Aeris Environmental Ltd (AEI) AI Stock Analysis

• Market Cap: AU$9.86M
• Dividend Yield: N/A
• Average Volume (3M): 51.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -0.52%
• EPS Growth: -38.84%
• Country: AU
• Employees: 21
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): N/A
• Shares Outstanding: 246,594,540
• 10 Day Avg. Volume: 89,765
• 30 Day Avg. Volume: 51,053
• PEG Ratio: -0.06
• Price to Book (P/B): -2.42
• Price to Sales (P/S): 2.87
• P/FCF Ratio: -2.18
• 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$0.04 ▼(-36.67% Downside)
• Action: Reiterated Date: 12/05/25
• Date: Action: Reiterated 12/05/25

Aeris Environmental Ltd's overall stock score is primarily impacted by its severe financial challenges, including declining revenues, persistent losses, and negative equity. The technical analysis indicates bearish momentum, while the valuation reflects a lack of profitability. These factors contribute to a low overall stock score.

Positive Factors

Lean headcount

A small workforce (21 employees) points to a lean cost base and operational agility. Over the medium term this reduces fixed overhead, enables quicker decision-making and restructuring, and can lengthen runway while management focuses on strategic repositioning or targeted sales efforts.

Specialized industry focus

Operating in pollution and treatment controls places the company in a specialized, technically-oriented niche where clients often require ongoing compliance and service relationships. This structural positioning can support recurring demand and differentiated service offerings over a multi-month to multi-year horizon.

Lower market volatility / trading liquidity

Below‑market beta (0.73) combined with reasonable 3‑month average volume suggests comparatively lower share price volatility and tradability. For longer-term holders this can reduce refinancing or exit risk during market stress and modestly improve access to capital or partnerships vs extremely illiquid peers.

Negative Factors

Negative equity / leverage

The balance sheet shows negative shareholders' equity and a -1.41 debt-to-equity ratio, signaling solvency stress. Persisting negative equity hampers access to traditional financing, increases refinancing risk, can trigger covenant issues, and materially limits strategic flexibility for M&A or capex investments.

Poor cash generation

Operating and free cash flows are negative and OCF-to-net income at -2.09 shows earnings are not producing cash. This forces reliance on external funding to sustain operations, constrains reinvestment in products or sales, and creates a persistent going-concern risk if cash burn is not arrested.

Declining revenue & large negative margins

Revenue is declining (-16.1%) while profit margins are deeply negative (net -126%, EBIT -131%), indicating structural unprofitability and operational inefficiency. Absent meaningful margin recovery or revenue stabilization, the core business model does not generate sustainable earnings to cover costs or service liabilities.

Aeris Environmental Ltd Business Overview & Revenue Model

Company Description

Aeris Environmental Ltd, together with its subsidiaries, engages in the research, development, and commercialization of proprietary technologies in Australia and internationally. The company offers heating, ventilation, air-conditioning, and refrigeration (HVAC/R) hygiene and remediation technology, indoor air quality, and corrosion protection services, as well as distributes HVAC/R hygiene, anti-corrosion, and disinfectant products. It also provides building/industrial, corporate/retail, corrosion protection, flood remediation, government/education, health/aged care, home/residential, HVAC and R, manufacturing/equipment, mould and odour control, specialty, surface cleaning and disinfection, and surface hygiene products, as well as accessories. In addition, the company offers indoor air quality assessments, mould investigations and sampling, in-house nonviable microscopy analysis, mould remediation management, post remediation verification and occupational clearance, building water ingress assessments and rectification, duct cleaning and AHU servicing management, and infection control and containment services. It provides its solutions to manufacturing and equipment, building and industrial, health and aged care, government and education, corporates and retail, and home and residential customers. The company was incorporated in 2000 and is based in Rosebery, Australia.

