Silk Logistics Holdings Ltd. (SLH) AI Stock Analysis

• Market Cap: AU$122.32M
• Dividend Yield: 1.89%
• Average Volume (3M): 55.76K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.28
• Revenue Growth: 11.01%
• EPS Growth: -106.43%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 85
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.03
• Shares Outstanding: 81,547,600
• 10 Day Avg. Volume: 87,177
• 30 Day Avg. Volume: 55,763
• PEG Ratio: -0.36
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.88
• 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$1.70
• Price Target Upside: 13.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: AU$1.50 ▲(0.00%Upside)

Silk Logistics Holdings Ltd. has a solid financial performance with strong revenue and cash flow growth, which is the most significant factor. However, high leverage presents a risk. The technical analysis shows mixed signals with a slight bullish trend. Valuation is a concern due to the negative P/E ratio, though the dividend yield offers some compensation.

Silk Logistics Holdings Ltd. Business Overview & Revenue Model

Company Description

Silk Logistics Holdings Limited provides port-to-door landside logistics and supply chain services in Australia. It operates in two segments, Port Logistics and Contract Logistics. The company offers port logistics services, including wharf cartage; and contract logistics services, such as warehousing and distribution. It serves retail, fast moving consumer goods, light industrial, food, and other industries. Silk Logistics Holdings Limited was incorporated in 2013 and is headquartered in Port Melbourne, Australia.

How the Company Makes Money

Silk Logistics Holdings Ltd. generates revenue primarily through its comprehensive logistics services, which include freight transportation, warehousing, and distribution. The company earns money by offering end-to-end supply chain solutions tailored to the needs of its clients, ensuring the efficient movement and storage of goods. Key revenue streams include long-term contracts with businesses across multiple industries, providing consistent demand for their services. Additionally, partnerships with major retailers, manufacturers, and e-commerce platforms contribute to its earnings by securing steady business and expanding its market reach.

Silk Logistics Holdings Ltd. Financial Statement Overview

Summary

Silk Logistics Holdings Ltd. exhibits strong revenue and cash flow growth with commendable operational efficiency. The income statement reflects consistent revenue growth and healthy earnings before interest and taxes. However, the high leverage indicated by the balance sheet's Debt-to-Equity Ratio is a potential risk factor. The company's cash flow generation is robust, which aids in managing its debt and supporting growth investments.

Income Statement

Silk Logistics Holdings Ltd. has demonstrated consistent revenue growth over the years, with a notable increase of 13.87% from 2023 to 2024. The Gross Profit Margin for 2024 stands at 11.66%, while the Net Profit Margin is at 1.33%, indicating operational efficiency but relatively low profitability. The EBIT and EBITDA margins are strong at 5.16% and 14.22%, respectively, showing healthy earnings before interest and taxes, and depreciation and amortization.

Balance Sheet

The company's Debt-to-Equity Ratio is high at 4.64, indicating significant leverage which could pose financial risk. However, the Return on Equity is 9.00%, showing decent returns for shareholders. The Equity Ratio is low at 14.87%, suggesting that a small portion of the company's assets are financed by shareholders' equity.

Cash Flow

Silk Logistics has shown a strong Free Cash Flow growth rate of 26.95% from 2023 to 2024, reflecting robust cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 10.65, indicating effective conversion of income into cash. The Free Cash Flow to Net Income Ratio is 8.84, further underscoring efficient cash flow management.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
556.40M	488.58M	394.73M	323.31M	251.49M
	Gross Profit
64.89M	67.64M	50.19M	40.92M	21.73M
	EBIT
28.71M	32.40M	20.43M	23.85M	3.48M
	EBITDA
79.14M	86.49M	68.69M	60.61M	43.16M
	Net Income Common Stockholders
7.42M	16.40M	13.36M	8.39M	-4.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.16M	30.48M	31.96M	25.26M	19.82M
	Total Assets
553.87M	411.63M	315.13M	292.30M	291.67M
	Total Debt
382.16M	221.49M	179.42M	194.82M	217.69M
	Net Debt
354.99M	191.01M	147.46M	169.56M	197.87M
	Total Liabilities
471.48M	336.22M	248.25M	249.46M	257.25M
	Stockholders Equity
82.39M	75.41M	66.89M	42.84M	34.41M
Cash Flow		Free Cash Flow
65.58M	51.64M	42.97M	45.08M	37.38M
	Operating Cash Flow
79.02M	60.48M	45.29M	48.03M	40.15M
	Investing Cash Flow
-47.79M	-24.40M	3.32M	-2.26M	-37.02M
	Financing Cash Flow
-34.54M	-37.57M	-41.92M	-40.33M	6.07M

Silk Logistics Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SLH, the sentiment is Negative. The current price of 1.5 is below the 20-day moving average (MA) of 1.57, below the 50-day MA of 1.54, and below the 200-day MA of 1.71, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.54 is Neutral, neither overbought nor oversold. The STOCH value of 21.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SLH.

