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FOS Capital Ltd (FOS) AI Stock Analysis

AU:FOS

FOS Capital Ltd

(ASX:FOS)

Select Model
Rating:39Underperform
Price Target:AUD 0.11â–¼(-5.83% Downside)
Action:downgraded
Date:10/21/26

The overall score is very low, driven primarily by a severe deterioration in financial performance. The company is loss-making and burning cash, with falling revenue and compressed margins. Technicals confirm a persistent downtrend with the price below all major moving averages and negative MACD. The negative P/E ratio and lack of dividend yield offer no valuation support. The business faces substantial operational and financial headwinds requiring immediate intervention.

Positive Factors
Multi-year revenue expansionThe substantial revenue expansion achieved from 2021 through 2025 indicates that FOS previously demonstrated an ability to grow its portfolio and operating businesses. That historical scaling provides a foundation for recovery if management can restore demand and improve performance across its holdings.
Negative Factors
Revenue contraction and lossesThe 2026 reversal from growth to lower revenue and losses is a material deterioration in the earnings base. Continued weakness would reduce resources available for portfolio investment, weaken returns on capital, and make future growth more dependent on recovery rather than ongoing operating momentum.

FOS Capital Ltd (FOS) vs. iShares MSCI Australia ETF (EWA)

-80%-60%-40%-20%0%20%AU:FOS-55.56%EWA+13.51%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
AUD 10.07M
Dividend Yield
―
Average Volume (3M)
91.71K
Price to Earnings (P/E)
-3.2
Beta (1Y)
0.48
Revenue Growth
-12.06%
EPS Growth
-318.02%
Country
Australia
Employees
75
Sector
Industrials
Sector Strength
63
Industry
Electrical Equipment & Parts

FOS Capital Ltd Business Overview & Revenue Model

Company Description

FOS Capital Limited, operating through its subsidiaries, is a manufacturer and distributor of diverse lighting solutions across Australia and New Zealand. These offerings include commercial luminaires, outdoor fittings, linear extruded lighting, and...

FOS Capital Ltd Financial Statement Overview

Summary

Financial performance is critically weak. The company swung to a net loss in FY2026 with negative operating and free cash flow, indicating a cash-burning, loss-making operation. Revenue declined 5.9% and gross margins compressed sharply from 44.2% to 34.1%. The balance sheet shows deteriorating returns (ROE -23.1%) and growing debt reliance, though leverage is not yet extreme. Overall, the financial health has severely deteriorated.

Income Statement

35Negative

Balance Sheet

45Neutral

Cash Flow

20Very Negative
Financial statement breakdown
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue22.42M22.42M25.49M24.53M17.12M13.51M
Gross Profit7.65M7.65M11.28M9.15M5.79M5.72M
EBITDA897.05K897.05K3.44M2.46M1.58M1.29M
Net Income-2.57M-2.57M932.65K632.16K583.94K348.94K
Balance Sheet
Total Assets22.01M22.01M25.67M21.78M13.62M11.79M
Cash, Cash Equivalents and Short-Term Investments976.91K976.91K2.50M1.68M1.41M1.89M
Total Debt5.73M5.73M6.72M5.20M1.09M1.46M
Total Liabilities10.90M10.90M11.55M11.87M4.34M4.25M
Stockholders Equity11.11M11.11M14.12M9.91M9.29M7.54M
Cash Flow
Free Cash Flow-144.79K-144.79K2.29M949.96K-347.76K609.17K
Operating Cash Flow-105.62K-105.62K2.30M1.01M-115.56K704.63K
Investing Cash Flow210.83K210.83K-4.32M-2.33M-830.45K-849.76K
Financing Cash Flow-1.45M-1.45M2.81M1.59M441.96K-831.95K

FOS Capital Ltd Technical Analysis

Technical Analysis SentimentNegative
Last Price0.12

Price Trends

50DMA0.12Negative
100DMA0.13Negative
200DMA0.14Negative

Market Momentum

MACD-0.00Negative
RSI48.05Neutral
STOCH40.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FOS, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:FOS.

