Close the Loop Ltd. (CLG) AI Stock Analysis

• Market Cap: AU$23.40M
• Dividend Yield: N/A
• Average Volume (3M): 5.00M
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.26
• Revenue Growth: 15.82%
• EPS Growth: -66.67%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 85
• Industry: Waste Management
• EPS (TTM): >-0.01
• Shares Outstanding: 531,849,850
• 10 Day Avg. Volume: 9,232,618
• 30 Day Avg. Volume: 4,995,386
• PEG Ratio: -0.14
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.38
• 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: AU$0.08
• Price Target Upside: 100.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

Close the Loop Ltd. benefits from strong financial health and attractive valuation, which contributes significantly to its overall score. However, technical indicators suggest potential bearish momentum, which is a concern for short-term stock performance.

Close the Loop Ltd. Business Overview & Revenue Model

Company Description

Close the Loop Ltd engages in the collection and recycling of imaging consumables, paper and cartons, and other related activities in Australia, Europe, South Africa, and the United States. It also produces and sells TonerPlas; and provides flexible and carton packaging, flexographic print packaging, seafood packaging, and bulk storage solutions. The company was founded in 2001 and is based in Somerton, Australia.

How the Company Makes Money

Close the Loop Ltd. (CLG) generates revenue through a multi-faceted business model centered around its recycling and resource recovery services. Key revenue streams include service fees from businesses and manufacturers for the collection and recycling of their products, sales of recovered materials, and partnerships with companies seeking sustainable waste management solutions. Additionally, CLG benefits from strategic collaborations with manufacturers and retailers who are committed to reducing their environmental footprint, providing opportunities for long-term contracts and steady income. The company's ability to innovate in material recovery technologies and its strong focus on sustainability further enhance its market position and revenue potential.

Close the Loop Ltd. Financial Statement Overview

Summary

Close the Loop Ltd. exhibits strong financial health with significant revenue growth and efficient operations. The balance sheet shows a robust capital structure with moderate leverage. Cash flow management is effective, although increased debt and capital expenditures should be monitored.

Income Statement

Close the Loop Ltd. has exhibited strong revenue growth, with a significant increase from 2023 to 2024. The gross profit margin of approximately 19% and net profit margin of about 5% indicate efficient cost management and profitability. The EBIT and EBITDA margins further demonstrate solid operational efficiency. However, the slight decline in net income from 2023 to 2024 suggests potential challenges in maintaining profitability.

Balance Sheet

The company's balance sheet reflects a healthy equity ratio of around 47%, indicating a robust capital structure. The debt-to-equity ratio of approximately 0.77 suggests moderate leverage, which is manageable. Return on Equity (ROE) is strong, reflecting effective use of equity to generate profits. However, the increase in total debt warrants monitoring for potential risks.

Cash Flow

The free cash flow has grown substantially, showcasing improved cash generation capabilities. The operating cash flow to net income ratio is favorable, indicating efficient cash flow management. However, the negative investing cash flow highlights significant capital expenditures, which may impact short-term liquidity.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	209.02M	212.96M	135.93M	70.13M	26.81M	67.42M
Gross Profit	54.60M	80.04M	28.62M	21.03M	8.00M	13.93M
EBITDA	32.07M	46.26M	24.63M	8.32M	6.34M	7.29M
Net Income	5.26M	10.95M	12.24M	4.60M	4.25M	-2.13M
Balance Sheet
Total Assets	303.99M	297.00M	271.38M	92.26M	14.68M	50.52M
Cash, Cash Equivalents and Short-Term Investments	37.80M	40.64M	49.46M	10.33M	5.61M	1.98M
Total Debt	112.47M	108.66M	110.86M	24.23M	4.26M	32.89M
Total Liabilities	158.98M	155.47M	147.32M	39.04M	6.69M	46.55M
Stockholders Equity	144.24M	140.91M	123.54M	52.90M	7.98M	5.85M
Cash Flow
Free Cash Flow	3.09M	11.63M	6.95M	-3.74M	5.89M	1.68M
Operating Cash Flow	11.94M	21.72M	22.68M	-3.15M	6.20M	4.17M
Investing Cash Flow	-18.55M	-19.60M	-85.97M	-4.03M	-519.00K	-3.32M
Financing Cash Flow	-12.68M	-11.33M	103.09M	11.22M	-1.68M	426.41K

Close the Loop Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 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:CLG, the sentiment is Neutral. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.06, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 87.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CLG.