Silk Logistics Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
SLH	64 Neutral	AU$122.32M	22.84	-1.11%	1.89%	11.01%	-106.43%
1K1		€4.27B	30.95	7.24%	2.37%	―	―
APAJF		$7.11B	7.34	-1.44%	6.11%	―	―
BMBLF		$20.40B	24.68	26.45%	2.58%	―	―
STGPF		$12.45B	17.35	5.94%	4.54%	―	―
TRAUF		$29.42B	589.62	0.68%	4.50%	―	―

Silk Logistics Holdings Ltd. Corporate Events

Silk Logistics Scheme Meeting Postponed by Court Order

Silk Logistics Holdings Limited has announced a postponement of its Scheme Meeting, initially set to discuss the acquisition of all company shares by DP World Australia Limited through a scheme of arrangement. The Supreme Court of New South Wales has ordered the meeting to be rescheduled to a later date, with proceedings adjourned to 17 July 2025. This delay may impact the timeline of the acquisition process, and Silk has committed to keeping stakeholders informed of any updates.

The most recent analyst rating on (AU:SLH) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Silk Logistics Holdings Ltd. stock, see the AU:SLH Stock Forecast page.

Silk Logistics Updates on Acquisition Scheme Meeting

Silk Logistics Holdings Limited announced an update regarding the proposed acquisition by DP World Australia Limited. The Australian Competition and Consumer Commission’s decision on the acquisition is expected after the initially scheduled Scheme Meeting date. Consequently, Silk intends to seek a postponement of the Scheme Meeting from the Supreme Court of New South Wales, with a new date to be announced later. This delay highlights the procedural complexities involved in the acquisition process and may impact the timeline for stakeholders.

The most recent analyst rating on (AU:SLH) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Silk Logistics Holdings Ltd. stock, see the AU:SLH Stock Forecast page.

Silk Logistics Holdings Awaits ACCC Review Outcome on Acquisition Proposal

Silk Logistics Holdings Limited announced that the Australian Competition and Consumer Commission (ACCC) has resumed its review of the proposed acquisition of all shares in the company by DP World Australia Limited. The ACCC has set a new date of 10 July 2025 for its findings, which falls after the scheduled Scheme Meeting and End Date. Silk is currently assessing its position and discussing future steps with DP World Australia, while keeping the market informed of any significant developments.

The most recent analyst rating on (AU:SLH) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Silk Logistics Holdings Ltd. stock, see the AU:SLH Stock Forecast page.

Silk Logistics Appoints New Acting CFO Following Resignation

Silk Logistics Holdings Limited has announced the resignation of its Chief Financial Officer, Mr. James Nicholias, effective May 21, 2025, as he pursues other opportunities. The company has appointed Michelle Cao, the General Manager of Group Finance, as the Acting CFO. Michelle, who has been with Silk since 2015, is recognized for her instrumental role in the company’s growth, particularly in mergers and acquisitions and strategic planning. Her appointment is expected to ensure a seamless transition and continuity in Silk’s financial operations.

The most recent analyst rating on (AU:SLH) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Silk Logistics Holdings Ltd. stock, see the AU:SLH Stock Forecast page.

Silk Logistics Expects Higher Earn-Out Payment for Secon Acquisition

Silk Logistics Holdings Limited announced an update regarding the earn-out payment for its subsidiary, Secon Freight Logistics Pty Ltd. Due to Secon’s strong performance, the final earn-out payment is expected to be significantly higher than initially estimated, ranging between $20 million and $25 million. This increase is attributed to a surge in uncontracted volumes in early 2025. The company will reassess its capital mix to accommodate this payment, which will not affect its underlying earnings for FY25.

Silk Logistics’ Acquisition by DP World Australia Faces ACCC Review Delay

Silk Logistics Holdings Limited announced that the Australian Competition and Consumer Commission (ACCC) has paused its review timeline concerning the proposed acquisition by DP World Australia Limited. The delay is due to the ACCC awaiting further information from both Silk and DP World Australia. Despite this pause, both companies remain committed to the transaction, working towards obtaining necessary regulatory approvals, including those from the ACCC and FIRB, to implement the scheme of arrangement.

Silk Logistics Postpones Key Meeting for Acquisition by DP World Australia

Silk Logistics Holdings Limited announced the postponement of its Scheme Meeting, originally scheduled for March 2025, to June 2025, following a decision by the Supreme Court of New South Wales. This meeting is crucial for the proposed scheme of arrangement under which DP World Australia Limited intends to acquire all issued shares of Silk. The rescheduling impacts the timeline for shareholder voting and subsequent court approvals, potentially affecting the company’s acquisition process and its stakeholders.