SKS Technologies Group Limited (SKS) AI Stock Analysis

• Market Cap: AU$478.58M
• Dividend Yield: 1.49%
• Average Volume (3M): 518.14K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 2.05
• Revenue Growth: 91.96%
• EPS Growth: 109.56%
• Country: AU
• Employees: 739
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.08
• Shares Outstanding: 115,320,810
• 10 Day Avg. Volume: 565,397
• 30 Day Avg. Volume: 518,140
• PEG Ratio: 0.16
• Price to Book (P/B): 8.77
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 6.58
• 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$4.62
• Price Target Upside: 11.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.2
• Revenue Forecast (FY): AU$336.47M

• Rating: 76 Outperform
• Price Target: AU$4.50 ▲(8.43% Upside)
• Action: Upgraded Date: 02/19/26
• Date: Action: Upgraded 02/19/26

The score is driven primarily by strong financial performance (rapid revenue growth, improving profitability, and robust free cash flow) and a positive technical backdrop with the price above key moving averages and supportive momentum. The main offset is valuation, with a relatively high P/E and modest dividend yield.

Positive Factors

Revenue Growth

Sustained ~31.8% revenue growth indicates expanding end-market share and product adoption in electrical equipment. Over 2-6 months this supports stronger scale economics, allows reinvestment in distribution and product development, and underpins durable top-line momentum.

Margin Improvement

A 52.9% gross margin shows structural pricing or cost advantages in core products, while rising net margin evidences improving operational efficiency. These margin gains are durable drivers of profitability and cash generation if cost discipline and pricing power persist.

Strong Free Cash Flow

A 55% jump in FCF and FCF nearly matching net income signals robust cash conversion and financial flexibility. This durable cash generation supports capex, working capital, debt reduction and potential shareholder returns without relying on external financing.

Negative Factors

Modest Net Profit Margin

Despite improvement, a 5.26% net margin remains modest for long-term resilience. It provides a limited buffer against raw material cost shocks or pricing pressures, constraining the company's ability to sustainably expand reinvestment or absorb cyclical downturns.

Moderate Equity Cushion

A 'moderate' equity ratio implies the company is not highly conservatively capitalised. Over several months this limits the shock-absorbing capacity and may require incremental debt or equity to fund large growth initiatives, reducing financial optionality.

High Business Volatility

A beta above 2 indicates earnings and cash flows are more sensitive to economic cycles and demand swings in electrical equipment. This structural volatility raises execution risk for investments, forecasting and consistent cash generation across market cycles.

SKS Technologies Group Limited Business Overview & Revenue Model

Company Description

SKS Technologies Group Limited designs, supplies, and installs audiovisual, electrical, communication products and services primarily in Australia. It offers audiovisual and IT solutions, including audiovisual integration, automated audiovisual systems, digital signage video conferencing, TP over IP networks, room control systems, medical imaging solutions, multi-screen control rooms, large screens and stadiums, hi-tech intuitive corporate boardrooms, hi-tech intuitive training rooms, display and projector systems, interactive whiteboards, touch panel control systems, specialist controlled lighting systems, public address systems, and video and audio conferencing solutions for architects, builders, and consultants. The company also provides electrical solutions, such as data and voice communication systems, electrical design and installations, lighting control systems, and energy efficiency solutions; indoor and outdoor media walls; wholesale data services; unified communications solutions; smart buildings convergence solutions; and related support services. SKS Technologies Group Limited was incorporated in 1962 is headquartered in West Melbourne, Australia.

How the Company Makes Money

SKS Technologies Group Limited generates revenue through multiple streams, including the sale of hardware and software solutions, subscription-based services for its managed IT offerings, and consulting fees for technology integration projects. A significant portion of its income is derived from long-term contracts with corporate clients, which provide a steady revenue base. Additionally, SKS has established strategic partnerships with major technology vendors, allowing it to offer bundled services and products that enhance its market reach and profitability. The company's focus on innovation and customer-centric solutions also helps drive recurring revenue through maintenance and support services.

SKS Technologies Group Limited Financial Statement Overview

Summary

Strong fundamentals: revenue grew 31.76% with improved gross margin (52.85%) and net margin (5.26%). Cash generation is robust with free cash flow up 55.32% and high FCF-to-net-income (0.93). Balance sheet leverage is reduced (debt-to-equity 0.34) with very strong ROE (56.57%), supporting a solid overall financial profile.

