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Saferoads Holdings Limited (AU:SRH)
ASX:SRH
Australian Market

Saferoads Holdings Limited (SRH) AI Stock Analysis

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AU

Saferoads Holdings Limited

(Sydney:SRH)

Rating:58Neutral
Price Target:
Saferoads Holdings Limited's stock evaluation reveals a challenging financial performance with declining revenue and profitability, which significantly impacts its score. Technical analysis shows upward momentum, somewhat offsetting financial weaknesses. Valuation remains a concern due to the negative P/E ratio and lack of dividends. Overall, strategic improvements are essential to enhance financial health and investor appeal.

Saferoads Holdings Limited (SRH) vs. iShares MSCI Australia ETF (EWA)

Saferoads Holdings Limited Business Overview & Revenue Model

Company DescriptionSaferoads Holdings Limited (SRH) is an Australian company specializing in road safety products and solutions. Operating primarily in the infrastructure and traffic management sectors, Saferoads provides a comprehensive range of products designed to enhance road safety and manage traffic flow. These products include traffic calming devices, variable message signs, lighting solutions, and guardrails. The company's focus is on delivering innovative and effective solutions that improve safety on roads and highways.
How the Company Makes MoneySaferoads 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
Saferoads Holdings Limited faces challenges with declining revenue and profitability, coupled with increased leverage and negative free cash flow. While there are concerns about operational efficiency and financial stability, the company maintains positive operating cash flow, offering some liquidity buffer in the short term.
Income Statement
45
Neutral
Saferoads Holdings Limited has experienced declining revenue over the past year, with a significant drop from $14.65M to $12.59M. The company's gross profit margin decreased from 51.34% to 8.69%, indicating potential inefficiencies or increased costs. Net profit margin turned negative, reflecting a net loss situation. The sharp decline in EBIT and EBITDA margins to negative values signals operational challenges.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio has increased, indicating higher leverage, which poses a risk. However, the equity ratio remains reasonable at 40.34%, suggesting a moderate level of financial stability. Return on equity has turned negative due to net losses, highlighting profitability issues.
Cash Flow
60
Neutral
Operating cash flow has decreased significantly, but it remains positive, providing some liquidity assurance. Free cash flow turned negative, suggesting potential cash constraints. The free cash flow to net income ratio is unfavorable due to the net loss.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue11.72M12.59M14.65M12.35M13.25M16.50M
Gross Profit3.79M7.05M7.52M6.88M6.30M6.28M
EBITDA106.99K-542.19K1.61M1.82M2.05M1.92M
Net Income-1.90M-3.82M127.59K64.29K535.17K521.03K
Balance Sheet
Total Assets10.21M11.75M15.02M15.37M15.98M14.74M
Cash, Cash Equivalents and Short-Term Investments0.000.00220.11K4.22K745.79K1.26M
Total Debt1.73M4.47M4.74M5.09M5.34M4.46M
Total Liabilities5.49M7.01M6.56M7.03M7.70M6.87M
Stockholders Equity4.72M4.74M8.47M8.34M8.27M7.86M
Cash Flow
Free Cash Flow790.00K-240.39K1.29M176.93K-1.27M1.44M
Operating Cash Flow1.05M691.16K2.38M944.43K1.51M2.26M
Investing Cash Flow188.13K-446.81K-973.43K-582.33K-1.66M-326.95K
Financing Cash Flow-1.36M-826.18K-1.19M-1.10M-369.51K-1.21M

Saferoads Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.10
Negative
100DMA
0.08
Negative
200DMA
0.05
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
39.60
Neutral
STOCH
-30.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SRH, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.10, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.60 is Neutral, neither overbought nor oversold. The STOCH value of -30.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SRH.

