Pentanet Ltd (5GG) AI Stock Analysis

• Market Cap: AU$10.83M
• Dividend Yield: N/A
• Average Volume (3M): 607.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• 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: 711,045
• 30 Day Avg. Volume: 607,850
• PEG Ratio: 0.07
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 37.61
• 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: 42 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

Pentanet Ltd's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's ongoing profitability challenges and negative cash flow growth are significant concerns. Additionally, the stock's valuation is unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

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 generates revenue primarily through subscription-based services, where customers pay for high-speed internet plans on a monthly basis. This includes both residential and business customers, contributing to a consistent revenue stream. The company may also earn additional income through installation fees, equipment sales, and value-added services. Key revenue streams include contracts with corporate clients for dedicated internet access and partnerships with technology providers to enhance service offerings. Furthermore, Pentanet's strategic expansion into new markets and continuous investment in its 5G network infrastructure are crucial factors contributing to its earnings potential.

Pentanet Ltd Financial Statement Overview

Summary

Pentanet Ltd is experiencing growth in revenue but continues to face significant profitability challenges. The balance sheet shows a stable capital structure with low leverage, but negative returns on equity highlight ongoing financial difficulties. Cash flow management is weak, with negative growth in free cash flow and low coverage ratios, indicating potential liquidity risks.

Income Statement

Pentanet Ltd has shown some revenue growth over the years, with a 4.9% increase in the latest period. However, the company struggles with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has improved but remains low, suggesting challenges in cost management or pricing strategy.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.34, indicating a conservative leverage position. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid capital structure despite profitability issues.

Cash Flow

Pentanet Ltd's cash flow situation is concerning, with negative free cash flow growth and low operating cash flow coverage ratios. The free cash flow to net income ratio is positive, indicating some ability to cover net losses, but overall cash flow management remains a challenge.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.80M	22.80M	20.88M	19.73M	16.83M	10.92M
Gross Profit	4.50M	4.50M	-2.60M	-3.48M	-2.65M	-2.33M
EBITDA	-298.00K	-298.00K	-1.27M	-3.80M	-4.48M	-8.29M
Net Income	-4.45M	-4.45M	-6.38M	-7.57M	-7.92M	-13.70M
Balance Sheet
Total Assets	33.57M	33.57M	41.58M	48.10M	46.14M	53.20M
Cash, Cash Equivalents and Short-Term Investments	2.82M	2.82M	5.30M	7.37M	13.39M	32.70M
Total Debt	7.22M	7.22M	8.82M	8.10M	2.31M	1.49M
Total Liabilities	12.23M	12.23M	15.84M	16.94M	12.58M	11.85M
Stockholders Equity	21.34M	21.34M	25.74M	31.16M	33.56M	41.35M
Cash Flow
Free Cash Flow	311.00K	311.00K	-7.75M	-10.89M	-14.72M	-10.11M
Operating Cash Flow	1.36M	1.36M	-634.00K	-3.62M	-4.82M	-3.22M
Investing Cash Flow	-2.84M	-2.84M	-4.62M	-9.77M	-13.89M	-6.89M
Financing Cash Flow	-1.61M	-1.61M	3.18M	7.37M	-601.00K	41.54M

Pentanet Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 11.86 is Positive, neither overbought nor oversold. The STOCH value of -11.11 is Positive, 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SWP	54 Neutral	€39.68M	―	-19.40%	―	35.24%	-182.42%
FSG	52 Neutral	―	―	―	―	―	―
NOR	48 Neutral	€11.35M	―	―	―	66.48%	77.19%
5GG	42 Neutral	AU$10.83M	―	-18.92%	―	8.20%	37.20%
HFY	42 Neutral	AU$4.09M	―	-11.62%	―	-9.44%	83.16%
VN8	41 Neutral	AU$26.34M	―	-3.77%	―	-7.05%	75.68%

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.