Close the Loop Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLG	72 Outperform	AU$23.40M	4.44	3.80%	―	15.82%	-66.67%
Sector *	65 Neutral	$10.75B	15.69	5.29%	1.89%	3.09%	-27.41%
TSPCF		$4.10B	39.52	5.31%	1.25%	―	―
EMB	66 Neutral	AU$17.97M	13.18	6.82%	3.60%	-20.98%	18.62%
AEI	41 Neutral	AU$8.86M	―	-203.38%	―	20.00%	17.22%
ETR	35 Underperform	AU$13.88M	―	-1011.73%	―	―	―
ECT	27 Underperform	AU$11.88M	―	-122.51%	―	―	26.32%

Close the Loop Ltd. Corporate Events

Challenger Limited Ceases Substantial Holding in Close The Loop

Challenger Limited, along with its associated entities, has announced that it has ceased to be a substantial holder in Close The Loop Limited. This change in holding status may impact the company’s influence and voting power within Close The Loop Limited, potentially affecting strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.27 price target. To see the full list of analyst forecasts on Close the Loop Ltd. stock, see the AU:CLG Stock Forecast page.

Challenger Limited Alters Stake in Close the Loop Ltd.

Close the Loop Ltd. has announced a change in the interests of a substantial holder, Challenger Limited, and its associated entities. This change involves the purchase and sale of ordinary fully paid securities, impacting the voting power of Challenger Limited in Close the Loop Ltd. The notice reflects the updated voting power and the number of securities held by Challenger Limited and its associated entities, indicating a shift in their stake in the company.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.27 price target. To see the full list of analyst forecasts on Close the Loop Ltd. stock, see the AU:CLG Stock Forecast page.

Greencape Capital Increases Stake in Close The Loop Limited

Greencape Capital Pty Ltd has announced a change in its substantial holding in Close The Loop Limited, a company involved in the recycling and resource recovery industry. This change reflects an increase in Greencape Capital’s voting power from 5.05% to 6.32%, indicating a strategic move to strengthen its influence within the company.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.27 price target. To see the full list of analyst forecasts on Close the Loop Ltd. stock, see the AU:CLG Stock Forecast page.

Close the Loop Ltd. Strengthens Financial Position and Expands Global Operations

Close the Loop Ltd. has announced a strong financial position with cash on hand exceeding A$30 million and bank debt of US$38 million as of June 30, 2025. The company is enhancing its operations with the appointment of Matthew Zimmer as CEO for North American refurbishment and ITAD operations. The firm is ramping up its Mexico facility to focus on inkjet printers and ITAD services, which is expected to boost revenue in FY26. The company has secured new opportunities in Asia and the UK, positioning itself for continued growth over the next 12-24 months.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.27 price target. To see the full list of analyst forecasts on Close the Loop Ltd. stock, see the AU:CLG Stock Forecast page.

Close the Loop Limited Announces Change in Substantial Holdings

Close the Loop Limited has announced a change in substantial holdings, indicating that a previously substantial holder has ceased to hold a significant interest in the company as of June 14, 2023. This change in holdings may impact the company’s shareholder structure and could have implications for its governance and strategic direction.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.27 price target. To see the full list of analyst forecasts on Close the Loop Ltd. stock, see the AU:CLG Stock Forecast page.

Close the Loop Ltd. Reports Steady Revenue Amid Operational Challenges

Close the Loop Limited reported that while revenue for the second half of FY25 remains steady at approximately $99 million, EBITDA is expected to be 50% lower due to challenges in North American refurbishment and ITAD operations. The company is addressing these issues by appointing a new CEO for North America and expanding operations at its Mexicali plant. Despite setbacks, Close the Loop sees growth potential in the North American market and has shut down its Melbourne cardboard recycling facility to focus on more profitable ventures. The company has also decided not to proceed with new TonerPlas plants in New South Wales and Queensland, returning grant funding to the NSW Government.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.27 price target. To see the full list of analyst forecasts on Close the Loop Ltd. stock, see the AU:CLG Stock Forecast page.

Close the Loop Ltd. Anticipates Positive Impact from New Tariffs

Close the Loop Ltd. announced that recent changes in tariffs by the US government and other countries are expected to have a favorable impact on its operations. The increased tariffs on new electronics are likely to boost demand for certified refurbished products, benefiting the ITAD sector and Close the Loop. The company anticipates that the demand for less expensive recycled products will outweigh any negative effects of tariffs on their operations, particularly in their Mexicali, Texas, and Kentucky facilities.