Saferoads Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUJHX
70
Outperform
$18.40B28.6621.09%-0.65%-15.10%
AUTCL
69
Neutral
$42.55B563.370.68%4.82%-6.59%-66.98%
AUDOW
65
Neutral
AU$4.31B59.153.35%3.36%-7.32%
59
Neutral
AU$1.63B9.6011.29%3.70%6.59%5.93%
AUSRH
58
Neutral
AU$3.71M-34.84%-13.84%27.42%
AUBKW
53
Neutral
$5.32B-1.34%2.23%-7.76%-123.85%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SRH
Saferoads Holdings Limited
0.08
0.05
166.67%
AU:TCL
Transurban Group
13.69
1.91
16.20%
AU:DOW
Downer EDI Limited
6.43
1.83
39.84%
AU:BKW
Brickworks Ltd
34.90
8.70
33.21%
AU:JHX
James Hardie
42.81
-4.02
-8.58%

Saferoads Holdings Limited Corporate Events

Saferoads Holdings Announces New Dividend Distribution
May 1, 2025

Saferoads Holdings Limited has announced a new dividend distribution, with a payment of AUD 0.10 per share. The ex-date for this dividend is set for May 9, 2025, with the record date on May 12, 2025, and payment scheduled for May 20, 2025. This announcement reflects the company’s ongoing financial strategies and could influence investor sentiment positively, reinforcing its market position and commitment to shareholder returns.

Saferoads Holdings Limited Reports Profit and Strategic Shift
Apr 30, 2025

Saferoads Holdings Limited reported an unaudited profit of approximately $103k for the quarter ending March 31, 2025, with a year-to-date profit of $84k. The company’s revenue remained stable at $2.84 million, attributed to cost reduction strategies, particularly in staff costs. During the quarter, Saferoads finalized an Asset Sale Agreement and a Product Supply Agreement with Onsite Rentals Group, aiming to focus on expanding its product sales business. The sale will enable the company to repay all bank debts and asset finance contracts, with the settlement expected soon.

Saferoads Holdings Gains Shareholder Approval for Business Sale
Apr 28, 2025

Saferoads Holdings Limited announced the successful shareholder approval for the sale of its Road Safety Rentals business during an Extraordinary General Meeting. This decision, supported by a significant majority of votes, marks a strategic move for the company, potentially impacting its operational focus and market positioning by divesting a part of its business.

Saferoads Holdings to Sell Road Safety Rental Business for $10.8 Million
Mar 24, 2025

Saferoads Holdings Limited has announced the sale of its Road Safety Rental business to Onsite Rentals Group for $10.8 million, pending shareholder approval and other conditions. The transaction, expected to complete on May 1, 2025, will result in a profit of approximately $4.6 million and a significant reduction in overheads, allowing Saferoads to focus on its core product manufacturing and sales business. The company plans to pay a 10-cent per share dividend to shareholders and will use the remaining cash to bolster working capital and fulfill a $3 million product order from Onsite.

Saferoads Holdings Signs $10.8M Asset Sale Agreement with Onsite Rental
Mar 24, 2025

Saferoads Holdings Limited has entered into a conditional agreement to sell its Road Safety Rental business assets for $10.8 million and a $3 million Product Supply Agreement with Onsite Rental Group. The completion of these agreements is contingent upon shareholder approval and the transfer of key personnel and contracts. This strategic move is expected to be finalized by May 1, 2025, and could significantly impact Saferoads’ operational focus and market positioning.

Saferoads Holdings Limited Reports Reduced Losses and Strategic Asset Sale Negotiations
Feb 28, 2025

Saferoads Holdings Limited reported a significant reduction in losses for the half-year ending December 2024, with a loss of $19,434 compared to $533,602 in the previous period. This improvement is attributed to substantial cost reductions amidst a challenging trading environment. The company generated $1,039,064 in cash from operations, aiding in debt reduction. Despite a competitive market impacting sales and rentals, the company successfully finalized a T-lok connection system for permanent barrier applications, approved for use on new highways in Victoria. Strategically, Saferoads is negotiating the sale of its road safety rentals business assets, with extended banking facilities until May 2025 to facilitate this potential transaction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025