Bubs Australia Limited

BUB.AX

Packaged Foods · Consumer Defensive

Exchange

Australian Securities Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Mixed

Growth

Good

Cash Flow

Weak

Stability

Exceptional

Valuation

Mixed

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Winston Score History

The full picture

Bubs Australia Limited makes baby formula and infant nutrition products. Its main products are goat milk-based baby formula, organic infant formula, and baby food pouches sold to parents of young children. The company is one of the few producers of goat milk infant formula in Australia and has built a brand around natural and organic ingredients.

Bubs earns money by selling its products through supermarkets, pharmacies, and online retailers in Australia and overseas. China is a key market, where demand for trusted foreign baby formula brands remains strong following food safety scandals years ago. The company also gained a foothold in the United States after supplying formula during the 2022 infant formula shortage there. Its main growth opportunity is expanding its US and China distribution, but it faces real risks from intense competition, shifting regulations around formula imports into China, and its small size compared to global dairy giants like Danone and Nestlé.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+34.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+111.4% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

21.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

A$18M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Bubs Australia Limited grew revenue 34% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

46.8%

Healthy — 46.8% gross margin

Profit after running costs

Operating Margin

3.4%

Thin — 3.4% operating margin

Return on the money invested

ROCE

14.1%

Good — 14.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+23.3%

Fast-growing sales (+23.3% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

24%

Weak — only 24% of profit becomes cash

Spare cash per sale

FCF Margin

0.5%

Thin free cash flow (0.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.02

Conservative — low debt load (0.02)

Covers its interest

Interest Cover

15.96x

Comfortably covers interest (16.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

21.4x

no trend

Growth-priced — P/E 21.4

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

-19.5

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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