Income Statement

SKS Technologies Group Limited has demonstrated strong revenue growth with a 31.76% increase in the latest period, indicating robust expansion. The gross profit margin improved to 52.85%, showcasing efficient cost management. Net profit margin also increased to 5.26%, reflecting enhanced profitability. EBIT and EBITDA margins have strengthened, indicating improved operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The company has improved its financial stability with a reduced debt-to-equity ratio of 0.34, indicating lower leverage. Return on equity is strong at 56.57%, suggesting effective use of equity capital. However, the equity ratio is moderate, reflecting a balanced capital structure. The balance sheet shows a solid financial position with reduced risk from debt.

Cash Flow

SKS Technologies has shown significant improvement in cash flow, with a 55.32% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.44, suggesting efficient cash conversion. The free cash flow to net income ratio is high at 0.93, reflecting strong cash flow relative to earnings. Overall, the cash flow statement indicates robust cash management and growth.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	277.47M	261.66M	136.31M	83.27M	67.29M	35.60M
Gross Profit	30.05M	138.28M	63.96M	3.19M	29.11M	13.35M
EBITDA	27.92M	23.66M	7.81M	2.32M	3.26M	1.93M
Net Income	17.06M	13.77M	6.63M	752.78K	3.02M	2.17M
Balance Sheet
Total Assets	108.26M	110.37M	59.74M	28.77M	30.58M	16.64M
Cash, Cash Equivalents and Short-Term Investments	51.77M	32.48M	3.37M	8.58K	39.53K	109.19K
Total Debt	14.03M	8.39M	8.24M	7.38M	7.67M	1.39M
Total Liabilities	80.28M	85.82M	47.60M	23.29M	25.51M	14.83M
Stockholders Equity	27.89M	24.34M	12.20M	5.61M	5.07M	1.82M
Cash Flow
Free Cash Flow	40.49M	32.43M	6.24M	2.26M	-1.71M	1.09M
Operating Cash Flow	43.84M	34.99M	8.42M	2.92M	-895.62K	1.43M
Investing Cash Flow	-3.29M	-2.41M	-2.16M	-356.50K	-784.89K	759.62K
Financing Cash Flow	-8.41M	-3.47M	-2.90M	-2.60M	1.61M	-2.31M

SKS Technologies Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.15
• 50DMA: Positive
• 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:SKS, the sentiment is Positive. The current price of 4.15 is below the 20-day moving average (MA) of 4.26, above the 50-day MA of 3.97, and above the 200-day MA of 3.19, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 15.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SKS.

SKS Technologies Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKS	76 Outperform	AU$478.58M	13.05	76.78%	1.49%	91.96%	109.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FOS	62 Neutral	AU$9.97M	-6.82	7.76%	4.00%	3.94%	45.76%
RFT	43 Neutral	AU$4.15M	-0.44	-4.55%	―	-39.95%	-220.00%
EGY	38 Underperform	AU$10.00M	-0.46	―	―	-37.44%	10.36%

SKS Technologies Group Limited Corporate Events

SKS Technologies Declares AUD 0.035 Interim Dividend for December Half

SKS Technologies Group Limited has declared a dividend of AUD 0.035 per ordinary fully paid share for the six-month period ended 31 December 2025. The distribution will be paid on 20 March 2026, with an ex-dividend date of 5 March and a record date of 6 March, subject only to the standard regulatory timetable and without indication of additional approval requirements.

The announcement underscores the company’s continued practice of returning cash to shareholders on a semi-annual basis, which may signal confidence in its financial performance over the reported period. Investors tracking income from SKS stock will focus on the yield implied by the AUD 0.035 payment and the stability of this dividend pattern amid broader market conditions.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$5.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

SKS Technologies lifts profit, expands data centre pipeline and order book

SKS Technologies Group Limited reported strong first-half FY26 results, with net profit after tax up 52.5% to $8.81 million, revenue rising 13.6% to $131.75 million, and earnings per share up 49.6%. The group declared a fully franked interim dividend of 3.5 cents per share, reflecting higher profitability and a record $325 million work-on-hand position.

