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Imdex Ltd
(Sydney:IMD)
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Rating:65Neutral
Price Target:
AU$3.50
â–¼(-0.28% Downside)
Action:Downgraded
Date:08/18/26
The score is primarily supported by solid financial performance (strong growth, improving profitability, and consistently positive free cash flow) and a constructive earnings call with positive FY'27 momentum and clear growth drivers. This is meaningfully offset by weak technical positioning (trading below major moving averages) and a demanding valuation (high P/E with a low dividend yield), with increased leverage adding risk.
Positive Factors
Sustained Revenue Growth
Record revenue growth across regions indicates broad customer demand and improving market penetration rather than reliance on one geography. A larger revenue base can support continued investment in products, services and software while strengthening operating leverage over the next several quarters.
Negative Factors
Higher Leverage and Financing Costs
Acquisition-funded debt has increased the company's fixed financial burden and is expected to raise financing costs. Higher interest and depreciation expense can constrain earnings conversion and reduce flexibility if operating conditions weaken or further investment requirements rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Record revenue growth across regions indicates broad customer demand and improving market penetration rather than reliance on one geography. A larger revenue base can support continued investment in products, services and software while strengthening operating leverage over the next several quarters.
Read all positive factors
Imdex Ltd (IMD) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.73B
Dividend Yield1.04%
Average Volume (3M)1.37M
Price to Earnings (P/E)21.5
Beta (1Y)1.39
Revenue Growth20.56%
EPS Growth43.97%
CountryAU
Employees1,057
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.15
Shares Outstanding520,282,840
10 Day Avg. Volume1,323,916
30 Day Avg. Volume1,373,230
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)3.07
Price to Sales (P/S)4.04
P/FCF Ratio30.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.43Price Target Upside26.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.14
Revenue Forecast (FY)AU$617.93M
Imdex Ltd Business Overview & Revenue Model
Company Description
Imdex Limited, an Australian company founded in 1980 (initially as Pilbara Gold NL, renamed in 1985), delivers advanced drilling optimization products and specialized sensors to the global minerals industry. With operations spanning the Asia-Pacif...
How the Company Makes Money
Imdex makes money by selling and supporting a portfolio of mining-technology and consumable products and related services to mining companies and drilling contractors, primarily linked to drilling and orebody knowledge activities. Key revenue stre...
Imdex Ltd Earnings Call Summary
Earnings Call Date:Aug 16, 2026
(Q4-2026)
| Next Earnings Date:Feb 16, 2027
Earnings Call Sentiment Positive
The call was strongly positive: IMDEX reported record revenue and earnings, margin expansion, excellent cash conversion (83%), meaningful platform transformation (platform revenue now 47% of group), rapid DEK growth (+85% YoY), and clear progress integrating five acquisitions that add ~$51m annualized revenue. Challenges noted were manageable in context — higher debt and near‑term financing/D&A guidance from acquisition funding, integration costs continuing into FY '27, and cost/FX headwinds and timing lags in customer spend. Management emphasized continued investment to drive longer‑term margin accretion and multiple growth levers (market share, share of wallet, platform adoption), and early FY '27 trading (June/July record months) supported momentum.Positive Updates
Record Revenue
Revenue increased 21% year‑on‑year to $520 million, a record for FY '26, driven by broad-based growth across all regions and both exploration activity and market share gains.
Negative Updates
Higher Net Debt and Increased Financing Costs
Net debt rose to $199 million following acquisition activity; management signaled higher financing costs and guided higher depreciation & amortization and net interest in FY '27 (noted ~ $15 million higher vs consensus), reflecting increased borrowings and potential small rate rise.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue
Revenue increased 21% year‑on‑year to $520 million, a record for FY '26, driven by broad-based growth across all regions and both exploration activity and market share gains.
Read all positive updates
Company Guidance
Management guided that FY'27 will build on a strong FY'26 base (revenue $520m, +21%; EBITDA normalized $163m, +29%; NPAT normalized $59m; NPATA $70m; EPS $0.115; cash conversion 83%; net debt $199m; leverage 1.3x; platform revenue 47% of group), flagging a strong start to FY'27 with record months in June and July and the full‑year benefit of five FY'26 acquisitions (partial‑year contribution $17m, ~ $51m annualized). They said FY'27 will be a year of investment — continued R&D (FY'26 R&D $43m; target circa 10% of revenue), higher capex to grow the connected fleet (FY'26 capex $69m), and integration of the acquired DEK businesses — and updated capital settings (dividend policy 25–35% of NPATA normalized). Guidance included higher depreciation/amortization and financing costs than consensus, which management attributed to the prior year capital profile, higher borrowings and an assumed small potential rate rise, and they reiterated a normalized effective tax rate of ~32%. Management also reminded investors of FX sensitivity (~$2.5–3.0m P&L impact per 1% USD move, ~50% flowing to EBITDA) and reiterated that margin expansion remains a medium‑term priority even as FY'27 will absorb integration and investment spend.Imdex Ltd Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 520.09M | 431.39M | 445.28M | 411.40M | 341.84M |
| Gross Profit | 158.15M | 312.44M | 139.67M | 136.89M | 234.54M |
| EBITDA | 148.49M | 129.19M | 113.06M | 99.83M | 100.40M |
| Net Income | 79.44M | 55.19M | 32.40M | 34.99M | 44.71M |
Balance Sheet | |||||
| Total Assets | 1.13B | 830.15M | 786.14M | 806.14M | 393.61M |
| Cash, Cash Equivalents and Short-Term Investments | 40.77M | 42.51M | 47.13M | 58.13M | 36.37M |
| Total Debt | 284.47M | 100.31M | 127.65M | 161.35M | 46.82M |
| Total Liabilities | 448.12M | 200.79M | 214.87M | 249.94M | 96.38M |
| Stockholders Equity | 683.93M | 629.36M | 571.28M | 556.21M | 297.23M |
Cash Flow | |||||
| Free Cash Flow | 69.91M | 66.11M | 74.54M | 55.35M | 18.05M |
| Operating Cash Flow | 126.01M | 123.50M | 108.05M | 82.51M | 55.72M |
| Investing Cash Flow | -250.02M | -64.00M | -35.90M | -346.13M | -53.04M |
| Financing Cash Flow | 123.99M | -64.70M | -79.39M | 285.86M | -24.72M |
Imdex Ltd Technical Analysis
Negative
3.51
Price Trends
3.52
Negative
3.73
Negative
3.80
Negative
Market Momentum
-0.03
Negative
48.23
Neutral
59.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IMD, the sentiment is Negative. The current price of 3.51 is above the 20-day moving average (MA) of 3.33, below the 50-day MA of 3.52, and below the 200-day MA of 3.80, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 59.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IMD.
