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Close the Loop Ltd. (AU:CLG)
ASX:CLG
Australian Market

Close the Loop Ltd. (CLG) AI Stock Analysis

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AU

Close the Loop Ltd.

(Sydney:CLG)

Rating:72Outperform
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. (CLG) vs. iShares MSCI Australia ETF (EWA)

Close the Loop Ltd. Business Overview & Revenue Model

Company DescriptionClose 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 MoneyClose 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
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue209.02M212.96M135.93M70.13M26.81M67.42M
Gross Profit54.60M80.04M28.62M21.03M8.00M13.93M
EBITDA32.07M46.26M24.63M8.32M6.34M7.29M
Net Income5.26M10.95M12.24M4.60M4.25M-2.13M
Balance Sheet
Total Assets303.99M297.00M271.38M92.26M14.68M50.52M
Cash, Cash Equivalents and Short-Term Investments37.80M40.64M49.46M10.33M5.61M1.98M
Total Debt112.47M108.66M110.86M24.23M4.26M32.89M
Total Liabilities158.98M155.47M147.32M39.04M6.69M46.55M
Stockholders Equity144.24M140.91M123.54M52.90M7.98M5.85M
Cash Flow
Free Cash Flow3.09M11.63M6.95M-3.74M5.89M1.68M
Operating Cash Flow11.94M21.72M22.68M-3.15M6.20M4.17M
Investing Cash Flow-18.55M-19.60M-85.97M-4.03M-519.00K-3.32M
Financing Cash Flow-12.68M-11.33M103.09M11.22M-1.68M426.41K

Close the Loop Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.04
Price Trends
50DMA
0.06
Negative
100DMA
0.08
Negative
200DMA
0.14
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
54.72
Neutral
STOCH
87.55
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCLG
72
Outperform
AU$23.40M4.443.80%15.82%-66.67%
65
Neutral
$10.75B15.695.29%1.89%3.09%-27.41%
$4.10B39.525.31%1.25%
AUEMB
66
Neutral
AU$17.97M13.186.82%3.60%-20.98%18.62%
AUAEI
41
Neutral
AU$8.86M-203.38%20.00%17.22%
AUETR
35
Underperform
AU$13.88M-1011.73%
AUECT
27
Underperform
AU$11.88M-122.51%26.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CLG
Close the Loop Ltd.
0.05
-0.28
-84.85%
TSPCF
Cleanaway Waste Management
1.83
0.01
0.55%
AU:EMB
Embelton Limited
8.33
-0.77
-8.46%
AU:AEI
Aeris Environmental Ltd
0.04
-0.02
-33.33%
AU:ECT
Environmental Clean Technologies Limited
AU:ETR
Pearl Global Ltd
0.01
0.00
0.00%

Close the Loop Ltd. Corporate Events

Challenger Limited Ceases Substantial Holding in Close The Loop
Jun 24, 2025

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.
Jun 23, 2025

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
Jun 23, 2025

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
Jun 22, 2025

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
Jun 19, 2025

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
Jun 11, 2025

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
Apr 8, 2025

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.

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: Jul 05, 2025