tiprankstipranks
Salter Brothers Emerging Companies Ltd. (AU:SB2)
ASX:SB2
Australian Market
Want to see AU:SB2 full AI Analyst Report?

Salter Brothers Emerging Companies Ltd. (SB2) AI Stock Analysis

1 Followers

Top Page

AU:SB2

Salter Brothers Emerging Companies Ltd.

(Sydney:SB2)

Select Model
Select Model
Select Model
Neutral 58 (OpenAI - Gpt-5.6Sol)
Rating:58Neutral
Price Target:
AU$0.61
â–¼(-1.94% Downside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by mixed financial performance: a very strong, debt-free balance sheet and positive FY2026 cash flow are offset by a sharp swing to a large loss and highly negative operating margins. Technicals add caution given weak momentum and price below major moving averages. Valuation is supported by a high dividend yield, but the negative P/E reflects loss-making results and limits the valuation uplift.
Positive Factors
Debt-free balance sheet
A debt-free structure materially reduces solvency and refinancing risk while preserving financial flexibility. The large equity base relative to assets gives SB2 capacity to absorb portfolio volatility and continue managing investments without the pressure of significant creditor obligations.
Negative Factors
Sharp swing to loss
The move from profitability in FY2024 and FY2025 to a substantial FY2026 loss shows that earnings are highly sensitive to portfolio outcomes and cost or investment swings. Such instability makes recurring shareholder returns less predictable over the next several reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free structure materially reduces solvency and refinancing risk while preserving financial flexibility. The large equity base relative to assets gives SB2 capacity to absorb portfolio volatility and continue managing investments without the pressure of significant creditor obligations.
Read all positive factors

Salter Brothers Emerging Companies Ltd. (SB2) vs. iShares MSCI Australia ETF (EWA)

Salter Brothers Emerging Companies Ltd. Business Overview & Revenue Model

Company Description
Salter Brothers Emerging Companies Limited operates as an investment firm, strategically building a portfolio of opportunities with a strong emphasis on Australian publicly traded and private market assets. This entity was established in 2020 and ...
How the Company Makes Money
SB2’s primary economic engine is investment returns generated from its portfolio. It seeks to make money (and ultimately deliver shareholder returns) through: (1) Capital gains: increases in the market value of its equity and other investments; ga...

Salter Brothers Emerging Companies Ltd. Financial Statement Overview

Summary
Strong solvency supports the score (zero debt and a large equity base), and FY2026 operating/free cash flow was positive (5.27M). However, earnings quality is the main drag: FY2026 swung to a large net loss (-7.89M) with very weak operating profitability (EBIT margin -320%) despite revenue rebounding, indicating unstable profitability.
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
66
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2023Jun 2022
Income Statement
Total Revenue2.00M3.63M6.96M8.00M-2.92M-8.27M
Gross Profit1.31M2.37M6.96M8.00M-2.92M-8.27M
EBITDA7.96M-11.61M4.26M5.85M-3.08M-13.15M
Net Income-1.62M-7.89M3.15M4.22M-1.82M-8.19M
Balance Sheet
Total Assets92.00M76.68M87.70M89.68M86.38M90.99M
Cash, Cash Equivalents and Short-Term Investments1.52M3.49M84.72M85.65M80.92M86.83M
Total Debt0.000.000.000.000.000.00
Total Liabilities1.98M1.96M927.00K438.00K270.00K1.72M
Stockholders Equity90.02M74.72M86.78M89.24M86.11M89.27M
Cash Flow
Free Cash Flow4.66M5.27M6.08M-2.69M-437.00K5.04M
Operating Cash Flow4.66M5.27M6.08M-2.69M-437.00K5.04M
Investing Cash Flow0.000.000.000.000.000.00
Financing Cash Flow-4.77M-4.16M-5.61M-1.09M-1.33M0.00

Salter Brothers Emerging Companies Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.62
Price Trends
50DMA
0.59
Negative
100DMA
0.59
Negative
200DMA
0.64
Negative
Market Momentum
MACD
<0.01
Positive
RSI
42.27
Neutral
STOCH
11.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SB2, the sentiment is Negative. The current price of 0.62 is above the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.59, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SB2.

Salter Brothers Emerging Companies Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
AU$140.26M115.501.05%6.71%-35.12%-90.81%
71
Outperform
AU$43.69M11.818.04%1.44%338.56%418.74%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
59
Neutral
AU$379.81M-2,675.18-0.04%7.89%-95.35%-99.87%
58
Neutral
AU$49.19M-6.33-9.58%6.63%-42.55%-396.54%
51
Neutral
AU$12.21M-1.43-38.24%8.41%-14.03%-1062.94%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SB2
Salter Brothers Emerging Companies Ltd.
0.59
-0.10
-14.97%
AU:GC1
Glennon Small Companies Ltd
0.42
-0.07
-14.96%
AU:ECP
ECP Emerging Growth Ltd.
0.66
-0.53
-44.63%
AU:WMI
WAM Microcap Ltd.
1.35
-0.16
-10.77%
AU:SEC
Spheria Emerging Cos. Ltd.
2.34
-0.14
-5.65%
AU:KAT
Katana Capital Ltd.
1.39
0.11
9.06%

Salter Brothers Emerging Companies Ltd. Corporate Events

Salter Brothers Emerging Companies Details Governance Compliance in ASX Appendix 4G Filing
Aug 31, 2026
Salter Brothers Emerging Companies Ltd. has lodged its Appendix 4G and confirmed that its corporate governance statement for the year ended 30 June 2026 is included in its annual report, current as at 31 August 2026 and approved by the board. The ...
Salter Brothers Emerging Companies Swings to Loss but Maintains Dividend Payouts
Aug 31, 2026
Salter Brothers Emerging Companies Limited reported a sharp swing to a net loss after tax of $7.9 million for the year to 30 June 2026, compared with a $3.1 million profit a year earlier, as investment income reversed from a gain to a $9.5 million...
Salter Brothers Emerging Companies narrows July losses as small-cap portfolio outperforms benchmark
Aug 11, 2026
Salter Brothers Emerging Companies reported a post-tax net tangible asset value of $0.879 per share at 31 July 2026, with the portfolio down 1.57% for the month but outperforming the ASX Emerging Companies Index. The fund&#8217;s market capitalisa...
Salter Brothers Emerging Companies Narrows Loss as Portfolio Outperforms Benchmark
Jul 13, 2026
Salter Brothers Emerging Companies Ltd reported a pre-tax net tangible asset value of $0.815 per share and post-tax NTA of $0.885 as at 30 June 2026, with its shares trading at a significant 34.46% discount to NTA. The portfolio, heavily weighted ...
Director Robert Salter Increases Stake in Salter Brothers Emerging Companies
Jun 19, 2026
Salter Brothers Emerging Companies Limited has disclosed a change in director Robert Salter&#8217;s interests, with his combined direct and indirect holding in the company increasing significantly. Over the period from 15 to 18 June 2026, Salter a...
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 06, 2026