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Alfabs Australia Ltd. (AU:AAL)
ASX:AAL
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Alfabs Australia Ltd. (AAL) AI Stock Analysis

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AU:AAL

Alfabs Australia Ltd.

(Sydney:AAL)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
AU$0.50
â–²(4.17% Upside)
Alfabs Australia Ltd. has a strong valuation with a low P/E ratio and high dividend yield, making it attractive for value and income investors. However, technical indicators suggest short-term bearish momentum, and negative free cash flow raises concerns about liquidity and future investments. The company's financial performance is solid, but monitoring debt levels and improving cash flow generation are crucial for sustained growth.

Alfabs Australia Ltd. (AAL) vs. iShares MSCI Australia ETF (EWA)

Alfabs Australia Ltd. Business Overview & Revenue Model

Company DescriptionAlfabs Australia Limited engages in the mining equipment and engineering business in Australia. It operates through Mining, Engineering, and Other segments. The company offers equipment hire services to operators in the underground black coal mining industry; and supplies mining consumables and spare parts to mining operators, as well as offers repair, maintenance, overhaul, and construction of underground mining equipment. It also provides engineering fabrication, engineering services, protective coatings, forklift, access, logistic, and labor hire services for engineering and site-based maintenance and upgrade projects. In addition, the company offers consumables products, such as construction and drilling consumables, ground-engaging tools, industrial hoses and fittings, lubricants and oils, custom engraved decals, PPE and safety supplies, office stationery and supplies, and commercial and industrial cleaning supplies through retail stores. The company was incorporated in 2024 and is headquartered in Kurri Kurri, Australia.
How the Company Makes MoneyAlfabs Australia Ltd. generates revenue through multiple streams, primarily by offering manufacturing and engineering services that cater to the needs of the mining and construction industries. Key revenue streams include the fabrication of custom steel products, sales of mining and construction equipment, and ongoing maintenance and repair services for heavy machinery. The company also benefits from long-term contracts and partnerships with major industry players, which provide a steady flow of projects and revenue. Additionally, Alfabs engages in project management services, which contributes to its earnings by providing comprehensive solutions from planning to execution, ensuring that clients receive end-to-end support.

Alfabs Australia Ltd. Financial Statement Overview

Summary
Alfabs Australia Ltd. shows strong revenue growth and profitability with efficient operational management. However, the significant decrease in gross profit margin and negative free cash flow are concerns. The balance sheet is solid, but rising debt levels need monitoring.
Income Statement
75
Positive
Alfabs Australia Ltd. has shown consistent revenue growth over the years, with a notable increase of 4.52% in the latest year. The company maintains a strong EBIT margin of 19.59% and an impressive EBITDA margin of 29.22%, indicating efficient operational management. However, the gross profit margin has decreased significantly from 63.17% to 31.74%, which could be a concern for future profitability. The net profit margin improved to 12.82%, reflecting better cost control and profitability.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved to 0.53, indicating a balanced approach to leveraging. Return on equity is strong at 18.76%, showcasing effective use of shareholder funds. The equity ratio stands at 49.21%, suggesting a solid capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.
Cash Flow
60
Neutral
Operating cash flow remains positive, but the free cash flow is negative, which is a concern for liquidity and future investments. The free cash flow to net income ratio is negative, indicating that the company is not generating sufficient free cash flow relative to its net income. The operating cash flow to net income ratio is 0.31, showing moderate cash generation efficiency.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022
Income Statement
Total Revenue94.95M94.95M96.27M84.42M75.48M
Gross Profit30.13M30.13M60.82M24.54M14.15M
EBITDA27.74M27.74M18.26M14.49M9.75M
Net Income12.17M12.17M3.55M4.90M3.20M
Balance Sheet
Total Assets131.81M131.81M115.78M74.13M66.12M
Cash, Cash Equivalents and Short-Term Investments8.18M8.18M23.60M2.95M3.87M
Total Debt34.40M34.40M25.54M17.43M20.26M
Total Liabilities66.95M66.95M59.04M48.63M45.44M
Stockholders Equity64.87M64.87M56.74M24.49M20.01M
Cash Flow
Free Cash Flow-21.49M-21.49M-2.13M2.12M-1.69M
Operating Cash Flow10.63M10.63M17.34M13.51M12.22M
Investing Cash Flow-30.60M-30.60M-19.81M-11.39M-13.65M
Financing Cash Flow4.56M4.56M23.12M-2.90M4.62M

Alfabs Australia Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.48
Price Trends
50DMA
0.47
Positive
100DMA
0.42
Positive
200DMA
0.40
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
53.66
Neutral
STOCH
79.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAL, the sentiment is Positive. The current price of 0.48 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.47, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 79.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AAL.

