WestStar Industrial Ltd. (WSI) AI Stock Analysis

• Market Cap: AU$9.53M
• Dividend Yield: N/A
• Average Volume (3M): 767.17K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.45
• Revenue Growth: -36.40%
• EPS Growth: -192.91%
• Country: AU
• Employees: 650
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 128,765,240
• 10 Day Avg. Volume: 288,855
• 30 Day Avg. Volume: 767,174
• PEG Ratio: 0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.79
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: AU$0.08 ▼(-15.56% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

Overall score is driven primarily by weak financial performance (declining revenue, negative profitability, and negative operating cash flow). Technicals are mixed but lean soft with price below key short-/mid-term moving averages, and valuation is constrained by losses (negative P/E) with no dividend yield data to offset risk.

Positive Factors

Manageable leverage

A moderate debt-to-equity ratio of 0.23 indicates the company carries limited financial leverage, preserving financing flexibility and lowering interest burden. Over the next 2-6 months this reduces refinancing risk and supports the capacity to fund operations or targeted investments without large liquidity strain.

Stable gross margin

A steady gross margin (~14.5%) suggests the core business maintains pricing power or controlled direct costs. That stability provides a structural floor for profit recovery if revenues improve, aiding margin sustainability and helping management focus on operational improvements rather than immediate cost emergency measures.

Positive free cash flow growth

Positive free cash flow growth signals the company can generate increasing cash available for reinvestment, debt reduction or working capital. Even if operating cash flow is currently weak, improving FCF growth points to structural progress in cash conversion or capex discipline that can underpin recovery over months.

Negative Factors

Declining revenue

A steep revenue decline (~-24.4% in 2025) erodes scale economics, weakens bargaining power with suppliers and customers, and reduces fixed-cost absorption. Unless sales stabilize or new contract wins occur, lower top-line sustainably pressures margins, cash generation and long-term competitiveness.

Negative operating cash flow

Negative operating cash flow is a structural red flag: it forces reliance on financing, asset sales or non-operational cash to fund working capital and capex. Persistent OCF deficits impair the firm’s ability to self-fund operations and may constrain strategic options over the medium term.

Negative profitability & returns

Negative EBIT/EBITDA, net margins and a negative ROE indicate the company is not generating returns on shareholder capital. This structural profitability weakness undermines shareholder value creation and limits reinvestment capacity until sustained operational turnaround is achieved.

WestStar Industrial Ltd. Business Overview & Revenue Model

Company Description

WestStar Industrial Limited, an industrial services company, provides engineering, construction, and mining services to resource, energy, and infrastructure sectors in Australia. The company operates through SIMPEC and Alltype segments. Its services include structural mechanical piping, and electrical and instrumentation; precast concrete and structural steel supply and installation; and asset management services. The company also provides construction contracting, fabrication, and mineral exploration services. WestStar Industrial Limited was incorporated in 2006 and is based in Naval Base, Australia.

How the Company Makes Money

WestStar Industrial Ltd. generates revenue through multiple streams including service contracts in project management and engineering, fabrication services for various industrial components, and ongoing maintenance contracts with key clients in the oil and gas, mining, and infrastructure sectors. The company often engages in long-term partnerships with major industry players, which provides a steady flow of income. Additionally, WSI benefits from cost-plus contracts and fixed-price agreements that ensure profitability while managing risks associated with project execution.

WestStar Industrial Ltd. Financial Statement Overview

Summary

Weak fundamentals: revenue declined sharply (-24.4% in 2025) with negative EBIT/EBITDA and net margins. Balance sheet leverage is moderate (debt-to-equity 0.23) but return on equity is negative and equity has decreased. Cash flow is a key risk with negative operating cash flow and reliance on non-operational sources.

Income Statement

WestStar Industrial Ltd. has experienced a significant decline in revenue over the past year, with a revenue growth rate of -24.4% in 2025. The company also reported negative EBIT and EBITDA margins, indicating operational challenges. The gross profit margin remains relatively stable at 14.5%, but the net profit margin is negative, reflecting overall profitability issues.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.23, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is not provided, but the overall balance sheet shows a decrease in stockholders' equity, which could be a concern for financial stability.

