Saferoads Holdings Limited (SRH) AI Stock Analysis

• Market Cap: AU$4.20M
• Dividend Yield: N/A
• Average Volume (3M): 31.95K
• Price to Earnings (P/E): 2.3
• Beta (1Y): 1.08
• Revenue Growth: -52.73%
• EPS Growth: 89.41%
• Country: AU
• Employees: 45
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.01
• Shares Outstanding: 43,705,406
• 10 Day Avg. Volume: 3,345
• 30 Day Avg. Volume: 31,947
• PEG Ratio: -0.05
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 15.06
• 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: 52 Neutral
• Price Target: AU$0.09 ▼(-8.00% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is held back primarily by weakening operating fundamentals (declining revenue, negative operating profit) and valuation risk signaled by a negative P/E. Offsetting factors are improved leverage and currently positive cash generation, while technicals are only mildly supportive with largely neutral momentum.

Positive Factors

Improved leverage

A materially lower debt-to-equity ratio meaningfully reduces financial risk and interest burden, increasing resilience to downturns. Over 2-6 months this stronger capital structure supports access to credit, funds strategic investments, and gives management flexibility to execute turnaround initiatives without urgent refinancing pressure.

Positive operating cash flow

Consistent positive operating cash flow and supportive free cash flow increase internal funding capacity for working capital and targeted investments. This durable cash conversion reduces reliance on external capital, helps maintain liquidity during cyclical weakness, and enables gradual deleveraging or selective capex.

FCF tracks net income

Free cash flow that aligns with reported net income suggests improving earnings quality and fewer large accrual adjustments. Over the medium term this improves forecasting reliability, supports sustainable cash returns to stakeholders, and makes cash-based planning and reinvestment decisions more dependable.

Negative Factors

Declining revenue

A sustained top-line decline erodes scale and operating leverage, making it harder to cover fixed costs and invest in growth. Over several months this trend pressures margins, constrains pricing power, and requires successful execution of commercial remediation to restore sustainable revenue generation.

Negative operating profit

Persistent negative operating profit indicates the core business is not yet self-sustaining without non-operating boosts. This structural weakness limits free cash generation potential under stress, reduces funds for reinvestment, and heightens reliance on balance sheet improvements or non-recurring items to show profitability.

Earnings volatility

High year-to-year swings and dependence on non-operating items undermine predictability of earnings and cash flow. This instability complicates planning, weakens stakeholder confidence, and raises the risk that favorable 2025 metrics are not repeatable without consistent operational improvement.

Saferoads Holdings Limited Business Overview & Revenue Model

Company Description

Saferoads Holdings Limited, together with its subsidiaries, provides road safety products and solutions in Australia, New Zealand, and the United States. The company offers flexible guideposts and signage products; rubber-based traffic calming products, including separation kerb and wheel stops; variable messaging sign boards; permanent and temporary public solar lighting poles; and permanent and temporary crash cushions including bollards and safety barriers. It also rents road safety solutions. The company serves state government departments, local councils, road construction and equipment hire sectors. Saferoads Holdings Limited was founded in 1992 and is headquartered in Pakenham, Australia.

How the Company Makes Money

Saferoads Holdings Limited generates revenue through the sale and rental of its road safety products and solutions. The company offers a variety of products that cater to different aspects of road safety, including speed humps, crash barriers, and electronic signage. Revenue streams include product sales directly to government bodies, contractors, and private enterprises involved in road construction and maintenance. Additionally, Saferoads provides rental services for temporary traffic management solutions, which is a significant component of its revenue model. The company also engages in strategic partnerships and collaborations to expand its market presence and enhance its product offerings, contributing to its overall earnings.

Saferoads Holdings Limited Financial Statement Overview

Summary

Balance sheet leverage improved meaningfully (debt-to-equity down sharply), and 2025 cash generation is supportive. However, revenue has fallen materially over the last two years and operating profit remains negative, with 2025 net profit heavily influenced by non-operating items and high year-to-year volatility.

Income Statement

Revenue has declined materially over the last two years (2025 down ~33% and 2024 slightly down), signaling weakening top-line momentum. Profitability is mixed: 2025 shows very strong net profitability, but operating performance remains weak with negative operating profit and only a near-breakeven EBITDA margin, suggesting earnings were heavily influenced by non-operating items. The prior year (2024) posted a large net loss, highlighting elevated volatility and limited consistency in core earnings power.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity falling from ~0.94 (2024) to ~0.40 (2025), which strengthens financial flexibility. Equity remains solid relative to total assets, and the balance sheet appears less stressed than last year. The key offset is earnings quality/consistency: return on equity swings sharply from deeply negative (2024) to very high (2025), indicating results are not yet stable despite the healthier capital structure.

