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

• Market Cap: AU$177.39M
• Dividend Yield: N/A
• Average Volume (3M): 12.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -0.33%
• EPS Growth: -671.76%
• Country: AU
• Employees: 390
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Education & Training Services
• EPS (TTM): -0.24
• Shares Outstanding: 272,906,520
• 10 Day Avg. Volume: 4,917
• 30 Day Avg. Volume: 12,099
• PEG Ratio: -0.04
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 65.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.70
• Price Target Upside: 7.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: AU$0.50 ▼(-23.08%Downside)

3P Learning Ltd. is facing significant financial performance challenges, notably in terms of profitability and cash flow, which are the most critical factors impacting its overall score. Technical analysis suggests neutral momentum, offering no strong directional cues. The company's valuation is unattractive due to a negative P/E ratio, further contributing to a low overall score.

3P Learning Ltd. Business Overview & Revenue Model

Company Description

3P 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 Money

3P Learning Ltd. makes money through a subscription-based revenue model. The company charges schools, educational institutions, and individual users for access to its digital learning platforms. These subscription fees can be structured annually or monthly, depending on the package chosen by the customer. Additionally, the company may generate revenue through partnerships with educational organizations and by offering custom solutions tailored to specific educational needs. Significant factors contributing to its earnings include the widespread adoption of digital learning tools in classrooms and the growing demand for interactive and personalized educational content.

3P Learning Ltd. Financial Statement Overview

Summary

3P Learning Ltd. faces significant challenges with declining profitability and negative cash flow ratios. Although the balance sheet remains stable with low leverage, substantial operational inefficiencies and poor cash generation raise concerns about the company's financial health.

Income Statement

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

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

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	108.87M	109.95M	106.90M	97.22M	57.45M	54.95M
Gross Profit	38.34M	25.15M	32.40M	27.17M	9.49M	16.24M
EBITDA	-34.44M	-44.57M	19.29M	14.94M	-2.21M	9.55M
Net Income	-45.78M	-57.06M	6.37M	-563.00K	-9.37M	1.55M
Balance Sheet
Total Assets	205.30M	198.69M	262.74M	257.74M	255.86M	69.11M
Cash, Cash Equivalents and Short-Term Investments	5.58M	2.33M	14.30M	31.17M	24.91M	27.08M
Total Debt	10.74M	3.09M	1.54M	2.16M	3.12M	4.84M
Total Liabilities	65.99M	59.32M	62.09M	63.85M	61.01M	42.85M
Stockholders Equity	139.31M	139.37M	200.69M	193.90M	194.83M	26.27M
Cash Flow
Free Cash Flow	-8.59M	-16.42M	4.64M	6.26M	-4.56M	-2.68M
Operating Cash Flow	-8.12M	-12.19M	8.72M	11.37M	1.29M	8.05M
Investing Cash Flow	-4.24M	4.58M	-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 Price: 0.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.65, above the 50-day MA of 0.65, and below the 200-day MA of 0.78, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 56.39 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KME	72 Outperform	AU$31.87M	15.86	8.55%	0.89%	11.73%	66.51%
Sector *	65 Neutral	$27.34B	15.12	-4.22%	3.16%	1.01%	1.94%
EDU	64 Neutral	AU$51.19M	22.01	22.69%	―	98.84%	―
NXD	58 Neutral	AU$34.43M	―	-85.37%	―	-15.88%	-1426.12%
3PL	45 Neutral	AU$177.39M	―	-28.12%	―	-0.33%	-671.76%
CLU	45 Neutral	AU$24.05M	―	-98.41%	―	-26.46%	56.78%
AKG	45 Neutral	AU$12.73M	―	-17.65%	―	-0.14%	67.13%

3P Learning Ltd. Corporate Events

3P Learning Ltd. Announces Director’s Interest Change

3P Learning Ltd. has announced a change in the director’s interest, specifically concerning Matthew Blake Sandblom. The change involves an acquisition of 39,948 ordinary shares through an on-market trade, increasing the total number of shares held to 136,384,479. This development reflects a strategic move in the company’s governance and may influence stakeholder perceptions regarding the company’s future direction and management stability.

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

3P Learning Ltd. has announced a change in the director’s interest, with Matthew Blake Sandblom increasing his indirect holdings by acquiring 64,417 ordinary shares through an on-market trade. This adjustment raises his total holdings to 136,344,531 shares, reflecting a strategic move that could impact the company’s governance 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

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

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

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

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.