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Ansell (AU:ANN)
ASX:ANN
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Ansell (ANN) AI Stock Analysis

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AU:ANN

Ansell

(Sydney:ANN)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
AU$33.00
▼(-2.77% Downside)
Ansell's overall stock score reflects strong financial performance and positive earnings call highlights. The bullish technical indicators support the stock's upward trend, although the high P/E ratio suggests it may be overvalued. The company's strategic initiatives and growth prospects are promising, but challenges like tariff impacts and cash flow reduction need to be addressed.

Ansell (ANN) vs. iShares MSCI Australia ETF (EWA)

Ansell Business Overview & Revenue Model

Company DescriptionAnsell Limited designs, develops, and manufactures protection solutions in the Asia Pacific, Europe, the Middle East, Africa, Latin America, the Caribbean, and North America. It operates in two segments, Healthcare and Industrial. The Healthcare segment manufactures and markets solutions comprising surgical gloves, single use and examination gloves, and clean and sterile gloves and garments, as well as consumables used by hospitals, surgical centers, dental practices, veterinary clinics, first responders, laboratories, and life sciences and pharmaceutical companies. The Industrial segment manufactures and markets hand and chemical protective clothing solutions for a range of industrial applications, including automotive, chemical, metal fabrication, machinery and equipment, food, construction, mining, oil and gas, and first responders. The company was formerly known as Pacific Dunlop Limited and changed its name to Ansell Limited in 2002. Ansell Limited was founded in 1893 and is based in Richmond, Australia. P. D. Holdings Pty. Ltd. operates as a current subsidiary of Ansell Limited.
How the Company Makes MoneyAnsell generates revenue through the sale of its diverse product portfolio, primarily focusing on personal protective equipment and healthcare solutions. The company's revenue streams are divided into two main business segments: Industrial and Healthcare. The Industrial segment caters to industries requiring hand and body protection, providing products like mechanical gloves, chemical resistant gloves, and disposable gloves. The Healthcare segment offers solutions primarily to healthcare professionals and facilities, including surgical gloves, examination gloves, and infection prevention products. Significant partnerships with distributors, healthcare institutions, and industrial clients enhance Ansell's market reach and contribute to its earnings. The company benefits from a strong global distribution network and a focus on innovation and quality, which helps maintain its competitive edge and profitability.

Ansell Earnings Call Summary

Earnings Call Date:Aug 24, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in FY '25 with significant achievements in revenue growth, successful integration of KBU, and improvements in both the industrial and healthcare segments. However, challenges remain with the impact of U.S. tariffs and increased SG&A costs. The company is optimistic about navigating these challenges with strategic pricing and supply chain adjustments.
Q4-2025 Updates
Positive Updates
Successful FY '25 Performance
EPS reached $1.26, at the upper end of guidance. Organic growth was 8%, translating to a 10% EBIT growth, with adjusted EPS growth approaching 20%. Shareholders were rewarded with a 30% dividend increase.
Industrial Segment Record Results
Record sales, record EBIT margin, and record profitability with organic growth approaching 6% and 10% EBIT growth.
Healthcare Segment Recovery
Healthcare showed strong growth with almost 10% organic growth and improved EBIT margins after overcoming destocking effects.
KBU Acquisition Outperformance
KBU business performance was ahead of the business case, integration completed, synergies target increased from $10 million to $15 million.
Sustainability Achievements
Reduction in injuries by 16% and recognition for sustainability efforts with net zero targets including Scope 3 emissions validated by the science-based targets initiative.
Negative Updates
Tariff Challenges
Significant tariff increases in the U.S., with efforts needed to offset these costs through pricing strategies and supply chain adjustments.
Higher SG&A Costs
SG&A increased by 12.2% on an organic basis, driven by higher incentive accruals and annual merit increases.
Cash Flow Reduction
Net receipts and operating cash flow were lower despite higher sales and earnings, mainly due to inventory build-up and working capital changes.
Company Guidance
During the Ansell Limited FY '25 Full Year Results Briefing, CEO Neil Salmon reported strong financial performance, highlighting an EPS of $1.26, reaching the upper end of their guidance range. The company achieved 8% organic growth, leading to a 10% EBIT growth and a 20% increase in adjusted EPS. Shareholders were rewarded with a 30% dividend increase. For FY '26, Ansell anticipates an EPS guidance range of $1.33 to $1.45, supported by continued sales growth and productivity improvements. The integration of the KBU business exceeded expectations, contributing to the financial results and prompting an increase in synergy targets from $10 million to $15 million. The company also announced a $200 million share buyback program and remains focused on mitigating higher tariffs through pricing strategies and its diverse manufacturing network.

