Fund Manager Summary
The fund managers believe that ALS Ltd presents a compelling investment opportunity due to its strong positioning in the Testing, Inspection and Certification industry, particularly in laboratory testing and commodities. In their opinion, the current share price of approximately $12, which reflects a attractive P/E ratio of 19x, is undervalued given the company's 20% ROE and the potential for a cyclical recovery driven by rising Gold and Copper prices. The fund managers noted that management's focus on bolstering the Life Sciences division and the strategic acquisition of Nuvisan, despite its initial underperformance, could enhance future earnings. Additionally, they highlighted ALQ's competitive advantages in Geochemistry, with a market share exceeding 50% and superior margins. Overall, the fund managers view ALQ as a high-quality company poised for growth as market conditions improve.
Source: Trading View
Commentary From The Managers
Subscribe To Unlock
Date
Price
Summary
Unlock Recent Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Pendal Group
24 Nov 2025
$21.63
Summary
- Pendal Group notes that ALS's FY25 results met expectations and slightly exceeded FY26 guidance.
- Market expectations were high, leading to a muted response despite positive results.
- Looking ahead to FY27/FY28, the market anticipates 6-8% annual revenue growth and 50-100 basis points annual margin expansion.
- Life sciences performance may decline, while commodities are expected to rise.
- ALS is positioned to achieve 10-15% EPS growth, although consensus forecasts already reflect this growth.
- A more optimistic commodities cycle and margin expansion, along with a recovery in life sciences, could present upside risks.
- The stock has reached all-time highs, trading at over 26x price to earnings.
- ALS has also outperformed relative to historical ranges compared to global peers.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Updates are made available to members within 12 hours in accordance with the ThesisTracker Pro Service Level Agreement.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Pendal Group
24 Nov 2025
$21.63
- Pendal Group notes that ALS's FY25 results met expectations and slightly exceeded FY26 guidance.
- Market expectations were high, leading to a muted response despite positive results.
- Looking ahead to FY27/FY28, the market anticipates 6-8% annual revenue growth and 50-100 basis points annual margin expansion.
- Life sciences performance may decline, while commodities are expected to rise.
- ALS is positioned to achieve 10-15% EPS growth, although consensus forecasts already reflect this growth.
- A more optimistic commodities cycle and margin expansion, along with a recovery in life sciences, could present upside risks.
- The stock has reached all-time highs, trading at over 26x price to earnings.
- ALS has also outperformed relative to historical ranges compared to global peers.
Summary
Antares Capital
31 Oct 2025
$21.72
- Antares Capital continues to hold ALQ shares due to the strength in the gold price.
- The rising prices of related minerals such as copper have prompted numerous capital raisings.
- Junior miners are actively seeking funding for exploration projects.
- Antares Capital believes that much of the funding will flow to ALQ, which serves as the major laboratory for mining assay measurements.
Summary
Blackwattle Investment Partners
3 Oct 2025
$21.21
- Diversification of the business through expansion into life sciences, environmental testing, and pharma testing.
- Management's capital deployment over the past 10 to 15 years has improved cyclicality.
- Consistent revenue growth in the mid- to high-single digits.
- Successful capital returns through mergers and acquisitions (M&A).
- Consistency in returns drives compounding returns for shareholders.
- Outperformance compared to mid-cap indices by over 50% since COVID.
- Long-term trend of consistency in returns makes ALS a compelling investment.
- Blackwattle Investment Partners continues to hold ALS as a buy.
Summary
Pendal Group
3 Oct 2025
$21.21
- Pendal Group believes that ALS Ltd has made significant acquisitions and changes in the minerals services business under new management over the past few years.
- The fund manager initiated a position because they are strongly predisposed to the existing management team, noting their experience and continuity.
- The cyclical nature of the gold market is a major attraction, with gold prices currently very high.
- Pendal Group observes that there is substantial capital deployment in exploration and new mine construction by gold companies.
- ALS’s minerals division, being the largest and most leveraged, is core to the business and benefits significantly from the current market conditions.
- Despite a relatively extended historical multiple, the fund manager believes it is hard to bet against a business like ALS with a strong cyclical tailwind.
- Overall, Pendal Group considers ALS Ltd as definitely a buy at this moment.
Summary
Wilson Asset Management
31 July 2025
$18.24
- ALS is a global leader in testing, inspection, certification and verification services in the commodities and life sciences sectors.
- The company delivered a robust Q1 FY2026 update at a recent investor day, reaffirming its guidance for 5-7% organic revenue growth and margin expansion.
- Strengthening commodity markets and increased miner financing activity are key tailwinds.
- A key takeaway from the event was the strategic focus on higher-growth markets, reinforcing its competitive edge in core segments.
- Digitisation and artificial intelligence (AI) were highlighted as medium-term drivers of margin uplift.
- ALS is well positioned to leverage a strong balance sheet and execute on earnings-accretive acquisitions.
- Wilson Asset Management remains constructive on the outlook and sees potential upside to consensus earnings, with valuation appearing undemanding at this stage of the cycle.
Summary
Wilson Asset Management
30 Nov 2024
$15.84
- ALS provides laboratory testing, inspection and certification services across various industries including mining, energy, environmental, and food.
- In the latest update, ALS announced a 14% increase in underlying revenue for half year FY2025, driven by strong organic and scope growth within Life Sciences.
- The results exceeded market expectations, showcasing robust performance in key sectors.
