Humm Group Ltd

Humm Group Ltd maintains a highly leveraged capital structure, with total liabilities of 4.84 billion AUD against total equity of 503.2 million AUD, resulting in a debt-to-equity ratio of 9.3. The company holds 4.68 billion AUD in long-term debt, which significantly exceeds its total assets of 5.34 billion AUD. Despite this leverage, the firm generates 179 million AUD in operating cash flow, though free cash flow is constrained to 12.2 million AUD after 21.3 million AUD in capital expenditures. The market values the equity at 227 million AUD, implying a price-to-book ratio of 0.45, suggesting the market prices the equity at a steep discount to its book value.

Profitability metrics indicate modest returns on capital. The company reports a net income of 39.6 million AUD on revenue of 666.6 million AUD, yielding a net margin of approximately 5.9%. Return on equity stands at 7.87%, while return on assets is 0.74%. The operating income of 49.5 million AUD reflects an operating margin of roughly 7.4%. The gross profit of 330.5 million AUD suggests significant cost of goods sold or interest expense deductions before operating leverage is fully realized.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the ability to assess specific product or geographic exposure. The company’s total revenue of 666.6 million AUD serves as the primary top-line metric, with no further breakdown of segment contributions or regional splits available for analysis.

Growth trajectory analysis is limited by the absence of historical period data in the current input. Without prior year or quarterly comparisons, year-over-year revenue or earnings growth rates cannot be calculated. The current snapshot provides a static view of the financial position, precluding trend analysis of revenue expansion or contraction.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, emphasizing the reliance on debt financing. The high debt-to-equity ratio of 9.3 amplifies financial risk, particularly in rising interest rate environments. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 504.4 million.

Recent observations indicate strong analyst sentiment, with a mean recommendation of 1.50 (strong buy) and a mean price target of 0.80 AUD, significantly above the current market price of 0.45 AUD. The high price target of 0.85 AUD and low of 0.75 AUD suggest a consensus view of substantial upside potential. No specific filing, news, or transcript events are detailed in the available data to explain recent market movements or strategic shifts.

FY2025 net income surged 457.7% year-over-year to AUD 39.6 million, signaling a robust return to profitability.

Free cash flow turned positive in FY2025, reaching AUD 12.2 million after three years of negative generation.

Revenue grew at a 10.7% compound annual growth rate over the four-year period ending FY2025.

The company carries a high credit risk flag, indicating significant concerns regarding its debt servicing capabilities.

Debt-to-equity ratio of 9.3 places Humm in the bottom quartile of its peer cohort.

Return on equity of 7.9% falls below the cohort median of 11.3%, suggesting inefficient capital utilization.

Long-term debt increased to AUD 4.68 billion in FY2025, reflecting a heavy leverage burden.

Return on assets of 0.74% indicates minimal profitability relative to the total asset base employed.

Revenue A$666.6M, +7,6% YoY; Operating income +503,7% YoY.

• ▍Revenue A$666.6M, +7,6% YoY
• ▍Operating income +503,7% YoY
• ▍Net income +457,8% YoY
• ▍Free cash flow +339,2% YoY
• ▍Net margin 5.9%

Revenue A$619.3M, +21,3% YoY; Operating income +925,0% YoY.

• ▍Revenue A$619.3M, +21,3% YoY
• ▍Operating income +925,0% YoY
• ▍Net income +144,8% YoY
• ▍Free cash flow +61,1% YoY
• ▍Net margin 1.1%

Revenue A$510.4M, +15,9% YoY; Operating income +100,4% YoY.

• ▍Revenue A$510.4M, +15,9% YoY
• ▍Operating income +100,4% YoY
• ▍Net income +101,7% YoY
• ▍Free cash flow +92,5% YoY
• ▍Net margin 0.6%

Revenue A$440.4M, −0,9% YoY; Operating income −324,4% YoY.

• ▍Revenue A$440.4M, −0,9% YoY
• ▍Operating income −324,4% YoY
• ▍Net income −383,4% YoY
• ▍Free cash flow −610,8% YoY
• ▍Net margin -38.7%

Revenue A$444.4M; Operating income A$81.9M.

• ▍Revenue A$444.4M
• ▍Operating income A$81.9M
• ▍Net margin 13.5%