CuFe Limited (CUF) AI Stock Analysis

• Market Cap: AU$79.43M
• Dividend Yield: N/A
• Average Volume (3M): 6.96M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.05
• Revenue Growth: -100.00%
• EPS Growth: N/A
• Country: US
• Employees: 20
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 1,726,725,300
• 10 Day Avg. Volume: 19,337,212
• 30 Day Avg. Volume: 6,958,390
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 2.01
• P/FCF Ratio: -0.33
• 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: 51 Neutral
• Price Target: AU$0.05 ▲(53.33% Upside)

The score is held back primarily by weak financial performance quality—especially the sharp revenue contraction and significant negative free cash flow despite reported profitability. Technicals are mixed with only modest momentum support, while valuation is somewhat supportive due to the low P/E but tempered by the underlying volatility and cash burn.

Positive Factors

Low Leverage

Zero recorded debt in FY2025 and FY2024 materially reduces financial distress and refinancing pressure. This balance-sheet flexibility gives management time to stabilise operations, access capital on better terms if needed, and sustain operations over the next several months without immediate liquidity strain.

Stronger Equity Base

A meaningful improvement in equity strengthens the company’s capital buffer, lowering near-term solvency risk and supporting working-capital needs. This expanded capital base improves resilience to further earnings volatility and increases capacity for selective investment or restructurings over the medium term.

Reported Profitability in FY2025

Reported strong profitability demonstrates the firm has channels to generate positive returns, potentially via asset monetisation or operational levers. If management can convert these gains into recurring operating profit and stabilise revenue, the business can sustain margins and rebuild scalable cash generation over coming quarters.

Negative Factors

Severe Revenue Collapse

A 91.4% YoY revenue decline in FY2025 destroys operating scale and undermines fixed-cost absorption and customer diversification. Such a dramatic structural revenue loss weakens pricing power and makes margin recovery difficult absent a credible, multi‑quarter plan to rebuild recurring sales and customer contracts.

Negative Cash Flow

Deep negative operating and free cash flow of roughly -24.6M is a persistent funding concern. Ongoing cash burn forces reliance on external financing or equity issuance, increases dilution and interest risks, and constrains investment in working capital or growth initiatives across the next several months if not reversed.

Earnings Quality & Volatility

Highly volatile results and signs that FY2025 profits are driven by non‑core items undermine earnings quality and predictability. The prior years were loss‑making, so swings reduce confidence in sustainable operating margins, complicate forecasting, and raise execution risk for restoring consistent returns over the medium term.

CuFe Limited Business Overview & Revenue Model

Company Description

CuFe Ltd. operates as a mineral exploration and development company. The company explores for lithium, copper, iron, gold, and base metal deposits. It holds interests in the JWD, Yarram, Tennant Creek, Bryah Basin, Morck Well, Peak Hill, and Mt Ida projects located in Western Australia. The company was formerly known as Fe Limited and changed its name to CuFe Ltd. in November 2021. CuFe Ltd. was incorporated in 2005 and is headquartered in West Leederville, Australia.

How the Company Makes Money

CuFe Limited generates revenue through the exploration, extraction, and sale of iron ore and copper. The company's primary revenue stream comes from the sale of these raw minerals to international markets, particularly in regions with high demand such as Asia. CuFe Limited engages in long-term contracts with mining operators and commodity traders to ensure a steady flow of revenue. Additionally, the company may enter into joint ventures or strategic partnerships with other mining firms to optimize resource extraction and expand its market reach. Fluctuations in global commodity prices and demand for iron ore and copper significantly impact CuFe's earnings, making market conditions and geopolitical factors critical to the company's financial performance.

CuFe Limited Financial Statement Overview

Summary

Overall financial quality is weak despite a clean balance sheet. FY2025 revenue fell sharply (-91.4% YoY) while reported profitability appears driven by non-core factors, and cash flow is a major concern with deeply negative operating and free cash flow (~-24.6M). Low leverage and improved equity help, but earnings and returns are highly volatile.

Income Statement

Results are highly volatile. FY2025 shows a sharp revenue collapse (down 91.4% YoY) yet reports very strong profitability (net margin ~175% and return on equity ~53%), implying earnings were driven by non-core items rather than operating scale. The prior two years (FY2024–FY2023) were deeply loss-making with negative margins, highlighting weak consistency and limited operating leverage despite a brief improvement in FY2025.

Balance Sheet

Leverage is low, with total debt at zero in FY2025 and FY2024 (and only modest debt in FY2023–FY2022), which reduces financial risk. Equity improved meaningfully in FY2025 versus FY2024, supporting a stronger capital base. The key weakness is instability in returns (large negative return on equity in FY2024 followed by very high positive in FY2025), suggesting earnings quality and asset productivity are not yet steady.

Cash Flow

Cash generation is the major pressure point. FY2025 operating cash flow and free cash flow were deeply negative (about -24.6M), a sharp reversal from positive free cash flow in FY2024. This disconnect—profitability on the income statement alongside heavy cash burn—raises concerns around working-capital swings, one-off items in earnings, and funding needs if negative free cash flow persists.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.42M	4.00M	96.13M	35.02M	33.00M	0.00
Gross Profit	-16.05M	3.99M	-2.92M	-5.20M	-1.38M	-2.86K
EBITDA	-2.17M	823.43K	-3.32M	-5.93M	3.28M	-2.43M
Net Income	1.02M	7.01M	-13.62M	-11.15M	-165.00K	-2.51M
Balance Sheet
Total Assets	19.78M	15.02M	34.49M	24.89M	37.99M	15.53M
Cash, Cash Equivalents and Short-Term Investments	3.72M	2.33M	7.99M	4.13M	7.27M	6.02M
Total Debt	0.00	0.00	0.00	1.80M	1.58M	0.00
Total Liabilities	6.11M	1.92M	28.98M	11.08M	13.37M	2.58M
Stockholders Equity	13.67M	13.11M	5.51M	13.80M	24.62M	12.95M
Cash Flow
Free Cash Flow	-25.48M	-24.63M	4.79M	-8.28M	-10.62M	-5.49M
Operating Cash Flow	-25.02M	-24.63M	5.32M	-7.91M	-3.54M	-2.15M
Investing Cash Flow	18.43M	19.32M	-2.85M	4.63M	-796.08K	-3.35M
Financing Cash Flow	2.73M	0.00	1.18M	-11.67K	5.70M	6.19M

CuFe Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PVT	53 Neutral	AU$24.91M	-9.47	-11.09%	―	―	36.67%
CUF	51 Neutral	AU$79.43M	8.65	9.42%	―	-100.00%	―
INF	46 Neutral	AU$8.15M	-0.38	-119.49%	―	―	-405.06%
MRQ	46 Neutral	AU$14.80M	―	-10.45%	―	―	―
AKO	45 Neutral	AU$14.22M	-5.48	-14.33%	―	―	―
SRN	37 Underperform	AU$8.05M	―	-26.26%	―	―	78.57%