Cash Flow

WestStar Industrial Ltd. has a negative operating cash flow, which is concerning for liquidity. The free cash flow growth rate is positive, but the free cash flow to net income ratio is above 1, indicating reliance on non-operational cash flows. The operating cash flow to net income ratio is negative, further highlighting cash flow challenges.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	129.30M	130.76M	205.60M	304.28M	181.80M	71.76M
Gross Profit	15.58M	18.94M	24.63M	16.82M	18.19M	8.84M
EBITDA	-4.15M	-3.14M	7.72M	5.85M	8.58M	2.68M
Net Income	-1.53M	-3.41M	3.29M	1.76M	4.31M	837.48K
Balance Sheet
Total Assets	77.45M	55.15M	73.27M	79.06M	63.06M	46.90M
Cash, Cash Equivalents and Short-Term Investments	10.83M	7.16M	13.68M	16.95M	22.42M	15.35M
Total Debt	11.77M	6.29M	3.65M	1.93M	2.63M	3.86M
Total Liabilities	48.99M	27.33M	43.28M	53.47M	39.41M	32.06M
Stockholders Equity	28.45M	27.83M	29.98M	25.59M	23.65M	14.83M
Cash Flow
Free Cash Flow	-2.20M	-9.53M	-327.96K	-6.26M	5.36M	9.88M
Operating Cash Flow	-1.11M	-8.85M	510.53K	-5.23M	6.99M	10.14M
Investing Cash Flow	-692.86K	1.82M	-2.04M	1.04M	-3.41M	-3.07M
Financing Cash Flow	430.00K	515.00K	-911.90K	0.00	3.58M	-562.66K

WestStar Industrial Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WSI, the sentiment is Negative. The current price of 0.09 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 19.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WSI.

WestStar Industrial Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSA	68 Neutral	AU$29.74M	0.45	87.22%	―	12.34%	-66.13%
EVZ	65 Neutral	AU$34.02M	3.42	3.66%	―	-9.21%	-42.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VBC	63 Neutral	AU$65.82M	7.32	17.38%	0.49%	-8.28%	89.71%
PKD	49 Neutral	AU$4.83M	-1.03	-599.49%	―	254.91%	75.86%
WSI	44 Neutral	AU$9.53M	4.84	-11.81%	―	-36.40%	-192.91%
SOP	44 Neutral	AU$12.98M	-1.03	-90.66%	―	-6.10%	12.50%

WestStar Industrial Ltd. Corporate Events

WestStar Industrial Returns to Profit as Asset Backing Strengthens

WestStar Industrial Limited swung back to profitability in the half-year ended 31 December 2025, posting an after-tax profit of $525,513 compared with a loss of $1.36 million a year earlier. Group revenue edged down 1.9% to $75.9 million over the period, while net tangible assets per share improved to 14.77 cents, indicating a stronger balance sheet despite the modest top-line decline.

The company did not declare a dividend for the current or prior corresponding period, suggesting a continued focus on preserving cash and reinvesting in the business. The return to profit, combined with stable revenues and higher asset backing per share, points to improving operational performance that may reassure shareholders following the previous half-year loss.

The most recent analyst rating on (AU:WSI) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on WestStar Industrial Ltd. stock, see the AU:WSI Stock Forecast page.

WestStar’s SIMPEC Wins $20m McArthur River Mine Filtration Plant Contract

WestStar Industrial’s wholly owned subsidiary SIMPEC has secured a new construction contract worth approximately $20 million to deliver structural, mechanical, piping, electrical and instrumentation works for a new Filtration Plant at Glencore’s McArthur River Mine in the Northern Territory. The project, which starts immediately and is scheduled for completion in the fourth quarter of 2026, includes modifications to existing infrastructure and installation of the new plant and associated services, reinforcing SIMPEC’s capability in executing complex SMPE&I projects and advancing WestStar’s strategy to expand its national footprint and deepen its presence in Australia’s resources sector.

The most recent analyst rating on (AU:WSI) stock is a Hold with a A$0.08 price target. To see the full list of analyst forecasts on WestStar Industrial Ltd. stock, see the AU:WSI Stock Forecast page.

WestStar’s SIMPEC Wins $11m Lithium Plant Contract at Kwinana

WestStar Industrial’s wholly owned subsidiary SIMPEC has secured an approximately $11 million contract to deliver structural, mechanical and piping works for Tianqi Lithium Energy Australia’s lithium hydroxide processing plant at Kwinana, Western Australia. The project, which starts immediately and is due for completion in the second quarter of 2026, involves integrating new mechanical equipment into the existing facility and reinforces SIMPEC’s strategy of supporting Australia’s energy transition while deepening WestStar’s foothold in the rapidly expanding lithium processing and battery materials supply chain.

The most recent analyst rating on (AU:WSI) stock is a Hold with a A$0.08 price target. To see the full list of analyst forecasts on WestStar Industrial Ltd. stock, see the AU:WSI Stock Forecast page.