Operational momentum was underpinned by major project completions, record order book growth, and the company’s largest contract win to date for a $130 million data centre facility. The acquisition and integration of NSW-based Delta Elcom further deepens its data centre capabilities, while expanded bank facilities and nearly $52 million in cash support ambitious growth targets, including a forecast FY26 revenue of $340 million and higher margins that reinforce its positioning in Australia’s data centre and infrastructure market.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$5.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

SKS Technologies lifts FY26 earnings guidance on $60m contract wins

SKS Technologies Group has upgraded its FY26 earnings outlook after securing $60 million in new contracts across data centre and corporate clients, lifting expected revenue from $320 million to $340 million and increasing its forecast profit before tax from $28.8 million to $34 million on an improved NPBT margin of 10%. The wins include a major package on NEXTDC’s M3 Stage 4 hyperscale data centre expansion in West Footscray and a fully integrated audio-visual, communications and electrical fit-out for Ernst & Young’s new Melbourne office, reinforcing SKS’s growing dominance in the data centre market, its strong repeat business levels, and its continued push across traditional commercial sectors, underpinned by a record $325 million work-on-hand pipeline.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

SKS Technologies Sets Date for FY26 Half-Year Results and Investor Briefing

SKS Technologies Group Limited has announced it will release its 2026 half-year financial results on Tuesday, 24 February 2026, accompanied by an online presentation for investors and analysts hosted by CEO Matthew Jinks and CFO Gary Beaton. The scheduled briefing underscores the company’s ongoing engagement with the investment community and will provide stakeholders with an opportunity to gain further insight into SKS Technologies’ financial performance and operational progress across its diversified infrastructure and technology projects.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

SKS Technologies Issues New Shares to Complete Delta Elcom Acquisition

SKS Technologies Group Limited has issued 612,501 fully paid ordinary shares as part of the share-based consideration for the completion of its acquisition of Delta Elcom Pty Ltd. The company has confirmed that these shares were issued without a prospectus under the relevant disclosure exemptions of the Corporations Act, and that it remains compliant with its financial reporting and continuous disclosure obligations, signalling regulatory adherence as it integrates the newly acquired business into its operations.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

SKS Technologies Seeks ASX Quotation for 612,501 New Shares

SKS Technologies Group Limited has applied to the ASX for quotation of 612,501 new ordinary fully paid shares, issued on 12 January 2026 as part of previously announced transactions. The move modestly increases the company’s quoted share capital and reflects the formal progression of prior capital or corporate arrangements through to tradable securities on the market.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

SKS Technologies Closes Acquisition of Data Centre Specialist Delta Elcom

SKS Technologies Group Limited has completed the acquisition of Sydney-based Delta Elcom Pty Ltd, a specialist electrical and communications contractor with around $25 million in annual revenue and deep expertise in data centre infrastructure, network cabling and integrated technology systems. The transaction, funded through $10.5 million in cash and the issue of new SKS shares, with a further earn-out of up to $1.25 million tied to 2026 performance, is intended to accelerate SKS’s push into the New South Wales data centre market while strengthening its position in core commercial and industrial sectors across Australia.

The most recent analyst rating on (AU:SKS) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

SKS Technologies Plans New Share Issue of Up to 612,501 Shares

SKS Technologies Group Limited has announced a proposed placement or other type of issue of up to 612,501 ordinary fully paid shares, with an intended issue date of 12 January 2026. The capital raising, to be conducted via a new issue of securities on the ASX, is expected to support the company’s funding needs and may slightly dilute existing shareholders while potentially improving the company’s financial flexibility and market positioning.

The most recent analyst rating on (AU:SKS) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

SKS Technologies Completes Acquisition of Data Centre Specialist Delta Elcom

SKS Technologies Group Limited has completed the acquisition of Sydney-based Delta Elcom Pty Ltd, a specialist electrical and communications contractor with approximately $25 million in annual revenue and deep expertise in data centre infrastructure, network cabling and integrated technology systems. The deal, comprising $10.5 million in upfront cash, $2 million in SKS shares and an earn-out of up to $1.25 million, is intended to accelerate SKS Technologies’ push for greater market share in the New South Wales data centre sector while strengthening its capabilities and pipeline in its traditional markets across complex infrastructure projects nationwide.

The most recent analyst rating on (AU:SKS) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.