Aussie Broadband Ltd. (AU:ABB)
ASX:ABB
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Aussie Broadband Ltd.
(Sydney:ABB)
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Rating:54Neutral
Price Target:
AU$6.00
▲(12.36% Upside)
Action:Reiterated
Date:11/19/25
The overall stock score for Aussie Broadband Ltd. is primarily influenced by its strong financial performance, particularly in revenue growth and operational efficiency. However, the stock faces challenges with cash flow management and technical indicators suggest bearish momentum. The high P/E ratio raises concerns about overvaluation, while the dividend yield offers limited income potential. These factors collectively result in a moderate overall score.
Positive Factors
Recurring subscription revenue model
Aussie Broadband’s core income is subscription-based broadband and business connectivity, creating predictable recurring revenue and high customer lifetime value. This stable billing model supports steady topline visibility, easier forecasting, and durable opportunities to upsell higher‑margin business services over time.
Negative Factors
Weak free cash flow generation
Declining or negative free cash flow and an OCF-to-net-income ratio of 0.28 indicate operations aren’t converting profit into cash effectively. This constrains the company’s ability to self-fund network investment, reduce leverage, or return capital, increasing dependence on external financing for durable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue model
Aussie Broadband’s core income is subscription-based broadband and business connectivity, creating predictable recurring revenue and high customer lifetime value. This stable billing model supports steady topline visibility, easier forecasting, and durable opportunities to upsell higher‑margin business services over time.
Read all positive factors
Aussie Broadband Ltd. (ABB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.68B
Dividend Yield1.27%
Average Volume (3M)1.22M
Price to Earnings (P/E)64.0
Beta (1Y)1.00
Revenue Growth8.25%
EPS Growth-11.18%
CountryAU
Employees1,800
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding293,393,950
10 Day Avg. Volume1,354,314
30 Day Avg. Volume1,220,900
Financial Highlights & Ratios
PEG Ratio2.70
Price to Book (P/B)2.10
Price to Sales (P/S)0.97
P/FCF Ratio-131.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$5.30Price Target Upside-0.75% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.2
Revenue Forecast (FY)AU$1.31B
Aussie Broadband Ltd. Business Overview & Revenue Model
Company Description
Aussie 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, cl...
How the Company Makes Money
ABB primarily makes money by selling subscription-based telecommunications services. The core revenue stream is recurring monthly charges paid by customers for broadband internet access plans (typically delivered over Australia’s National Broadban...
Aussie Broadband Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.24B | 1.19B | 999.75M | 787.95M | 546.94M | 350.27M |
| Gross Profit | 170.82M | 1.19B | 135.19M | 104.93M | 64.52M | 49.38M |
| EBITDA | 148.42M | 139.90M | 113.84M | 98.60M | 35.13M | 5.66M |
| Net Income | 25.75M | 32.84M | 26.38M | 21.72M | 5.32M | -4.49M |
Balance Sheet | ||||||
| Total Assets | 1.08B | 1.08B | 1.24B | 693.59M | 628.50M | 116.91M |
| Cash, Cash Equivalents and Short-Term Investments | 114.76M | 130.96M | 214.13M | 76.17M | 48.83M | 57.02M |
| Total Debt | 286.42M | 258.49M | 351.55M | 204.00M | 216.67M | 10.56M |
| Total Liabilities | 511.64M | 536.85M | 667.65M | 401.81M | 359.77M | 57.37M |
| Stockholders Equity | 570.47M | 545.34M | 570.10M | 291.78M | 268.72M | 59.55M |
Cash Flow | ||||||
| Free Cash Flow | 51.66M | -8.69M | 28.91M | 67.58M | -4.68M | 8.15M |
| Operating Cash Flow | 81.51M | 68.40M | 120.22M | 116.68M | 37.79M | 25.28M |
| Investing Cash Flow | -60.94M | 18.67M | -247.47M | -46.05M | -308.08M | -17.13M |
| Financing Cash Flow | -41.31M | -170.82M | 266.21M | -43.30M | 261.00M | 27.42M |
Aussie Broadband Ltd. Technical Analysis
Positive
5.34
Price Trends
5.24
Positive
5.02
Positive
5.18
Positive
Market Momentum
0.10
Negative
63.11
Neutral
84.42
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 5.34 is below the 20-day moving average (MA) of 5.38, above the 50-day MA of 5.24, and above the 200-day MA of 5.18, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 84.42 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$57.06B | 24.59 | 16.66% | 3.91% | 0.26% | 36.10% | |
64 Neutral | AU$1.85B | 126.58 | 3.49% | ― | 26.11% | ― | |
62 Neutral | AU$2.00B | 81.72 | 5.01% | ― | 3.78% | -9.98% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | AU$7.22B | 54.55 | 1.31% | 47.35% | -8.68% | ― | |
54 Neutral | AU$1.68B | 64.00 | 4.61% | 1.27% | 8.25% | -11.18% |
* Communication Services Sector Average
AU:ABB
Aussie Broadband Ltd.
5.66
1.57
38.39%
AU:TPG
TPG Telecom Limited
3.60
0.04
1.21%
AU:TLS
Telstra Corporation Limited
4.97
0.29
6.17%
AU:SLC
Superloop Ltd.
3.48
0.68
24.29%
AU:MAQ
Macquarie Telecom Group Limited
78.30
15.60
24.88%
Aussie Broadband Ltd. Corporate Events
Aussie Broadband Issues New Unquoted Options Under Employee Incentive Scheme
May 27, 2026
Aussie Broadband Limited has notified the market of the issue of new unquoted equity securities under its employee incentive scheme, including options expiring in 2030 and a new class of options expiring in 2031 with no exercise price. The move ex...
Aussie Broadband Updates Market on Director Michael Omeros’s Equity Interests
May 27, 2026
Aussie Broadband has updated the market on a change in director Michael Omeros’s interests, largely reflecting an issue of additional zero exercise price options (ZEPOs) under the company’s long-term incentive plan. The new FY25 and FY...
Aussie Broadband Announces Lapse and Cessation of Employee Options
Apr 22, 2026
Aussie Broadband Limited has notified the market of the cessation of several series of options on issue, all expiring between June 2027 and July 2030. The affected securities include options with nil and fixed exercise prices that have either laps...
Aussie Broadband Flags Exit of Director Phillip Britt and Details Share-Backed Loan
Mar 24, 2026
Aussie Broadband has notified the ASX that co-founder and managing director Phillip Britt has ceased to be a director of the company as of 24 March 2026, triggering a final disclosure of his interests. The filing outlines that Britt directly holds...
Aussie Broadband Co-founder Phil Britt Steps Down From Board as Company Targets Governance Refresh
Mar 23, 2026
Aussie Broadband has announced that co-founder Phillip Britt has resigned as a non-executive director, effective 24 March 2026, to focus on expanding his regional telecommunications venture in Gippsland, and his special technical advisory agreemen...
Aussie Broadband Options Lapse, Trimming Future Equity Overhang
Mar 16, 2026
Aussie Broadband has notified the market that certain employee or incentive options on its register have lapsed, reducing its potential future issued capital. A total of 32,352 nil‑exercise options expiring July 2030 and 84,259 options with ...
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.