Imdex Ltd Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$660.71M | 8.76 | 9.91% | 4.00% | 0.95% | 1.92% | |
71 Outperform | AU$3.11B | 24.40 | 22.77% | 3.49% | 29.43% | 50.05% | |
67 Neutral | AU$3.53B | 22.71 | 23.03% | 3.01% | 31.39% | 451.49% | |
65 Neutral | AU$1.73B | 21.53 | 11.89% | 1.04% | 20.56% | 43.97% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$10.47B | 32.60 | 18.86% | 2.06% | 10.69% | 19.77% | |
59 Neutral | AU$4.52B | 20.98 | 11.01% | 4.21% | -7.37% | 59.81% |
* Industrials Sector Average
AU:IMD
Imdex Ltd
3.32
-0.25
-6.90%
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Imdex Ltd Corporate Events
Imdex Cuts Potential Dilution as Performance Rights Lapse
Oct 12, 2026
Imdex Limited has notified the market of the cessation of 130,333 performance rights, recorded under ASX security code IMDAC. The rights lapsed after the company confirmed that the conditions attached to these securities were not satisfied or had ...
Imdex Issues New Unquoted Performance Rights Under Employee Incentive Plan
Sep 30, 2026
Imdex Limited has notified the market of the issue of 1,832,960 unquoted performance rights under its employee incentive scheme, effective September 30, 2026. These securities, identified as performance rights and not intended to be quoted on the ...
Imdex Sets Date and Releases Materials for 2026 Annual General Meeting
Sep 15, 2026
Imdex Ltd has advised shareholders it will hold its 2026 Annual General Meeting in Perth on 16 October, with the formal notice of meeting, shareholder letter and proxy form now released. The announcement, approved by the board, signals the start o...
Imdex boosts CEO equity stake under employee rights plan
Aug 21, 2026
Imdex Limited has issued new ordinary shares to its CEO and managing director, Paul House, under its shareholder-approved Employee Rights Plan. The issuance, effective 21 August 2026, reflects the company’s ongoing use of equity-based incent...
IMDEX Issues New Employee Plan Shares and Confirms Full Compliance
Aug 20, 2026
IMDEX Limited has issued a total of 8,441,039 new shares following the vesting and conversion of performance rights granted under its Employee Rights Plan, with all applicable vesting conditions satisfied. The issuance reflects the company’s...
Imdex Reports Lapse of 1.84 Million Performance Rights
Aug 19, 2026
Imdex Ltd has announced the cessation of 1,840,797 performance rights under the ASX code IMDAC, which have lapsed because the conditions attached to these rights were not met or can no longer be satisfied. The lapse reduces the company’s poo...
Imdex Seeks ASX Quotation for 2.7 Million New Shares
Aug 19, 2026
Imdex Ltd has lodged an application with the ASX for quotation of 2,722,621 ordinary fully paid shares. The new securities, issued on August 20, 2026, will expand the company’s tradable share base.The issuance follows the exercise or convers...
Imdex Delivers Record FY26 Results on Tech-Led Growth and Market Share Gains
Aug 17, 2026
Imdex reported its strongest financial year on record in FY26, with revenue rising 21% to $520 million and broad-based growth driven by both higher exploration activity and market share gains, particularly in next-generation and productivity-enhan...
Imdex Details FY26 Sustainability Strategy and Targets
Aug 16, 2026
Imdex has released its FY26 Sustainability Report outlining a comprehensive approach to environmental, social and governance performance across its global mining technology operations. The report frames sustainability as central to product leaders...
Imdex Marks Strongest Financial Year Amid Sector Uncertainties
Aug 16, 2026
Imdex Ltd operates in the mining technical services industry, supplying drilling productivity tools, data and analytics solutions, and related services that support mineral exploration and resource development globally. The company focuses on enab...
Imdex Posts Record FY26 Results as Digital Platform Strategy Drives Growth
Aug 16, 2026
Imdex reported record full-year 2026 results, with revenue rising 21% to $520 million and normalised EBITDA up 29% to $163 million, supported by strong cash generation and margin expansion. Earnings growth outpaced revenue, highlighting operating ...
Imdex Declares AUD 0.0175 Dividend for FY26 Period
Aug 16, 2026
Imdex Limited has announced a new dividend for holders of its ordinary fully paid shares, declaring a distribution of AUD 0.0175 per share for the twelve-month period ended 30 June 2026. The dividend will trade ex on 16 September, with a record da...
Imdex Lodges 2026 Corporate Governance Statement with ASX
Aug 16, 2026
Imdex Ltd has lodged its Appendix 4G and Corporate Governance Statement for the financial year ended 30 June 2026 with the ASX. The documents, approved by the Board and signed by the company secretary, detail where investors can access Imdex’...
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.