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De.mem Ltd. (AU:DEM)
ASX:DEM
Australian Market

De.mem Ltd. (DEM) AI Stock Analysis

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AU

De.mem Ltd.

(Sydney:DEM)

Rating:54Neutral
Price Target:
De.mem Ltd.'s overall stock score reflects a mix of strong revenue growth and improved cost management against ongoing profitability challenges. Technical indicators suggest potential upside, but caution is warranted due to overbought signals. The valuation is unattractive due to negative earnings, impacting the overall attractiveness of the stock. The financial performance score weighs heavily on the overall evaluation, highlighting the need for achieving operational profitability.

De.mem Ltd. (DEM) vs. iShares MSCI Australia ETF (EWA)

De.mem Ltd. Business Overview & Revenue Model

Company DescriptionDe.mem Limited designs, builds, owns, and operates de-centralized water and wastewater treatment systems for its customers in industrial, municipal, and residential sectors primarily in Australia, Singapore, and Germany. The company offers disinfection systems, such as chlorination and ultraviolet systems; biological treatments that include aerobic and anaerobic treatments; chemical dosing systems and chemical treatments; membrane-based water treatment systems, including microfiltration, ultrafiltration, hollow fiber nanofiltration, reverse osmosis, membrane bioreactors, and hollow fire forward osmosis; and other specialized treatment processes, such as dissolved air filtration, media filtration, and ion exchange. It also provides programmable logic controller and automation solutions; and sludge management services. In addition, the company offers potable water supply, sewage treatment, industrial wastewater, recycling, desalination, and process water solutions. Further, it provides operation and maintenance of water or wastewater treatment systems; consulting, engineering, and optimization services; technical advisory services; and build, own, and operate/build, own, operate, and transfer services. The company serves mining, infrastructure, electronics, chemicals, oil and gas, and food and beverage industries. De.mem Limited was founded in 2013 and is based in Melbourne, Australia.
How the Company Makes MoneyDe.mem Ltd. generates revenue through multiple streams including the sale of water treatment equipment, provision of ongoing water treatment services, and operation and maintenance contracts. The company earns from designing and constructing water treatment facilities and then providing long-term maintenance and operation services for these facilities. Additionally, De.mem engages in leasing and rental agreements for its water treatment systems. The company also benefits from strategic partnerships and contracts with government and industrial clients, which provide a steady stream of income through recurring service agreements.

De.mem Ltd. Financial Statement Overview

Summary
De.mem Ltd. demonstrates strong revenue growth and improved cost management, reflected in better gross profit margins. While the balance sheet is stable with low leverage, the company faces challenges in achieving profitability, as indicated by consistent net losses. Cash flow improvements are encouraging, but the reliance on financing activities and negative free cash flow highlight the need for sustainable profit generation. Overall, the financial outlook is cautiously optimistic, contingent on achieving operational profitability.
Income Statement
45
Neutral
De.mem Ltd. has seen a positive revenue growth trend over recent years, with revenue increasing from $10.13 million in 2019 to $24.90 million in 2024. However, profitability remains a concern as the company has consistently reported net losses over the years. Gross profit margin improved significantly from negative in 2021 to a positive 40.8% in 2024, showing better cost management. Yet, EBIT and net profit margins remain negative, indicating ongoing operational challenges.
Balance Sheet
60
Neutral
The balance sheet shows a healthy equity position with equity growing from $9.52 million in 2019 to $12.92 million in 2024. The debt-to-equity ratio is low at 0.11, indicating prudent leverage. However, the equity ratio declined slightly from 65% in 2019 to 62.8% in 2024, suggesting a relative increase in liabilities compared to assets. Return on equity remains negative due to net losses, highlighting profitability challenges.
Cash Flow
50
Neutral
Cash flow analysis reveals improvement in operating cash flow, turning positive in 2024 after several years of deficits. However, free cash flow remains negative, affected by capital expenditures and investments. The operating cash flow to net income ratio is positive, indicating better cash flow generation relative to reported losses. Financing activities have contributed positively to cash reserves, but sustainability is a concern without consistent profit generation.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
24.90M23.41M19.64M18.08M14.16M
Gross Profit
10.16M8.39M-521.00K-1.54M3.68M
EBIT
-413.00K-1.46M-3.44M-4.12M-4.38M
EBITDA
-1.01M-1.23M-1.70M-2.93M-2.75M
Net Income Common Stockholders
-2.77M-3.13M-3.49M-4.47M-3.54M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.72M2.47M5.39M8.69M4.64M
Total Assets
20.58M18.70M20.56M22.05M11.22M
Total Debt
1.37M1.65M1.40M1.64M562.44K
Net Debt
-2.27M-755.00K-3.74M-7.05M-4.08M
Total Liabilities
7.66M7.13M6.25M7.67M4.51M
Stockholders Equity
12.92M11.57M14.31M14.35M6.71M
Cash FlowFree Cash Flow
-2.23M-3.65M-3.73M-2.00M
Operating Cash Flow
115.00K-1.45M-1.88M-2.31M-1.16M
Investing Cash Flow
-1.22M-728.00K-3.97M-4.31M-1.35M
Financing Cash Flow
2.28M-485.00K2.32M10.54M-544.06K

De.mem Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.10
Price Trends
50DMA
0.11
Negative
100DMA
0.12
Negative
200DMA
0.13
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.15
Neutral
STOCH
38.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DEM, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DEM.

