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Aussie Broadband Ltd. (AU:ABB)
:ABB
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Aussie Broadband Ltd. (ABB) AI Stock Analysis

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AU:ABB

Aussie Broadband Ltd.

(Sydney:ABB)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
AU$5.50
▼(-3.34% Downside)
Aussie Broadband Ltd. scores well due to strong technical indicators and solid financial performance, despite challenges in cash flow management. However, the high P/E ratio and low dividend yield suggest the stock may be overvalued, impacting its attractiveness for value-focused investors.

Aussie Broadband Ltd. (ABB) vs. iShares MSCI Australia ETF (EWA)

Aussie Broadband Ltd. Business Overview & Revenue Model

Company DescriptionAussie Broadband Limited provides telecommunications services to residential and businesses in Australia. It operates in four segments: Residential, Business, Wholesale, and Over the Wire. The company offers national broadband network services, cloud, and security services. It also provides a range of other telecommunications services, including VoIP, mobile plans and headsets, and entertainment bundles to residential, small business, and large business/enterprise customers. As of June 30, 2022, it served approximately 462,369 customers. The company was incorporated in 2008 and is based in Morwell, Victoria.
How the Company Makes MoneyAussie Broadband makes money primarily through its provision of broadband internet services via the NBN, which forms the core of its revenue stream. The company offers various plans catering to different speed requirements and data usage needs. Additionally, Aussie Broadband generates revenue through mobile services, including SIM-only plans and mobile data services. The company also earns from its business and enterprise solutions, offering tailored telecommunications services such as voice, network, and cloud solutions to larger organizations. Partnerships with key technology and infrastructure providers enhance its service offerings and contribute to its revenue generation.

Aussie Broadband Ltd. Financial Statement Overview

Summary
Aussie Broadband Ltd. demonstrates strong revenue growth and operational efficiency with healthy EBIT and EBITDA margins. The balance sheet is stable with improved leverage ratios. However, cash flow management is a concern due to negative free cash flow growth, which impacts overall financial health.
Income Statement
75
Positive
Aussie Broadband Ltd. has demonstrated consistent revenue growth over the years, with a notable 3.93% increase in the most recent year. The company maintains a strong gross profit margin of 100% due to its revenue recognition practices. However, the net profit margin remains modest at 2.77%, indicating room for improvement in cost management. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved to 0.47, indicating a balanced approach to leveraging. Return on equity is moderate at 6.02%, suggesting effective use of equity but with potential for higher returns. The equity ratio stands at 50.38%, showing a solid equity base relative to total assets.
Cash Flow
60
Neutral
Aussie Broadband Ltd. faces challenges with free cash flow, which has declined significantly, resulting in a negative growth rate. The operating cash flow to net income ratio is 0.28, indicating that cash generation from operations is not fully covering net income. The negative free cash flow to net income ratio highlights the need for improved cash management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.19B1.19B999.75M787.95M546.94M350.27M
Gross Profit197.28M1.19B135.19M104.93M64.52M49.38M
EBITDA123.49M139.90M113.84M98.60M35.13M5.66M
Net Income32.84M32.84M26.38M21.72M5.32M-4.49M
Balance Sheet
Total Assets1.08B1.08B1.24B693.59M628.50M116.91M
Cash, Cash Equivalents and Short-Term Investments130.96M130.96M214.13M76.17M48.83M57.02M
Total Debt258.49M258.49M351.55M204.00M216.67M10.56M
Total Liabilities536.85M536.85M667.65M401.81M359.77M57.37M
Stockholders Equity545.34M545.34M570.10M291.78M268.72M59.55M
Cash Flow
Free Cash Flow22.78M-8.69M28.91M67.58M-4.68M8.15M
Operating Cash Flow68.40M68.40M120.22M116.68M37.79M25.28M
Investing Cash Flow18.67M18.67M-247.47M-46.05M-308.08M-17.13M
Financing Cash Flow-170.82M-170.82M266.21M-43.30M261.00M27.42M

Aussie Broadband Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.69
Price Trends
50DMA
4.79
Positive
100DMA
4.40
Positive
200DMA
4.08
Positive
Market Momentum
MACD
0.23
Negative
RSI
72.47
Negative
STOCH
90.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABB, the sentiment is Positive. The current price of 5.69 is above the 20-day moving average (MA) of 5.28, above the 50-day MA of 4.79, and above the 200-day MA of 4.08, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 72.47 is Negative, neither overbought nor oversold. The STOCH value of 90.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ABB.

Aussie Broadband Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$1.66B50.675.89%1.12%18.74%14.89%
62
Neutral
55.69B25.8215.63%3.88%0.86%34.33%
62
Neutral
1.72B1,861.1131.16%
48
Neutral
9.41B-125.25-0.96%3.56%-5.04%-349.38%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ABB
Aussie Broadband Ltd.
5.69
2.00
54.20%
TPGTF
TPG Telecom Limited
3.34
0.28
9.15%
TTRAF
Telstra Corporation Limited
3.28
0.69
26.64%
DE:9SL
Superloop Ltd.
1.86
0.84
82.35%
AU:MAQ
Macquarie Telecom Group Limited
65.65
-15.63
-19.23%

Aussie Broadband Ltd. Corporate Events

Aussie Broadband to Announce FY25 Financial Results
Jul 25, 2025

Aussie Broadband Limited announced that it will release its financial results for the fiscal year ending June 30, 2025, on August 25, 2025. An investor and analyst briefing will be held on the same day, featuring key executives. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Appoints Sarah Adam-Gedge as Non-Executive Director
Jun 16, 2025

