Verbrec Ltd (VBC) AI Stock Analysis

• Market Cap: €18.70M
• Dividend Yield: N/A
• Average Volume (3M): 431.30K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.05
• Revenue Growth: -17.71%
• EPS Growth: N/A
• Country: AU
• Employees: 400
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 292,170,070
• 10 Day Avg. Volume: 359,713
• 30 Day Avg. Volume: 431,302
• PEG Ratio: -0.01
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.16
• 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

• Rating: 65 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Verbrec Ltd is showing signs of recovery with strong financial performance improvements, particularly in profitability and cash flow. However, technical indicators suggest bearish sentiment, and the company faces growth challenges with declining revenue and asset levels. The stock's undervaluation offers potential upside, but the absence of dividend yield could be a drawback for some investors.

Verbrec Ltd Business Overview & Revenue Model

Company Description

Verbrec Ltd (VBC) is an engineering, asset management, and infrastructure solutions company operating primarily in Australia and New Zealand. The company provides a wide range of services across various sectors including energy, resources, and infrastructure. Verbrec's core offerings include engineering, project management, operations, and maintenance services designed to enhance the performance and reliability of its clients' assets.

How the Company Makes Money

Verbrec Ltd generates revenue through its comprehensive suite of engineering and infrastructure services. The company earns money by providing specialized consulting and project management services to clients in the energy, mining, and infrastructure sectors. Key revenue streams include fees for engineering design, asset management, maintenance, and operational support services. Verbrec also capitalizes on long-term contracts and partnerships with major industry players, which provide a steady flow of income and opportunities for growth. The company's focus on delivering cost-effective and innovative solutions helps it maintain competitive advantage and client satisfaction, contributing to its financial performance.

Verbrec Ltd Financial Statement Overview

Summary

Overall, Verbrec Ltd is on a path of recovery, with significant improvements in profitability and cash flows. The company has effectively managed its cost structure, resulting in better margins and positive free cash flow. However, the decline in revenue and total assets over the past year suggests that growth remains a challenge. The balance sheet demonstrates stability with moderate leverage, but the focus should remain on revenue generation and sustaining asset levels to ensure long-term growth.

Income Statement

Verbrec Ltd has demonstrated a recovery in profitability with a positive net income of AUD 1.95 million in the latest year, following substantial losses in the previous two years. The gross profit margin improved significantly to 35.78% from 5.43% a year ago, indicating better cost management and pricing strategies. However, revenue decreased by 21.06%, which raises concerns about growth prospects. The positive EBIT margin of 5.78% represents a turnaround from negative EBIT in prior periods, showcasing operational improvements.

Balance Sheet

The company's debt-to-equity ratio of 0.66 indicates moderate leverage, which is reasonable for the construction industry. There has been a marked improvement in stockholders' equity, growing to AUD 19.17 million. However, the equity ratio of 40.17% suggests a moderate reliance on liabilities. The balance sheet shows adequate liquidity with cash reserves, but the decrease in total assets over time needs to be monitored closely.

Cash Flow

Verbrec Ltd's cash flow position has strengthened significantly, with a positive free cash flow of AUD 1.76 million compared to negative figures in previous years. The operating cash flow to net income ratio is 1.03, indicating strong cash generation relative to reported profits. The positive trajectory in operating cash flow highlights improved operational efficiency and cash management.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	86.17M	93.35M	118.19M	121.39M	98.31M	117.00M
Gross Profit	31.80M	33.41M	6.42M	35.39M	27.74M	36.32M
EBITDA	5.49M	8.56M	-3.71M	2.63M	357.00K	7.56M
Net Income	2.72M	1.95M	-9.52M	-3.14M	-3.86M	2.80M
Balance Sheet
Total Assets	45.91M	47.69M	58.86M	62.07M	60.17M	58.69M
Cash, Cash Equivalents and Short-Term Investments	4.55M	4.62M	4.46M	6.42M	8.34M	15.93M
Total Debt	11.22M	12.64M	12.87M	10.25M	7.74M	8.70M
Total Liabilities	25.28M	28.53M	45.82M	39.54M	34.04M	31.01M
Stockholders Equity	20.63M	19.16M	13.04M	22.52M	26.14M	27.68M
Cash Flow
Free Cash Flow	3.35M	1.76M	-4.72M	2.10M	-1.88M	9.18M
Operating Cash Flow	3.69M	2.01M	-3.91M	3.06M	-1.63M	10.64M
Investing Cash Flow	-654.00K	-1.47M	-1.27M	-886.00K	-5.04M	-1.35M
Financing Cash Flow	-7.84M	-400.00K	3.20M	-4.01M	-901.00K	-2.34M

Verbrec Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 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:VBC, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:VBC.

