus on international growth and mass tort actions.

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.