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Butn Limited (AU:BTN)
:BTN
Australian Market

Butn Limited (BTN) AI Stock Analysis

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AU

Butn Limited

(Sydney:BTN)

Rating:51Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Butn Limited's overall score reflects its robust revenue growth but significant financial and valuation challenges. The company's high leverage and negative earnings impact its financial stability. Technical analysis provides some optimism, but the negative P/E ratio and lack of dividend yield highlight considerable risks.

Butn Limited (BTN) vs. iShares MSCI Australia ETF (EWA)

Butn Limited Business Overview & Revenue Model

Company DescriptionButn Limited (BTN) is an Australian financial technology company specializing in innovative funding solutions for businesses. Operating primarily in the fintech sector, Butn offers a range of services including invoice financing and supply chain finance. The company leverages technology to provide quick and efficient funding options, helping businesses manage their cash flow more effectively.
How the Company Makes MoneyButn Limited generates revenue through its invoice financing and supply chain finance services. The company earns money by providing short-term funding solutions to businesses, allowing them to access cash tied up in unpaid invoices. Butn charges fees and interest on the financing provided, which are the primary sources of its revenue. Additionally, the company's technology platform enables efficient service delivery, attracting a broad client base and enhancing its earnings potential. Strategic partnerships with other financial institutions and businesses also contribute to its revenue streams by expanding its market reach and service offerings.

Butn Limited Financial Statement Overview

Summary
Butn Limited shows strong revenue growth; however, consistent net losses and high leverage pose significant financial risks. The company's negative cash flows and operational inefficiencies highlight the need for strategic improvements.
Income Statement
45
Neutral
Butn Limited has shown notable revenue growth, increasing from $5.6 million in 2022 to $13.5 million in 2024, indicating a positive trajectory. However, the company has consistently reported net losses, with the net profit margin significantly negative at -91.42% for 2024, reflecting challenges in achieving profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.
Balance Sheet
50
Neutral
The balance sheet reveals a high leverage position, with a debt-to-equity ratio of 9.84 in 2024, indicating a significant reliance on debt financing. The company's equity ratio is relatively low at 8.88%, suggesting potential financial risk. Despite this, the company has managed to maintain a stable asset base, showing a slight decrease in total assets over recent years.
Cash Flow
40
Negative
Operating cash flow has been persistently negative, which raises concerns about the company's ability to generate cash from its core operations. The free cash flow has also been negative, with a deteriorating trend observed in the free cash flow to net income ratio, indicating cash flow challenges and a need for continued external financing.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue7.48M13.49M11.85M5.60M4.55M4.65M
Gross Profit17.25M13.49M11.87M5.60M4.55M4.65M
EBITDA-4.96M-829.98K1.72M-3.64M-2.13M2.77M
Net Income-8.95M-12.33M-6.53M-8.66M-5.26M-359.00K
Balance Sheet
Total Assets92.50M91.27M98.98M77.82M53.30M43.39M
Cash, Cash Equivalents and Short-Term Investments16.93M13.36M14.67M15.78M15.52M9.92M
Total Debt11.23M79.73M79.52M56.35M46.76M41.83M
Total Liabilities84.14M83.16M83.34M59.80M49.70M44.29M
Stockholders Equity8.36M8.11M15.64M18.02M3.60M-907.04K
Cash Flow
Free Cash Flow-114.27K-3.16M-1.83M-7.09M-4.58M-15.08M
Operating Cash Flow63.74K-2.36M-673.74K-3.85M-2.43M-13.79M
Investing Cash Flow6.50M-2.64M-26.09M-29.48M-3.04M-1.29M
Financing Cash Flow4.64M3.65M25.61M33.60M11.06M22.85M

Butn Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.12
Price Trends
50DMA
0.11
Positive
100DMA
0.11
Positive
200DMA
0.09
Positive
Market Momentum
MACD
<0.01
Negative
RSI
65.06
Neutral
STOCH
150.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BTN, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 150.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BTN.

Butn Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
AU$9.88B7.9410.79%5.20%32.02%38.31%
AUEPY
61
Neutral
AU$54.44M31.752.31%1.40%-5.36%
AUHMY
56
Neutral
€56.71M-26.78%8.25%-119.92%
AUMME
54
Neutral
AU$124.01M7.17-13.74%-14.61%-325.81%
AUBTN
51
Neutral
AU$40.16M-85.47%4.91%-29.86%
AUPNC
46
Neutral
AU$81.09M-16.83%-2.45%-639.57%
AUWZR
42
Neutral
AU$34.87M-20.13%-5.95%-9.84%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BTN
Butn Limited
0.12
0.08
200.00%
AU:HMY
Harmoney Corp Ltd
0.57
0.19
50.00%
AU:WZR
Wisr Ltd.
0.02
-0.02
-50.00%
AU:PNC
Pioneer Credit Ltd
0.51
-0.07
-12.07%
AU:EPY
EarlyPay Limited
0.20
0.04
25.00%
AU:MME
MoneyMe Ltd.
0.16
0.10
166.67%

Butn Limited Corporate Events

Butn Limited Announces Co-CEO Transition
Jul 4, 2025

Butn Limited announced the retirement of Co-CEO Walter Rapoport, who will transition to a Non-Executive Director role. Rapoport, a co-founder, played a pivotal role in Butn’s development, including its IPO. His departure marks a significant transition for the company, with Rael Ross continuing as CEO. The Board has agreed to waive certain vesting conditions for Rapoport’s options, ensuring a smooth transition.

