Tasmea Ltd. (TEA) AI Stock Analysis

• Market Cap: AU$1.04B
• Dividend Yield: 5.44%
• Average Volume (3M): 496.94K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.45
• Revenue Growth: 36.98%
• EPS Growth: 67.41%
• Country: AU
• Employees: 1,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.10
• Shares Outstanding: 260,244,600
• 10 Day Avg. Volume: 558,684
• 30 Day Avg. Volume: 496,939
• PEG Ratio: 0.30
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 27.17
• 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$5.25
• Price Target Upside: 35.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.29
• Revenue Forecast (FY): AU$1.05B

• Rating: 71 Outperform
• Price Target: AU$4.50 ▲(15.98% Upside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Tasmea Ltd. demonstrates strong financial performance with robust revenue growth and profitability, though rising debt levels and cash flow volatility require attention. The technical analysis indicates a potential rebound opportunity, and the valuation is attractive with a solid dividend yield. These factors contribute to a favorable overall stock score.

Positive Factors

Strong Revenue Growth

Exceptional revenue growth over recent periods signals durable demand across infrastructure, resources and utilities. Coupled with a mix of recurring maintenance contracts and project work, this growth reflects expanding market penetration and a diversified, repeatable revenue base driven by contract wins and higher utilization.

Improving Profitability & Margins

Reported improvements in gross, EBIT and net profit margins indicate better cost control and stronger project execution. Sustainable margin expansion points to disciplined labour productivity, procurement and subcontractor management—structural strengths that support long-term cash generation in industrial services.

Enhanced Cash Generation

Notable improvement in free cash flow and efficient conversion of earnings to operating cash flow enhance financial flexibility. Stronger cash generation supports reinvestment, working capital and shareholder returns and reduces dependence on external financing for routine operations and capex.

Negative Factors

Rising Debt Levels

An uptick in total debt raises leverage and interest-cost exposure, which can constrain strategic flexibility and amplify downside risk in weaker demand cycles. Higher leverage reduces buffer for delays in project receipts and can pressure credit metrics and investment capacity over the medium term.

Free Cash Flow Volatility

Volatile free cash flow undermines predictability for capex, dividends and debt servicing. In a project-driven business, timing of receipts and one-off items can swing cash generation, complicating planning and increasing reliance on working capital or external funding during troughs.

Execution & Utilisation Dependence

Revenue and margins materially depend on workforce utilisation and project delivery efficiency. This creates structural sensitivity to cyclical demand, labour supply and execution risk; poor utilisation or overruns can quickly compress margins and cash flow in an otherwise contracted services model.

Tasmea Ltd. Business Overview & Revenue Model

Company Description

E&A Limited provides engineering services primarily to the oil and gas, mining and resources, water, and defense, and power and energy industries in Australia. The company's Investment & Corporate Advisory segment offers corporate advisory services relating to the analyzing, negotiating, financing, and completing of business transactions. Its Water & Fluid Solutions segment provides flexible geomembrane liners and floating covers for dams, reservoirs, tunnels, channels, and landfills; constructs geomembrane lined water storage tanks; and designs and supplies stainless steel drainage and pressure systems. The company's Heavy Mechanical and Electrical Engineering segment engages in turn-key project management, including pipe design, engineering, procurement, manufacture, fabrication, machining, installation, and maintenance. It also offers steel fabrication and structural engineering services, such as project management, procurement, heavy engineering design, structural steel fabrication and erection, pipe welding and pipework installation, pneumatic and hydraulic installations, light machining, and wind tower manufacturing. In addition, this segment provides electrical engineering consultancy and project management services comprising electrical control systems design for heavy industry, manufacturing, and commercial installations, as well as drafting and other maintenance services. Its Maintenance Engineering & Plant Construction segment offers electrical and instrumentation services for iron ore producers, and supplies breakdown and repair services to the heavy industrial, mining, and power generation industries, as well as equipment, spare parts, plant construction and repair, and onsite maintenance to the quarry, recycling, and mining sectors. The company was formerly known as Percheron Capital Pty Ltd and changed its name to E&A Limited in October 2007. The company is based in Keswick, Australia. Tasmea Limited provides essential maintenance, engineering, and specialized project services and solutions. The company offers industrial electrical instrumentation, maintenance, and shutdown services; refurbishment and repairs, shutdown, and mechanical maintenance services; earthworks, waste management, and civil maintenance services; and geomembrane solutions, lubrication solutions and maintenance, and drainage solutions. It serves the mining and resources, oil and gas, waste and water, power and renewable energy, and defense and infrastructure industries. The company was founded in 1997 and is based in Dulwich, Australia.

