Close the Loop Ltd. (CLG) AI Stock Analysis

• Market Cap: AU$17.02M
• Dividend Yield: N/A
• Average Volume (3M): 642.10K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.51
• Revenue Growth: -8.37%
• EPS Growth: -300.48%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.04
• Shares Outstanding: 531,849,850
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: AU$0.04 ▲(20.00% Upside)

Close the Loop Ltd. is currently facing significant financial challenges, with declining revenue and profitability. The technical analysis indicates a bearish trend, and the valuation metrics suggest the stock may be overvalued given its negative earnings. These factors contribute to a low overall stock score, highlighting the need for strategic improvements to enhance financial performance and investor confidence.

Positive Factors

Sustainable Business Model

The focus on sustainable solutions aligns with growing environmental concerns and regulatory trends, providing a durable competitive advantage.

Diverse Revenue Streams

Multiple revenue streams from services and partnerships reduce dependency on a single income source, enhancing financial resilience.

Government Incentives

Access to government incentives supports financial stability and encourages growth in eco-friendly initiatives, aligning with regulatory trends.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in market expansion and competitive pressures, potentially impacting long-term financial health.

Negative Profitability

Sustained negative profitability suggests operational inefficiencies and could hinder reinvestment in growth opportunities.

Declining Cash Flow

A significant decline in cash flow growth limits the company's ability to fund operations and strategic initiatives, affecting long-term viability.

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

Close the Loop Ltd. faces challenges in revenue growth and profitability, with negative net income and declining cash flow metrics. While the balance sheet shows manageable leverage, the negative return on equity highlights recent financial difficulties.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	209.02M	195.14M	212.96M	135.93M	70.13M	26.81M
Gross Profit	54.60M	58.31M	80.04M	28.62M	21.03M	8.00M
EBITDA	32.07M	12.28M	44.75M	24.26M	8.32M	6.34M
Net Income	5.26M	-22.19M	10.95M	12.24M	4.60M	4.25M
Balance Sheet
Total Assets	303.99M	276.83M	297.00M	271.38M	92.26M	14.68M
Cash, Cash Equivalents and Short-Term Investments	37.80M	32.34M	40.64M	49.46M	10.33M	5.61M
Total Debt	112.47M	116.42M	108.66M	110.86M	24.23M	4.26M
Total Liabilities	158.98M	155.34M	155.47M	147.32M	39.04M	6.69M
Stockholders Equity	144.24M	120.70M	140.91M	123.54M	52.90M	7.98M
Cash Flow
Free Cash Flow	3.09M	1.52M	11.63M	6.95M	-3.74M	5.89M
Operating Cash Flow	11.94M	4.83M	21.72M	22.68M	-3.15M	6.20M
Investing Cash Flow	-18.55M	-4.07M	-19.60M	-85.97M	-4.03M	-519.00K
Financing Cash Flow	-12.68M	-9.19M	-11.33M	103.09M	11.22M	-1.68M

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: Neutral

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 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 3.71 is Positive, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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%
EMB	50 Neutral	AU$17.48M	18.89	4.57%	4.32%	-15.54%	-26.61%
CWY	46 Neutral	$5.80B	36.84	5.08%	2.32%	2.39%	―
ETR	43 Neutral	―	―	―	―	―	―
CLG	42 Neutral	AU$17.02M	-0.79	-12.78%	―	-8.37%	-300.48%
AEI	41 Neutral	AU$14.06M	-3.27	―	―	-0.52%	-38.84%
ECT	27 Underperform	AU$41.40M	-8.10	-164.39%	―	―	15.66%

Close the Loop Ltd. Corporate Events

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.

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.

Close the Loop Ltd. Announces Director Resignation

Close the Loop Ltd. announced the resignation of Joseph Patrick Foster from its board of directors, effective November 20, 2025. Foster held significant shares and performance rights in the company, which may influence the company’s stock dynamics and investor relations. This change in leadership could impact the strategic direction and governance of the company, affecting stakeholders and potentially altering its market position.

Close the Loop Ltd. Announces 2025 AGM Results

Close the Loop Limited announced the results of its 2025 Annual General Meeting, where all resolutions were decided by a poll. Key outcomes included the re-election of Sammy Saloum as a director and the approval of the Performance Rights Plan, while the resolution for Joe Foster’s election was withdrawn. These decisions reflect the company’s ongoing commitment to its governance and strategic initiatives, potentially impacting its market positioning and stakeholder relations.

Close the Loop Limited Reports Strong Start to FY26 with Strategic Divestments and Leadership Changes

Close the Loop Limited reported a strong start to FY26, with improvements in both its Resource Recovery and Packaging divisions. The company has seen increased revenue and EBITDA, driven by new product lines, cost controls, and strategic divestments. The divestment of non-core assets like Alliance Paper and O F Flexo supports a more focused business model. The company is also undergoing leadership changes, with key directors stepping down, and remains committed to improving shareholder value and reducing debt.

Close the Loop Ltd. Announces 2025 Annual General Meeting Details

Close the Loop Ltd. has announced its 2025 Annual General Meeting, which will take place on November 20, 2025, in Melbourne, Victoria. The meeting will cover the company’s annual report, the adoption of the remuneration report, and the election of Joe Foster as a director. Shareholders are encouraged to participate or submit proxy forms if unable to attend. The meeting will include a poll for all resolutions, and shareholders eligible to vote are those registered by November 18, 2025.