Butn Limited Initiates Trading Halt for Debt Refinancing Announcement
Jul 1, 2025

Butn Limited has requested a trading halt on its securities pending an announcement regarding potential debt refinancing and a new senior facility agreement. This move could impact the company’s financial operations and market positioning, as it may influence stakeholder confidence and future business strategies.

Butn Limited Announces In-Person Extraordinary General Meeting
Jun 30, 2025

Butn Limited has announced an Extraordinary General Meeting (EGM) scheduled for August 1, 2025, at their office in Caulfield North, Victoria. This meeting will be held in person, and shareholders are encouraged to attend to vote on various resolutions. The company emphasizes the importance of submitting proxy votes ahead of the meeting and has made the meeting materials available online for shareholders.

Butn Limited Announces Proposed Securities Issue
Jun 29, 2025

Butn Limited announced a proposed issue of securities, specifically 8,333,333 options expiring on August 1, 2028, with an exercise price of $0.12. This move is aimed at raising capital, potentially impacting the company’s financial position and providing opportunities for stakeholders to invest, thereby enhancing its market presence.

Butn Limited Secures $10 Million Credit Facility to Boost Growth
Jun 29, 2025

Butn Limited has secured a $10 million corporate credit facility with Mighty Partners to enhance its operational growth and strategic initiatives. This non-dilutive funding will support Butn’s expansion in the receivables and trade finance sector, strengthening its capacity to deliver value to customers and shareholders. The partnership with Mighty Partners, a growth credit lender, is expected to provide strategic support and growth capital, positioning Butn for its next development phase.

Butn Limited Announces Change in Substantial Holder Interests
Jun 25, 2025

Butn Limited has announced a change in the interests of a substantial holder, with Regal Funds Management Pty Limited and its associates now holding a significant portion of the company’s voting securities. This change reflects a shift in the voting power dynamics within the company, potentially impacting its governance and strategic decisions.

Butn Limited Announces Quotation of New Securities on ASX
Jun 23, 2025

Butn Limited has announced the quotation of 69,836,142 ordinary fully paid securities on the ASX, marking a significant step in its market activities. This move is expected to enhance the company’s visibility and liquidity in the financial markets, potentially benefiting stakeholders by increasing the accessibility and attractiveness of its securities.

Butn Limited Announces Major Securities Issue to Strengthen Capital Base
Jun 16, 2025

Butn Limited has announced a proposed issue of 100,250,000 ordinary fully paid securities, with the issue date set for June 23, 2025. This move is expected to bolster the company’s capital base, potentially enhancing its market position and providing additional resources to support its growth initiatives.

Butn Limited Secures A$20 Million for Growth Initiatives
Jun 16, 2025

Butn Limited has announced a significant financial boost, securing a total of A$20 million in additional funding to support its growth initiatives. This includes a A$10 million institutional placement from professional and sophisticated investors and a non-binding term sheet for a A$10 million corporate credit facility from Mighty Partners. The funds will be used to enhance working capital and explore potential market opportunities, strengthening Butn’s position in the financial services sector.

Butn Limited Requests Trading Halt Pending Capital Raising Announcement
Jun 11, 2025

Butn Limited, listed on the ASX under the code BTN, has requested a trading halt on its securities pending an announcement regarding a potential capital raising. The halt is expected to remain in place until the announcement is made or until the commencement of normal trading on Monday, 16 June 2025. This move indicates that Butn Limited is preparing for a significant financial maneuver, which could impact its market position and stakeholder interests.

Butn Limited Reports Mixed Cash Flow Results for March 2025 Quarter
Apr 28, 2025

Butn Limited’s quarterly cash flow report for the period ending March 31, 2025, indicates a net cash inflow from operating activities amounting to $901,000, despite significant payments for finance costs. However, the company experienced a net cash outflow from investing activities of $6,076,000, primarily due to payments for intellectual property and receivables. The overall cash position decreased over the period, reflecting challenges in balancing operational cash generation with investment outflows.

Butn Limited Reports Record Revenue and Strategic Growth in Q3 FY25
Apr 28, 2025

Butn Limited announced record quarterly revenue of $3.9 million and originations of $124.5 million for Q3 FY25, marking a 19% and 14% increase respectively over the previous corresponding period. The company achieved a positive operating cash flow of $0.9 million, supported by improved revenue margins and reduced operating costs. Strategic growth initiatives, including a partnership with Jim’s Group to provide franchise funding, are expected to enhance Butn’s market positioning and expand its reach in the ANZ region.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 17, 2025