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3P Learning Ltd. (AU:3PL)
ASX:3PL
Australian Market

3P Learning Ltd. (3PL) AI Stock Analysis

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AU

3P Learning Ltd.

(Sydney:3PL)

Rating:45Neutral
Price Target:
AU$0.50
▼(-23.08%Downside)
3P Learning Ltd. receives a low overall score due to significant financial challenges, particularly in profitability and cash flow management, coupled with weak technical indicators. The company's valuation is further impacted by negative earnings, presenting considerable risks for potential investors.

3P Learning Ltd. (3PL) vs. iShares MSCI Australia ETF (EWA)

3P Learning Ltd. Business Overview & Revenue Model

Company Description3P Learning Limited, together with its subsidiaries, engages in the development, marketing, and sale of educational software and e-books to schools and parents of school-aged students. It provides online education, and adaptive and collaborative learning, including mathematics and literacy products. The company offers Mathseeds, Mathletics, Reading Eggs, and Spellodrome, as well as ReadiWriter, and WordFlyers products. It serves approximately 6 million students in approximately 17,000 schools worldwide. 3P Learning Limited was incorporated in 2003 and is headquartered in Leichhardt, Australia.
How the Company Makes Money3P Learning Ltd. generates revenue primarily through subscription-based models, offering its educational platforms to schools and parents on a recurring payment basis. The company provides licenses for its products to educational institutions, which are typically renewed annually. Additionally, 3PL engages with individual consumers through direct sales of subscriptions to parents looking for supplementary educational tools for their children. Partnerships with schools, educational bodies, and government entities also play a significant role in the company's revenue streams, allowing for broader deployment of its platforms. Moreover, 3P Learning capitalizes on its brand recognition and educational expertise to secure sponsorships and collaborations, further bolstering its earnings.

3P Learning Ltd. Financial Statement Overview

Summary
3P Learning Ltd. faces challenges with profitability and cash flow management, as evidenced by declining margins and negative cash flow ratios. Despite a stable balance sheet with low leverage, the company needs to address operational inefficiencies and improve its cash generation to ensure financial health.
Income Statement
42
Neutral
The company experienced a decline in revenue growth with a slight increase in revenue from the previous year, but a significant drop in gross profit margin from 30.3% to 22.9%. EBIT and EBITDA margins have turned negative, indicating operational challenges. Net profit margin has also declined, reflecting profitability issues.
Balance Sheet
60
Neutral
The balance sheet shows a relatively stable equity ratio of 70% and a low debt-to-equity ratio of 0.02, suggesting low leverage. However, the return on equity has turned negative due to net losses, indicating inefficiencies in generating returns for shareholders.
Cash Flow
38
Negative
The cash flow statement indicates a negative free cash flow, and a significant drop in operating cash flow. The operating cash flow to net income and free cash flow to net income ratios are unfavorable, highlighting cash flow difficulties and a potential liquidity issue.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
108.87M109.95M106.90M97.22M57.45M54.95M
Gross Profit
38.34M25.15M32.40M27.17M9.49M16.24M
EBIT
-47.46M-18.91M5.30M395.00K-4.41M1.50M
EBITDA
-34.44M-44.57M19.29M14.94M-2.21M9.55M
Net Income Common Stockholders
-45.78M-57.06M6.37M-563.00K-9.37M1.55M
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.57M2.33M14.30M31.17M24.91M27.08M
Total Assets
268.78M198.69M262.74M257.74M255.86M69.11M
Total Debt
2.39M3.09M1.54M2.16M3.12M4.84M
Net Debt
-9.68M1.12M-12.47M-28.97M-21.78M-22.24M
Total Liabilities
82.49M59.32M62.09M63.85M61.01M42.85M
Stockholders Equity
186.33M139.37M200.69M193.90M194.83M26.27M
Cash FlowFree Cash Flow
-8.59M-16.42M4.64M6.26M-4.56M-2.68M
Operating Cash Flow
-8.12M-12.19M8.72M11.37M1.29M8.05M
Investing Cash Flow
-4.24M4.58M-25.21M-4.53M-1.70M-10.21M
Financing Cash Flow
4.18M-4.25M-635.00K-2.08M-1.81M-1.43M

3P Learning Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.65
Price Trends
50DMA
0.70
Negative
100DMA
0.71
Negative
200DMA
0.82
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
43.12
Neutral
STOCH
62.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:3PL, the sentiment is Negative. The current price of 0.65 is below the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.70, and below the 200-day MA of 0.82, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:3PL.