Alfabs Australia 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
71
Outperform
AU$149.33M10.1511.37%5.63%1.33%-11.07%
71
Outperform
AU$2.14B23.928.17%5.26%13.19%14.79%
67
Neutral
AU$127.53M10.3520.02%6.60%-1.55%232.03%
66
Neutral
AU$261.22M124.31-2.12%6.54%8.23%84.54%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
AU$458.44M15.708.00%4.66%-9.67%-6.49%
53
Neutral
AU$135.61M12.95-0.93%8.16%14.23%-102.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AAL
Alfabs Australia Ltd.
0.48
0.22
84.62%
AU:CLX
CTI Logistics Limited
1.86
0.09
5.08%
AU:DBI
Dalrymple Bay Infrastructure Ltd.
4.37
1.27
40.97%
AU:HNG
Hancock & Gore Limited
0.24
-0.06
-20.00%
AU:KSC
K & S Corporation Limited
3.42
0.13
3.95%
AU:LGL
Lynch Group Holding Ltd
2.14
0.44
25.88%

Alfabs Australia Ltd. Corporate Events

Alfabs Australia Ltd. Emphasizes Governance Compliance
Sep 30, 2025

Alfabs Australia Ltd. has released its Corporate Governance Statement, highlighting its commitment to adhering to the ASX Corporate Governance Council’s principles and recommendations. The statement outlines the company’s compliance with these guidelines, detailing the roles and responsibilities of its board and management, the due diligence process for appointing directors or senior executives, and the accountability of the company secretary. This governance framework aims to ensure transparency and accountability in the company’s operations, potentially strengthening its position in the market and providing assurance to stakeholders.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Releases Corporate Governance Statement for 2025
Sep 30, 2025

Alfabs Australia Limited has released its corporate governance statement for the financial year ending 30 June 2025, which is available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting its commitment to transparency and accountability. This announcement underscores Alfabs Australia’s focus on maintaining robust governance practices, which is crucial for its stakeholders and enhances its credibility in the market.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Limited Reports Strong FY25 Results, Reinforces Growth Strategy
Sep 30, 2025

Alfabs Australia Limited has reported a strong financial performance for the fiscal year 2025, successfully delivering on its growth strategy. The company’s focus on operational reliability, fleet expansion, and targeted investments in people and technology positions it to deliver long-term value, reinforcing its industry positioning and benefiting its stakeholders.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Ltd. Reschedules AGM to November 2025
Sep 29, 2025

Alfabs Australia Limited has announced the rescheduling of its Annual General Meeting (AGM) to November 24, 2025, which will be held as a hybrid meeting, allowing shareholders to attend in person or participate online. This update also includes a new closing date for director nominations, set for October 7, 2025, reflecting the company’s commitment to engaging its stakeholders and ensuring their active participation in corporate governance processes.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Ltd. Director Increases Stake with Significant Share Acquisition
Sep 4, 2025

Alfabs Australia Ltd. has announced a change in the director’s interest, specifically involving William Wavish, who acquired an additional 1,000,000 ordinary shares through an on-market trade. This acquisition increases his total holdings to 6,733,333 ordinary shares, while his spouse, Yvonne Wavish, maintains her holdings at 4,266,667 ordinary shares. This change reflects a significant increase in the director’s stake, potentially indicating confidence in the company’s future performance and impacting investor perception positively.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Announces Hybrid 2025 AGM
Sep 3, 2025

Alfabs Australia Limited has announced that its 2025 Annual General Meeting will be held on November 3rd as a hybrid event, allowing shareholders to attend either in person or online. This approach reflects the company’s commitment to accessibility and shareholder engagement, potentially enhancing participation and transparency in its corporate governance processes.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Ltd. Announces New Dividend Distribution
Aug 25, 2025

Alfabs Australia Ltd. has announced a new dividend distribution for its ordinary fully paid securities, with a distribution amount of AUD 0.017 per share. The dividend relates to the six-month period ending on June 30, 2025, and will be paid on October 7, 2025, with an ex-date of September 15, 2025, and a record date of September 16, 2025. This announcement may impact shareholder returns and reflects the company’s financial performance for the specified period.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Limited Releases FY2025 Performance Report
Aug 24, 2025

Alfabs Australia Limited has released its performance report for the financial year ending 30 June 2025. The report highlights the company’s activities and performance, although it cautions that forward-looking statements are based on current expectations and involve risks that could cause actual results to differ. The announcement does not provide specific details on the impact on the company’s operations or industry positioning.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Ltd. Reports Robust FY2025 Financial Results and Expands Operations
Aug 24, 2025

Alfabs Australia Ltd. reported a strong financial performance for FY2025, with a 39% increase in EBITDA to $27.6 million and a 76% rise in net profit after tax to $12.2 million. The company’s profitability was bolstered by the initial hire income from equipment delivered to the Malabar mine, and it is expected to improve further in FY2026 with a full year’s income from these projects. The company is expanding its operations with new workshops and profit centers, and it has seen increased demand for its underground hire equipment and engineering services. Despite a slight slowdown in demand in Q4, recent inquiries suggest a positive outlook, particularly for off-site engineering work.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Limited Reports 242% Increase in Net Profit
Aug 24, 2025

Alfabs Australia Limited reported a significant increase in profitability for the year ending June 30, 2025, despite a slight decrease in revenue. The company’s net profit rose by 242% to $12.17 million, driven by a 49% increase in EBITDA and a 71% increase in EBIT. This financial performance reflects a strong operational efficiency and has resulted in an increase in dividends paid to shareholders, indicating a positive outlook for stakeholders.

The most recent analyst rating on (AU:AAL) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

Alfabs Australia Limited Announces Quotation of New Securities
Aug 1, 2025

Alfabs Australia Limited has announced a new application for the quotation of 512,000 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and provide more liquidity for its shares, potentially benefiting its stakeholders by increasing the visibility and tradability of its securities.

The most recent analyst rating on (AU:AAL) stock is a Buy with a A$0.55 price target. To see the full list of analyst forecasts on Alfabs Australia Ltd. stock, see the AU:AAL Stock Forecast page.

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: Oct 22, 2025