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Verbrec Ltd (AU:VBC)
ASX:VBC

Verbrec Ltd (VBC) AI Stock Analysis

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AU:VBC

Verbrec Ltd

(Sydney:VBC)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
AU$0.16
▲(1.25% Upside)
The overall stock score of 66 reflects strong technical indicators and reasonable valuation, offset by challenges in financial performance. The bullish momentum and positive cash flow improvements are significant strengths, while revenue growth and profitability remain areas for improvement.
Positive Factors
Cash Flow Improvement
Improved cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, supporting long-term stability.
Leverage Management
Better leverage management reduces financial risk, providing a stronger foundation for sustainable growth and resilience against economic fluctuations.
Sustainability Focus
A commitment to sustainability aligns with industry trends, enhancing competitive positioning and attracting clients prioritizing environmental responsibility.
Negative Factors
Revenue Decline
A consistent decline in revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.
Low Profitability
Low profitability limits the ability to reinvest in business operations and may hinder competitive advantage, affecting long-term financial health.
Revenue Growth Challenges
Ongoing revenue growth challenges suggest difficulty in expanding market share or product offerings, which could constrain future earnings potential.

Verbrec Ltd (VBC) vs. iShares MSCI Australia ETF (EWA)

Verbrec Ltd Business Overview & Revenue Model

Company DescriptionVerbrec Ltd (VBC) is a leading provider of engineering, project management, and consulting services, primarily operating in the infrastructure, energy, and resources sectors. The company specializes in delivering innovative solutions across a range of disciplines, including civil engineering, environmental services, and asset management. With a commitment to sustainability and efficiency, Verbrec offers a suite of core services that help clients navigate complex projects while optimizing operational performance.
How the Company Makes MoneyVerbrec Ltd generates revenue through a diversified model that includes project-based contracts, consulting fees, and long-term service agreements. The company’s key revenue streams come from engineering and design services, project management, and environmental consulting, often working on large-scale infrastructure projects. Significant partnerships with government entities, private sector clients, and industry stakeholders enhance its earnings potential. Additionally, Verbrec's focus on sustainability initiatives and innovative solutions attracts clients looking to improve operational efficiency and reduce environmental impact, contributing to its overall profitability.

Verbrec Ltd Financial Statement Overview

Summary
Verbrec Ltd faces challenges in revenue growth and profitability, but improvements in cash flow and leverage management provide a positive outlook. Continued focus on enhancing profitability and cash flow efficiency will be crucial for future stability and growth.
Income Statement
45
Neutral
Verbrec Ltd has shown a declining revenue trend over the past few years, with a significant drop in revenue growth rate in the latest year. The gross profit margin has been relatively stable, but the net profit margin remains low, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins have improved slightly, but overall profitability remains a concern.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has improved, indicating better leverage management. Return on equity has improved, reflecting better profitability relative to equity. However, the equity ratio suggests moderate reliance on debt financing, which could pose risks if not managed carefully.
Cash Flow
70
Positive
Verbrec Ltd has shown a strong improvement in free cash flow growth, indicating better cash generation capabilities. The operating cash flow to net income ratio has improved, suggesting better cash conversion efficiency. However, the free cash flow to net income ratio indicates that cash flow generation relative to net income could be further optimized.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue85.62M85.62M93.35M109.92M121.39M97.41M
Gross Profit31.96M31.96M33.41M6.42M35.39M26.84M
EBITDA5.21M5.21M8.56M-2.65M2.28M357.00K
Net Income3.73M3.73M1.95M-9.52M-3.14M-3.86M
Balance Sheet
Total Assets49.41M49.41M47.69M58.86M62.07M60.17M
Cash, Cash Equivalents and Short-Term Investments7.14M7.14M4.62M4.46M6.42M8.34M
Total Debt9.57M9.57M12.64M12.87M8.49M7.74M
Total Liabilities25.57M25.57M28.53M45.82M39.54M34.04M
Stockholders Equity23.84M23.84M19.16M13.04M22.52M26.14M
Cash Flow
Free Cash Flow5.74M5.74M1.76M-4.72M2.10M-1.88M
Operating Cash Flow6.50M6.50M2.01M-3.91M3.06M-1.63M
Investing Cash Flow-762.00K-762.00K-1.47M-1.27M-886.00K-5.04M
Financing Cash Flow-3.23M-3.23M-400.00K3.20M-4.01M-901.00K

Verbrec Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.16
Price Trends
50DMA
0.14
Positive
100DMA
0.12
Positive
200DMA
0.10
Positive
Market Momentum
MACD
<0.01
Positive
RSI
55.21
Neutral
STOCH
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VBC, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.14, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VBC.

