Pentanet Ltd (5GG) AI Stock Analysis

• Market Cap: AU$12.13M
• Dividend Yield: N/A
• Average Volume (3M): 609.06K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.37
• Revenue Growth: 5.54%
• EPS Growth: -3.85%
• Country: AU
• Employees: 69
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 433,171,660
• 10 Day Avg. Volume: 810,190
• 30 Day Avg. Volume: 609,057
• PEG Ratio: 0.37
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.21
• 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: 48 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall stock score is primarily driven by financial performance challenges, including continued losses and cash flow issues. Technical analysis indicates a bearish trend, further influencing the score negatively. The valuation score is low due to a negative P/E ratio and lack of dividends, which could deter investors seeking value.

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 shows revenue growth and improved gross profit margin, but significant challenges persist with negative net profit margin and operational inefficiencies. Balance sheet stability is apparent, but increased leverage and negative cash flow highlight financial vulnerabilities.

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
EBITDA	-1.38M	-1.27M	-3.80M	-4.48M	-8.29M	-3.93M
Net Income	-6.72M	-6.38M	-7.57M	-7.92M	-13.70M	-5.11M
Balance Sheet
Total Assets	35.46M	41.58M	48.10M	46.14M	53.20M	29.38M
Cash, Cash Equivalents and Short-Term Investments	2.68M	5.30M	7.37M	13.39M	32.70M	23.05M
Total Debt	7.69M	7.26M	8.10M	2.31M	1.49M	1.76M
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: Neutral
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 0.03 is above 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 neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 116.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%
5GG	48 Neutral	AU$12.13M	―	-26.35%	―	5.54%	-3.85%
FVK0		€15.46M	―	-13.80%	―	―	―
M2G		€5.72M	―		―	―	―
FSG	52 Neutral	AU$17.02M	―	-7.44%	―	―	―
VN8	49 Neutral	AU$26.34M	―		―	-4.31%	73.91%
HFY	43 Neutral	AU$4.60M	―	-34.98%	―	-23.34%	-470.00%

Pentanet Ltd Corporate Events

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.

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.