--- title: "Acrow (ASX:ACF) On Its Equity Raise And Dividend Focus Looks Cheap" type: "News" locale: "en" url: "https://longbridge.com/en/news/291544854.md" description: "Acrow (ASX:ACF) On Its Equity Raise And Dividend Focus Looks Cheap" datetime: "2026-07-02T12:02:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291544854.md) - [en](https://longbridge.com/en/news/291544854.md) - [zh-HK](https://longbridge.com/zh-HK/news/291544854.md) generator: "portal-rs" --- # Acrow (ASX:ACF) On Its Equity Raise And Dividend Focus Looks Cheap ## Equity raising and dividend focus put Acrow in the spotlight Acrow (ASX:ACF) has drawn attention after completing a A$69.58m follow on equity offering at A$0.85 per share, as investors focus on its dividend profile and capital management approach. The offering involved two parcels of ordinary shares, totaling 81,861,697 securities, each priced at A$0.85 with a A$0.02975 discount per share. It also included a subsequent direct listing feature that broadens access to the stock. See our latest analysis for Acrow. Acrow’s latest follow on offering lands as the stock trades at A$0.885, with the share price return down 14.49% year to date but supported by a 35.82% three year total shareholder return and 175.87% over five years. This suggests longer term holders have still seen substantial value creation even as shorter term momentum has cooled. If you are reassessing your construction exposure after Acrow’s capital raise, this can be a useful moment to widen your search and check out 35 power grid technology and infrastructure stocks Acrow now offers a near 5.63% trailing dividend yield, trades at A$0.885 versus a A$1.27 analyst target and screens with a solid value score. So is this a genuine mispricing, or is the market already factoring in future growth? ## Price-to-earnings of 15.2x: Is it justified? On the numbers provided, Acrow looks inexpensive on some measures, with our DCF model indicating the stock is trading 40% below an estimated fair value of A$1.47, yet its current P/E of 15.2x paints a slightly different picture when set against peers. The P/E ratio compares Acrow's share price to its earnings per share and gives you a quick sense of how much the market is paying for each dollar of current earnings. For Acrow, that 15.2x P/E screens as good value compared with the peer average of 23.8x. It also sits below the estimated "fair" P/E of 19.4x that our regression based fair ratio suggests the market could gravitate toward over time. The tension is that Acrow also screens as a little more expensive than the wider Global Trade Distributors industry average P/E of 15x, even though the fair ratio work implies a higher multiple might be justified. In other words, against close peers Acrow looks discounted, against the broader industry it looks slightly rich, and against the fair ratio estimate there is still room for the multiple to expand if the market leans into the earnings profile. Explore the SWS fair ratio for Acrow **Result: Price-to-earnings of 15.2x (UNDERVALUED)** However, Acrow still faces risks, including potential construction slowdown affecting equipment hire demand and any shift in dividend or capital allocation priorities after the equity raise. Find out about the key risks to this Acrow narrative. ## Another view on Acrow’s value While Acrow screens as cheap on P/E against peers and the fair ratio, the SWS DCF model is less subtle, with A$0.89 trading about 40% below an estimated fair value of A$1.47. That points to a different kind of upside story. How comfortable are you with the assumptions behind it? Look into how the SWS DCF model arrives at its fair value. ACF Discounted Cash Flow as at Jul 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Acrow for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 8 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. ## Next Steps If this mix of potential and concern around Acrow leaves you undecided, move quickly to review the data yourself, weigh both sides and see the full picture through 3 key rewards and 3 important warning signs ## Looking for more investment ideas beyond Acrow? Acrow might be on your radar, but you do not want to miss other stocks that fit different roles in your portfolio, from income to growth and resilience. - Target reliable income potential by scanning for resilient payers using the 5 dividend fortresses built to highlight stocks offering higher yields with backing from fundamentals. - Hunt for compelling price tags with the 8 high quality undervalued stocks to spot stocks that combine solid cash flows, balance sheets and valuations that still look appealing. - Strengthen your core holdings by focusing on quality first with the solid balance sheet and fundamentals stocks screener (20 results), where financial robustness and fundamentals come before story and hype. *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [ACF.AU](https://longbridge.com/en/quote/ACF.AU.md) ## Related News & Research - [Acrow (ASX:ACF) Shares Confront Revenue Strength And Thinner Margins](https://longbridge.com/en/news/296922318.md) - [Shaw and Partners Sticks to Its Buy Rating for Acrow Formwork and Construction Services Limited (59Y)](https://longbridge.com/en/news/297098533.md) - [Morgans Sticks to Its Buy Rating for Acrow Formwork and Construction Services Limited (59Y)](https://longbridge.com/en/news/296967847.md) - [Shaw and Partners Sticks to Their Buy Rating for Acrow Formwork and Construction Services Limited (59Y)](https://longbridge.com/en/news/295463952.md) - [Morgans Reaffirms Their Buy Rating on Acrow Formwork and Construction Services Limited (59Y)](https://longbridge.com/en/news/294885556.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**