Cash Flow

Cash generation improved in 2025, with solid positive operating cash flow and strong free cash flow (and free cash flow closely tracking net income). However, the trajectory is uneven: free cash flow declined in 2025 versus 2024, and history shows volatility (including negative free cash flow in 2021 and 2024). Overall, cash flow is currently supportive but not consistently reliable across cycles.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	9.88M	5.95M	6.88M	14.65M	12.35M	13.25M
Gross Profit	2.42M	2.65M	7.05M	7.52M	6.88M	2.17M
EBITDA	299.17K	40.39K	-542.19K	1.61M	1.82M	1.86M
Net Income	4.86M	4.35M	-3.82M	-197.41K	64.29K	535.17K
Balance Sheet
Total Assets	9.27M	8.58M	11.75M	15.02M	15.37M	15.98M
Cash, Cash Equivalents and Short-Term Investments	2.99M	3.50M	0.00	220.11K	4.22K	745.79K
Total Debt	3.27M	1.88M	4.47M	4.74M	5.09M	5.34M
Total Liabilities	4.05M	3.86M	7.01M	6.56M	7.03M	7.70M
Stockholders Equity	5.22M	4.72M	4.74M	8.47M	8.34M	8.27M
Cash Flow
Free Cash Flow	-806.69K	1.20M	-130.67K	1.29M	176.93K	-1.27M
Operating Cash Flow	-718.09K	1.25M	1.03M	2.38M	944.43K	1.51M
Investing Cash Flow	8.70M	9.03M	-446.81K	-973.43K	-582.33K	-1.66M
Financing Cash Flow	-5.58M	-6.42M	-826.18K	-1.19M	-1.10M	-369.51K

Saferoads Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 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:SRH, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.10, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 53.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SRH.

Saferoads Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SSH	57 Neutral	AU$21.80M	3.85	6.19%	―	-6.52%	-20.79%
SRH	52 Neutral	AU$4.20M	2.28	-19.53%	―	-52.73%	89.41%
MSG	45 Neutral	AU$990.50K	-1.84	-61.10%	―	―	51.22%
AEI	41 Neutral	AU$9.62M	-1.32	―	―	-0.52%	-38.84%
SP3	40 Underperform	AU$7.04M	-14.21	-850.83%	―	6.37%	76.58%

Saferoads Holdings Limited Corporate Events

Saferoads Declares Interim Dividend for Half-Year to December 2025

Saferoads Holdings Limited has declared an ordinary dividend of AUD 0.005 per fully paid share for the six-month period ended 31 December 2025. The dividend will trade ex-dividend on 6 March 2026, with a record date of 9 March 2026 and payment scheduled for 27 March 2026, offering a modest cash return to shareholders and signalling ongoing capital returns from the business.

The announcement outlines the standard timetable for the distribution and indicates that no additional regulatory or court approvals are required ahead of payment. This reflects a routine dividend process for Saferoads, reinforcing its status as an income-generating ASX-listed small-cap in the road safety space and providing some visibility on near-term shareholder yield.

The most recent analyst rating on (AU:SRH) stock is a Hold with a A$0.09 price target. To see the full list of analyst forecasts on Saferoads Holdings Limited stock, see the AU:SRH Stock Forecast page.

Saferoads Swings to Profit on Strong Revenue Growth, Declares Interim Dividend

Saferoads Holdings Limited reported a strong turnaround for the half year ended 31 December 2025, with revenue from continuing operations rising 104% to $6.82 million and the group returning to a net profit attributable to members of $503,764, compared with a loss in the prior corresponding period. Overall revenue, after excluding discontinued operations, increased 18%, net tangible asset backing per share edged up to 11.3 cents from 10.8 cents, and the board declared a fully franked interim dividend of 0.5 cents per share payable on 27 March 2026, signalling renewed profitability and confidence in the company’s ongoing operations.

The most recent analyst rating on (AU:SRH) stock is a Hold with a A$0.09 price target. To see the full list of analyst forecasts on Saferoads Holdings Limited stock, see the AU:SRH Stock Forecast page.

Saferoads Lifts Half-Year Profit Amid Strong OSR Sales but Warns on Outlook

Saferoads Holdings Limited reported second-quarter sales of $3.489 million, marginally higher than the first quarter, with operating cash flow improving significantly to $4.828 million and first-half net profit reaching about $511,000, supported by strong sales to key customer On-site Rentals that have now exceeded OSR’s initial purchase commitment. Management cautioned that current profit levels may not be sustainable due to uncertainty around winning additional market share and the future volume of orders from OSR, even as costs remain tightly controlled aside from investment in an expanded senior sales team, and the company advances its growth strategy through successful crash testing of its HV2 barrier in a pinned format and other R&D initiatives aimed at broadening its product range.

The most recent analyst rating on (AU:SRH) stock is a Hold with a A$0.11 price target. To see the full list of analyst forecasts on Saferoads Holdings Limited stock, see the AU:SRH Stock Forecast page.