Australis Capital AUSAF stock has been increasing revenue consistently. Gross margins are now sitting at levels that are some of the best in cannabis stocks. But, operating efficiencies are at some of the worst of some of the best cannabis stocks. However, management is making an asserted effort to cut operating costs. During this process, Australis Capital is also seeing these big revenue increases. EBITDA profitability is likely to hit this year. And, I should be able to put together AUSAF stock forecast after this.
Australis Capital is one of those cannabis investments that is diversified throughout a few different states. This makes this a very small MSO of sorts. Look for a few more areas for Australis Capital to enter in the upcoming quarters and years. This continued expansion of its foundation will ensure increasing revenue opportunities.
AUSAF stock is trading below $0.10 at this time and there are a few things I like about this as a cannabis investment. I am going to keep a sharp eye towards AUSAF stock as cannabis stocks start turning up.
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Australis AUSAF Financial Data
Here is a breakdown of Australis Q4 financial data. For a full breakdown of Australis Q4 stock numbers.
Australis Gross Profits
If Australis Capital can maintain this level of gross profits, they would be one of the best cannabis stocks there is. The very best cannabis stocks are printing approximately 60% – 65% consistently. With gross margins above 75%, this is a very solid number.
But, just having gross margins at high levels is one of the first pieces of the puzzle. And, Australis Capital has another piece of the puzzle they are addressing.
Australis Operating Profits
Operating profits are now one of management’s biggest focuses according to the most recent financial release. One thing to keep in mind is that operating efficiencies is a mathematical equation of costs divided over revenue. It is also a ratio. If revenue continues higher while operating costs are cut lower, this will slingshot toward a competitive level.
This is the one area I will be focusing on the most over the next few quarters because as far as cannabis stocks goes, this could be what pushes Australis Capital toward profitability quickly.
Australis EBITDA & Net Profits
The math starts getting interesting if management makes an asserted effort to cut operating costs during a period of rapidly increasing revenue. This could really push Australis Capital toward EBITDA profitability very quickly. And, this is going to be what I focus on the most in upcoming financial releases.
If operating costs can be cut in such a way that bring operating efficiencies in line with some of the more competitive cannabis stocks, with gross margins as high as they are then this is a potential opportunity. Savvy cannabis investors will do well to keep an eye on this cannabis stock.
Australis Cash On Hand
Slowly, cash on hand is dwindling lower and lower. At the same time, cash:debt ratio is low comparative when you look at all of the other cannabis stocks. Hopefully, Australis Capital can hit EBITDA profitability with continued scaling up of its revenues.
There is still plenty of equity to help with financing via debt when Australis Capital pushes for this. So, this will be a bit of a race to see if Australis Capital can get to EBTIDA quickly with economies of scale from the increasing revenues.
Australis Total Equity
Overall, there is a slow deterioration in total equity. Assets are what are needed to create revenue. And, unfortunately you need to break a few eggs to make an omelet. So, that means you are going to have to take on some debt in order to get there. However, you also want to improve your overall picture, assets less liabilities. And, since cash is dwindling, this is having its effect on the overall picture for Australis Capital.
But, should continued increases in revenue translate into a smaller and smaller decline in cash on hand while assets find a way to increase via new market ventures, very possibly asset will start to turn upward.
Australis AUSAF Stock Forecast
I need to see a clear path forward toward EBITDA profitability in order for me to get to the point where I can do AUSAF stock forecast via a Discounted Cash Flow Calculation. Therefore, I will be holding off on this for now. But, I believe EBITDA profitability could happen in 2022.
Is Australis AUSAF Stock A Good Investment?
The increasing revenue is strong and it may be that Australis Capital hits EBITDA profitability this year. There is solidified interest in containing operating costs. And, with the increasing revenue, should this continue to happen, getting to EBITDA profitability will happen quickly.
For me, I am looking for another round of cannabis stocks to pick up. The cannabis stocks that I have now I feel are solidly positioned to move higher. But, another round of up-and-comers may be interesting to pick up.
I am going to keep an eye on how Australis Capital does regarding getting to EBITDA positive. This may drive me to pick a few shares up.
Australis Financial Data
Australis Capital AUSAF Stock Financial Data
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One thought on “Australis Capital AUSAF stock Forecast & Analysis”
This stock’s share price can moves quickly when it moves based on short selling and covering alone! JMHO.
I have seen it move up and down very quickly with huge price swings in a day.
I sold some shares for over 7 cents a few days ago and buying them today around 5 cents.
I won’t mention all the ones that are a blood bath. lol
Historical Short Volume Data for AUSAF
% of Vol Shorted
Below are links to some articles a that are a few months or so old on AUSAF.