How the Company Makes Money

Tasmea Ltd. generates revenue through multiple streams. Primarily, the company earns income by selling its software solutions on a subscription basis, providing ongoing updates and support to clients. Additionally, Tasmea capitalizes on consulting services, charging fees for expert guidance on renewable energy strategies and implementation. The company also benefits from strategic partnerships with technology firms and energy providers, which enhance its market reach and allow for bundled offerings. Furthermore, Tasmea may receive incentives or grants from government programs promoting renewable energy initiatives, contributing to its overall revenue.

Tasmea Ltd. Financial Statement Overview

Summary

Tasmea Ltd. exhibits strong financial health with impressive revenue growth and profitability. The balance sheet remains stable, though rising debt levels warrant caution. Cash flow improvements are notable, yet volatility in free cash flow suggests areas for improvement.

Income Statement

Tasmea Ltd. has demonstrated strong revenue growth with a 20.86% increase in the latest year, reflecting robust demand and effective operations. The gross profit margin has improved over the years, indicating efficient cost management. The net profit margin and EBIT margin have also shown positive trends, contributing to overall profitability. However, the company should continue to monitor cost pressures to maintain these margins.

Balance Sheet

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio. The equity ratio indicates a solid capital structure, and the return on equity is strong, reflecting effective use of shareholders' funds. However, the increase in total debt over the years suggests a need for careful debt management to avoid potential leverage risks.

Cash Flow

Tasmea Ltd. has shown significant improvement in free cash flow growth, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio suggests efficient conversion of earnings into cash. However, the free cash flow to net income ratio has been volatile, highlighting potential fluctuations in cash flow management that need attention.

Breakdown	TTM	Jun 2024	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	701.76M	547.91M	400.00M	319.98M	244.81M	170.63M
Gross Profit	173.67M	159.80M	114.01M	82.38M	52.21M	40.28M
EBITDA	86.62M	78.21M	55.46M	39.01M	27.73M	20.33M
Net Income	47.56M	53.07M	30.35M	19.47M	13.63M	9.78M
Balance Sheet
Total Assets	673.70M	493.56M	290.87M	191.77M	175.25M	144.21M
Cash, Cash Equivalents and Short-Term Investments	64.95M	20.31M	25.13M	17.01M	22.67M	11.40M
Total Debt	178.42M	140.32M	65.67M	57.46M	53.80M	46.73M
Total Liabilities	408.10M	308.19M	159.51M	117.91M	116.38M	94.73M
Stockholders Equity	265.60M	185.37M	131.23M	73.71M	58.87M	49.48M
Cash Flow
Free Cash Flow	50.93M	31.53M	20.82M	-11.01M	-3.70M	15.51K
Operating Cash Flow	68.91M	46.49M	43.00M	18.45K	22.10K	16.23K
Investing Cash Flow	-43.88M	-77.16M	-54.83M	-15.63M	-7.40M	-1.34K
Financing Cash Flow	13.51M	25.86M	19.95M	-8.49M	-3.43M	-9.26K

Tasmea Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TEA, the sentiment is Negative. The current price of 3.88 is below the 20-day moving average (MA) of 3.90, below the 50-day MA of 4.11, and below the 200-day MA of 4.08, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 84.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:TEA.

Tasmea Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNP	76 Outperform	AU$1.45B	30.12	25.18%	0.57%	36.30%	82.20%
TEA	71 Outperform	AU$1.04B	19.61	33.52%	5.44%	36.98%	67.41%
GNG	68 Neutral	AU$792.92M	28.69	50.61%	5.24%	12.96%	8.19%
SRG	66 Neutral	AU$1.79B	31.97	13.62%	1.85%	23.76%	21.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tasmea Ltd. Corporate Events

Tasmea Director Stephen Young Increases Indirect Shareholding via On-Market Purchase

Tasmea Limited has reported a change in the shareholdings of director Stephen Elliott Young, who holds interests both directly and through associated entities Port Tack Pty Ltd and Maresa Pty Ltd, acting as trustees for his super fund and family trust. The filing shows that on 26 February 2026, Port Tack Pty Ltd acquired 120,000 ordinary shares in Tasmea through an on-market purchase valued at $421,569, modestly increasing Young’s indirect stake and signalling continued insider confidence without any disposals or related contract changes.

Following this transaction, Young’s direct and indirect holdings now total several million shares across his personal name and the two trustee entities, with no indication of trading during any closed period or need for prior trading clearance. While the notice is primarily a compliance update under ASX rules, the incremental on-market buying by a senior director may be read by shareholders as a supportive signal about Tasmea’s prospects and governance stability, despite the absence of broader strategic or financial commentary in the document.

The most recent analyst rating on (AU:TEA) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Tasmea Ltd. stock, see the AU:TEA Stock Forecast page.

