Saferoads Holdings Limited (SRH) AI Stock Analysis

• Market Cap: AU$4.15M
• Dividend Yield: N/A
• Average Volume (3M): 177.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -13.84%
• EPS Growth: 27.42%
• Country: AU
• Employees: 45
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Distribution
• EPS (TTM): -0.04
• Shares Outstanding: 43,705,406
• 10 Day Avg. Volume: 25,165
• 30 Day Avg. Volume: 177,662
• PEG Ratio: -0.02
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ―

Saferoads Holdings Limited's stock evaluation reveals a challenging financial performance with declining revenue and profitability, which significantly impacts its score. Technical analysis shows upward momentum, somewhat offsetting financial weaknesses. Valuation remains a concern due to the negative P/E ratio and lack of dividends. Overall, strategic improvements are essential to enhance financial health and investor appeal.

Saferoads Holdings Limited Business Overview & Revenue Model

Company Description

Saferoads Holdings Limited, together with its subsidiaries, provides road safety products and solutions in Australia, New Zealand, and the United States. The company offers flexible guideposts and signage products; rubber-based traffic calming products, including separation kerb and wheel stops; variable messaging sign boards; permanent and temporary public solar lighting poles; and permanent and temporary crash cushions including bollards and safety barriers. It also rents road safety solutions. The company serves state government departments, local councils, road construction and equipment hire sectors. Saferoads Holdings Limited was founded in 1992 and is headquartered in Pakenham, Australia.

How the Company Makes Money

Saferoads Holdings Limited generates revenue through the sale and rental of its road safety products and solutions. The company offers a variety of products that cater to different aspects of road safety, including speed humps, crash barriers, and electronic signage. Revenue streams include product sales directly to government bodies, contractors, and private enterprises involved in road construction and maintenance. Additionally, Saferoads provides rental services for temporary traffic management solutions, which is a significant component of its revenue model. The company also engages in strategic partnerships and collaborations to expand its market presence and enhance its product offerings, contributing to its overall earnings.

Saferoads Holdings Limited Financial Statement Overview

Summary

Saferoads Holdings Limited faces challenges with declining revenue and profitability, coupled with increased leverage and negative free cash flow. While there are concerns about operational efficiency and financial stability, the company maintains positive operating cash flow, offering some liquidity buffer in the short term.

Income Statement

Saferoads Holdings Limited has experienced declining revenue over the past year, with a significant drop from $14.65M to $12.59M. The company's gross profit margin decreased from 51.34% to 8.69%, indicating potential inefficiencies or increased costs. Net profit margin turned negative, reflecting a net loss situation. The sharp decline in EBIT and EBITDA margins to negative values signals operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which poses a risk. However, the equity ratio remains reasonable at 40.34%, suggesting a moderate level of financial stability. Return on equity has turned negative due to net losses, highlighting profitability issues.

Cash Flow

Operating cash flow has decreased significantly, but it remains positive, providing some liquidity assurance. Free cash flow turned negative, suggesting potential cash constraints. The free cash flow to net income ratio is unfavorable due to the net loss.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
11.72M	12.59M	14.65M	12.35M	13.25M	16.50M
	Gross Profit
3.79M	7.05M	7.52M	6.88M	6.30M	6.28M
	EBIT
127.48K	-1.30M	412.33K	340.25K	576.60K	924.10K
	EBITDA
106.99K	-542.19K	1.61M	1.82M	2.05M	1.92M
	Net Income Common Stockholders
-1.90M	-3.82M	127.59K	64.29K	535.17K	521.03K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	0.00	220.11K	4.22K	745.79K	1.26M
	Total Assets
10.21M	11.75M	15.02M	15.37M	15.98M	14.74M
	Total Debt
1.73M	4.47M	4.74M	5.09M	5.34M	4.46M
	Net Debt
1.73M	4.47M	4.52M	5.09M	4.60M	3.20M
	Total Liabilities
5.49M	7.01M	6.56M	7.03M	7.70M	6.87M
	Stockholders Equity
4.72M	4.74M	8.47M	8.34M	8.27M	7.86M
Cash Flow		Free Cash Flow
790.00K	-240.39K	1.29M	176.93K	-1.27M	1.44M
	Operating Cash Flow
1.05M	691.16K	2.38M	944.43K	1.51M	2.26M
	Investing Cash Flow
188.13K	-446.81K	-973.43K	-582.33K	-1.66M	-326.95K
	Financing Cash Flow
-1.36M	-826.18K	-1.19M	-1.10M	-369.51K	-1.21M

Saferoads Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SRH, the sentiment is Positive. The current price of 0.1 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.10, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 49.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SRH.

