WestStar Industrial Ltd. (WSI) AI Stock Analysis

• Market Cap: AU$8.50M
• Dividend Yield: N/A
• Average Volume (3M): 19.61K
• Price to Earnings (P/E): 3.2
• Beta (1Y): -0.02
• Revenue Growth: -30.52%
• EPS Growth: -192.05%
• Country: AU
• Employees: 650
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 128,765,240
• 10 Day Avg. Volume: 20,233
• 30 Day Avg. Volume: 19,605
• PEG Ratio: 0.06
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.25
• 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: 50 Neutral
• Price Target: ―

WestStar Industrial Ltd.'s overall stock score of 50.4 reflects its mixed financial performance, bearish technical trends, and unattractive valuation. Strengths in its balance sheet are offset by revenue decline and cash flow issues. Technical indicators point to a bearish sentiment, while valuation metrics highlight potential risks due to negative earnings. The lack of earnings call and corporate events data limits further insights.

WestStar Industrial Ltd. Business Overview & Revenue Model

Company Description

WestStar Industrial Limited, an industrial services company, provides engineering, construction, and mining services to resource, energy, and infrastructure sectors in Australia. The company operates through SIMPEC and Alltype segments. Its services include structural mechanical piping, and electrical and instrumentation; precast concrete and structural steel supply and installation; and asset management services. The company also provides construction contracting, fabrication, and mineral exploration services. WestStar Industrial Limited was incorporated in 2006 and is based in Naval Base, Australia.

How the Company Makes Money

WestStar Industrial Ltd. generates revenue primarily through service contracts and project engagements with companies in the mining, oil and gas, and infrastructure sectors. The company earns money by offering engineering and construction services, which are billed based on project scope and duration. Maintenance services provide additional revenue through ongoing contracts, ensuring steady income streams. The company may also form strategic partnerships or joint ventures to enhance its service offerings and reach, thereby expanding its client base and increasing its revenue opportunities. Additionally, the company may leverage its project management expertise to oversee large-scale projects, further contributing to its earnings.

WestStar Industrial Ltd. Financial Statement Overview

Summary

WestStar Industrial Ltd. has a mixed financial performance with a strong balance sheet, evidenced by low financial leverage and solid equity growth. However, challenges in revenue decline and negative cash flow offset these strengths. Profitability margins have improved, yet the negative free cash flow poses a risk to sustainable growth.

Income Statement

WestStar Industrial Ltd. has shown a mixed performance in its income statement. The gross profit margin has improved slightly from previous years, indicating efficient cost management. However, the company experienced a significant decline in revenue, dropping from 304.28M in 2023 to 205.60M in 2024, resulting in a negative revenue growth rate. Despite this, net profit margin improved, driven by better net income management, increasing from 1.73% in 2023 to 1.60% in 2024. The EBIT and EBITDA margins have remained relatively stable, reflecting consistent operational performance.

Balance Sheet

The balance sheet of WestStar Industrial Ltd. reflects a strong equity position with a debt-to-equity ratio of 0.12, indicating low financial leverage and a healthy financial structure. Stockholder's equity increased over the period, suggesting a solid foundation for future growth. The equity ratio of 40.92% highlights a robust asset base funded by equity, minimizing financial risk. However, the return on equity decreased compared to previous years, which may indicate less efficient use of equity capital in generating profits.

Cash Flow

Cash flow analysis reveals some concerns for WestStar Industrial Ltd. The free cash flow is negative, although it improved from the previous year, indicating challenges in generating cash through operations after capital expenditures. The operating cash flow to net income ratio improved but remains low, suggesting difficulties in converting net income into cash. Free cash flow to net income ratio remains negative, which could impact future investments and liquidity.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
172.95M	205.60M	304.28M	181.80M	71.76M	62.47M
	Gross Profit
13.80M	24.63M	16.82M	18.19M	8.84M	10.66M
	EBIT
-377.28K	2.72M	2.31M	5.64M	-1.69M	3.62M
	EBITDA
2.11M	7.72M	5.85M	8.58M	2.68M	4.33M
	Net Income Common Stockholders
-966.80K	3.29M	1.76M	4.31M	837.48K	3.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.83M	13.68M	16.95M	22.42M	15.35M	6.64M
	Total Assets
69.69M	73.27M	79.06M	63.06M	46.90M	37.24M
	Total Debt
5.65M	3.65M	1.93M	2.63M	3.86M	3.15M
	Net Debt
-11.18M	-10.03M	-15.01M	-19.79M	-11.49M	-3.49M
	Total Liabilities
41.12M	43.28M	53.47M	39.41M	32.06M	23.96M
	Stockholders Equity
28.57M	29.98M	25.59M	23.65M	14.83M	13.28M
Cash Flow		Free Cash Flow
-6.20M	-327.96K	-6.26M	5.36M	9.88M	-4.16M
	Operating Cash Flow
-5.57M	510.53K	-5.23M	6.99M	10.14M	-4.03M
	Investing Cash Flow
1.16M	-2.04M	1.04M	-3.41M	-3.07M	742.04K
	Financing Cash Flow
85.00K	-911.90K	0.00	3.58M	-562.66K	-140.85K

WestStar Industrial Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WSI, the sentiment is Neutral. The current price of 0.07 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 79.85 is Negative, neither overbought nor oversold. The STOCH value of 97.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:WSI.

WestStar Industrial Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$4.46B	12.23	5.23%	249.78%	4.08%	-12.31%
WSI	50 Neutral	AU$8.50M	3.21	-3.31%	―	-30.52%	-192.05%
AUSTF		$151.40M	9.43	19.99%	―	―	―
8MP		€969.03M	20.75	15.97%	4.17%	―	―
3NR		€724.94M	10.59	18.01%	5.98%	―	―
SRG	69 Neutral	AU$899.90M	21.41	11.36%	3.40%	25.40%	41.18%
RCR	42 Neutral	AU$3.80M	―	-14.99%	―	―	60.71%

WestStar Industrial Ltd. Corporate Events

WestStar Industrial Director Increases Shareholding

WestStar Industrial Limited has announced a change in the director’s interest, specifically regarding Mr. Philip Re. The company disclosed that Mr. Re acquired a total of 248,996 fully paid ordinary shares through on-market trades, increasing his holdings to 594,251 shares. This change in director’s interest reflects a significant increase in Mr. Re’s stake in the company, potentially indicating confidence in the company’s future performance.

WestStar Industrial Ltd. Releases Half-Yearly Financial Report

WestStar Industrial Ltd. has released its half-yearly report for the period ending December 31, 2024. The report outlines the company’s financial performance, including consolidated statements of profit or loss, financial position, cash flows, and changes in equity. This release provides stakeholders with insights into the company’s operational and financial health, which could influence its market positioning and strategic decisions moving forward.

WestStar Industrial Reports Significant Half-Year Loss

WestStar Industrial Limited reported a significant decline in financial performance for the half-year ending December 31, 2024. Revenues fell by 29.7% to $77.38 million, and the company recorded a loss of $1.36 million, a stark contrast to the previous year’s profit of $2.9 million. This downturn highlights challenges the company faces in maintaining its market position and financial health, with no dividends declared for the period.