Verbrec Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
66.22%20.83%
69
Neutral
AU$27.95M22.553.66%-9.21%-42.37%
67
Neutral
AU$40.53M19.742.67%5.02%
66
Neutral
AU$46.90M12.4017.38%0.62%-8.28%89.71%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
48
Neutral
AU$9.79M-2.76-11.81%-36.40%-192.91%
44
Neutral
AU$9.87M-1.29-90.66%-6.10%12.50%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VBC
Verbrec Ltd
0.16
0.02
15.94%
AU:VRS
Veris Limited
0.08
0.04
92.31%
AU:EVZ
EVZ Limited
0.23
0.08
53.33%
AU:RDG
Resource Development Group Limited
0.01
-0.01
-50.00%
AU:SOP
Synertec Corporation Limited
0.02
-0.04
-66.67%
AU:WSI
WestStar Industrial Ltd.
0.08
-0.03
-27.27%

Verbrec Ltd Corporate Events

Verbrec to Present Strategic Initiatives at Coffee Microcaps Webinar
Dec 3, 2025

Verbrec Limited announced its participation in the Coffee Microcaps Webinar Event on December 5, 2025, where CEO Mark Read will discuss the company’s background, financial results, and strategic moves such as the divestment of Competency Training and the acquisition of Alliance Automation. These initiatives aim to strengthen Verbrec’s balance sheet and enhance its capabilities in digital transformation, industrial automation, and emerging technologies like machine learning and artificial intelligence, positioning the company for growth in the energy transition and automation sectors.

Verbrec Announces Minimum Holding Buy Back to Streamline Operations
Dec 2, 2025

Verbrec Limited has announced a minimum holding buy back of fully paid ordinary shares for shareholders with less than a marketable parcel of shares, valued at under $500. This initiative aims to help eligible shareholders sell their shares without incurring brokerage or handling costs, while also reducing administrative and share registry fees for the company. The buy back does not require shareholder approval, but eligible shareholders can opt out by submitting a Share Retention Form by January 22, 2026. The buy back is expected to streamline Verbrec’s operations and improve cost efficiency.

Verbrec Expands Digital Capabilities with Alliance Automation Acquisition
Dec 2, 2025

Verbrec Limited has successfully completed the acquisition of Alliance Automation Pty Ltd, marking a significant enhancement in its digital capabilities and service offerings. This acquisition is expected to add $60 million in annual revenue and expand Verbrec’s team to approximately 700 members across 18 locations in Australia and New Zealand, thereby strengthening its market position and providing growth opportunities through an expanded service offering to a common client base.

Verbrec Strengthens Position with Strategic Divestment
Dec 1, 2025

Verbrec Limited has completed the divestment of its subsidiary, Competency Training Pty Ltd, for $11.2 million. This strategic move is aimed at strengthening Verbrec’s balance sheet, enabling further investments in organic growth and acquisitions that align with its strategy in the energy transition and automation sectors. The divestment is expected to enhance shareholder value by improving geographic expansion and reducing ongoing costs, while also increasing revenues through better client access to in-demand capabilities.

Verbrec Ltd Announces 2025 AGM Results with Strong Shareholder Support
Nov 21, 2025

Verbrec Ltd announced the results of its 2025 Annual General Meeting, highlighting the approval of key resolutions including the re-election of Mr. Brian O’Sullivan AM as a director and the approval of a 10% additional placement capacity. These outcomes reflect strong shareholder support and are expected to bolster Verbrec’s strategic initiatives and operational capabilities, reinforcing its position in the engineering and asset management sectors.

Verbrec Ltd Issues Disclaimer on Forward-Looking Statements
Nov 21, 2025

Verbrec Ltd has issued a disclaimer regarding the forward-looking statements in its presentation, highlighting the uncertainties and risks associated with its business operations. The company emphasizes that these statements are based on assumptions and are subject to significant business, economic, and competitive uncertainties, which could lead to actual results differing materially from those forecasted.

Verbrec Ltd Expands with Alliance Automation Acquisition
Nov 21, 2025

Verbrec Ltd announced a successful 2025 financial year with record profit margins and a strong cash position. The company is set to acquire Alliance Automation, enhancing its capabilities in Industry 4.0, machine learning, and artificial intelligence. This acquisition is expected to add over $60 million in annualized revenue and increase its workforce to 700 across 18 locations in Australia and New Zealand, strengthening its market position and ability to meet client needs across the asset lifecycle.