Aussie Broadband has announced the appointment of Sarah Adam-Gedge as a new non-executive director, effective 1 July 2025. Sarah brings extensive experience from her leadership roles in technology and digital businesses across Australia, New Zealand, and the Asia-Pacific region, including positions at IBM, Avanade Australia, Publicis Sapient, and Wipro. Her expertise in overseeing complex technology solutions and her global perspective are expected to significantly benefit Aussie Broadband as it continues its growth strategy. The appointment reflects the company’s commitment to enhancing the skills and experience of its board to support its strategic objectives.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Director Sells Shares to Invest in Rural Fibre Initiative
Jun 2, 2025

Non-Executive Director Phillip Britt of Aussie Broadband Ltd has sold 400,000 shares to invest in his community-oriented venture, Rural Fibre Co, in Gippsland, Victoria. Despite the sale, Britt remains a significant shareholder and committed to his roles within the company. The trading window for the company is currently closed until the release of its financial results for the fiscal year ending June 2025.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Phillip Britt Reduces Stake in Aussie Broadband to Fund Rural Fibre Project
Jun 2, 2025

Aussie Broadband Ltd. announced that Phillip Britt, a Non-Executive Director and Special Technical Advisor, has ceased to be a substantial holder in the company following a disposal of shares to fund commitments for his Rural Fibre Co in Gippsland, Victoria. Despite this change, Mr. Britt remains a significant shareholder and continues his roles within the company. The trading window for the company is currently closed until after the release of its financial results for the fiscal year ending June 2025.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Announces Cessation of Securities in Strategic Buy-Back
May 30, 2025

Aussie Broadband Ltd. announced the cessation of 9,024,191 ordinary fully paid securities as part of an on-market buy-back, effective May 16, 2025. This move is likely to impact the company’s capital structure and could influence its market positioning by potentially increasing shareholder value and optimizing financial performance.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Updates on Market Buy-Back Progress
May 18, 2025

Aussie Broadband Ltd. has announced an update on its ongoing on-market buy-back program, with a total of 8,884,191 securities bought back before the previous day and an additional 140,000 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Updates on Share Buy-Back Progress
May 15, 2025

Aussie Broadband Ltd. has announced an update regarding its ongoing share buy-back program. As of May 16, 2025, the company has repurchased a total of 8,884,191 ordinary fully paid securities, including 150,000 bought back on the previous day. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure, which could potentially strengthen its market position and positively impact stakeholders.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Updates on Share Buy-Back Progress
May 14, 2025

Aussie Broadband Ltd. has announced an update on its ongoing share buy-back program, reporting the purchase of 150,000 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 8,584,191. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value, reflecting a proactive approach to managing its financial resources.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Director Reduces Shareholding
May 13, 2025

Aussie Broadband Limited announced a change in the director’s interest, with Michael Omeros disposing of 150,000 ordinary shares through an on-market trade. This transaction reflects a reduction in Omeros’s direct shareholding, which may impact stakeholders’ perception of the company’s stock performance and governance.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Director’s Share Disposal and Loan Agreement Update
May 13, 2025

Aussie Broadband Limited announced a change in the director’s interest, with Phillip Britt disposing of 350,000 ordinary shares and several options under the LTI Plan due to his resignation as Group Managing Director. Additionally, Digital Interworks Pty Ltd, where Britt holds significant voting power, has secured a loan with ANZ to fund a community-focused fibre venture, using 4,500,000 ABB ordinary shares as security. This move could impact the company’s financial structure and stakeholder interests, particularly if financial covenants are breached.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Announces Cessation of Securities
May 13, 2025

Aussie Broadband Limited announced the cessation of several securities due to the lapse of conditional rights, as the conditions for these securities were not met or became incapable of being satisfied. This announcement may impact the company’s financial structure and could influence investor perceptions, as it reflects on the company’s ability to meet certain financial or operational conditions.

The most recent analyst rating on (AU:ABB) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Updates on Share Buy-Back Progress
May 7, 2025

Aussie Broadband Ltd. has announced an update on its ongoing share buy-back program, revealing that a total of 150,000 ordinary fully paid securities were repurchased on the previous day, adding to the 8,245,191 securities bought back prior. This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value, indicating a proactive approach to optimizing its financial operations.

Aussie Broadband Updates on Share Buy-Back Progress
May 6, 2025

Aussie Broadband Ltd. has announced an update on its ongoing share buy-back program, with a total of 8,115,191 securities bought back before the previous day and an additional 130,000 securities bought back on the previous day. This buy-back initiative reflects the company’s strategic efforts to manage its capital structure, potentially enhancing shareholder value and signaling confidence in its financial health.

Aussie Broadband Updates on Share Buy-Back Progress
May 6, 2025

Aussie Broadband Ltd. has announced an update regarding its ongoing on-market buy-back program. As of the latest update, the company has repurchased a total of 8,115,191 ordinary fully paid securities, indicating a strategic move to enhance shareholder value and optimize capital structure. This buy-back initiative reflects the company’s confidence in its financial health and future growth prospects, potentially impacting its stock market performance and stakeholder interests.

Aussie Broadband Announces Change of Share Registrar
May 5, 2025

Aussie Broadband Limited (ASX: ABB) announced a change in its share registrar, transferring from MUFG Corporate Markets (AU) Limited to Computershare Investor Services Pty Limited, effective from 12 May 2025. This transition is expected to enhance shareholder management through Computershare’s secure online portal, Investor Centre, which offers efficient management of shareholder holdings and transaction history. This move is likely to streamline operations and improve shareholder engagement, reflecting the company’s commitment to leveraging technology for better service delivery.

Aussie Broadband Updates on Buy-Back Program
May 4, 2025

Aussie Broadband Ltd. has announced an update on its ongoing on-market buy-back program, with a total of 7,860,191 securities bought back before the previous day and an additional 150,000 securities purchased on the previous day. This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value.

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: Sep 03, 2025