Saferoads Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$4.45B	12.17	5.23%	249.78%	4.08%	-12.31%
SRH	58 Neutral	AU$4.15M	―	-34.84%	―	-13.84%	27.42%
BRKWF		$2.69B	―	-1.34%	2.54%	―	―
DNE		€2.35B	50.90	3.35%	3.93%	―	―
JHIUF		$9.90B	23.49	21.09%	―	―	―
TRAUF		$28.34B	547.80	0.68%	4.85%	―	―

Saferoads Holdings Limited Corporate Events

Saferoads Holdings Announces New Dividend Distribution

Saferoads Holdings Limited has announced a new dividend distribution, with a payment of AUD 0.10 per share. The ex-date for this dividend is set for May 9, 2025, with the record date on May 12, 2025, and payment scheduled for May 20, 2025. This announcement reflects the company’s ongoing financial strategies and could influence investor sentiment positively, reinforcing its market position and commitment to shareholder returns.

Saferoads Holdings Limited Reports Profit and Strategic Shift

Saferoads Holdings Limited reported an unaudited profit of approximately $103k for the quarter ending March 31, 2025, with a year-to-date profit of $84k. The company’s revenue remained stable at $2.84 million, attributed to cost reduction strategies, particularly in staff costs. During the quarter, Saferoads finalized an Asset Sale Agreement and a Product Supply Agreement with Onsite Rentals Group, aiming to focus on expanding its product sales business. The sale will enable the company to repay all bank debts and asset finance contracts, with the settlement expected soon.

Saferoads Holdings Gains Shareholder Approval for Business Sale

Saferoads Holdings Limited announced the successful shareholder approval for the sale of its Road Safety Rentals business during an Extraordinary General Meeting. This decision, supported by a significant majority of votes, marks a strategic move for the company, potentially impacting its operational focus and market positioning by divesting a part of its business.

Saferoads Holdings to Sell Road Safety Rental Business for $10.8 Million

Saferoads Holdings Limited has announced the sale of its Road Safety Rental business to Onsite Rentals Group for $10.8 million, pending shareholder approval and other conditions. The transaction, expected to complete on May 1, 2025, will result in a profit of approximately $4.6 million and a significant reduction in overheads, allowing Saferoads to focus on its core product manufacturing and sales business. The company plans to pay a 10-cent per share dividend to shareholders and will use the remaining cash to bolster working capital and fulfill a $3 million product order from Onsite.

Saferoads Holdings Signs $10.8M Asset Sale Agreement with Onsite Rental

Saferoads Holdings Limited has entered into a conditional agreement to sell its Road Safety Rental business assets for $10.8 million and a $3 million Product Supply Agreement with Onsite Rental Group. The completion of these agreements is contingent upon shareholder approval and the transfer of key personnel and contracts. This strategic move is expected to be finalized by May 1, 2025, and could significantly impact Saferoads’ operational focus and market positioning.

Saferoads Holdings Limited Reports Reduced Losses and Strategic Asset Sale Negotiations

Saferoads Holdings Limited reported a significant reduction in losses for the half-year ending December 2024, with a loss of $19,434 compared to $533,602 in the previous period. This improvement is attributed to substantial cost reductions amidst a challenging trading environment. The company generated $1,039,064 in cash from operations, aiding in debt reduction. Despite a competitive market impacting sales and rentals, the company successfully finalized a T-lok connection system for permanent barrier applications, approved for use on new highways in Victoria. Strategically, Saferoads is negotiating the sale of its road safety rentals business assets, with extended banking facilities until May 2025 to facilitate this potential transaction.