Verbrec Limited Reports Strong Financial Performance and Safety Milestones at 2025 AGM
Nov 21, 2025

At its 2025 Annual General Meeting, Verbrec Limited reported a strong financial performance, resuming dividend payments for the first time since 2013, and achieving its highest gross and EBITDA margins in years. The company highlighted its commitment to safety, maintaining a record of zero lost time injuries for nine consecutive years, and introduced new safety indicators. Verbrec’s improved cash position and increased work in hand reflect successful operational execution and strategic positioning as a leading professional services provider in the region.

Verbrec Launches Investor Hub Amidst Strategic Growth Phase
Nov 10, 2025

Verbrec Limited has announced the launch of its new Investor Hub, a platform designed to provide shareholders and investors with the latest company news, ASX announcements, reports, and presentations. This initiative comes as Verbrec embarks on a new growth phase, with the Investor Hub serving as a key resource for engagement with the management team. The platform also features a video from the CEO discussing the recent acquisition of Alliance Automation and the divestment of Competency Training, highlighting the company’s strategic moves to enhance its market position and operational capabilities.

Verbrec Director Increases Shareholding, Signaling Confidence
Nov 10, 2025

Verbrec Ltd announced a change in the director’s interest, with Phillip Campbell acquiring an additional 206,250 ordinary shares through an on-market purchase, raising his total holdings to 1,709,559 shares. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future prospects and stability, which could positively influence stakeholder perception and market positioning.

Verbrec Ltd Restructures with Strategic Divestment and Acquisition
Nov 5, 2025

Verbrec Ltd has announced the divestment of its Competency Training division and the acquisition of Alliance Automation. This strategic move is expected to reshape Verbrec’s operational focus and strengthen its position in the industry, potentially impacting stakeholders by enhancing the company’s capabilities and market reach.

Verbrec Ltd Acquires Alliance Automation to Boost Digital and Automation Capabilities
Nov 5, 2025

Verbrec Ltd has announced the acquisition of Alliance Automation, a leading provider of digital transformation and industrial automation services, for $5.5 million. This strategic move is expected to significantly enhance Verbrec’s service offerings and increase its annual revenue by over $60 million, positioning the company for stronger market presence and operational efficiency. The acquisition aligns with Verbrec’s strategic direction and is anticipated to improve EBITDA margins, leveraging shared client relationships and expanding the company’s workforce to approximately 700 employees across 18 locations in Australia and New Zealand.

Verbrec Limited Initiates Trading Halt Ahead of Major Acquisition Announcement
Nov 4, 2025

Verbrec Limited has requested a trading halt on its securities pending the announcement of a significant commercial agreement to acquire another company. This move could potentially impact Verbrec’s market position and operations, signaling a strategic expansion that may influence its stakeholders and industry standing.

Verbrec Ltd Schedules 2025 Annual General Meeting
Oct 20, 2025

Verbrec Ltd has announced the details for its upcoming Annual General Meeting (AGM), scheduled to take place on November 21, 2025, in Brisbane, with an option for virtual attendance. This meeting is a significant event for stakeholders as it provides an opportunity for shareholders to engage with the company’s management and discuss future strategies, reflecting on the company’s current market position and operational plans.

Verbrec Sells Competency Training for $11.5 Million to Focus on Core Services
Sep 10, 2025

Verbrec Limited has announced the sale of its subsidiary, Competency Training Pty Ltd, to RelyOn Australia Pty Ltd for $11.5 million. This transaction is expected to enhance Verbrec’s financial position, allowing it to pursue growth opportunities and acquisitions that align with its strategic focus on energy transition and automation. The sale will enable Verbrec to concentrate on its core engineering and asset management services, while Competency Training will benefit from becoming part of a global training enterprise.

Verbrec Ltd Initiates Trading Halt Ahead of Major Agreement Announcement
Sep 9, 2025

Verbrec Ltd has requested a trading halt on its securities pending the announcement of a significant commercial agreement. This move is intended to ensure fair trading conditions and transparency, with the halt expected to last until the announcement is made or normal trading resumes on September 11, 2025. The trading halt highlights Verbrec’s strategic maneuvers in securing important agreements that could impact its market positioning and stakeholder interests.

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: Nov 12, 2025