Australian AI Stocks With a P/S Under 1 Companies to Watch
Artificial intelligence stocks have attracted a lot of attention over the past few years.
Some companies are building the infrastructure behind AI, while others are using the technology in areas such as asset management, vehicle marketplaces, captioning and translation.
The challenge is that many AI-related businesses trade at high valuations. Investors are often paying for future growth that may take years to appear in the financial results.
This is why the price-to-sales ratio can be a useful starting point.
A P/S ratio, or price-to-sales ratio, compares a company’s market value with the revenue it generates. A P/S ratio below 1 means the market value is below the company’s annual revenue. However, this does not automatically mean the business is cheap or financially strong.
A company may have a low P/S ratio because it is growing slowly, losing money, carrying debt or facing other problems.
The reference article identifies three Australian AI-related companies that appeared in a screen focused on businesses with a P/S ratio under 1: COSOL (ASX: COS), CAR Group (ASX: CAR), and Ai-Media Technologies (ASX: AIM).
The market capitalisation and revenue figures mentioned below are based on the September 2026 snapshot in the reference article. These figures can change as share prices and company results move.
COSOL Limited (ASX: COS)
COSOL provides software, consulting and asset management services for industries that rely on large physical assets.
These industries include resources, utilities and infrastructure.
The company uses artificial intelligence in areas such as asset lifecycle management, predictive maintenance and enterprise intelligence. In simple terms, its software is designed to help businesses understand their equipment, manage maintenance and make better use of operational data.
What interests me is that COSOL is applying AI to businesses that already have a practical reason to use it.
A mining company or utility provider does not necessarily need AI because it is fashionable. It may use the technology to reduce equipment downtime, improve maintenance planning or manage large amounts of information more efficiently.
The reference article reported that COSOL generated approximately:
- A$54.9 million from Australian consulting
- A$30.7 million from asset management services
- A$12.9 million from the Americas
- A$84.6 million from the broader Asia-Pacific region
The company had a market capitalisation of approximately A$34.6 million in the referenced September 2026 data.
That difference between revenue and market value is part of the reason COSOL appeared in the P/S screen.
However, revenue is only one part of the story.
The next question is whether COSOL can turn its AI products into stronger margins and consistent cash generation. A company can report solid revenue but still struggle if its costs remain too high.
For me, the important areas to watch are customer adoption, recurring software revenue and the profitability of its AI platforms.
If the company continues relying heavily on consulting work, its revenue may not have the same characteristics as a higher-margin software business. The shift towards more repeatable software and asset management services could therefore be important.
CAR Group Limited (ASX: CAR)
CAR Group operates online vehicle marketplaces and automotive data services across several countries.
Its platforms help buyers and sellers connect, while its data tools support pricing, inspections, advertising and vehicle-related decisions.
The company is not a pure AI business. Its main operations are online marketplaces, but artificial intelligence and machine learning are becoming more important to the way those marketplaces operate.
For example, AI can help interpret vehicle data, automate inspections, improve pricing information and personalise the way buyers and sellers interact with the platform.
CAR Group’s revenue is spread across several regions. The September 2026 reference listed approximately:
- A$517.6 million from Australia
- A$326.9 million from North America
- A$252.9 million from Latin America
- A$144.8 million from Asia
- A$11.2 million from investments
The company’s market capitalisation was listed at approximately A$8.8 billion.
What I find interesting about CAR Group is the amount of data built into its business model.
Every vehicle listing, buyer search, price adjustment and transaction can add to the information available on the platform. If this data is used effectively, it can help the company improve its products and create more value for customers.
This is sometimes described as a data flywheel. More activity creates more data, and more data can improve the service.
The key question is how much of that AI-related capability can be converted into higher revenue and stronger pricing power.
CAR Group operates across multiple countries, so its growth is also influenced by conditions in each market. Changes in vehicle sales, advertising budgets and competition can affect the results.
It is also important to verify the latest P/S ratio before using the reference article’s screen as a valuation guide. The ratio changes when the share price or revenue changes, and the market capitalisation and regional revenue figures reported in the article are a specific snapshot rather than a permanent valuation.
