Supply Network Limited (SNL) AI Stock Analysis

• Market Cap: AU$1.72B
• Dividend Yield: 1.64%
• Average Volume (3M): 55.95K
• Price to Earnings (P/E): 44.8
• Beta (1Y): 0.32
• Revenue Growth: 15.33%
• EPS Growth: 16.19%
• Country: AU
• Employees: 96
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Parts
• EPS (TTM): 0.46
• Shares Outstanding: 43,457,993
• 10 Day Avg. Volume: 42,485
• 30 Day Avg. Volume: 55,954
• PEG Ratio: 3.50
• Price to Book (P/B): 14.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.09
• 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$39.00
• Price Target Upside: -1.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: AU$42.00 ▲(6.25%Upside)

Supply Network Limited's overall stock score is driven primarily by its strong financial performance, despite mixed technical indicators and a high valuation. The company's robust revenue growth and stable financial management are key strengths. However, caution is advised due to potential overvaluation and the need for monitoring cash flow trends.

Supply Network Limited Business Overview & Revenue Model

Company Description

Supply Network Limited (SNL) is a leading distributor specializing in the supply of aftermarket parts for commercial vehicles. Operating primarily in the automotive sector, the company provides a comprehensive range of products including engine parts, suspension components, and braking systems. SNL is dedicated to delivering high-quality parts and exceptional service to ensure the efficiency and reliability of commercial vehicle operations across various industries.

How the Company Makes Money

Supply Network Limited makes money by sourcing aftermarket parts from manufacturers and distributing them to a network of customers, including repair shops, fleet operators, and independent distributors. The company generates revenue through the sale of these parts, leveraging its extensive supply chain capabilities to provide timely and reliable delivery. SNL's revenue model is underpinned by strong relationships with manufacturers, allowing for favorable purchasing terms, and a broad customer base that ensures a consistent demand for its products. Additionally, strategic partnerships with logistics providers enhance SNL's distribution efficiency, contributing to its profitability.

Supply Network Limited Financial Statement Overview

Summary

Supply Network Limited displays robust financial performance with strong revenue growth and stable profitability. The balance sheet is solid with a healthy equity ratio, though leverage should be monitored. Cash flow management is effective, but a decline in free cash flow growth rates needs attention.

Income Statement

Supply Network Limited has demonstrated strong revenue growth with a consistent increase in total revenue over the years. The gross profit margin has been stable, reflecting effective management of cost of goods sold. The net profit margin also shows improvement, indicating enhanced operational efficiency. Despite strong EBIT and EBITDA margins, there is room for further improvement in profitability ratios.

Balance Sheet

The company's balance sheet reflects a solid equity position, with a healthy equity ratio indicating financial stability. The debt-to-equity ratio is manageable, but continuous monitoring is advised to prevent excessive leverage. Return on equity has improved steadily, showcasing effective utilization of shareholders' funds.

Cash Flow

Operating cash flow generation is strong, supporting the company's ability to reinvest in growth opportunities. The free cash flow to net income ratio is favorable, indicating efficient cash management. However, there is a slight decline in free cash flow growth rates that warrants attention to ensure sustainable cash flow generation.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	302.60M	252.25M	198.43M	162.58M	136.83M
Gross Profit	128.66M	57.39M	43.36M	32.43M	25.39M
EBITDA	57.03M	47.08M	35.43M	25.90M	19.75M
Net Income	33.02M	27.41M	20.02M	13.85M	9.55M
Balance Sheet
Total Assets	200.52M	169.22M	138.53M	117.15M	106.58M
Cash, Cash Equivalents and Short-Term Investments	5.83M	7.76M	6.93M	5.56M	1.64M
Total Debt	51.39M	51.88M	46.24M	39.62M	42.64M
Total Liabilities	97.29M	91.43M	79.21M	67.87M	64.26M
Stockholders Equity	103.23M	77.79M	59.33M	49.28M	42.33M
Cash Flow
Free Cash Flow	12.15M	14.70M	15.08M	15.14M	9.27M
Operating Cash Flow	16.49M	19.03M	18.12M	16.59M	11.23M
Investing Cash Flow	-4.33M	-4.33M	-3.01M	-1.42M	-1.96M
Financing Cash Flow	-14.43M	-14.99M	-13.72M	-10.21M	-8.91M

Supply Network Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.53
• 50DMA: Negative
• 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:SNL, the sentiment is Negative. The current price of 39.53 is above the 20-day moving average (MA) of 38.71, above the 50-day MA of 38.94, and above the 200-day MA of 35.44, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SNL.

