Pentanet Ltd (5GG) AI Stock Analysis

• Market Cap: AU$12.13M
• Dividend Yield: N/A
• Average Volume (3M): 201.62K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.28
• Revenue Growth: 5.54%
• EPS Growth: -3.85%
• Country: AU
• Employees: 69
• Sector: Communication Services
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 433,171,660
• 10 Day Avg. Volume: 366,991
• 30 Day Avg. Volume: 201,619
• PEG Ratio: -1.23
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.12
• 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

• Rating: 43 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Pentanet Ltd faces significant challenges, with ongoing losses and negative cash flow impacting financial stability. Technical indicators reflect bearish sentiment, while valuation metrics highlight a lack of profitability. Revenue growth and improved gross margins are positive but insufficient to overcome broader issues.

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 primarily through the provision of internet services, including fixed wireless and fiber broadband subscriptions. The company's key revenue streams include monthly subscription fees from residential and business customers. Additionally, Pentanet leverages its network infrastructure to offer gaming and cloud services, contributing to its earnings. Significant partnerships, such as those with technology providers and network infrastructure companies, enhance its service offerings and expand its market reach, further supporting its revenue generation.

Pentanet Ltd Financial Statement Overview

Summary

Pentanet Ltd's financial performance shows revenue growth and some cost management improvements, but profitability remains elusive due to persistent losses. The balance sheet is relatively stable with moderate leverage, but cash flow is strained by high 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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
21.74M	20.88M	19.73M	16.83M	10.92M	5.00M
	Gross Profit
218.00K	2.06M	-3.48M	-2.65M	-2.33M	-1.81M
	EBIT
-2.04M	-6.39M	-8.43M	-7.85M	-9.85M	-5.05M
	EBITDA
-1.38M	-1.27M	-3.80M	-4.48M	-8.29M	-3.93M
	Net Income Common Stockholders
-6.72M	-6.38M	-7.57M	-7.92M	-13.70M	-5.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.68M	5.30M	7.37M	13.39M	32.70M	23.05M
	Total Assets
35.46M	41.58M	48.10M	46.14M	53.20M	29.38M
	Total Debt
7.69M	7.26M	8.10M	2.31M	1.49M	1.76M
	Net Debt
5.47M	1.96M	730.00K	-11.08M	-31.22M	-21.29M
	Total Liabilities
12.82M	15.84M	16.94M	12.58M	11.85M	3.31M
	Stockholders Equity
22.64M	25.74M	31.16M	33.56M	41.35M	26.07M
Cash Flow		Free Cash Flow
-4.86M	-7.75M	-10.89M	-14.72M	-10.11M	-4.48M
	Operating Cash Flow
-481.00K	-634.00K	-3.62M	-4.82M	-3.22M	-2.25M
	Investing Cash Flow
-6.21M	-4.62M	-9.77M	-13.89M	-6.89M	-2.23M
	Financing Cash Flow
6.18M	3.18M	7.37M	-601.00K	41.54M	5.17M

Pentanet Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 0.03 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 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 17.78 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 *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
5GG	43 Neutral	AU$12.13M	―	-26.35%	―	5.54%	-3.85%
MLBEF		$27.09M	―	-11.39%	―	―	―
TPGTF		$6.28B	280.66	-0.95%	―	―	―
9SL		€816.54M	―	-1.05%	―	―	―
TUA	61 Neutral	AU$2.76B	1,113.21	0.49%	―	35.57%	―
DUB	39 Underperform	AU$44.60M	―	-131.93%	―	15.31%	61.52%

Pentanet Ltd Corporate Events

Pentanet Ltd Reports Positive Cash Flow Amid 5G Investments

Pentanet Ltd’s latest quarterly cash flow report reveals a net cash inflow from operating activities, indicating a positive operational performance. However, the company experienced a net cash outflow in investing activities, primarily due to ongoing investments in 5G spectrum licenses, which could enhance its market positioning in high-speed internet services.

Pentanet Strengthens Financials and Expands 5G Network

Pentanet Ltd reported a strong financial performance in Q3 FY25, with a 17% increase in EBITDA and stable revenue growth. The company is on track to double its 5G network coverage, which is expected to enhance its market positioning and subscriber growth. The strategic expansion of its 5G network and cloud gaming services, including the GeForce NOW platform, indicates a focus on long-term value creation and competitive positioning in the telecommunications sector.

Pentanet Announces Q3FY25 Results Presentation and Q&A Session

Pentanet has announced a Q3FY25 results presentation and Q&A session scheduled for April 16, 2025, led by Managing Director Stephen Cornish and CFO Mart-Marie Derman. This event will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.