Tasmea Announces Semi‑Annual Dividend of AUD 0.06 Per Share

Tasmea Ltd. has declared a dividend of AUD 0.06 per ordinary fully paid share, relating to the six‑month period ended 31 December 2025, with an ex‑dividend date of 11 March 2026 and a record date of 12 March 2026. The payment is scheduled for 10 April 2026, and the timetable underscores the company’s ongoing commitment to returning cash to shareholders on a structured semi‑annual basis, providing income visibility for investors and reinforcing confidence in its financial position.

The most recent analyst rating on (AU:TEA) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Tasmea Ltd. stock, see the AU:TEA Stock Forecast page.

Tasmea lifts margins, cash flow and reaffirms FY26 guidance on recurring revenue growth

Tasmea Limited reported strong first-half 2026 results, with underlying EBIT rising to $44.3 million and margin expanding to 13.7%, driven by organic growth and contributions from its electrical, civil, and water and fluid businesses. The company highlighted that over 100 master service agreements are now in place, supporting a resilient, maintenance-led recurring revenue base.

Management said underlying organic EBIT grew 12% year-on-year excluding recent acquisitions, while cash generation remained robust with 130% operating cash conversion and a 261% increase in underlying free cash flow to $26.5 million, excluding WorkPac. Tasmea maintained its FY26 guidance, citing record contracted and tendered revenues exceeding $340 million for the second half and ongoing programmatic acquisitions and WorkPac synergies to support growth into FY27.

The most recent analyst rating on (AU:TEA) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Tasmea Ltd. stock, see the AU:TEA Stock Forecast page.

Tasmea lifts revenue and underlying profit amid stronger cash flow

Tasmea Limited reported a strong top-line performance for the half year to 31 December 2025, with revenue rising 62.4% to $400.5 million and gross margin increasing 31.4% to $98.7 million, while EBITDA and underlying EBIT also advanced, reflecting robust operational momentum. Despite higher depreciation, finance costs and a sharp rise in tax expense that reduced statutory net profit after tax by 20%, underlying NPAT climbed 32.2% to $26.6 million and net debt fell to $67.8 million, underscoring improved cash generation and a strengthening balance sheet for stakeholders.

The most recent analyst rating on (AU:TEA) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Tasmea Ltd. stock, see the AU:TEA Stock Forecast page.

Tasmea lifts revenue and underlying profit but statutory earnings decline

Tasmea Limited reported a 62.4% jump in revenue to $400.5 million for the half-year to 31 December 2025, with underlying net profit after tax rising 32.2% to $26.6 million, supported by stronger EBITDA and nearly doubled operating cash flow. Statutory net profit fell about 20% due to specific items such as derivative movements and non-recurring costs, but the board maintained capital returns with a fully franked interim dividend of 6.0 cents per share and continued its dividend reinvestment plan despite negative net tangible assets per share remaining broadly unchanged.

Management highlighted a reconciliation between statutory and underlying earnings, with adjustments for derivative fair value movements, share-based payments, acquisition-related expenses and amortisation of acquired intangibles. These adjustments underpin a materially higher underlying EBIT and NPAT, indicating improved core operating performance even as accounting and one-off factors weighed on the headline statutory result, a nuance likely to be closely watched by shareholders assessing sustainability of growth and dividends.

The most recent analyst rating on (AU:TEA) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Tasmea Ltd. stock, see the AU:TEA Stock Forecast page.

Tasmea Sets Webcast to Present H1 FY26 Results

Tasmea Limited will release its first-half FY26 financial results on 24 February 2026, with Managing Director Stephen Young and Executive Director Mark Vartuli hosting a 45-minute conference call and webcast that morning to discuss the performance. A recording of the webcast will be made available on the company’s website shortly after the event, providing investors and other stakeholders with accessible insight into Tasmea’s operational and financial progress during the period.

The most recent analyst rating on (AU:TEA) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Tasmea Ltd. stock, see the AU:TEA Stock Forecast page.

Tasmea Seeks ASX Quotation for New Shares Issued Under Senior Staff Bonus Plan

Tasmea Limited has applied to the ASX for quotation of 5,006 new fully paid ordinary shares issued on 6 January 2026 under its Bonus Share Plan, a short-term incentive scheme for several senior employees that was approved by shareholders at the company’s 2024 annual general meeting. The modest equity issuance reflects the company’s ongoing use of share-based remuneration to align senior staff incentives with shareholder interests, signalling continued reliance on equity participation as part of its compensation and retention strategy without materially altering its capital structure.

The most recent analyst rating on (AU:TEA) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on Tasmea Ltd. stock, see the AU:TEA Stock Forecast page.