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AJ Lucas Group (AJL) AI Stock Analysis
AJ Lucas Group
(ASX:AJL)
The overall score is held down by the company’s weak and highly leveraged balance sheet, negative equity, and history of volatile revenues and large losses, despite a recent improvement in profitability and cash generation. A very low P/E ratio points to a potentially undervalued share price, but this apparent cheapness is tempered by the high financial risk and inconsistent earnings, while neutral technical signals provide limited additional conviction.
AJ Lucas Group (AJL) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 4.40M
- Dividend Yield
- ―
- Average Volume (3M)
- ―
- Price to Earnings (P/E)
- 0.3
- Beta (1Y)
- 0.81
- Revenue Growth
- -17.89%
- EPS Growth
- ―
- Country
- Australia
- Employees
- 271
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Coal
AJ Lucas Group Business Overview & Revenue Model
Company Description
AJ Lucas Group Limited (AJL.AX), an Australian firm operating with its subsidiaries, specializes in a diverse range of drilling services. The company's activities are structured into two main divisions: Drilling, and Oil and Gas. The Drilling divisio...
How the Company Makes Money
AJL primarily makes money by contracting drilling and related services to third-party customers, typically exploration companies and mining operators. Revenue is generally earned under service contracts where the company is paid for drilling activity...
AJ Lucas Group Financial Statement Overview
Summary
Recent results show a strong return to profit and healthier margins in 2026, supported by improved and generally positive operating and free cash flow, but this is offset by a structurally weak balance sheet with negative equity and high leverage, plus a long history of large losses, declining revenues, and volatile earnings.
Income Statement
58NeutralBalance Sheet
24NegativeCash Flow
62Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 119.57M | 119.57M | 145.61M | 159.10M | 157.61M | 123.23M |
| Gross Profit | 10.29M | 10.04M | 103.43M | 40.27M | 19.61M | 13.09M |
| EBITDA | 14.88M | 15.13M | 15.64M | 29.12M | -135.61M | 13.63M |
| Net Income | 28.49M | 28.49M | -15.01M | -702.00K | -152.06M | -11.32M |
Balance Sheet | ||||||
| Total Assets | 83.39M | 83.39M | 89.07M | 108.32M | 104.14M | 220.70M |
| Cash, Cash Equivalents and Short-Term Investments | 8.29M | 8.29M | 3.87M | 16.85M | 14.04M | 3.06M |
| Total Debt | 92.42M | 92.42M | 123.81M | 126.38M | 126.91M | 110.12M |
| Total Liabilities | 127.97M | 127.97M | 162.71M | 166.16M | 161.20M | 143.88M |
| Stockholders Equity | -44.52M | -44.52M | -73.55M | -57.79M | -57.03M | 75.66M |
Cash Flow | ||||||
| Free Cash Flow | 20.22M | 20.22M | 2.94M | 17.78M | -4.46M | 9.28M |
| Operating Cash Flow | 26.04M | 26.04M | 13.07M | 32.03M | 1.39M | 12.56M |
| Investing Cash Flow | -4.49M | -4.49M | -9.26M | -13.75M | -5.84M | -3.27M |
| Financing Cash Flow | -16.96M | -16.96M | -16.94M | -15.46M | 15.35M | -12.84M |
AJ Lucas Group Peers Comparison
Overall Rating
AU:MYE59Neutral
AU:JAL54Neutral
AU:VMM53Neutral- AU:AJL52.3Neutral
AU:TER40Underperform
AU:WEC39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| AU:MYE | 59Neutral | AUD 202.30M | 105.64 | 2.51% | ― | 11.17% | 34.78% |
| AU:JAL | 54Neutral | AUD 52.50M | -49.00 | -3.03% | ― | ― | 0.00% |
| AU:VMM | 53Neutral | AUD 588.03M | -58.21 | -11.66% | ― | ― | -63.28% |
| AU:AJL | 52Neutral | AUD 8.25M | 0.29 | -72.02% | ― | -17.89% | ― |
| AU:TER | 40Underperform | AUD 61.97M | -0.92 | -37.07% | ― | -21.07% | -150.50% |
| AU:WEC | 39Underperform | AUD 194.10M | -23.81 | 367.01% | ― | ― | 90.79% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:AJL | AJ Lucas Group Limited | 0.01 | 0.00 | 0.00% | |
| AU:WEC | White Energy Company Limited | 0.25 | 0.21 | 614.29% | |
| AU:JAL | Jameson Resources Limited | 0.05 | -0.03 | -40.24% | |
| AU:MYE | Metarock Group Limited | 0.66 | 0.53 | 415.75% | |
| AU:VMM | Viridis Mining and Minerals Limited | 3.65 | 2.35 | 180.77% | |
| AU:TER | TerraCom Limited | 0.03 | -0.05 | -58.54% |
AJ Lucas Group Corporate Events
AJ Lucas Underscores Role as Specialist Drilling Services Provider
AJ Lucas Group Limited has highlighted its role as a leading provider of drilling services to the energy, mining and infrastructure sectors. The company emphasises its multi‑disciplined teams and reputation for innovative solutions, reinforcing...
AJ Lucas swings to FY2026 profit on UK settlement and lower net debt
AJ Lucas Group reported a sharp turnaround in FY2026, posting a $28.5 million profit after tax versus a $15.0 million loss a year earlier, driven largely by a $25.9 million settlement of a dispute over UK shale gas exploration licences. Total reporte...
AJ Lucas Turns to Profit Despite Revenue Slide in 2026 Results
AJ Lucas Group Limited, an energy and infrastructure services provider specialising in drilling and well services for oil, gas and mining clients, operates as a contractor to the resources sector. Its business model is sensitive to industry cycles, m...
AJ Lucas hit by softer coal drilling as UK settlement lifts annual earnings
AJ Lucas Group Limited is an Australian energy and mining services company headquartered in Brisbane, providing drilling and related services primarily to steelmaking coal producers and other resource sector clients. The group also holds onshore gas...
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 06, 2026