Close the Loop Ltd. (CLG) AI Stock Analysis

• Market Cap: AU$22.34M
• Dividend Yield: N/A
• Average Volume (3M): 672.12K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.08
• Revenue Growth: 15.82%
• EPS Growth: -66.67%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 83
• Industry: Waste Management
• EPS (TTM): >-0.01
• Shares Outstanding: 531,849,850
• 10 Day Avg. Volume: 1,080,518
• 30 Day Avg. Volume: 672,116
• 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: 166.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Close the Loop Ltd. scores well in financial performance due to robust revenue growth and effective operations. However, the technical analysis indicates bearish market conditions, impacting the overall score. The valuation is favorable due to a low P/E ratio, but this is offset by the lack of dividend yield.

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
	EBIT
11.82M	18.34M	15.44M	4.72M	4.36M	724.16K
	EBITDA
32.07M	46.26M	24.63M	8.32M	6.34M	7.29M
	Net Income Common Stockholders
5.26M	10.95M	12.24M	4.60M	4.25M	-2.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.80M	40.64M	49.46M	10.33M	5.61M	1.98M
	Total Assets
303.99M	297.00M	271.38M	92.26M	14.68M	50.52M
	Total Debt
112.47M	108.66M	110.86M	24.23M	4.26M	32.89M
	Net Debt
74.67M	68.01M	61.40M	13.90M	-1.35M	30.91M
	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: Negative
• Last Price: 0.03
• 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:CLG, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 13.14 is Positive, neither overbought nor oversold. The STOCH value of 2.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	67 Neutral	AU$22.34M	3.03	3.80%	―	15.82%	-66.67%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%
ORRAF		$1.52B	11.20	4.78%	5.80%	―	―
RLLWF		$2.11B	15.07	10.01%	2.10%	―	―
SMUPF		$1.95B	―	-1.24%	1.45%	―	―
TSPCF		$3.95B	38.77	5.31%	1.26%	―	―
SNL	62 Neutral	AU$1.63B	42.17	36.35%	1.71%	17.97%	24.04%

Close the Loop Ltd. Corporate Events

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.

Close the Loop Ltd. Gains IMMEX Approval for Mexicali Plant Operations

Close the Loop Ltd. has received approval from the IMMEX program to commence operations at its Mexicali Plant near the US-Mexico border. This development marks a significant step in the company’s expansion within the IT asset disposition (ITAD) sector, enabling it to support OEM partners with certified refurbished products and services. The plant is expected to begin processing inventory in April 2025, with production volumes increasing in the fourth quarter of FY25, potentially leading to a substantial impact on revenue for FY26.