Supply Network Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	77 Outperform	AU$17.89M	4.20	6.94%	―	12.63%	46.73%
ARB	72 Outperform	$2.90B	27.81	15.18%	1.98%	6.17%	10.45%
AOV	71 Outperform	$1.19B	15.10	8.97%	4.64%	-1.41%	-21.22%
SNL	70 Outperform	AU$1.72B	44.78	36.35%	1.64%	15.33%	16.19%
Sector *	63 Neutral	$17.10B	10.62	-8.48%	2.94%	1.62%	-25.72%
NTD	62 Neutral	AU$36.90M	15.95	-42.37%	―	-3.66%	-750.00%
AMA	48 Neutral	AU$444.78M	465.00	1.53%	―	-1.09%	―

Supply Network Limited Corporate Events

Supply Network Limited Reports Strong FY2025 Performance and Expansion Plans

Supply Network Limited reported a strong financial performance for FY2025 with a revenue of $349 million and a profit after tax of $39.7 million, despite a slower growth rate due to lower inflation and GDP growth. The company is expanding its operations with new branches and distribution facilities in Australia and New Zealand to support future growth and improve customer service. The company also achieved a record low Lost Time Injury Frequency Rate, reflecting its commitment to employee safety, and maintained a low net debt financial structure to support its growth strategy.

The most recent analyst rating on (AU:SNL) stock is a Buy with a A$30.50 price target. To see the full list of analyst forecasts on Supply Network Limited stock, see the AU:SNL Stock Forecast page.

Supply Network Limited Announces FY2025 Financial Results and Dividend Increase

Supply Network Limited has announced its preliminary financial results for the fiscal year 2025, reporting consolidated sales revenue of $348.8 million and an expected profit after tax of $39.7 million. The company declared a final fully franked dividend of 38.0 cents per share, an increase from the previous year, with a record date set for 18 September 2025 and payment on 2 October 2025. The Dividend Reinvestment Plan will be available with a 2.5% discount on shares, capped at $38.00 per share.

The most recent analyst rating on (AU:SNL) stock is a Buy with a A$30.50 price target. To see the full list of analyst forecasts on Supply Network Limited stock, see the AU:SNL Stock Forecast page.

Supply Network Limited Announces Dividend Distribution

Supply Network Limited has announced a dividend distribution of AUD 0.38 per share for the period ending June 30, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to its shareholders, potentially strengthening its market position and investor confidence.

The most recent analyst rating on (AU:SNL) stock is a Buy with a A$30.50 price target. To see the full list of analyst forecasts on Supply Network Limited stock, see the AU:SNL Stock Forecast page.

Supply Network Limited Announces Director’s Share Disposal

Supply Network Limited has announced a change in the director’s interest notice for Mr. P W Gill. The change involves the disposal of 5,000 ordinary shares at a value of $41.02 per share, impacting Mr. Gill’s direct and indirect shareholding in the company. This update, authorized by the company secretary, reflects the ongoing adjustments in the company’s leadership’s financial interests, which may influence stakeholder perceptions and the company’s market positioning.

The most recent analyst rating on (AU:SNL) stock is a Buy with a A$22.50 price target. To see the full list of analyst forecasts on Supply Network Limited stock, see the AU:SNL Stock Forecast page.

Supply Network Limited Announces Director’s Share Disposal

Supply Network Limited has announced a change in the director’s interest for Mr. P W McKenzie. The notice reveals that Mr. McKenzie, as a trustee and member of the P & L McKenzie Superannuation Fund, disposed of 32,051 ordinary shares at $41.26 per share, reducing his holding to 3,079,534 shares. This change may impact the company’s stock dynamics and stakeholder perceptions.

The most recent analyst rating on (AU:SNL) stock is a Buy with a A$22.50 price target. To see the full list of analyst forecasts on Supply Network Limited stock, see the AU:SNL Stock Forecast page.

Supply Network Limited Announces Change in Director’s Shareholding

Supply Network Limited has announced a change in the director’s interest, specifically for Mr. P W McKenzie, who is a trustee and member of the P&L McKenzie Superannuation Fund. The fund, which holds shares in the company, disposed of 102,220 ordinary shares, reducing the total number of shares held to 3,111,585. This change reflects an adjustment in the director’s indirect interests in the company, potentially impacting the company’s governance and shareholder structure.

Supply Network Limited Announces Director’s Share Disposal

Supply Network Limited has announced a change in the director’s interest notice for Mr. P W Gill, reflecting a disposal of 5,731 ordinary shares at a value of $38.48 per share. This change in shareholding could have implications for the company’s governance and investor perceptions, as it may signal shifts in internal dynamics or strategic priorities.

Supply Network Limited Announces Director’s Interest Change

Supply Network Limited has announced a change in the director’s interest notice for Mr. P W Gill, a director of the company. This change involves the disposal of 2,279 ordinary shares at a value of $38.28 per share, impacting the director’s total shareholding. This update is part of the company’s compliance with ASX listing rules and provides transparency to stakeholders regarding changes in director interests.