Ansell Financial Statement Overview

Summary
Ansell demonstrates solid financial performance with strong revenue growth and stable margins. The balance sheet is healthy with moderate leverage and a strong equity base. However, the decline in free cash flow growth is a concern that needs addressing.
Income Statement
75
Positive
Ansell's income statement shows a solid revenue growth rate of 8.05% in the latest year, reversing the previous year's decline. The gross profit margin improved to 41.18%, indicating better cost management. However, the net profit margin is relatively low at 5.07%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.41, indicating moderate leverage. The return on equity is 5.17%, which is modest and suggests potential for better utilization of equity. The equity ratio stands at 59.09%, highlighting a strong equity base relative to total assets.
Cash Flow
65
Positive
Cash flow analysis reveals a decline in free cash flow growth by 22.69%, which is a concern. The operating cash flow to net income ratio is 2.36, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio of 1.67 suggests that free cash flow is not as robust as it could be.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.85B2.00B1.62B1.63B1.85B2.04B
Gross Profit725.00M825.00M624.80M604.22M625.19M807.21M
EBITDA291.80M260.20M202.30M275.20M291.90M401.60M
Net Income112.10M101.60M76.50M148.30M158.70M246.70M
Balance Sheet
Total Assets3.27B3.32B3.24B2.52B2.51B2.74B
Cash, Cash Equivalents and Short-Term Investments268.90M238.30M912.30M159.03M206.18M240.21M
Total Debt825.70M805.60M857.20M493.15M485.74M515.53M
Total Liabilities1.35B1.34B1.33B913.07M949.48M1.17B
Stockholders Equity1.91B1.96B1.89B1.60B1.54B1.55B
Cash Flow
Free Cash Flow219.90M170.00M208.60M95.37M127.71M72.17M
Operating Cash Flow272.90M239.30M272.30M161.72M191.71M155.40M
Investing Cash Flow-688.70M-703.30M-63.40M-74.54M-67.51M-85.25M
Financing Cash Flow518.10M-216.00M540.80M-130.82M-148.76M-250.72M

Ansell Technical Analysis

Technical Analysis Sentiment
Positive
Last Price33.94
Price Trends
50DMA
31.91
Positive
100DMA
31.33
Positive
200DMA
32.13
Positive
Market Momentum
MACD
0.47
Positive
RSI
59.47
Neutral
STOCH
24.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ANN, the sentiment is Positive. The current price of 33.94 is below the 20-day moving average (MA) of 34.05, above the 50-day MA of 31.91, and above the 200-day MA of 32.13, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 24.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ANN.

Ansell Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
60.72B28.0723.47%0.81%11.26%39.47%
70
Outperform
$4.93B31.435.27%2.31%25.19%18.82%
61
Neutral
7.57B1,113.850.00%2.43%6.82%-99.27%
57
Neutral
2.78B56.74-292.70%1.76%14.61%0.00%
55
Neutral
114.79M-25.67-4.22%7.38%82.39%
53
Neutral
1.39B-18.610.00%0.00%-29.93%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ANN
Ansell
33.94
2.73
8.74%
RMSYF
Ramsay Health Care
24.00
-2.45
-9.26%
AU:CU6
Clarity Pharmaceuticals Ltd.
3.74
-5.05
-57.45%
AU:TRJ
Trajan Group Holdings Ltd
0.75
-0.50
-40.00%
AU:REG
Regis Healthcare Ltd.
9.22
3.20
53.16%
AU:RMD
Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh
41.21
5.79
16.35%

Ansell Corporate Events

Ansell Limited Announces New Director Appointment
Jul 31, 2025

Ansell Limited has announced the appointment of Randy Stone as a director effective August 1, 2025. The initial director’s interest notice reveals that Randy Stone currently holds no securities or interests in the company, indicating a fresh start in his role. This appointment is a strategic move for Ansell, potentially impacting its governance and strategic direction.

The most recent analyst rating on (AU:ANN) stock is a Hold with a A$36.00 price target. To see the full list of analyst forecasts on Ansell stock, see the AU:ANN Stock Forecast page.

Ansell Limited Issues Restricted Stock Units Under Employee Incentive Scheme
Jul 7, 2025

Ansell Limited announced the issuance of 33,108 restricted stock units under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions until the restriction period ends, reflecting the company’s ongoing commitment to employee engagement and retention strategies.

The most recent analyst rating on (AU:ANN) stock is a Hold with a A$40.00 price target. To see the full list of analyst forecasts on Ansell stock, see the AU:ANN Stock Forecast page.

Ansell Announces Board Changes Amidst Succession Plan
May 20, 2025

Ansell Limited announced changes to its Board of Directors as part of its ongoing succession and renewal plan. Non-Executive Director Morten Falkenberg will retire at the end of May 2025, and Randy Stone will join as an independent Non-Executive Director in August 2025. Stone brings extensive international experience and expertise in industries closely aligned with Ansell’s focus, which is expected to enhance the Board’s capabilities and support the company’s strategic goals.

The most recent analyst rating on (AU:ANN) stock is a Hold with a A$40.00 price target. To see the full list of analyst forecasts on Ansell stock, see the AU:ANN 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: Sep 03, 2025