- ALS Limited provides analytical measurement, testing and inspection services globally.
- The company’s two operating segments include customers from a wide range of business sectors.
- The share price is down year to date due to a mining slowdown.
ALS Limited has been in business since 1863 and trading on the ASX since 1952.
The company’s commodities division serves the mining sector with a range of sophisticated technical services.
The Life Sciences division includes recession-resistant companies in food and pharmaceuticals along with a growing number of customers using the company’s environmental services expertise.
The company’s financial performance weathered the COVID-19 pandemic, with profit growth throughout and a revenue dip in FY 2021.
By FY 2023, the company’s net profit had more than doubled from pre-pandemic levels.
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ALS Limited Financial Revenue
Source: ASX
The FY 2023 results were positive across the board, with revenues up 19.5% and underlying net profit after tax (NPAT) up 23.4%. The company made multiple revenue-generating acquisitions during the year and maintained a positive outlook for FY 2024. However, the report failed to produce an uptick in the stock price.
Over 10 years, the share price is up 64%, whilst year to date, the price has fallen 7.2%.
Source: ASX
The company has been a consistent dividend payer over the last decade, with a five-year average dividend payment of $0.25 per share and a yield of 2.54%.
An analyst at Ord Minnett has a SELL recommendation on ALQ shares, in the expectation that the post-pandemic mining boom that boosted the company will slow down, hurting ALS’s commodities business.
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