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

• Market Cap: AU$177.39M
• Dividend Yield: N/A
• Average Volume (3M): 25.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -0.33%
• EPS Growth: -671.76%
• Country: AU
• Employees: 390
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Education & Training Services
• EPS (TTM): -0.24
• Shares Outstanding: 272,906,520
• 10 Day Avg. Volume: 11,518
• 30 Day Avg. Volume: 25,344
• PEG Ratio: -0.20
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.80
• 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$0.90
• Price Target Upside: 38.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• 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. 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. 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

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
	EBIT
-47.46M	-18.91M	5.30M	395.00K	-4.41M	1.50M
	EBITDA
-34.44M	-44.57M	19.29M	14.94M	-2.21M	9.55M
	Net Income Common Stockholders
-45.78M	-57.06M	6.37M	-563.00K	-9.37M	1.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.57M	2.33M	14.30M	31.17M	24.91M	27.08M
	Total Assets
268.78M	198.69M	262.74M	257.74M	255.86M	69.11M
	Total Debt
2.39M	3.09M	1.54M	2.16M	3.12M	4.84M
	Net Debt
-9.68M	1.12M	-12.47M	-28.97M	-21.78M	-22.24M
	Total Liabilities
82.49M	59.32M	62.09M	63.85M	61.01M	42.85M
	Stockholders Equity
186.33M	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: Negative
• 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 0.66, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
3PL	45 Neutral	AU$177.39M	―	-28.12%	―	-0.33%	-671.76%
APPEF		$197.54M	―	-19.32%	―	―	―
AUDGF		$388.19M	188.46	1.98%	―	―	―
NVNXF		$173.58M	―	-47.89%	―	―	―
H1J			―		―	―	―
RUL	73 Outperform	AU$663.44M	101.69	11.59%	―	9.76%	-28.92%

3P Learning Ltd. Corporate Events

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.

3P Learning Ltd. Director Increases Shareholding

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

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

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

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.