ALS (ALQ) AI Stock Analysis

• Market Cap: $10.00B
• Dividend Yield: 1.94%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.91
• Revenue Growth: 21.85%
• EPS Growth: 1879.78%
• Country: AU
• Employees: 19,565
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.33
• Shares Outstanding: 507,199,650
• 10 Day Avg. Volume: 1,489,096
• 30 Day Avg. Volume: 1,311,129
• PEG Ratio: 0.02
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 11.61
• Enterprise Value/Ebitda: 15.97
• 1Y Price Target: $19.16
• Price Target Upside: -5.03% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: ―

ALS Ltd. demonstrates stable revenue growth and operational efficiency; however, concerns about profitability, cash flow, and high financial leverage are significant. The stock's overvaluation, indicated by an exceptionally high P/E ratio, further impacts its attractiveness. Neutral technical indicators and an overbought Stochastic suggest potential price volatility. The absence of earnings call data limits insight into management's outlook.

ALS Business Overview & Revenue Model

Company Description

ALS Ltd. (ALQ) is a global leader in providing laboratory testing, inspection, certification, and verification solutions. The company operates across various sectors including life sciences, minerals, energy, and industrial, offering a comprehensive range of services that ensure quality, safety, and compliance for their clients. With a strong international presence, ALS Ltd. supports industries with critical analysis and data-driven insights to optimize processes and meet regulatory standards.

How the Company Makes Money

ALS Ltd. generates revenue through a diverse portfolio of services primarily within its four key sectors: life sciences, minerals, energy, and industrial. In the life sciences sector, the company provides pharmaceutical testing, environmental testing, and food testing services, catering to companies that require stringent compliance and quality assurance. The minerals sector revenue comes from geochemistry, metallurgy, and mine site services, assisting mining companies in exploration, extraction, and processing. In the energy sector, ALS offers analytical services for oil and gas exploration and production, ensuring efficiency and safety. Lastly, the industrial sector includes testing and inspection services for infrastructure, electronics, and manufacturing industries to maintain operational standards and safety. ALS Ltd. also benefits from strategic partnerships with industry leaders and governments, which enhance its service offerings and broaden its market reach, contributing significantly to its revenue.

ALS Financial Statement Overview

Summary

ALS Ltd. shows steady revenue growth and operational efficiency but faces challenges in profitability and cash flow generation. The higher debt levels raise concerns about financial leverage, though the stable equity ratio provides some balance. Overall, the company needs to address profitability and cash flow issues to strengthen its financial position.

Income Statement

The revenue growth rate is strong at 8.0% year-over-year, indicating a positive trend in sales. Gross profit margin decreased significantly from the previous year, suggesting increased cost pressure. The net profit margin dropped to 0.5%, which is a concern for profitability. However, the EBIT and EBITDA margins remained stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio increased to 1.58, indicating a higher reliance on debt financing. Return on equity (ROE) decreased to 1.1%, showing reduced profitability for shareholders. However, the equity ratio is stable at 32.0%, suggesting a balanced asset financing strategy.

Cash Flow

Free cash flow declined by 32.5%, highlighting a potential concern in cash generation. The operating cash flow to net income ratio is robust at 27.1, indicating strong cash generation relative to net income. However, the significant drop in free cash flow is a risk factor.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.70B	3.00B	2.46B	2.28B	1.95B	1.76B
Gross Profit	805.80M	2.69B	2.19B	828.60M	1.88B	1.58B
EBITDA	585.90M	675.00M	357.80M	591.30M	439.10M	415.40M
Net Income	6.20M	256.20M	12.90M	291.20M	190.50M	169.60M
Balance Sheet
Total Assets	3.80B	4.06B	3.70B	3.33B	2.84B	2.48B
Cash, Cash Equivalents and Short-Term Investments	254.60M	268.00M	299.90M	179.60M	122.80M	168.60M
Total Debt	2.01B	2.09B	1.87B	1.45B	1.24B	967.70M
Total Liabilities	2.66B	2.77B	2.50B	1.95B	1.71B	1.40B
Stockholders Equity	1.13B	1.28B	1.18B	1.37B	1.12B	1.07B
Cash Flow
Free Cash Flow	233.90M	244.60M	198.40M	293.80M	167.90M	184.70M
Operating Cash Flow	374.80M	409.60M	350.10M	439.90M	286.80M	265.80M
Investing Cash Flow	-334.30M	-327.70M	-226.80M	-267.00M	-405.90M	-120.50M
Financing Cash Flow	28.70M	-120.00M	-3.10M	-121.20M	77.40M	-379.90M

ALS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ALQ, the sentiment is Positive. The current price of 20.18 is above the 20-day moving average (MA) of 19.43, above the 50-day MA of 18.85, and above the 200-day MA of 16.86, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 72.85 is Negative, neither overbought nor oversold. The STOCH value of 86.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ALQ.

ALS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRL	78 Outperform	AU$4.50B	17.85	15.76%	0.84%	30.46%	―
ORI	64 Neutral	AU$9.97B	104.91	11.76%	2.49%	4.50%	-81.89%
NWH	64 Neutral	AU$2.15B	76.40	4.54%	3.52%	12.18%	-73.81%
MIN	58 Neutral	AU$7.76B	-8.56	―	―	-15.27%	-817.26%
ALQ	56 Neutral	$10.00B	37.25	21.29%	1.94%	21.85%	1879.78%
SGM	51 Neutral	AU$2.56B	-151.48	-0.73%	1.73%	3.98%	70.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ALS Corporate Events

ALS Limited Reports Resilience Amid Market Volatility and Positive Growth

ALS Limited reports that recent global market volatility and tariff announcements have not materially impacted their input costs. The company maintains flexibility in its operations and remains focused on its value creation framework. For the fiscal year ending March 2025, ALS anticipates an underlying net profit after tax between AUD $310-$313 million. The Minerals division in Commodities has seen a positive turnaround in sample volumes, while the Environmental division in Life Sciences achieved 10% organic growth. Recent acquisitions are integrating ahead of expectations, and the Food and Pharma divisions are under new leadership.

ALS Limited Appoints Catharine Farrow as Non-Executive Director

ALS Limited has appointed Catharine Farrow as an independent Non-Executive Director, effective March 24, 2025. Farrow’s extensive experience in the mining industry, including her focus on innovation and technology, aligns with ALS’s strategic priorities and enhances the board’s understanding of its major customers’ needs.