Australian Bond Exchange Holdings Ltd. (ABE) AI Stock Analysis

• Market Cap: AU$3.69M
• Dividend Yield: N/A
• Average Volume (3M): 13.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -37.25%
• EPS Growth: 27.45%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.02
• Shares Outstanding: 131,938,060
• 10 Day Avg. Volume: 16,328
• 30 Day Avg. Volume: 13,628
• PEG Ratio: 0.03
• Price to Book (P/B): -4.33
• Price to Sales (P/S): 1.56
• P/FCF Ratio: -1.00
• 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: 41 Neutral
• Price Target: AU$0.03 ▼(-10.00% Downside)

The overall stock score is primarily driven by poor financial performance, characterized by declining revenues and negative profitability margins. Technical analysis indicates a bearish trend, with the stock trading below key moving averages. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield.

Positive Factors

High gross margin

An effectively 100% gross margin implies minimal direct costs and strong fee capture. If sustainable, this structural pricing advantage supports converting additional revenue into gross profit, enabling operating leverage and aiding margin recovery if operating expenses are managed.

EPS growth

Reported EPS growth of ~27% despite revenue decline suggests management has improved per‑share profitability via cost controls, efficiencies or capital structure moves. Sustained EPS growth can restore earnings momentum and support deleveraging or reinvestment over coming quarters.

Positive return on equity

A positive ROE signals the business can generate returns on its equity base, indicating some underlying earnings capacity. While the report notes this is influenced by negative equity and needs cautious interpretation, it still reflects an ability to produce operating profits.

Negative Factors

Declining revenue trend

A ~30-37% revenue contraction materially reduces scale and market traction. Persistent top-line decline weakens fixed-cost absorption, compresses margins, limits reinvestment, and makes medium-term recovery harder absent new products, customers, or regained market share.

Balance sheet solvency risk

Negative shareholders' equity and a negative debt-to-equity ratio indicate structural solvency concerns. This constrains access to capital, raises refinancing and covenant risk, and may force dilutive or costly funding, limiting strategic flexibility over the next several months.

Weak cash flow generation

Negative operating and free cash flows show operations aren't generating surplus cash and free cash equals net losses. Continued cash burn restricts debt servicing and reinvestment, increasing reliance on external financing or cuts that could impair medium-term business prospects.

Australian Bond Exchange Holdings Ltd. Business Overview & Revenue Model

Company Description

Australian Bond Exchange Holdings Limited, a financial services company, provides bond trading and advisory services to retail and wholesale customers in Australia. The company engages in the provision of fixed income advisory, and settlement and custodial services; and dealing of corporate and government bonds, and other market-linked instruments. The company was incorporated in 2015 and is based in Sydney, Australia.

How the Company Makes Money

ABE generates revenue primarily through transaction fees charged on bond trades conducted via its platform. Additionally, the company may earn income from subscription fees for premium data and analytics services offered to investors seeking detailed insights into the bond market. Key partnerships with financial institutions and market makers enhance ABE's trading capabilities and liquidity, further contributing to its earnings. By facilitating a seamless trading experience and providing valuable market information, ABE positions itself as a vital player in the Australian fixed income market.

Australian Bond Exchange Holdings Ltd. Financial Statement Overview

Summary

Australian Bond Exchange Holdings Ltd. faces significant financial challenges, with declining revenues, negative profitability margins, and concerning balance sheet metrics. The negative equity and cash flow issues highlight potential risks in financial stability and liquidity.

Income Statement

The company has experienced declining revenue growth, with a significant drop of 30.9% in the latest year. Profitability metrics are concerning, with negative net profit, EBIT, and EBITDA margins, indicating operational challenges. The gross profit margin remains high at 100%, but this is overshadowed by the negative net profit margin of -182.6%.

Balance Sheet

The balance sheet shows a negative stockholders' equity, leading to a high and negative debt-to-equity ratio, which is a risk factor. The return on equity is positive at 5.06%, but this is due to the negative equity. The equity ratio is not favorable, indicating potential solvency issues.

