XRF Scientific Limited (XRF) AI Stock Analysis

• Market Cap: AU$303.16M
• Dividend Yield: 2.14%
• Average Volume (3M): 284.59K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.12
• Revenue Growth: -1.09%
• EPS Growth: 14.88%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.04
• Shares Outstanding: 142,330,960
• 10 Day Avg. Volume: 304,575
• 30 Day Avg. Volume: 284,588
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$2.38
• Price Target Upside: 13.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: AU$2.50 ▲(19.05% Upside)

XRF Scientific Limited scores a 77, driven by strong financial performance and positive technical indicators, though tempered by a high valuation. The company's operational efficiency and market momentum are key strengths, but the high P/E ratio suggests potential overvaluation risks if growth is not sustained.

Positive Factors

Financial Stability

XRF's low debt-to-equity ratio indicates conservative leverage, enhancing financial stability and reducing solvency risk, which supports long-term operational resilience.

Profitability Margins

High profitability margins reflect strong operational efficiency, enabling XRF to maintain competitive pricing and invest in growth opportunities, supporting sustained financial health.

Director Shareholding Increase

Increased shareholding by a director signals confidence in the company's prospects, potentially boosting stakeholder trust and aligning management interests with shareholder value.

Negative Factors

Revenue Growth Decline

Negative revenue growth indicates challenges in expanding market share or product adoption, which could impact future profitability and necessitate strategic adjustments to reignite growth.

Cash Flow Decline

A decline in free cash flow growth can constrain the company's ability to fund operations and investments, potentially affecting liquidity and long-term strategic initiatives.

Revenue Growth Monitoring

The need to closely monitor revenue growth highlights potential vulnerabilities in sustaining current financial performance, necessitating proactive measures to address market challenges.

XRF Scientific Limited Business Overview & Revenue Model

Company Description

XRF Scientific Limited manufactures and markets precious metal products, specialized chemicals, and instruments for the scientific, analytical, construction material, and mining industries in Australia, Canada, and Europe. It operates through Capital Equipment, Precious Metals, and Consumables segments. The Capital Equipment segment designs, manufactures, and services automated fusion equipment, and high temperature test and production furnaces, as well as general laboratory equipment. The Precious Metals segment manufactures products for the laboratory and platinum alloy markets. The Consumables segment manufactures chemicals and other supplies for analytical laboratories. The company was founded in 1972 and is based in Osborne Park, Australia.

How the Company Makes Money

XRF Scientific Limited generates revenue primarily through the sale of its proprietary equipment and consumables, which are used extensively in laboratory environments for sample preparation and analysis. The company offers a range of products including fusion machines, which are essential in preparing samples for X-ray fluorescence (XRF) analysis, a method widely used in the mining industry for determining the composition of materials. Additionally, XRF manufactures and sells platinum labware and certified reference materials that are critical for maintaining precision and standardization in analytical processes. The company's revenue streams are supported by its strong customer base in industries such as mining, construction materials, and research institutions. XRF also engages in partnerships and collaborations to enhance its market reach and technological capabilities, which further contribute to its financial performance.

XRF Scientific Limited Financial Statement Overview

Summary

XRF Scientific Limited demonstrates strong financial performance with robust profitability margins and low leverage, indicative of operational efficiency and financial stability. However, the company needs to focus on sustaining revenue growth and improving cash flow dynamics to ensure long-term financial health.

Income Statement

XRF Scientific Limited has shown a strong revenue growth rate of 8.45% from 2023 to 2024, with significant gross profit and net profit margins at 43.88% and 14.85% respectively for 2024. The company also maintains a robust EBIT margin of 24.15% and an EBITDA margin of 25.61%, indicating solid operational efficiency. However, monitoring future revenue growth is crucial to maintain this trajectory.

Balance Sheet

The company exhibits financial stability with a low debt-to-equity ratio of 0.06, reflecting conservative leverage. A healthy return on equity (ROE) of 16.19% suggests effective use of shareholders' funds. An equity ratio of 80.43% underscores strong financial independence, minimizing risk of solvency issues. Nonetheless, maintaining such low leverage might limit growth potential.

Cash Flow

XRF Scientific Limited experienced a decrease in operating cash flow to net income ratio from 2023 to 2024, but maintains a positive free cash flow to net income ratio of 0.73, indicating sufficient cash generation. However, the free cash flow growth rate declined by 15.56%, warranting attention to reverse this trend for sustained liquidity and investment capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.84M	55.17M	40.01M	31.29M	29.08M
Gross Profit	26.27M	22.00M	16.46M	12.89M	11.34M
EBITDA	15.32M	13.22M	9.44M	8.05M	5.86M
Net Income	8.89M	7.69M	6.08M	5.13M	3.12M
Balance Sheet
Total Assets	68.23M	65.55M	55.56M	48.37M	45.17M
Cash, Cash Equivalents and Short-Term Investments	12.05M	10.40M	6.65M	5.26M	3.63M
Total Debt	3.38M	4.31M	3.51M	1.44M	1.94M
Total Liabilities	12.69M	15.97M	12.21M	9.27M	9.53M
Stockholders Equity	54.89M	49.25M	43.48M	39.10M	35.64M
Cash Flow
Free Cash Flow	6.45M	7.63M	2.63M	3.86M	3.45M
Operating Cash Flow	8.09M	8.42M	3.15M	4.51M	4.20M
Investing Cash Flow	-1.64M	-782.43K	-1.11M	-652.62K	-753.41K
Financing Cash Flow	-4.80M	-3.88M	-648.95K	-2.24M	-3.05M

XRF Scientific Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:XRF, the sentiment is Neutral. The current price of 2.1 is below the 20-day moving average (MA) of 2.18, above the 50-day MA of 2.07, and above the 200-day MA of 1.84, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:XRF.

XRF Scientific Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XRF	77 Outperform	AU$303.16M	28.74	18.05%	2.14%	-1.09%	14.88%
Sector *	61 Neutral	$10.48B	7.30	-0.05%	2.85%	2.87%	-36.73%
KAU	46 Neutral	AU$142.45M	―	-30.39%	―	-41.05%	-122.11%
DTR	36 Underperform	AU$856.14M	―	-92.30%	―	-100.00%	65.31%
GG8	36 Underperform	AU$261.72M	―	-12.08%	―	―	46.56%
MTM	32 Underperform	AU$505.49M	―	-38.25%	―	―	20.80%
PTN	―	AU$99.11M	2.95	33.05%	―	―	―

XRF Scientific Limited Corporate Events

XRF Scientific Director Increases Shareholding

XRF Scientific Limited announced a change in the director’s interest, with Vance Stazzonelli acquiring 10,000 ordinary shares, increasing his total to 850,000 shares. This change, executed through a combination of off-market and on-market trades, reflects ongoing adjustments in the company’s leadership investments, potentially impacting stakeholder perceptions and the company’s market dynamics.

The most recent analyst rating on (AU:XRF) stock is a Buy with a A$2.22 price target. To see the full list of analyst forecasts on XRF Scientific Limited stock, see the AU:XRF Stock Forecast page.