Close the Loop Ltd. (CLG) AI Stock Analysis

• Market Cap: AU$11.21M
• Dividend Yield: N/A
• Average Volume (3M): 642.10K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.71
• Revenue Growth: -8.37%
• EPS Growth: -300.48%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.05
• Shares Outstanding: 533,649,840
• 10 Day Avg. Volume: 535,099
• 30 Day Avg. Volume: 642,103
• PEG Ratio: <0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 12.59
• 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: 42 Neutral
• Price Target: AU$0.02 ▼(-47.50% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

Overall score is dragged down primarily by weak financial performance (declining revenue, ongoing losses, and falling free cash flow) and very bearish technicals (price below all key moving averages with negative MACD). Valuation metrics provide limited support due to a negative P/E and no provided dividend yield.

Positive Factors

Circular-economy business model

Close the Loop’s core business—collection, processing and recycling of consumer and industrial waste—aligns with durable structural demand for circular solutions. Long-term contracts and supply‑chain reintegration can provide steady service revenues and insulation from commodity price swings.

Manageable leverage

A debt-to-equity ratio near 1.0 reflects moderate leverage for an asset‑intensive recycling operator. This level supports continued operations and targeted capex without extreme refinancing pressure, preserving financial flexibility over the next several months if operations stabilize.

Positive free cash flow to earnings

Despite weaker cash flow growth, the firm still converts earnings into positive free cash flow relative to net income. That cash conversion provides a foundation to fund working capital, modest reinvestment in recycling capacity and sustain operations while management works to restore revenue growth.

Negative Factors

Declining revenue

Sustained revenue decline reduces scale economies in collection and processing, constrains margin recovery and limits ability to fund network expansion. If top-line contraction persists it will impair long‑term competitiveness and slow progress toward profitable scale.

Loss-making operations

Negative EBIT and net margins signal the business is not yet operating profitably at current scale. Persistent operating losses erode equity, depress ROE and force reliance on external funding or cost restructuring, making durable margin restoration a critical medium‑term challenge.

Deteriorating free cash flow

A steep drop in free cash flow growth and weak operating cash conversion reduce the company’s ability to self‑fund capex, working capital and strategic initiatives. This heightens dependence on external financing and constrains operational investments needed to reverse revenue and margin trends.

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 generates revenue through multiple streams, including fees for waste collection and processing services, sales of recycled materials, and partnerships with businesses looking to enhance their sustainability practices. The company often collaborates with manufacturers and retailers to implement closed-loop systems, which not only provides them with a reliable source of recycled content but also helps them meet regulatory requirements and consumer demand for eco-friendly products. Additionally, Close the Loop may benefit from government grants and incentives aimed at promoting recycling and waste reduction initiatives, further contributing to its overall revenue.

Close the Loop Ltd. Financial Statement Overview

Summary

Weak fundamentals: revenue growth is negative (-6.64%) with negative EBIT and net profit margins, and free cash flow growth is sharply down (-50.81%). The balance sheet is comparatively steadier with manageable leverage (debt-to-equity 0.96), but negative ROE reflects ongoing losses.

Income Statement

Close the Loop Ltd. has experienced a decline in revenue growth, with a negative growth rate of -6.64% in the latest period. The company also faces challenges in profitability, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively stable, suggesting some operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.96, indicating manageable leverage. However, the return on equity is negative, reflecting recent losses. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, down by 50.81%. The operating cash flow to net income ratio is low, indicating potential cash flow challenges. However, the company maintains a positive free cash flow to net income ratio, suggesting some ability to generate cash relative to earnings.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Dec 2020
Income Statement
Total Revenue	188.26M	195.14M	212.96M	135.93M	70.13M	26.81M
Gross Profit	39.44M	58.31M	80.04M	28.62M	21.03M	8.00M
EBITDA	12.62M	12.28M	44.75M	24.26M	8.32M	6.34M
Net Income	-54.24M	-22.19M	10.95M	12.24M	4.60M	4.25M
Balance Sheet
Total Assets	235.29M	276.83M	297.00M	271.38M	92.26M	14.68M
Cash, Cash Equivalents and Short-Term Investments	24.19M	32.34M	40.64M	49.46M	10.33M	5.61M
Total Debt	132.60M	116.42M	108.66M	110.86M	24.23M	4.26M
Total Liabilities	146.00M	155.34M	155.47M	147.32M	39.04M	6.69M
Stockholders Equity	88.43M	120.70M	140.91M	123.54M	52.90M	7.98M
Cash Flow
Free Cash Flow	-4.61M	1.52M	11.63M	6.95M	-3.74M	5.89M
Operating Cash Flow	-2.64M	4.83M	21.72M	22.68M	-3.15M	6.20M
Investing Cash Flow	-2.54M	-4.07M	-19.60M	-85.97M	-4.03M	-519.00K
Financing Cash Flow	-8.44M	-9.19M	-11.33M	103.09M	11.22M	-1.68M