How the Company Makes Money

Aeris Environmental Ltd generates revenue through multiple streams, primarily by selling its environmental monitoring devices and sensors. These products are often complemented by subscription-based services that provide ongoing access to data analytics and reporting tools. Additionally, AEI earns revenue from consulting services that assist clients in interpreting data and implementing environmental strategies. Strategic partnerships with government agencies and private enterprises also enhance its revenue potential, as AEI collaborates on projects aimed at improving environmental conditions and compliance with regulations.

Aeris Environmental Ltd Financial Statement Overview

Summary

Aeris Environmental Ltd is facing severe financial challenges across all verticals. The income statement shows declining revenues and persistent losses, the balance sheet highlights negative equity and high leverage, and the cash flow statement indicates insufficient cash generation. The company needs to address these issues to improve its financial health.

Income Statement

Aeris Environmental Ltd has experienced a significant decline in revenue over the years, with a negative revenue growth rate of -16.1% in the latest period. The company has consistently reported negative profit margins, including a net profit margin of -126.43% and an EBIT margin of -131.41% for the most recent year. These figures indicate substantial operational challenges and a lack of profitability.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity, resulting in a negative debt-to-equity ratio of -1.41. This indicates financial instability and potential solvency issues. The return on equity is positive due to negative equity, which is misleading. Overall, the balance sheet reflects significant financial distress.

Cash Flow

The cash flow statement reveals a deteriorating situation with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is -2.09, indicating that the company is not generating sufficient cash from its operations to cover its losses.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.80M	3.26M	3.05M	1.93M	2.68M	7.13M
Gross Profit	-436.92K	-150.96K	-183.69K	-722.46K	-1.46M	-525.68K
EBITDA	-3.00M	-4.26M	-2.98M	-3.86M	-7.31M	-5.80M
Net Income	-4.75M	-4.12M	-2.97M	-3.65M	-7.13M	-5.87M
Balance Sheet
Total Assets	3.68M	3.34M	2.75M	4.67M	8.08M	16.55M
Cash, Cash Equivalents and Short-Term Investments	1.44M	896.20K	989.79K	2.60M	5.30M	11.49M
Total Debt	8.74M	5.46M	916.91K	114.75K	318.34K	318.34K
Total Liabilities	10.57M	7.45M	2.78M	1.72M	1.48M	3.08M
Stockholders Equity	-6.42M	-3.86M	-27.50K	2.95M	6.59M	13.47M
Cash Flow
Free Cash Flow	-4.66M	-4.29M	-2.04M	-2.66M	-6.17M	-1.37M
Operating Cash Flow	-4.65M	-4.28M	-1.99M	-2.58M	-6.11M	-1.28M
Investing Cash Flow	-6.73K	-10.27K	-51.18K	-72.97K	-62.50K	-93.36K
Financing Cash Flow	2.84M	4.17M	433.83K	-64.67K	-68.59K	11.57M

Aeris Environmental Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 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:AEI, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 12.71 is Positive, neither overbought nor oversold. The STOCH value of -19.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AEI.

Aeris Environmental Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SSH	57 Neutral	AU$22.34M	10.51	6.19%	―	-6.52%	-20.79%
DEM	49 Neutral	AU$33.48M	-15.00	-16.00%	―	11.53%	46.15%
AVA	48 Neutral	AU$16.88M	-2.21	-25.77%	―	4.84%	-12.12%
PET	42 Neutral	AU$8.74M	-2.69	-26.47%	―	-45.80%	-210.00%
ECT	41 Neutral	AU$45.77M	-7.91	-164.39%	―	―	15.66%
AEI	41 Neutral	AU$9.86M	-2.02	―	―	-0.52%	-38.84%

Aeris Environmental Ltd Corporate Events

Major Shareholder Bernard Starr Lifts Stake in Aeris Environmental

A substantial shareholder, Bernard Starr, has increased his stake in Aeris Environmental Ltd, lifting his holding from 12.14% to 13.14% of the company’s fully paid ordinary shares. This change was formally notified to the market, indicating a higher level of control and influence by the shareholder within the company’s capital structure.