De.mem Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUGWA
68
Neutral
AU$609.97M16.5112.07%6.52%1.63%-18.01%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
AUSHJ
66
Neutral
AU$117.48M28.871.60%4.35%-10.06%
AUDEM
54
Neutral
AU$29.30M-22.62%6.37%20.31%
$19.28M-80.26%
AURWL
44
Neutral
AU$48.14M-10.18%-6.95%40.87%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DEM
De.mem Ltd.
0.10
0.00
0.00%
JRVMQ
Jervois Global
0.01
0.00
0.00%
AU:SHJ
Shine Justice Ltd.
0.69
0.04
6.15%
AU:GWA
GWA Group Limited
2.30
0.17
7.98%
AU:RWL
Rubicon Water Limited
0.19
-0.14
-42.42%

De.mem Ltd. Corporate Events

De.mem Limited Announces New Board Appointments to Drive Global Expansion
Apr 30, 2025

De.mem Limited has announced changes in its board composition, appointing Mr. Andreas Hendrik De Wit as the new Non-Executive Chairman. Mr. De Wit, who has extensive international board and leadership experience, previously served as CEO of Asia Pacific for Fresenius Medical Care. His strategic and capital markets experience, along with his significant shareholding in De.mem, positions him to lead the company’s next phase of global expansion. The board also appointed Michael Edwards as the lead independent director, who has been instrumental in De.mem’s ASX listing and expansion efforts.

De.mem Ltd. Releases 2024 Financial Report Highlighting Strategic Growth
Apr 29, 2025

De.mem Ltd. has released its consolidated financial report for the year ending December 31, 2024. The report outlines the company’s financial performance and strategic positioning, indicating a continued focus on expanding its market presence and enhancing its operational capabilities. The release is significant for stakeholders as it highlights De.mem’s commitment to growth and its strategic initiatives to strengthen its industry position.

De.mem Ltd. Announces Virtual AGM for 2025
Apr 17, 2025

De.mem Limited has announced that its Annual General Meeting (AGM) will be held virtually on May 20, 2025, at 4:00 PM AEST. Shareholders are encouraged to access the meeting materials online and lodge their proxy votes in advance. This shift to a virtual format reflects the company’s adaptation to digital communication trends, potentially increasing shareholder participation and engagement.

De.mem Achieves Record Cash Receipts and Sustained Growth in March Quarter 2025
Apr 14, 2025

De.mem Limited reported record cash receipts of approximately $7.9 million for the March Quarter 2025, marking the highest quarterly cash receipts in the company’s history. This achievement reflects a 20% growth compared to the prior corresponding period and demonstrates the company’s strong and stable growth momentum, with 24 consecutive quarters of cash receipts growth. The company also reported positive quarterly operating cash flows for the third consecutive quarter, driven by strong performances from its Australian and German entities. De.mem’s strategic positioning and successful market penetration, including the launch of domestic water treatment products in China, Indonesia, and Japan, have contributed to its robust financial performance.

De.mem Ltd. Announces Quotation of New Securities on ASX
Apr 1, 2025

De.mem Ltd. has announced a new application for the quotation of securities on the Australian Securities Exchange (ASX). The company will be quoting 110,000 ordinary fully paid securities, which were issued on April 1, 2025. This move could potentially enhance the company’s financial flexibility and market presence, offering stakeholders an opportunity to engage with the company’s growth prospects.

De.mem Ltd. Announces Cessation of 250,000 Performance Rights
Mar 27, 2025

De.mem Ltd. announced the cessation of 250,000 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may impact the company’s capital structure and could have implications for stakeholders regarding the company’s operational and financial strategies moving forward.

De.mem Limited Announces AGM Date and Director Nomination Deadline
Mar 27, 2025

De.mem Limited has announced that its Annual General Meeting (AGM) will be held on May 20, 2025. The company has set April 3, 2025, as the closing date for director nominations. This announcement is part of De.mem’s compliance with ASX Listing Rules and reflects its ongoing corporate governance practices. The AGM and director nominations are significant for stakeholders as they provide opportunities for strategic input and leadership decisions that may influence the company’s future direction.

De.mem Ltd Achieves Record Financial Performance in 2024
Feb 27, 2025

De.mem Ltd has reported record financial results for the calendar year 2024, with cash receipts reaching approximately $28.4 million, marking a 15% increase from the previous year. The company achieved a positive operating cash flow for the first time, indicating strong financial health and growth momentum, supported by a robust balance sheet and a promising outlook for 2025.

De.mem Ltd. Updates Corporate Governance Statement for 2024
Feb 27, 2025

De.mem Ltd. has released its updated corporate governance statement for the financial year ending December 31, 2024, which adheres to the ASX Corporate Governance Council’s principles and recommendations. The statement, approved by the board and available on the company’s website, outlines the company’s compliance with governance practices, including board responsibilities, director appointments, and accountability measures, enhancing transparency and stakeholder confidence.

De.mem Limited Reports Revenue Growth and Improved Margins for 2024
Feb 27, 2025

De.mem Limited reported a 6.4% increase in revenues to $24.9 million for the year ending December 2024, alongside a reduction in net loss by 11.6% to $2.77 million. The company’s gross margins improved significantly from 35% to 41%, and it ended the year with a stronger cash position of $3.63 million, supporting its growth plans. Despite the net loss, the company showed improved financial metrics, indicating a positive trajectory in its operations and market positioning.

De.mem Expands into Asian Markets with Strategic Partnership
Feb 10, 2025

De.mem Ltd announced a strategic distribution agreement with Firmbase Pte Ltd to expand its presence in Asian markets, specifically targeting China, Indonesia, and Japan. This partnership marks a significant step for De.mem as they have received their first commercial order worth $15,000 from Firmbase Singapore for their compact Ultrafiltration systems, marking successful entry into the substantial Chinese home water filtration market. De.mem’s standardized Ultrafiltration membrane systems, featuring NSF-certified components, cater to both residential and industrial applications, enhancing their market positioning in the growing water filtration industry.

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.