FOS Capital Ltd Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

AU:FOS against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
AU:LISAU:LIS41NeutralAUD 92.83M-18.83-14.96%――23.76%
AU:CMGAU:CMG40UnderperformAUD 8.40M-1.61-85.01%――-9.35%
AU:FOSAU:FOS39UnderperformAUD 10.07M-3.20-21.18%―-12.06%-318.02%
AU:CMXAU:CMX34UnderperformAUD 3.35M-4.0676.30%――99.03%
AU:NVXAU:NVX26UnderperformAUD 82.83M-0.42-63.44%―-53.32%-5.22%

* Industrials Sector Average

Performance Comparison

-75%-50%-25%0%AU:FOSAU:NVXAU:CMXAU:LISAU:CMGDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
AU:FOS and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
AU:FOSFOS Capital Ltd0.12-0.16-57.14%
AU:NVXNOVONIX Ltd0.08-0.48-85.31%
AU:CMXChemX Materials Limited0.030.000.00%
AU:LISLi-S Energy Ltd0.14-0.02-9.38%
AU:CMGCritical Minerals Group Ltd.0.06-0.11-63.53%

FOS Capital Ltd Corporate Events

FOS Capital Highlights Investor Outreach at Microcap Conference

Oct 19, 2026

FOS Capital Limited, an Australian lighting company, focuses on commercial and architectural solutions and maintains an active presence in capital markets. Its management regularly engages with microcap investors to enhance awareness of the company&#...

FOS Capital’s ATS Wins Place on MAV Street Lighting Panel

Oct 19, 2026

FOS Capital’s Aldridge Traffic Systems subsidiary has been appointed to the Municipal Association of Victoria Panel for the provision of street lighting and hardware for an initial five-year term. The appointment covers supply of street lightin...

FOS Capital Posts Strong 1Q27 Growth and Bolsters Pipeline With New Projects

Oct 13, 2026

FOS Capital Limited reported a strong first quarter of FY27, with unaudited sales rising 64% year on year to $7.25 million and EBITDA improving sharply from the prior comparable period, driven by better sales activity and a leaner cost base. The orde...

FOS Capital Raises Equity to Fund Growth Initiatives

Oct 7, 2026

FOS Capital Ltd has issued 12,916,672 new fully paid ordinary shares via a placement to sophisticated investors in September and a further 2,306,799 shares in October through a Share Purchase Plan and placement of SPP shortfall shares. The capital ra...

FOS Capital Seeks ASX Quotation for 2.3 Million New Shares

Oct 7, 2026

FOS Capital Ltd has applied for quotation on the ASX of 2,306,799 ordinary fully paid shares, with an issue date of October 8, 2026. The application, lodged as a new announcement under the ASX Listing Rules, reflects a formal step to have these previ...

FOS Capital raises $1.83m to fund lighting and traffic system growth

Oct 5, 2026

FOS Capital Limited has completed its Share Purchase Plan and associated shortfall placement, adding to a recently closed institutional placement to raise a total of about $1.83 million in new capital. The company also plans to raise a further $310,0...

FOS Capital Moves to Close Share Purchase Plan and Fund Growth Initiatives

Sep 27, 2026

FOS Capital Limited has reminded eligible shareholders that its Share Purchase Plan, offering new shares at $0.12 each in line with its recent placement, is scheduled to close at 5:00pm Melbourne time on 2 October 2026. The company has distributed an...

FOS Capital Corrects Auditor Details in 2026 AGM Notice

Sep 22, 2026

FOS Capital Limited has issued a correction to its 2026 Notice of Annual General Meeting, clarifying that Stannards Audit Pty Ltd is the proposed new auditor to be appointed under Resolution 3, subject to Australian Securities and Investments Commiss...

FOS Capital Sets 2026 AGM to Vote on Board, Pay and Capital Raising Resolutions

Sep 22, 2026

FOS Capital Limited has issued its notice of meeting for the 2026 Annual General Meeting, to be held on 28 October 2026 in South Yarra, Victoria. The AGM materials outline procedural details for registration, voting and proxy lodgement, with sharehol...

