SKS Technologies Group Limited (SKS) AI Stock Analysis

• Market Cap: AU$325.64M
• Dividend Yield: 0.69%
• Average Volume (3M): 469.15K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.90
• Revenue Growth: 91.96%
• EPS Growth: 109.56%
• Country: AU
• Employees: 739
• Sector: Industrials
• Sector Strength: 78
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.07
• Shares Outstanding: 113,069,880
• 10 Day Avg. Volume: 766,222
• 30 Day Avg. Volume: 469,152
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$2.79
• Price Target Upside: -3.12% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: AU$2.50 ▼(-13.19% Downside)

SKS Technologies Group Limited demonstrates strong financial performance, which is the most significant factor contributing to the stock's score. Technical analysis suggests bullish trends, although caution is advised due to overbought indicators. Valuation metrics indicate the stock is fairly valued, with a modest dividend yield. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Analyst Recommendation

The recommendation is to buy SKS Technologies stock with a target price increase from $2.61 to $3.00, indicating confidence in its future growth potential.

Business Growth

The company has experienced impressive growth in Melbourne data centres and a 15% growth in its traditional business, supported by improving margins and an experienced management team.

Cash Position

The company has a strong cash position, allowing for potential acquisitions or increased dividends, which can enhance shareholder value.

Financial Performance

SKS Technologies has significantly improved its cash collection while lowering its payable position and payable days, enhancing its financial health.

Profit and Margins

SKS delivered a profit before tax that exceeded guidance, demonstrating strong financial performance with a margin improvement.

Negative Factors

Dividend Yield

SKS has declared a final dividend of 5 cents per share, with a total of 6 cents for the year, marking a substantial increase from the previous year's dividend, offering a yield of 2%.

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 a combination of project-based contracts and recurring service agreements. The company's key revenue streams include the sale and installation of technology systems, ongoing maintenance and support services, and consultancy fees for bespoke technology solutions. SKS leverages strategic partnerships with technology providers and manufacturers to enhance their service offerings and ensure competitive pricing, which in turn contributes to their profitability.

SKS Technologies Group Limited Financial Statement Overview

Summary

SKS Technologies Group Limited exhibits strong financial health across its income statement, balance sheet, and cash flow statement. The company shows significant growth and profitability, supported by effective operational and financial management. Leverage is manageable but requires continuous monitoring.

Income Statement

SKS Technologies Group Limited shows strong revenue growth, with a significant increase from the previous year. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. EBIT and EBITDA margins are robust, reflecting effective operational management.

Balance Sheet

The company's balance sheet is solid with a reasonable debt-to-equity ratio, indicating manageable leverage. Return on Equity is positive, suggesting good profitability relative to shareholder investment. The equity ratio is moderate, showing a balanced approach to asset financing.

Cash Flow

The cash flow statement demonstrates strong free cash flow growth, indicating improved operational efficiency. The operating cash flow to net income ratio is favorable, reflecting effective cash conversion from profits. Free cash flow to net income ratio is strong, showcasing the company's capability to generate cash beyond its net profits.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	136.31M	83.27M	67.29M	35.60M	26.55M
Gross Profit	63.96M	3.19M	29.11M	13.35M	9.78M
EBITDA	7.81M	2.32M	3.26M	1.93M	-466.00K
Net Income	6.63M	752.78K	3.02M	2.17M	-4.99M
Balance Sheet
Total Assets	59.74M	28.77M	30.58M	16.64M	8.99M
Cash, Cash Equivalents and Short-Term Investments	3.37M	8.58K	39.53K	109.19K	229.00K
Total Debt	7.59M	7.38M	7.67M	1.39M	2.32M
Total Liabilities	47.60M	23.29M	25.51M	14.83M	10.76M
Stockholders Equity	12.20M	5.61M	5.07M	1.82M	-1.77M
Cash Flow
Free Cash Flow	6.24M	2.26M	-1.71M	1.09M	-137.85K
Operating Cash Flow	8.42M	2.92M	-895.62K	1.43M	-122.97K
Investing Cash Flow	-2.16M	-356.50K	-784.89K	759.62K	2.12M
Financing Cash Flow	-2.90M	-2.60M	1.61M	-2.31M	-2.45M

SKS Technologies Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.88 is above the 20-day moving average (MA) of 2.62, above the 50-day MA of 2.29, and above the 200-day MA of 1.98, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 70.75 is Negative, neither overbought nor oversold. The STOCH value of 83.45 is Negative, 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	77 Outperform	AU$325.64M	23.62	76.78%	0.69%	91.96%	109.56%
FOS	75 Outperform	AU$18.49M	12.92	13.21%	3.23%	55.78%	306.78%
RFT	65 Neutral	AU$8.30M	3.70	-4.55%	―	-39.95%	-220.00%
Sector *	64 Neutral	$10.85B	16.20	8.89%	1.97%	2.67%	-15.04%
EGY	25 Underperform	AU$11.50M	―	-1809.70%	―	-37.44%	10.36%

SKS Technologies Group Limited Corporate Events

SKS Technologies Exceeds Profit Guidance with Strategic Market Expansion

SKS Technologies Group Limited announced a significant increase in its unaudited profit before tax for FY25, reaching $20.8 million, which is a 15.6% rise from its earlier guidance and more than three times the profit of FY24. The company’s sales revenue closely aligned with forecasts, showing a 90% increase from the previous year, and cash on hand surged to $32.5 million. This financial growth is attributed to the company’s strategic focus on high-margin projects and expanding market opportunities, leading to a strong work pipeline and confidence in future performance.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$2.30 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 Releases General Information Document

SKS Technologies Group Limited has released a document providing general information about its activities as of the date of the presentation. The document emphasizes that it should not be relied upon for investment purposes as it does not consider individual investment objectives or financial positions. It also contains forward-looking statements based on estimates and assumptions about future events, which involve risks and uncertainties that may cause actual results to differ from those expressed.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$1.80 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.

$100 Million Data Centre Project Awarded to SKS Technologies

SKS Technologies Group Limited has secured a $100 million contract for a data center project in Melbourne with Erilyan Group, marking the third facility for an international hyperscale operator. This award highlights SKS’s reputation for successful project execution and repeat business, with the project set to enhance their work portfolio to $220 million and funded through existing resources. The company continues to see strong opportunities across various sectors, with $492 million currently under open tender.

The most recent analyst rating on (AU:SKS) stock is a Buy with a A$1.80 price target. To see the full list of analyst forecasts on SKS Technologies Group Limited stock, see the AU:SKS Stock Forecast page.