Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi, Would love your views on the above stock please. A while back Qantas tried to buy the company and got knocked back by the ACCC. I believe the price would have been around $5.50 Since then the stock has kept falling to a position where the valuation is now less than the net value of their fleet alone. Your insights would be greatly appreciated. Thanks. Rob
Hi Rob,
Alliance Aviation Services (AQZ) is a QLD based aviation company that provides charter, wet lease, and regular public transport (RPT) services primarily for the mining, resources, tourism, and government sectors, i.e. Fly-in, Fly-out (FIFO) Services for the mines.
The stock might look cheap trading on 6x for FY25 but it hasn’t paid a dividend since COVID and has rising debt issues.. For for the Half-Year Ended December 31, 2024 (HY25) it made a NPAT of $28.86mn, up 10% YoY. However, as mentioned the rising debt levels are an issue, increasing to $366.84 million at the end of the last FY.
The overall average age of Alliance’s fleet is estimated to be around 20–25 years, given the mix of newer Embraer jets and older Fokker models. AQZ will need to replace or upgrade its older aircraft in the near future hence at this stage we are neutral towards this ~$400mn QLD business.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