FOS Capital Seeks ASX Quotation for 12.9 Million New Shares

Sep 16, 2026

FOS Capital Ltd has lodged an application with the ASX for quotation of 12,916,672 ordinary fully paid shares, with an issue date of September 17, 2026. The securities to be quoted stem from previously announced transactions, signaling a material inc...

FOS Capital Launches Share Purchase Plan for Existing Investors

Sep 9, 2026

FOS Capital Limited has released a Share Purchase Plan booklet outlining the terms under which eligible shareholders in Australia and New Zealand can subscribe for new shares. The document details key dates, eligibility criteria, pricing mechanics, a...

FOS Capital Corrects Share Issue Date in Securities Purchase Plan Update

Sep 9, 2026

FOS Capital Ltd, listed on the Australian Securities Exchange under the code FOS, operates as a public company undertaking regulated securities issuance and capital-raising activities. It follows ASX Listing Rules to manage offers of new shares to in...

FOS Capital Plans ASX-Quoted Share Placement to Boost Equity Base

Sep 9, 2026

FOS Capital Ltd has notified the ASX of a proposed placement of up to 12,916,667 ordinary fully paid shares, with a planned issue date of September 17, 2026. The company has applied for quotation of the new securities, signalling an intention to expa...

FOS Capital Launches Securities Purchase Plan to Issue New Shares

Sep 9, 2026

FOS Capital Ltd has announced a proposed issue of ordinary fully paid shares under a securities purchase plan. The company has applied to the ASX for the quotation of the new securities in accordance with listing requirements.The plan contemplates is...

FOS Capital Plans New Share Placement on ASX

Sep 9, 2026

FOS Capital Ltd, an ASX-listed company trading under the code FOS, is a public issuer of ordinary fully paid shares on the Australian Securities Exchange. As a regulated participant in Australia’s capital markets, it follows ASX Listing Rules t...

FOS Capital raises $1.86m via placement and launches SPP to fund growth

Sep 9, 2026

FOS Capital Limited has secured firm commitments for a $1.86 million share placement to institutional and sophisticated investors at $0.12 per share, a discount to its recent trading levels. Directors will also participate, subject to shareholder app...

FOS Capital Seeks Trading Halt Ahead of Planned Capital Raising

Sep 6, 2026

FOS Capital Ltd has requested a trading halt in its ordinary shares on the Australian Securities Exchange, effective from 7 September 2026, pending the release of an announcement. The halt is expected to last until either the company provides details...

FOS Capital Signals Profit Recovery on Strong Q1 and Infrastructure Pipeline

Sep 2, 2026

FOS Capital Limited has reported an expected Q1 FY27 revenue of $7.2 million and EBITDA of $0.5 million, which would mark the second strongest quarterly sales result in its history and signal a return to profitability. The performance is driven by a...

FOS Capital Files Updated ASX Corporate Governance Disclosures

Aug 25, 2026

FOS Capital Limited has confirmed that its corporate governance statement for the year ended 30 June 2026 is current and approved by the board, and is accessible on its website in accordance with ASX Listing Rule requirements. The company has lodged...

FOS Capital Publishes 2026 Annual Report

Aug 25, 2026

FOS Capital Ltd has released its 2026 Annual Report, providing shareholders with a comprehensive overview of the company’s financial performance and position. The report includes the directors’ report, consolidated financial statements, n...

FOS Capital Swings to Loss as Revenue Falls and Dividends Halted

Aug 25, 2026

FOS Capital Limited reported weaker fundamentals for the year to 30 June 2026, with net tangible asset backing per share falling to 5.8 cents from 9.1 cents, while the share count rose to 68.7 million and the group structure remained unchanged, with...

FOS Capital Updates Auditor as It Pursues Growth in Fragmented Lighting Market

Aug 5, 2026

FOS Capital Limited, a founder-led Australian manufacturer and distributor of commercial, industrial and architectural lighting solutions, owns 17 brands and operates two manufacturing facilities in Brisbane and Sydney. Since listing in June 2021, th...

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: Oct 21, 2026