Close the Loop Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 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 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 4.28 is Positive, neither overbought nor oversold. The STOCH value of 7.51 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CWY	54 Neutral	AU$5.69B	38.82	5.08%	2.32%	2.39%	―
EMB	50 Neutral	AU$17.44M	7.14	4.57%	4.32%	-15.54%	-26.61%
CLG	42 Neutral	AU$11.21M	-0.15	-12.78%	―	-8.37%	-300.48%
ECT	41 Neutral	AU$47.85M	-7.05	-164.39%	―	―	15.66%
AEI	41 Neutral	AU$9.62M	-1.32	―	―	-0.52%	-38.84%

Close the Loop Ltd. Corporate Events

Close the Loop Flags 1H26 Results Presentation as Informational Only

Close the Loop Limited has released a 1H26 results presentation accompanied by a comprehensive disclaimer stressing that the document is informational only and not an offer or solicitation to buy or subscribe for securities. The company emphasises that the presentation is not a prospectus or regulated disclosure document, may be incomplete or subject to change, and that recipients must undertake their own due diligence and seek professional advice before making any investment decisions.

The disclaimer further notes that Close the Loop and its advisers make no representation or warranty as to the accuracy or completeness of the information and accept no liability for any loss arising from its use. The company also states it has no obligation to update the material, underlining that any opinions may change without notice and that the presentation should not form the basis of any contract or commitment involving Close the Loop securities.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.03 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 Posts Lower Profit Amid Recycling Headwinds, Packaging Growth and Portfolio Shake-Up

Close the Loop reported first-half FY26 revenue of $92.3 million, up 2% year on year, but saw a sharp drop in profitability, with underlying EBITDA down 23% and underlying NPATA down 61%, and operating cash flow turning more negative as net debt rose to $56.98 million. The resource recovery segment was hit by lower U.S. ITAD processing volumes, an adverse product mix and a $23.2 million impairment to ISP Tek Services’ intangibles, while packaging delivered double-digit revenue and EBITDA growth, aided by expansion with Tier-one customers and new corporate wins.

Management continued to reshape the portfolio, divesting non-core units Alliance Paper and O F Flexo, and progressing the ramp-up of the Mexicali facility to improve capacity and labour efficiency. Regionally, U.S. recycling volumes were pressured by tariff-driven uncertainty, Europe extended its multi-vendor collection program and secured new OEM contracts helped by regulatory tailwinds, and South Africa grew orders from existing and new customers without significant extra operating costs, highlighting improving operating leverage across key markets.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.03 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 Swings to Heavy Half-Year Loss on Intangible Impairment

Close the Loop Ltd. reported half-year revenue of $92.3 million for the period ended 31 December 2025, an increase of 1.8% on the prior corresponding period, but posted a sharp turnaround to a net loss attributable to members of $32.8 million. The company’s statutory loss was driven by $6.2 million in amortisation of acquired intangibles and a $23.2 million impairment related to its 2023 acquisition of ISP Tek Services, leaving underlying net profit from continuing operations at $2.3 million if these non-cash charges are excluded.

Net tangible assets per share deteriorated to negative 0.63 cents from positive 0.31 cents a year earlier, reflecting the heavy impact of non-cash charges on the balance sheet. The board has again elected not to pay an interim dividend and has no dividend reinvestment plan in place, underscoring a focus on capital preservation as the group absorbs the consequences of acquisition-related accounting adjustments and reassesses the value of its acquired software and customer-related assets.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.03 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 Director Converts Performance Rights Into Ordinary Shares

Close the Loop Limited has disclosed a change in the holdings of director Brendan Yee, involving both his direct and indirect interests in the company’s securities through entities he controls. The transaction reflects the conversion of 100,000 unlisted performance rights into fully paid ordinary shares at nil consideration, following the satisfaction of vesting conditions under the company’s performance rights plan, marginally increasing Yee’s shareholding and reducing his unlisted performance rights balance, a move that aligns director incentives more closely with ordinary shareholders and signals ongoing utilisation of equity-based remuneration structures.