Verbrec Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVZ	72 Outperform	AU$18.81M	12.92	4.42%	―	-6.63%	-26.38%
VBC	65 Neutral	€18.70M	6.81	14.71%	―	-17.71%	―
RDG	65 Neutral	AU$20.66M	1.72	13.01%	―	66.22%	20.83%
Sector *	59 Neutral	AU$1.63B	9.47	11.29%	3.71%	6.59%	5.93%
VRS	53 Neutral	AU$29.51M	―		―	-5.87%	-750.00%
SOP	52 Neutral	AU$14.54M	―	-100.21%	―	9.01%	-4.27%
WSI	50 Neutral	AU$7.98M	3.21	-3.31%	―	-30.52%	-192.05%

Verbrec Ltd Corporate Events

Verbrec Ltd Announces Director’s Change in Securities Interest

Verbrec Ltd has announced a change in the interests of its director, Brian O’Sullivan, in the company’s securities. The change involves the acquisition and disposal of 6,000,000 ordinary shares, with a transaction value of $0.073 per share. This adjustment in shareholding reflects internal financial movements and may influence the company’s governance and stakeholder dynamics.

Verbrec Ltd Sees Increase in Substantial Shareholder Interest

Verbrec Ltd has experienced a change in the interests of one of its substantial shareholders, Bloemhof Pty Ltd. The company, which operates in the engineering and infrastructure sector, has seen Bloemhof increase its voting power from 12.50% to 13.85% through an on-market acquisition of shares. This change signifies a growing confidence in Verbrec’s market position and may influence future strategic decisions, impacting stakeholders and potentially altering the company’s influence within its industry.

Verbrec Ltd Issues New Securities Under Employee Incentive Scheme

Verbrec Ltd has announced the issuance of 437,500 fully paid ordinary securities under an employee incentive scheme, which will be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to motivate and retain its workforce, potentially impacting its operational dynamics positively by aligning employee interests with company growth, thereby strengthening its position in the competitive engineering and infrastructure market.

TIGA Trading Increases Stake in Verbrec Limited

Verbrec Limited, a company listed on the ASX, has experienced a change in the interests of its substantial holder, TIGA Trading Pty Ltd. The change, effective from May 30, 2025, reflects an increase in TIGA Trading’s voting power from 14.40% to 17.58%, as a result of several market purchases of ordinary shares over the past year. This development indicates a strengthening of TIGA Trading’s influence within Verbrec, potentially impacting the company’s strategic decisions and stakeholder dynamics.

DMX Asset Management Becomes Substantial Shareholder in Verbrec Ltd

Verbrec Ltd has announced that DMX Asset Management Limited has become a substantial shareholder in the company. DMX Asset Management now holds a 6.45% voting power with 18,818,633 ordinary shares. This development signifies a significant investment from DMX Asset Management, potentially impacting Verbrec’s market positioning and shareholder dynamics.

Forager Funds Management Divests Stake in Verbrec Limited

Forager Funds Management has announced that it has ceased to be a substantial holder in Verbrec Limited, a company listed on the Australian Stock Exchange. This change in holding was due to a series of on-market sales conducted by Forager Funds Management between May 16 and May 22, 2025, resulting in the sale of a total of 1,810,726 shares. The divestment marks a shift in Forager’s investment strategy concerning Verbrec Limited, potentially impacting the company’s shareholder structure and market perception.

Verbrec Secures $11 Million in New Contracts Amid Positive Market Outlook

Verbrec Limited has announced securing over $11 million in engineering and construction contracts, which is considered a significant development in light of the company’s expected financial performance improvements and easing macroeconomic challenges. Although the individual contracts are not deemed market sensitive, the overall announcement reflects positively on Verbrec’s operations and industry positioning, potentially benefiting stakeholders.

Verbrec Secures $11 Million in New Contracts, Strengthening Market Position

Verbrec Limited has secured over $11 million in new engineering and construction contracts, including significant projects with the Commonwealth Defence and water treatment facilities in South Australia. The company expects to report strong profit performance, driven by prudent cost management and improved client relationships, despite a challenging macroeconomic environment. These new contracts, along with multi-year agreements and stable revenue from Competency Training, position Verbrec for continued growth and strengthen its market presence.