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AJ Lucas Group (AJL) Fair Value & Analysis

Basic Materials · AU · Market cap A$11.0M

AL AJ Lucas Group AJL · AU
PriceA$0.0080
Fair ValueA$0.0078
Upside-2.5%
Quality48/100
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Weak Growth
Highly profitable · 25.6% net margin
Negative equity (buybacks among others) · generates free cash flow
Ranks above peers (9/11)
Wide moat 81/100
Evidence: Medium Range A$0.0076 – A$0.0081 Share as image

Fair value as of: Aug 13, 2026

From 7 valuation models · updated yesterday

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • The models converge in a tight band (A$0.0076 to A$0.0081), unusually little disagreement for a valuation.
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Price vs Fair Value (5 years)

A$0.2150 A$0.0040 Fair Value A$0.0078 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range A$0.0040 – A$0.2150 · fair‑value band A$0.0076 – A$0.0081 · the A$0.0080 price screens above the A$0.0078 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

AJ Lucas Group (AJL) currently trades at A$0.0080, while our model-based Fair Value estimate is A$0.0078, implying the stock looks roughly 2.5% fairly valued today. The Quality Score stands at 48/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, AJ Lucas Group generated revenue of A$137M at a net margin of 25.6%. Revenue declined 11.8% year over year. Net debt stands at A$120M. The stock trades on a trailing P/E of 0.3. Fundamentals as of Aug 13, 2026

Our scenario range runs from A$0.0076 (bear case) to A$0.0081 (bull case); at A$0.0080, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 53% below its 52-week high and 60% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -60% fair-value upside, at -3%, AJL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Rev-Margin DCF A$0.0100 74
EV/EBITDA A$0.0500 A$0.0900 A$0.1300 54
EV/EBIT A$0.0300 A$0.0500 53
All 7 models by family
DCF Models
5Y Revenue Exit A$0.0100 39
5Y EBITDA Exit A$0.0300 A$0.0900 41
10Y EBITDA Exit A$0.0300 37
Multiples
EV/EBIT A$0.0300 A$0.0500 53
EV/EBITDA A$0.0500 A$0.0900 A$0.1300 54
EV/Revenue A$0.0300 43
Growth DCF
Rev-Margin DCF A$0.0100 74

Widest divergence: DCF Models (A$0.0300) versus DCF Models (A$0.0300). Highest evidence: Rev-Margin DCF (74).

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Key figures & financial health

Revenue (TTM) A$137M
Revenue growth (YoY) -11.8%
Net margin 25.6%
Return on equity -1,551%
Free cash flow A$2.9M FY2025
P/E ratio 0.3
More key figures
Operating margin 52.8%
EPS (TTM) A$0.0300
EPS growth (YoY) -54.4%
Net debt A$120M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 39 · Market factors (momentum, volatility) 22

Profitability 50
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 21
Earnings quality: real cash, not paper profit
Fin. Strength 4
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 57
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

AJ Lucas Group Limited, together with its subsidiaries, provides drilling services in Australia. The company operates in two segments, Drilling and Oil and Gas Operations.

Full company description

AJ Lucas Group Limited, together with its subsidiaries, provides drilling services in Australia. The company operates in two segments, Drilling and Oil and Gas Operations. The Drilling segment provides integrated professional drilling services primarily for exploration and degasification of coal mines, including recovery and commercialization of coal seam gas and associated services. The Oil and Gas Operations segment engages in the exploration and development of unconventional and conventional hydrocarbons in the United Kingdom. The company also offers engineering services, such as design of wells, drilling optimisation, and professional steering services, as well as specialised equipment for directional drilling programmes. It serves the energy, mining, and infrastructure sectors. The company was incorporated in 1993 and is headquartered in Brisbane, Australia. AJ Lucas Group Limited is a subsidiary of Kerogen Investments No. 1 (HK) Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

AJ Lucas Group reported revenue of A$146M in FY2025 versus A$111M in FY2021, a compound +7.0%/yr. Reported net income was −A$15.0M in FY2025.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
A$146M
Latest YoY
−8.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.2%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.1%
Revenue +7.0%/yr
FY21 A$111M
FY22 A$123M
FY23 A$158M
FY24 A$159M
FY25 A$146M
Net income
FY21 A$3.3M
FY22 −A$11.3M
FY23 −A$152M
FY24 −A$702K
FY25 −A$15.0M

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Cite: Fair Value Calculator (2026). "AJ Lucas Group Fair Value". https://www.fairvalue-calculator.com/stock/AJL

Peer Group

Coking Coal · 28 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Above median
Fair Value upside −2% · Above median
Return on assets 26% · Top 25%
Net margin (TTM) 26% · Top 25%
Operating margin (TTM) 53% · Top 25%
Revenue growth -12% · Below median

Valuation Multiples vs Coking Coal median · lower = cheaper

P/E (TTM) 0.3× · Cheaper than 75% of peers
P/S (TTM) 0.06× · Cheaper than 75% of peers
P/FCF 2.7× · Pricier than median
EV/EBITDA 2.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 31 · sector 0
FUTURE 0 · sector 5
PAST 0 · sector 0
HEALTH 100 · sector 97
DIVIDEND 0 · sector 11

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Coal

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Coking Coal stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
PT Alamtri Minerals Indonesia Tbk, ADMR 1,615 IDR 1,251 IDR -23%
Warrior Met Coal, Inc HCC $96.72 $18.35 -81%
Shanxi Meijin Energy Co 000723 ¥3.62 ¥1.24 -66%
Alpha Metallurgical Resources, Inc AMR $159.52 $45.15 -72%
Shougang Fushan Resources Group 0639 HK$2.68 HK$2.34 -13%
Shanxi Coking Co 600740 ¥3.54 ¥1.75 -51%
Kailuan Energy Chemical Co 600997 ¥5.50 ¥1.72 -69%
Baotailong New Materials Co 601011 ¥2.74 ¥1.32 -52%
SunCoke Energy, Inc SXC $9.26 $3.67 -60%
Ramaco Resources, Inc METC $10.91 $1.80 -84%

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Frequently asked questions

Is AJ Lucas Group (AJL) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of A$0.0078 versus a price of A$0.0080, about −3% (fairly valued).
What is the fair value of AJL?
Our model-based fair value for AJ Lucas Group is A$0.0078 (as of Aug 13, 2026), built from audited fundamentals. The current price is A$0.0080.
What is the quality score of AJL?
AJ Lucas Group has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of AJ Lucas Group (AJL)?
AJ Lucas Group reported trailing-twelve-month revenue of about A$137M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of AJL?
The net profit margin of AJ Lucas Group is about 25.6%, meaning it keeps roughly 25.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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