Pentanet Ltd (5GG) AI Stock Analysis

• Market Cap: AU$13.00M
• Dividend Yield: N/A
• Average Volume (3M): 548.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 8.20%
• EPS Growth: 37.20%
• Country: AU
• Employees: 69
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 433,171,660
• 10 Day Avg. Volume: 338,314
• 30 Day Avg. Volume: 548,939
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

Pentanet Ltd's overall stock score is primarily influenced by its financial performance, which shows some revenue growth but significant profitability challenges. Technical analysis suggests a neutral outlook, while valuation remains difficult due to negative earnings. The lack of earnings call and corporate events data limits the overall assessment.

Pentanet Ltd Business Overview & Revenue Model

Company Description

Pentanet Limited operates as a telecommunications carrier and internet service provider in Perth, Australia. It operates in two segments, Internet and Telecommunication Services, and Gaming Technology. The company offers fixed wireless network services to residential and business customers. It also provides national broadband network, PentaMAX, XFIBRE, and apartment broadband products, as well as offers Wi-Fi setup services, and business and commercial solutions. Pentanet Limited was incorporated in 2017 and is headquartered in Perth, Australia.

How the Company Makes Money

Pentanet Ltd generates revenue through multiple streams, primarily from subscription fees charged to customers for its internet services. The company offers various plans tailored to different customer needs, including fixed wireless and fiber-based broadband services. Additionally, Pentanet earns money from its cloud gaming platform, which provides gaming enthusiasts access to high-performance gaming experiences over the internet. Partnerships with technology providers and infrastructure companies also play a crucial role in enhancing service offerings and expanding market reach, thereby contributing to its revenue.

Pentanet Ltd Financial Statement Overview

Summary

Pentanet Ltd's financial performance shows revenue growth and some improvement in cost management, but profitability remains elusive with continued losses. The balance sheet is relatively stable, though leverage has increased, and cash flow is strained by significant capital expenditures.

Income Statement

While Pentanet Ltd has shown revenue growth from the previous year with a 5.8% increase, the net profit margin remains significantly negative at -30.6% due to persistent losses. The gross profit margin improved to 9.9% from previous negative margins, indicating some cost efficiency improvements. However, negative EBIT and EBITDA margins suggest ongoing operational challenges.

Balance Sheet

Pentanet Ltd's balance sheet reflects a stable equity position with an equity ratio of 61.9%, although the debt-to-equity ratio has increased slightly to 28.2%, indicating moderate leverage. The return on equity is negative due to continued losses, impacting overall financial stability.

Cash Flow

The company reported a negative free cash flow, though the loss has decreased from the previous year, indicating some improvement. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. With capital expenditures remaining high, cash management remains a critical area for improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.88M	19.73M	16.83M	10.92M	5.00M
Gross Profit	2.06M	-3.48M	-2.65M	-2.33M	-1.81M
EBITDA	-1.27M	-3.80M	-4.48M	-8.29M	-3.93M
Net Income	-6.38M	-7.57M	-7.92M	-13.70M	-5.11M
Balance Sheet
Total Assets	41.58M	48.10M	46.14M	53.20M	29.38M
Cash, Cash Equivalents and Short-Term Investments	5.30M	7.37M	13.39M	32.70M	23.05M
Total Debt	7.26M	8.10M	2.31M	1.49M	1.76M
Total Liabilities	15.84M	16.94M	12.58M	11.85M	3.31M
Stockholders Equity	25.74M	31.16M	33.56M	41.35M	26.07M
Cash Flow
Free Cash Flow	-7.75M	-10.89M	-14.72M	-10.11M	-4.48M
Operating Cash Flow	-634.00K	-3.62M	-4.82M	-3.22M	-2.25M
Investing Cash Flow	-4.62M	-9.77M	-13.89M	-6.89M	-2.23M
Financing Cash Flow	3.18M	7.37M	-601.00K	41.54M	5.17M

Pentanet Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:5GG, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.95 is Neutral, neither overbought nor oversold. The STOCH value of 111.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:5GG.

Pentanet Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWP	56 Neutral	AU$34.32M	-2.82	―	―	35.24%	-182.42%
FSG	52 Neutral	AU$17.02M	-5.79	―	―	―	―
VN8	49 Neutral	AU$26.34M	-38.89	―	―	-7.05%	75.68%
5GG	46 Neutral	AU$13.00M	―	-18.92%	―	8.20%	37.20%
NOR	44 Neutral	AU$10.32M	-15.00	―	―	66.48%	78.95%
HFY	43 Neutral	AU$4.09M	-6.25	―	―	-9.44%	83.16%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Pentanet Ltd Corporate Events

Pentanet Ltd Reports Positive Cash Flow Amid Ongoing 5G Investments

Pentanet Ltd’s latest quarterly cash flow report reveals a positive net cash flow from operating activities, amounting to $396,000 for the current quarter. Despite a net cash outflow in investing activities due to payments for property, plant, and equipment, the company maintains a stable financial position with a net increase in cash and cash equivalents for the period, reflecting its ongoing investment in high band 5G spectrum and network infrastructure.

Pentanet Achieves First Full-Year Positive EBITDA with Strong Growth in 5G and Gaming Segments

Pentanet Ltd has reported its first full-year positive EBITDA of $1.4 million for FY25, marking a significant financial turnaround. The company achieved an 8% increase in consolidated revenue to $22.6 million, driven by growth in both its telecommunications and gaming segments. The 5G subscriber base saw a remarkable 126% year-on-year increase, reflecting strong demand for high-speed internet services. The gaming segment also performed well, with a 31% increase in revenue and a 242% rise in gross profit. Pentanet’s strategic focus on cost control, capital-efficient network expansion, and targeted marketing has positioned it for further growth, with plans to reinvest in its 5G and GPU infrastructure to enhance subscriber acquisition and infrastructure utilization.

Pentanet Secures $2 Million Finance Facility to Bolster Growth

Pentanet Limited has secured a $2 million equipment finance facility with Moneytech Finance Pty Ltd to support its ongoing capital investment program, specifically the final payment for its 5G spectrum license. This financial arrangement, alongside existing unused financing facilities and positive EBITDA, positions Pentanet to continue its growth across its business segments, enhancing its competitive edge in the telecommunications industry.

Pentanet Ltd Experiences Change in Substantial Holder Interests

Pentanet Ltd, a company listed on the ASX under the ticker 5GG, has experienced a change in the interests of its substantial holder, TIGA Trading Pty Ltd. The change, effective from June 16, 2025, involves a shift in the voting power of the substantial holder, with a slight decrease from 7.79% to 6.78%. This adjustment in voting power reflects various market sales and placements of ordinary shares by TIGA Trading Pty Ltd and associated entities, indicating a strategic realignment of their investment in Pentanet Ltd.