The incremental rise in ownership consolidates Bernard Starr’s position as a key stakeholder, which may signal confidence in Aeris Environmental’s strategic direction and future prospects. For other investors, the move highlights a tightening of the free float and potentially greater alignment between a major holder and the company’s long-term performance.

The most recent analyst rating on (AU:AEI) stock is a Sell with a A$0.05 price target. To see the full list of analyst forecasts on Aeris Environmental Ltd stock, see the AU:AEI Stock Forecast page.

Aeris Environmental Loss Deepens as Revenue Falls and Asset Deficit Widens

Aeris Environmental Ltd reported a sharp deterioration in its financial performance for the half year ended 31 December 2025, with revenue from ordinary activities falling 27.64% to $1.08 million compared with the prior corresponding period. The company’s net loss attributable to members widened by 40.71% to $2.62 million, and net tangible assets per ordinary share declined further into deficit at negative 2.796 cents, underscoring mounting balance-sheet pressure and the absence of any dividend payments.

The results highlight intensified financial strain for Aeris Environmental, as shrinking revenue and deeper losses suggest ongoing operational headwinds and potentially weaker market positioning. The growing net tangible asset deficit may concern shareholders and creditors, signalling reduced asset backing per share, while the continued suspension of dividends reinforces a conservative cash stance as the Board and management navigate a challenging trading environment.

The most recent analyst rating on (AU:AEI) stock is a Sell with a A$0.05 price target. To see the full list of analyst forecasts on Aeris Environmental Ltd stock, see the AU:AEI Stock Forecast page.

Aeris Environmental Director Receives Options for $1m Loan Support

Aeris Environmental Ltd has disclosed a change in director Maurie Stang’s interests following the issue of 1,000,000 options as part consideration for a $1 million loan he provided to the company. The options, valued at $24,128 using a Black-Scholes model and exercisable at $0.20 until November 2029, supplement Stang’s existing substantial direct and indirect shareholdings without altering his share count.

The transaction underscores the director’s continued financial support for Aeris Environmental’s operations and aligns his incentives more closely with the company’s long-term performance. By securing related-party funding on defined option terms, Aeris strengthens its capital position while signaling confidence from a key insider, which may be closely watched by investors assessing the company’s governance and financing strategy.

The most recent analyst rating on (AU:AEI) stock is a Sell with a A$0.05 price target. To see the full list of analyst forecasts on Aeris Environmental Ltd stock, see the AU:AEI Stock Forecast page.

Aeris Environmental Builds Commercial Momentum with Budweiser Deal and Syncromesh Rollout

Aeris Environmental reported building strong momentum in its consumables and AerisTech divisions in the December 2025 quarter, underpinned by initial commercial orders from Budweiser APAC after a two-year accreditation process and successful product trials in three Chinese breweries, as well as a second $450,000 order from a major international OEM for its next-generation anti-corrosion products. The company highlighted accelerating commercialisation of its Syncromesh IoT ecosystem, including deployment at Luna Park Melbourne and a growing US pipeline via channel partner H4, while maintaining 56% gross margins, tight operating expenses, cash of $1.44 million and securing $3 million in new unsecured loan facilities from related parties to support growth initiatives and the planned global rollout of an off-the-shelf Syncromesh platform to electrical wholesalers in 2026.

The most recent analyst rating on (AU:AEI) stock is a Sell with a A$0.05 price target. To see the full list of analyst forecasts on Aeris Environmental Ltd stock, see the AU:AEI Stock Forecast page.

Aeris Environmental Issues Unquoted Equity Securities to Bolster Growth

Aeris Environmental Ltd announced the issuance of 3,000,000 unquoted equity securities in the form of options expiring on 27 November 2029, with an exercise price of $0.20. This development may provide the company with additional funding opportunities and reflects its ongoing financial and operational strategies aimed at ensuring future growth, which could have implications for the company’s market positioning and stakeholders.

The most recent analyst rating on (AU:AEI) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Aeris Environmental Ltd stock, see the AU:AEI Stock Forecast page.