3P Learning Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$8.89B15.014.75%203.76%3.54%-2.49%
AU3PL
45
Neutral
AU$177.39M-28.12%-0.33%-671.76%
$197.54M-19.32%
$388.19M188.461.98%
$173.58M-47.89%
DEH1J
AURUL
73
Outperform
AU$663.44M101.6911.59%9.76%-28.92%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:3PL
3P Learning Ltd.
0.65
-0.59
-47.58%
APPEF
Appen
0.76
0.40
111.11%
AUDGF
Audinate Group
4.90
-5.82
-54.29%
NVNXF
NOVONIX Ltd
0.27
-0.21
-43.75%
DE:H1J
Janison Education Group Ltd.
AU:RUL
RPMGlobal Holdings Ltd
3.00
0.36
13.64%

3P Learning Ltd. Corporate Events

3P Learning Ltd. Director Increases Shareholding
Jun 6, 2025

3P Learning Ltd. announced a change in the director’s interest, with Matthew Blake Sandblom acquiring an additional 10,000 ordinary shares through an on-market trade. This acquisition increases his total shareholding to 136,280,114 shares, reflecting a continued commitment to the company. The transaction, valued at $6,500, signifies a minor adjustment in the director’s investment portfolio and could indicate confidence in the company’s future performance.

The most recent analyst rating on (AU:3PL) stock is a Buy with a A$1.64 price target. To see the full list of analyst forecasts on 3P Learning Ltd. stock, see the AU:3PL Stock Forecast page.

3P Learning Projects Improved Financial Performance for FY25
May 23, 2025

3P Learning Ltd. has announced its FY25 trading update, projecting revenue to remain consistent with FY24 at $110M, while expecting a significant improvement in Underlying EBITDA by at least 20% from the previous year. The company anticipates a stronger net cash position of $8.0M to $10.0M by June 2025, reflecting its strategic focus on product expansion and feature enhancements, which could positively impact its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:3PL) stock is a Hold with a A$1.20 price target. To see the full list of analyst forecasts on 3P Learning Ltd. stock, see the AU:3PL Stock Forecast page.

3P Learning Ltd. Director Increases Shareholding
Apr 15, 2025

3P Learning Ltd. has announced a change in the director’s interest, with Matthew Blake Sandblom acquiring an additional 10,000 ordinary shares through an on-market trade. This change brings his total holding to 136,270,114 ordinary shares, reflecting a minor increase in his stake in the company, which may signal confidence in the company’s future prospects.

3P Learning Ltd. Announces Registry Office Relocation
Apr 11, 2025

3P Learning Ltd. has announced a change in the address of its registry office in Sydney, effective from April 14, 2025. The registry, managed by MUFG Corporate Markets (AU) Limited, will be relocating to Liberty Place, Level 41, 161 Castlereagh St, Sydney NSW 2000. This change is part of the company’s compliance with ASX Listing Rule 3.15.1, and all other contact details remain unchanged.

3P Learning Ltd. Director Increases Shareholding
Apr 1, 2025

3P Learning Ltd. has announced a change in the director’s interest, with Craig Evan Coleman acquiring an additional 323,500 fully paid ordinary shares through on-market trades. This change reflects an increase in Coleman’s indirect interest in the company, held through Viburnum Funds Pty Ltd, signaling a potential vote of confidence in the company’s future performance.

3P Learning Ltd. Announces Director’s Share Acquisition
Mar 26, 2025

3P Learning Ltd. has announced a change in the director’s interest, specifically regarding Craig Evan Coleman. The director acquired 67,719 fully paid ordinary shares through on-market trades, increasing his total holdings to 53,976,928 shares. This change reflects a strategic move in the company’s management and could have implications for its market positioning and stakeholder interests.

3P Learning Ltd. Announces Cessation of Share Appreciation Rights
Mar 25, 2025

3P Learning Ltd. has announced the cessation of 90,710 share appreciation rights due to the lapse of conditional rights, as the conditions have not been met or have become incapable of being satisfied. This development may impact the company’s capital structure and could have implications for stakeholders, reflecting a potential shift in the company’s operational or strategic focus.

3P Learning Director Increases Shareholding
Mar 18, 2025

3P Learning Limited announced a change in the director’s interest, with Craig Evan Coleman acquiring an additional 212,281 fully paid ordinary shares through on-market trades, increasing his total holdings to 53,909,209 shares. This change reflects a strategic move within the company, potentially impacting its market positioning and signaling confidence in the company’s future prospects to stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.