- ALS reported that integration of recent acquisitions is ahead of budget, with expectations for ongoing improvements as integration and transformation initiatives progress.
- Wilson Asset Management remains positive on ALS’ medium-to-long term outlook, noting the company is on track to meet its long-term targets set for FY2027.
Summary
Endeavor Asset Management
30 Sept 2024
$14.42
- Endeavor Asset Management notes that ALS's (ALQ) September trading update indicated softer performance in its mineral division.
- The decline was primarily driven by weaker results in the Australian and LATAM markets, while North America saw an increase in testing volumes.
- As a result, ALQ's share price fell by 8% in September after experiencing an 8% intramonth increase in August.
- Management's actions suggest they are cooling expectations in light of current market conditions.
- Endeavor is encouraged by ALQ's ability to maintain margins during soft commodity environments.
- ALQ is diversifying its revenue streams into more stable Life Sciences and Environmental divisions.
- Endeavor Asset Management continues to hold its position based on these insights.
Summary
Endeavor Asset Management
31 July 2024
$15.44
- Endeavor Asset Management notes a share price increase of 10.2% for ALS Ltd (ALQ) in July.
- This rise was influenced by strong first half 2024 results from overseas competitors in the TIC sector.
- ALS Ltd operates in multiple TIC endmarkets, including minerals, food, and pharmaceuticals.
- Endeavor is enthusiastic about the PFAS opportunity, seeing it as a significant growth driver for future ALQ earnings.
- Increasing global scientific studies are highlighting health concerns related to PFAS.
- As regulatory scrutiny grows, Endeavor expects ALQ to benefit significantly from testing and certification in this area.
Summary
Endeavor Asset Management
30 June 2024
$14.04
- Endeavor Asset Management added ALS (ALQ) to the Growth Portfolio in June.
- ALQ was already held in the Endeavor Balanced Equities Portfolio.
- Expecting ALQ to go through an earnings upgrade cycle.
- Support from an improving commodities exploration environment.
- Structural tailwinds in the environmental division (e.g. PFAS).
- Potential upside from the turnaround of the Nuvisan subsidiary.
Summary
Greencape Capital
31 Mar 2024
$12.98
- Greencape Capital has a longstanding interest in ALQ, previously part of Campbell Brothers Group.
- ALQ operates in the Testing, Inspection and Certification (TIC) industry, focusing on laboratory testing and commodities, representing ~60% of group earnings.
- The remaining 40% of earnings come from the Life Sciences division, which is being bolstered through bolt-on acquisitions.
- Despite 10% EPS growth p.a. over the last 2 years, ALQ's share price has remained rangebound due to declining sample volumes and acquisition impacts.
- ALQ’s P/E ratio shrank from 25x to 19x, seen as attractive given its 20% Return on Equity (ROE).
- Greencape Capital increased its position in ALQ at ~$12 per share, expecting a cyclical recovery alongside rising Gold and Copper prices.
- Nuvisan’s weak performance was seen as obscuring the potential value of its remaining stake, coupled with strong performance in other Life Sciences areas.
- ALQ’s Geochemistry division has a competitive advantage through its global software platform, achieving a 50% global market share and ~30% EBIT margin.
- Junior miners represent 20-40% of drilling samples, affecting ALQ's revenue significantly.
- Gold and Copper prices are anticipated to rise, driven by a green energy revolution and other demand factors.
- In the Life Sciences division, Environmental business is largest, with a focus on regulatory testing for contaminants like PFAS.
- Greencape views the Nuvisan acquisition as strategic despite initial underperformance, with a favorable deal structure mitigating risks.
- Overall, ALQ is a high-quality company with potential for recovery, representing a strategic investment opportunity for Greencape Capital.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With a strategic focus on commodities and a resilient Life Sciences division, ALS Ltd appears poised for recovery. The market seems to be underestimating its potential, especially as gold and copper prices rise, setting the stage for a compelling investment opportunity."
Last Updated: 24 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in ALS Ltd (ASX:ALQ)?
Fund managers including Greencape Capital, Endeavor Asset Management, Wilson Asset Management, Pendal Group and Blackwattle Investment Partners have invested in ALS Ltd (ASX:ALQ).
Why do fund managers invest in ALS Ltd?
Fund managers invest in ALS Ltd due to its strong position in the Testing, Inspection and Certification (TIC) industry, particularly in laboratory testing focused on commodities, which comprise 60% of its earnings. Despite recent challenges, including declining sample volumes from junior miners, ALS has demonstrated consistent EPS growth of 10% annually. The company's competitive edge lies in its global software platform that enhances operational efficiency and accuracy, leading to a market share exceeding 50% in exploration. Additionally, the Life Sciences division is bolstered by regulatory trends and strategic acquisitions, like Nuvisan, which, despite initial underperformance, is expected to contribute positively under full ownership. Overall, ALS is viewed as a high-quality investment with potential for recovery as commodity prices rise.
What happened to ALS Ltd (ASX:ALQ)?
Fund managers are investing in ALS Ltd due to its leadership in testing and inspection services, strong Q1 FY2026 performance, and positive outlook for 5-7% organic revenue growth. Key drivers include a robust commodities market, strategic focus on higher-growth sectors, and advancements in digitization and AI. The management team is viewed favorably for their effective capital deployment and successful acquisitions, enhancing the company's diversification into life sciences and environmental testing. Despite valuation concerns, the cyclical tailwinds in the gold market and consistent returns make ALS an attractive investment.