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Verbrec Ltd (AU:VBC)
ASX:VBC
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Verbrec Ltd (VBC) AI Stock Analysis

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AU:VBC

Verbrec Ltd

(Sydney:VBC)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
AU$0.20
â–²(11.11% Upside)
Action:Reiterated
Date:06/30/26
The score is driven primarily by mixed financial performance: declining revenue and low profitability temper the outlook, while stronger cash flow improvements and better leverage management provide support. Valuation is reasonably attractive on P/E with a modest dividend yield. Technical conviction is limited due to missing trend/momentum indicators, with above-market volatility (beta 1.31) adding caution.
Positive Factors
Improved free cash flow generation
Material improvement in free cash flow and operating cash conversion increases financial flexibility. Durable cash generation supports funding for working capital and capex, lowers refinancing needs, and provides a buffer during project timing swings common in engineering services.
Negative Factors
Declining revenue trend
Sustained revenue decline weakens scale economics and constrains reinvestment. Lower top-line reduces ability to absorb fixed costs, pressures utilization of engineering resources, and limits bargaining power with clients and suppliers, hindering durable margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow generation
Material improvement in free cash flow and operating cash conversion increases financial flexibility. Durable cash generation supports funding for working capital and capex, lowers refinancing needs, and provides a buffer during project timing swings common in engineering services.
Read all positive factors

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

Verbrec Ltd Business Overview & Revenue Model

Company Description
Verbrec Limited primarily provides engineering, asset management, training, mining technology software, and operations and maintenance services to mining, energy, defense, and infrastructure industries in Australia, New Zealand, Papua New Guinea, ...
How the Company Makes Money
Verbrec makes money primarily by delivering engineering and project services to industrial clients under contracted engagements. Its revenue is largely service-based (rather than product-based) and is typically earned through a mix of time-and-mat...

Verbrec Ltd Financial Statement Overview

Summary
Income statement weakness (score 45) reflects declining revenue and low net profitability, partially offset by modest EBIT/EBITDA margin improvement. Balance sheet is moderate (score 60) with improved debt-to-equity and ROE but continued moderate reliance on debt. Cash flow is a relative strength (score 70) with improved free cash flow growth and better cash conversion, though efficiency vs. net income still has room to improve.
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
70
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue88.94M85.62M93.35M109.92M121.39M97.41M
Gross Profit21.43M31.96M33.41M6.42M35.39M26.84M
EBITDA6.87M5.21M8.56M-2.65M2.28M357.00K
Net Income5.07M3.73M1.95M-9.52M-3.14M-3.86M
Balance Sheet
Total Assets74.84M49.41M47.69M58.86M62.07M60.17M
Cash, Cash Equivalents and Short-Term Investments21.07M7.14M4.62M4.46M6.42M8.34M
Total Debt17.11M9.57M12.64M12.87M8.49M7.74M
Total Liabilities41.99M25.57M28.53M45.82M39.54M34.04M
Stockholders Equity32.85M23.84M19.16M13.04M22.52M26.14M
Cash Flow
Free Cash Flow8.24M5.74M1.76M-4.72M2.10M-1.88M
Operating Cash Flow9.21M6.50M2.01M-3.91M3.06M-1.63M
Investing Cash Flow6.62M-762.00K-1.47M-1.27M-886.00K-5.04M
Financing Cash Flow770.00K-3.23M-400.00K3.20M-4.01M-901.00K

Verbrec Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.18
Price Trends
50DMA
0.18
Positive
100DMA
0.19
Negative
200DMA
0.18
Positive
Market Momentum
MACD
<0.01
Negative
RSI
58.91
Neutral
STOCH
25.00
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 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.18, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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
75
Outperform
AU$819.09M27.8242.55%5.24%-16.50%-24.00%
72
Outperform
AU$733.81M20.7522.89%2.51%1.87%-23.48%
64
Neutral
AU$3.20B66.237.79%3.20%14.40%-57.82%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
AU$2.81B26.4620.27%2.65%26.80%40.18%
60
Neutral
AU$58.17M11.1117.89%0.49%3.21%82.98%
60
Neutral
AU$138.30M-18.23-12.62%2.78%-2.60%-168.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VBC
Verbrec Ltd
0.19
0.12
183.58%
AU:LYL
Lycopodium Limited
18.88
7.61
67.60%
AU:MND
Monadelphous Group Limited
28.31
11.12
64.69%
AU:NWH
NRW Holdings Limited
7.12
4.14
139.09%
AU:SND
Saunders International Limited
1.01
0.26
34.67%
AU:GNG
GR Engineering Services Ltd
4.84
1.76
57.35%
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: Jun 30, 2026