Objective (ASX:OCL) Loses Defence ECM Deal, Is The Stock A Bargain?

Simply Wall St.

Jul 02

Objective (ASX:OCL) is back in focus after confirming it will lose the long running Department of Defence ECM agreement. This has prompted a reset of expectations and a closer look at its evolving ...

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This has prompted a reset of expectations and a closer look at its evolving ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/software/asx-ocl/objective-shares/news/objective-asxocl-loses-defence-ecm-deal-is-the-stock-a-barga\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Objective (ASX:OCL) Loses Defence ECM Deal, Is The Stock A Bargain?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nObjective (ASX:OCL) Loses Defence ECM Deal, Is The Stock A Bargain?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-07-02 23:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/software/asx-ocl/objective-shares/news/objective-asxocl-loses-defence-ecm-deal-is-the-stock-a-barga><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Objective (ASX:OCL) is back in focus after confirming it will lose the long running Department of Defence ECM agreement. This has prompted a reset of expectations and a closer look at its evolving ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/software/asx-ocl/objective-shares/news/objective-asxocl-loses-defence-ecm-deal-is-the-stock-a-barga\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"OCL.AU","symbol_name":"OBJECTIVE CORPORATION LIMITED","start_time":0,"source_url":"https://simplywall.st/stocks/au/software/asx-ocl/objective-shares/news/objective-asxocl-loses-defence-ecm-deal-is-the-stock-a-barga","article_id":"2648813016","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8041000-choice1-main-header/1585186668959"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/software/asx-ocl/objective-shares/news/objective-asxocl-loses-defence-ecm-deal-is-the-stock-a-barga","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2648813016","pubTimestamp":1783006065,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Objective (ASX:OCL) is back in focus after confirming it will lose the long running Department of Defence ECM agreement. This has prompted a reset of expectations and a closer look at its evolving defence and national security ambitions.\nSee our latest analysis for Objective.\nThe share price reaction has been sharp, with Objective now trading at A$7.80 after a 1 day share price gain of 15.6% that follows a 30 day share price decline of 32.2% and a 1 year total shareholder return decline of...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"OCL.AU":"OBJECTIVE CORPORATION LIMITED","AIPO":"Defiance AI and Power Infrastructure ETF","BK7016":"应用软件"},"translate_title":"Objective(ASX：OCL)失去国防ECM交易，该股便宜吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"OCL.AU":1.5,"AIPO":0.6},"content_text":"Objective (ASX:OCL) is back in focus after confirming it will lose the long running Department of Defence ECM agreement. This has prompted a reset of expectations and a closer look at its evolving defence and national security ambitions. See our latest analysis for Objective. The share price reaction has been sharp, with Objective now trading at A$7.80 after a 1 day share price gain of 15.6% that follows a 30 day share price decline of 32.2% and a 1 year total shareholder return decline of 58.2%. This suggests sentiment is still rebuilding after concerns around growth momentum and the loss of the Defence ECM contract. If this defence and national security reset has you rethinking where growth could emerge next, it might be worth scanning opportunities in companies building the infrastructure behind AI using the 53 AI infrastructure stocks With Objective now trading at A$7.80 and sitting below analyst targets, the key question for investors is whether the recent share price reset leaves the stock undervalued or if the market is already pricing in its future growth. AdvertisementMost Popular Narrative: 41.7% Undervalued According to the most followed narrative on Objective, a fair value of A$13.38 versus the last close at A$7.80 points to a wide perceived gap in expectations.  Total revenue reached A$123.5 million in FY25. Every dollar of software revenue is now subscription-based, the multi-year transition from lumpy licence fees is done. Annualised Recurring Revenue stands at A$120 million, growing at double digits. Net profit hit A$35.4 million. Return on invested capital exceeds 30%. The balance sheet holds A$95.1 million in net cash and zero debt.  Read the complete narrative. The core of this valuation hinges on recurring government software revenue, strong profitability and a rich margin profile that underpins the cash flow assumptions. Want to see how those ingredients feed into the discount rate, growth runway and exit multiple baked into that A$13.38 fair value, and why the narrative sees such a wide gap to today’s share price? Result: Fair Value of A$13.38 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the bullish Objective narrative could unravel if UK public sector traction stalls, or if Microsoft narrows the product gap faster than expected. Find out about the key risks to this Objective narrative. Another View: What Multiples Say About Objective While the most popular Objective narrative leans on a detailed cash flow model and a fair value of A$13.38, the market is sending a different message through current pricing. At A$7.80, the stock trades on a P/E of 20.2x, slightly above its own fair ratio of 19.1x and above the Australian software industry average of 18.7x, even after a 1 year total shareholder return decline of 58.2% and a 5 year decline of 53.3%. For investors, that raises a simple question: is this still a quality business at a full price, or a reset that needs more time to play out? See what the numbers say about this price — find out in our valuation breakdown. ASX:OCL P/E Ratio as at Jul 2026Next Steps If the mixed sentiment around Objective still leaves you on the fence, it may be helpful to move quickly, review the full picture and weigh the 3 key rewards. Looking for more investment ideas beyond Objective? If Objective has sharpened your focus on quality and price, do not stop here; your next opportunity could be sitting in plain sight.  Spot potential turnarounds early by scanning 60 elite penny stocks with strong financials that already back their story with stronger financials. Zero in on quality at a discount and see which companies appear in the 8 high quality undervalued stocks before the crowd catches up. Prioritise resilience and protect the downside by focusing on 9 resilient stocks with low risk scores that still offer meaningful upside potential.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        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\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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