Pentanet Ltd (5GG) AI Stock Analysis

• Market Cap: AU$11.26M
• Dividend Yield: N/A
• Average Volume (3M): 607.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: AU$0.03 ▲(30.00% Upside)

The score is held down primarily by weak financial performance (ongoing losses and challenged cash flow) despite modest revenue growth and low leverage. Technicals are supportive in the near term (price above key averages, positive MACD) but appear overbought (high RSI and stochastic), while valuation is constrained by losses and the absence of a dividend yield.

Positive Factors

Conservative Leverage

A low debt-to-equity ratio reduces refinancing and solvency risk, preserving financial flexibility to fund 5G network rollouts or absorb near-term operational losses. Conservative leverage supports longer-term strategic optionality while profitability is being rebuilt.

Recurring Revenue Model

Subscription-based internet revenues create predictable, recurring cash flows and higher customer lifetime value, enabling more reliable forecasting and investment planning. This structural revenue mix supports sustainable topline stability as the company scales coverage and ARPU improvements.

Proprietary 5G Network

Owning 5G and fixed wireless infrastructure creates durable competitive advantages in underserved areas, enabling differentiated service offerings, better margin control over time, and potential barriers to entry for rivals as coverage and customer density grow.

Negative Factors

Persistent Unprofitability

Sustained negative net profit and EBIT margins constrain retained earnings and reinvestment capacity, forcing reliance on external funding. Over the medium term this undermines ability to achieve scale economics and may pressure strategic initiatives if margins do not improve.

Weak Cash Flow Generation

Negative free cash flow and weak operating cash coverage indicate ongoing cash burn that will require external financing for growth capex and operations. This elevates capital risk, can increase cost of capital, and may force trade-offs between expansion and liquidity preservation.

Negative Return on Equity

A negative ROE shows the company is not currently generating returns from invested capital, eroding long-term shareholder value potential. Without a clear path to positive ROE, attracting capital for scale-up becomes harder and growth investments risk diluting existing equity.

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	5.58M	2.35M
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: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, 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%
5GG	48 Neutral	AU$11.26M	-2.43	-18.92%	―	8.20%	37.20%
SWP	47 Neutral	AU$37.76M	-2.83	-19.40%	―	35.24%	-181.60%
NOR	44 Neutral	AU$7.36M	-10.00	―	―	66.48%	77.19%
HFY	42 Neutral	AU$4.09M	-6.25	-11.62%	―	-9.44%	83.16%

Pentanet Ltd Corporate Events

Pentanet Director Increases Stake with Significant Share Acquisition

Pentanet Limited has announced a change in the director’s interest, specifically involving Timothy Cornish, who has acquired additional shares. This acquisition of 2,500,000 fully paid ordinary shares was conducted through an off-market purchase, increasing Mr. Cornish’s holdings in the company. This change reflects a significant personal investment by Mr. Cornish, potentially indicating confidence in the company’s future prospects.

Pentanet Ltd Reports Successful AGM Outcomes

Pentanet Ltd announced the successful outcome of all resolutions at its Annual General Meeting, including a special resolution, highlighting strong shareholder support. This development underscores Pentanet’s strategic positioning in the telecommunications and cloud gaming markets, potentially enhancing investor confidence and market competitiveness.

Pentanet Ltd Announces Change in Director’s Interest

Pentanet Ltd has announced a change in the director’s interest notice, specifically involving Stephen Cornish, a trustee and beneficiary of the Stemma Investment Trust. The change involves the lapse of 737,427 performance rights due to unmet conditions, affecting the director’s indirect interest in the company. This adjustment reflects a decrease in the potential equity stake held by Mr. Cornish, which may influence stakeholder perceptions regarding the company’s governance and director incentives.

Pentanet Limited Announces Cessation of Performance Rights

Pentanet Limited has announced the cessation of 1,668,880 performance rights due to the lapse of conditional rights, which were not met or became incapable of being satisfied. This cessation of securities may impact Pentanet’s capital structure and could have implications for its stakeholders, as it reflects on the company’s ability to meet certain performance conditions.

Pentanet Announces Q1FY26 Results Presentation and Q&A Session

Pentanet has announced a results presentation and Q&A session for its Q1FY26 results, scheduled for November 6, 2025. This session will be led by Managing Director Stephen Cornish and CFO Mart-Marie Derman. The announcement highlights Pentanet’s innovative approach to internet services and cloud gaming, which positions the company as a leader in the telecommunications industry, offering superior products and services to both customers and investors.

Pentanet Limited Issues Cautionary Presentation on Future Outlook

Pentanet Limited has released a presentation containing important information about its current operations and future outlook. The document emphasizes the inherent risks associated with investment in the company and highlights that the information provided should not be considered as financial advice. The presentation includes forward-looking statements subject to various uncertainties and risks, which could impact the company’s performance and stakeholder interests.

Pentanet Ltd Reports Positive Cash Flow Amid Strategic 5G Investments

Pentanet Ltd’s quarterly cash flow report reveals a positive net cash flow from operating activities amounting to $594,000, indicating healthy customer receipts despite significant expenditures on staff and corporate costs. The company also reported a net cash inflow of $1,727,000 from financing activities, primarily through borrowings, which offsets the cash outflow from investing activities, including a substantial payment for 5G Spectrum licensing, highlighting its strategic focus on expanding its network capabilities.

Pentanet Reports Positive EBITDA and Launches New Brand Initiative

Pentanet Ltd reported a positive EBITDA for the fourth consecutive quarter, with consolidated revenue rising by 1% quarter-on-quarter and 9% year-on-year to $5.9 million. The company is embarking on a strategic brand reinvestment initiative to drive growth, launching a new creative platform to enhance market visibility and subscriber acquisition. The telecommunications segment saw growth in off-net and 5G subscribers, supported by NBN’s Speed Boost program, while churn rates increased slightly. Pentanet is preparing for a large-scale brand campaign in Q2 to reinforce its market position.