Ai-Media Technologies Limited (ASX: AIM)
Ai-Media Technologies provides captioning, transcription and translation services through its LEXI suite.
The company’s technology can be used for live and recorded video. Its customers include broadcasters, businesses and educational organisations.
The software converts speech into captions and translations, allowing content to be made more accessible to larger audiences.
What interests me about Ai-Media is the way the business is moving from a human-supported service model towards a more AI-focused workflow.
The company’s LEXI suite and encoders are designed to increase the share of software-as-a-service revenue in the business. If customers continue adopting these tools, the company may be able to process more content without costs rising at the same rate.
The referenced data showed approximately A$60.2 million in revenue from internet software and services. North America accounted for around A$41.4 million, with the rest coming from the Asia-Pacific and Europe, Middle East and Africa regions.
Ai-Media had a market capitalisation of approximately A$49.4 million in the September 2026 snapshot.
The main issue for the company is customer adoption.
AI captioning and translation can be useful, but customers still need to be convinced that the technology is accurate, reliable and suitable for their particular needs.
Ai-Media also has to compete with larger technology companies that are developing their own speech recognition and translation tools.
The transition to higher-margin software revenue could improve the business over time. However, investors will need to see whether that transition leads to sustained profitability rather than only higher revenue.
What does a P/S ratio below 1 mean?
A P/S ratio below 1 means the market value of the company is lower than its annual revenue.
For example, if a company has a market capitalisation of $50 million and annual revenue of $100 million, its P/S ratio would be 0.5.
This can make the company appear inexpensive compared with businesses trading on higher sales multiples.
But the P/S ratio does not show:
- Whether the company is profitable
- How much debt it carries
- Whether revenue is growing
- Whether customers are likely to stay
- How much cash the company is consuming
- Whether the business will need to raise capital
- Whether the revenue has strong or weak margins
This is especially important for AI stocks.
Some companies may report strong revenue growth but spend heavily on research, sales and product development. Others may have low valuations because the market is uncertain about their future.
For me, the P/S ratio works best as a starting point rather than a final answer.
What should investors watch?
Revenue growth is one of the first things to examine.
A low P/S ratio may become more meaningful if the company is growing revenue consistently. If sales are falling, the ratio may look low simply because the business is deteriorating.
Margins are also important.
A software company with high recurring revenue may have a different outlook from a consulting business that depends on staff and project work. The quality of revenue matters as much as the size of revenue.
Cash flow is another area to watch.
AI companies may need to spend heavily on technology, staff and customer acquisition. If operating cash flow remains negative, the company could eventually need additional funding.
Customer concentration can also create risk. If one customer or one region contributes a large portion of revenue, losing that customer could have a significant effect.
Finally, investors should separate genuine AI revenue from general AI branding.
Some companies use AI as a central part of their product. Others may mention AI while most of their revenue still comes from older services. Understanding the difference is important when comparing Australian AI stocks.
Final thoughts
The three companies in the reference article show how varied the Australian AI sector has become.
COSOL is applying AI to asset-heavy industries. CAR Group is using machine learning and data across global vehicle marketplaces. Ai-Media is building AI tools for captioning, transcription and translation.
They are not identical businesses, and their risks are different.
A P/S ratio below 1 may bring a company to an investor’s attention, but it does not explain why the valuation is low. The next step is to understand the business behind the number.
For me, the main things to watch are revenue growth, customer adoption, cash flow, margins and whether the company’s AI products are becoming a larger part of the business.
This article is for general information only and is not financial or investment advice. It does not contain a buy, sell or hold recommendation. The P/S ratio, market capitalisation and revenue figures can change over time. Readers should conduct their own research before making any investment decision.
This article by ASX News Network is general in nature and based on publicly available information, historical data and company announcements. It is for informational purposes only and does not constitute financial advice or a recommendation to buy, sell or hold any security. The content does not consider your personal objectives, financial circumstances or needs, and readers should conduct their own research or seek advice from a qualified financial adviser. ASX News Network does not hold positions in the securities mentioned and the information may not reflect the latest price-sensitive announcements.
( Source : company announcements )