The most recent analyst rating on (AU:CLG) stock is a Sell with a A$0.03 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 Director Converts Performance Rights Into Ordinary Shares

Close the Loop Limited has disclosed a change in director Avikesh Nair’s interests, involving both direct and indirect holdings in the company’s securities through entities he controls. The change arises from the conversion of 200,000 unlisted performance rights held by AJKS Property Group Pty Ltd, a Nair-controlled entity, into 200,000 fully paid ordinary shares at nil consideration following satisfaction of vesting conditions, increasing his indirect shareholding to 950,000 shares while leaving 1,750,000 unlisted performance rights in AJKS Capital Pty Ltd unchanged; the transaction reflects the operation of the company’s performance rights plan and does not introduce new capital but shifts the mix of Nair’s equity from performance-based instruments to ordinary equity, clarifying his alignment with shareholder interests.

The most recent analyst rating on (AU:CLG) stock is a Sell with a A$0.03 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 Seeks Quotation for 1.7 Million New Shares

Close the Loop Ltd., a recycling and circular-economy services provider listed on the ASX, focuses on recovering materials for reuse across consumer packaging supply chains. The company lodged an Appendix 2A application for quotation of 1.7 million fully paid ordinary shares issued on 30 January 2026, signaling an expanded equity base that could enhance liquidity and support ongoing growth initiatives.

The most recent analyst rating on (AU:CLG) stock is a Sell with a A$0.03 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 Shares Update as 750,000 Performance Rights Lapse

Close the Loop Ltd. has announced the lapse of 750,000 performance rights, identified under ASX code CLGAC, after the conditions attached to these rights were not met or became incapable of being satisfied as of 20 January 2026. The cessation of these conditional securities slightly reduces the company’s potential future issued capital and may marginally ease prospective dilution for existing shareholders, but does not involve any cash movement or immediate change to the company’s operating activities.

The most recent analyst rating on (AU:CLG) stock is a Sell with a A$0.04 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 Director Sees 900,000 Performance Rights Lapse After Vesting Conditions Not Met

Close the Loop Limited has disclosed a change in director Brendan Yee’s interests in the company’s securities, following the lapse and cancellation of 900,000 unlisted performance rights previously held through entities he controls. The performance rights were cancelled at nil consideration after vesting conditions were not met or could no longer be satisfied, leaving Yee’s substantial holdings in fully paid ordinary shares unchanged but reducing his potential performance-based equity exposure, which marginally lowers prospective dilution for existing shareholders and adjusts the structure of his equity incentives without affecting current share capital.

The most recent analyst rating on (AU:CLG) stock is a Sell with a A$0.04 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 Director Sees 300,000 Performance Rights Lapse After Vesting Test

Close the Loop Limited has disclosed a change in director Avikesh Nair’s interests, following the lapse and cancellation of 300,000 unlisted performance rights previously issued to AJKS Property Group Pty Ltd, an entity controlled by him. The rights were cancelled at nil consideration after vesting conditions were not satisfied, reducing Nair’s indirect performance rights holding via AJKS Property Group while leaving his direct shareholding and other indirect performance rights largely intact; the update reflects routine equity-based incentive adjustments rather than a cash transaction, with limited immediate implications for the company’s capital structure but signalling that certain performance hurdles under its incentive plan were not met.

The most recent analyst rating on (AU:CLG) stock is a Sell with a A$0.04 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 Reports Lapse of 3.45 Million Performance Rights

Close the Loop Ltd. has announced the lapse of 3,450,000 performance rights (ASX code CLGAC) after the conditions attached to those rights were not, or could no longer be, satisfied as of 22 December 2025. The cessation of these conditional securities, disclosed in an Appendix 3H to the ASX, effectively reduces the company’s pool of potential equity-based remuneration or incentive securities, which may have implications for dilution expectations and indicates that certain performance hurdles or milestones tied to these rights were not achieved.

The most recent analyst rating on (AU:CLG) stock is a Sell with a A$0.04 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. Announces Director’s Interest Change

Close the Loop Ltd. has announced a change in its director’s interest in securities, with Avikesh Nair acquiring 1,500,000 unlisted performance rights through AJKS Capital Pty Ltd under a shareholder-approved plan. This adjustment indicates internal strategic movements within the company and showcases its effort to align leadership incentives with company performance, potentially enhancing shareholder value and influencing its market positioning.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.04 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. Appoints New Director with Significant Shareholding

Close the Loop Limited has announced the appointment of Brendan Yee as a director, effective December 5, 2025. Brendan Yee holds a significant number of shares in the company, both directly and indirectly through various entities, indicating a substantial vested interest in the company’s future performance.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.04 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 Appoints Brendan Yee as Executive Director

Close the Loop Limited has appointed Brendan Yee as an executive director, enhancing the company’s board with his extensive expertise in the packaging industry. This strategic move is expected to strengthen the company’s packaging segment, which contributes significantly to its revenue, and support its ongoing strategic initiatives and business objectives.

The most recent analyst rating on (AU:CLG) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Close the Loop Ltd. stock, see the AU:CLG Stock Forecast page.