Cash Flow

Cash flow metrics are weak, with negative operating and free cash flows. The free cash flow to net income ratio is 1.0, suggesting cash flow is aligned with net losses. The company has not shown consistent free cash flow growth, indicating cash management challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.28M	2.28M	4.52M	4.97M	2.14M	4.05M
Gross Profit	2.28M	2.28M	3.43M	3.81M	1.53M	1.43M
EBITDA	-2.26M	-3.18M	-4.63M	-4.61M	-3.58M	-605.46K
Net Income	-4.16M	-4.16M	-5.62M	-5.03M	-3.64M	-345.58K
Balance Sheet
Total Assets	5.61M	5.61M	7.58M	11.88M	13.84M	4.32M
Cash, Cash Equivalents and Short-Term Investments	1.01M	1.01M	2.48M	6.16M	10.68M	19.12M
Total Debt	1.78M	1.78M	3.19M	2.07M	0.00	0.00
Total Liabilities	6.43M	6.43M	4.87M	3.56M	958.65K	2.59M
Stockholders Equity	-823.37K	-823.37K	2.70M	8.32M	12.88M	19.04M
Cash Flow
Free Cash Flow	-3.55M	-3.55M	-4.27M	-3.07M	-5.22M	-368.57K
Operating Cash Flow	-3.55M	-3.55M	-4.27M	-2.34M	-4.63M	55.03K
Investing Cash Flow	-350.75K	-350.75K	-429.63K	-724.47K	-587.32K	-423.60K
Financing Cash Flow	2.42M	2.42M	1.02M	-105.97K	13.90M	-161.15K

Australian Bond Exchange Holdings Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABE, the sentiment is Neutral. 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 Positive momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ABE.

Australian Bond Exchange Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OFX	60 Neutral	AU$115.85M	7.14	9.31%	―	-5.73%	-36.36%
COG	55 Neutral	AU$372.87M	18.70	12.36%	2.86%	-26.30%	40.12%
PPS	50 Neutral	AU$368.04M	26.68	12.27%	2.81%	24.56%	59.32%
FNX	46 Neutral	AU$11.21M	-2.15	-34.88%	―	43.00%	-6078.57%
ABE	41 Neutral	AU$3.69M	-0.77	-444.41%	―	-37.25%	27.45%

Australian Bond Exchange Holdings Ltd. Corporate Events

Australian Bond Exchange Advances CBDC Bond Settlement and Narrows Cash Outflows

Australian Bond Exchange Holdings Ltd. has strengthened its strategic positioning in wholesale financial markets after successfully completing live use-case testing in the Reserve Bank of Australia’s Project Acacia, demonstrating real-time, atomic settlement of tokenised fixed income instruments using central bank digital currency. This validation of its technology, combined with ongoing enhancements to its institutional order management system supporting around $1 billion in monthly order volume, an expanded product suite through participation in new senior secured medium-term notes, and continued cost reduction initiatives, is expected to broaden its addressable market, reinforce its fintech credentials and improve operating efficiency, as reflected in a reduced quarterly net operating cash outflow of $0.4 million.

The most recent analyst rating on (AU:ABE) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Australian Bond Exchange Holdings Ltd. stock, see the AU:ABE Stock Forecast page.

Australian Bond Exchange Holds Annual General Meeting, Approves Key Resolutions

Australian Bond Exchange Holdings Ltd. held its Annual General Meeting on November 17, 2023, where several resolutions were passed, including the adoption of the remuneration report and the re-election of directors. These decisions are expected to impact the company’s governance and operational strategies, potentially influencing its market positioning and stakeholder relations.

Australian Bond Exchange Reports Improved Financial Performance Amid Market Challenges

Australian Bond Exchange Holdings Ltd. reported a reduction in its consolidated loss to $4.2 million in FY25, down from $5.6 million the previous year, reflecting effective cost management despite a 34.9% decline in total income due to unfavorable market conditions and business streamlining. The company managed over $10 billion in client orders, with a 14% increase in active clients, and introduced a new revenue stream through its Corporate Advisory division, which contributed positively to revenue and is expected to reduce earnings volatility. ABE’s successful application to vary its Australian Financial Services Licence is anticipated to provide additional revenue opportunities and cost reductions.