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

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AU:DEM

De.mem Ltd.

(Sydney:DEM)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
De.mem Ltd.'s overall score is primarily influenced by its strong revenue growth and improved cost management, but persistent profitability challenges and negative valuation metrics weigh heavily. Technical indicators suggest bearish momentum, further impacting the stock's outlook.

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 generates revenue through the sale of its water treatment systems and equipment, which includes both initial sales and ongoing maintenance contracts. The company's revenue model is based on direct sales to industrial and municipal clients, as well as project-based contracts for the design and implementation of water treatment facilities. Key revenue streams include the sale of proprietary membrane technology, service agreements for system maintenance, and potential licensing agreements for its proprietary technologies. Additionally, De.mem has pursued strategic partnerships with other technology providers and industry stakeholders, enhancing its market reach and enabling joint ventures that can lead to new project opportunities and increased revenue.

De.mem Ltd. Financial Statement Overview

Summary
De.mem Ltd. shows strong revenue growth and improved gross profit margins, but consistent net losses and negative free cash flow highlight profitability challenges. The balance sheet is stable with low leverage, but achieving operational profitability remains crucial.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.90M23.41M19.64M18.08M14.16M
Gross Profit10.16M8.39M-521.00K-1.54M3.68M
EBITDA-1.01M-1.23M-1.70M-2.93M-2.75M
Net Income-2.77M-3.13M-3.49M-4.47M-3.54M
Balance Sheet
Total Assets20.58M18.70M20.56M22.05M11.22M
Cash, Cash Equivalents and Short-Term Investments3.72M2.47M5.39M8.82M5.08M
Total Debt1.37M1.65M1.40M1.64M562.44K
Total Liabilities7.66M7.13M6.25M7.67M4.51M
Stockholders Equity12.92M11.57M14.31M14.35M6.71M
Cash Flow
Free Cash Flow-10.00K-2.23M-3.65M-3.73M-2.00M
Operating Cash Flow115.00K-1.45M-1.88M-2.31M-1.16M
Investing Cash Flow-1.22M-728.00K-3.97M-4.31M-1.35M
Financing Cash Flow2.28M-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
0.11
Negative
200DMA
0.11
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.15
Neutral
STOCH
25.68
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 0.10, below the 50-day MA of 0.11, and below the 200-day MA of 0.11, 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 25.68 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
AU$196.92M20.212.68%4.52%-31.16%
57
Neutral
AU$35.88M8.594.76%66.80%625.00%
46
Neutral
AU$29.34M-16.00%11.53%46.15%
46
Neutral
AU$23.26M-3.604.84%-12.12%
44
Neutral
AU$4.38M-2.27-23.70%-45.80%-210.00%
30
Underperform
AU$69.62M-2.8711.44%19.49%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DEM
De.mem Ltd.
0.10
-0.04
-28.57%
AU:FLC
Fluence Corporation Limited
0.06
-0.03
-30.43%
AU:PET
Phoslock Environmental Technologies Limited
0.01
-0.01
-50.00%
AU:WAT
Waterco Limited
5.60
0.41
7.90%
AU:AVA
Ava Risk Group Ltd.
0.08
-0.03
-27.27%
AU:WWG
Wiseway Group Ltd.
0.21
0.09
75.00%

De.mem Ltd. Corporate Events

De.mem Ltd. Reports Record First-Half 2025 Results
Sep 2, 2025

De.mem Ltd. has announced record first-half results for 2025, highlighting strong financial performance and high operating leverage. The company’s successful acquisition track record and positive outlook underscore its strong industry positioning, promising significant implications for stakeholders.

De.mem Limited Reports Record Growth in 2025 Half-Year Results
Aug 29, 2025

De.mem Limited has announced its 2025 half-year financial results, showcasing significant growth and financial improvements. The company reported a record half-year revenue of $14 million, a 20% increase from the previous year, and a first positive half-year adjusted EBITDA of $556,000. With 25 consecutive quarters of cash receipts growth and a strong balance sheet, De.mem is on track for record full-year results, highlighting its robust market positioning and operational efficiency.

De.mem Limited Achieves Record Financial Results in H1 2025
Aug 28, 2025

De.mem Limited reported record financial results for the first half of 2025, with a 20% increase in revenue to $14.0 million and a 16% rise in cash receipts to $15.7 million. The company achieved its first positive adjusted EBITDA of $556,000, marking a significant milestone. With 25 consecutive quarters of cash receipts growth and a strategic focus on recurring revenue, De.mem is on track for a record full calendar year 2025, providing strong cash flow visibility and a robust growth outlook.

De.mem Limited Reports Revenue Growth and Reduced Losses in H1 2025
Aug 28, 2025

De.mem Limited reported a 19.7% increase in revenues to $13.964 million for the half-year ending June 30, 2025, with a significant reduction in net loss by 42.4% to $980,000. The company also improved its gross profit margins from 40% to 43%, reflecting a 26% increase in gross profit, while adjusted EBITDA turned positive, indicating improved operational efficiency.

De.mem Ltd. Announces Cessation of 250,000 Securities
Aug 6, 2025

De.mem Ltd. announced the cessation of 250,000 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence stakeholder perceptions of its financial health and strategic planning.

De.mem Ltd. Announces Cessation of Securities
Aug 3, 2025

De.mem Ltd. announced the cessation of certain securities, specifically options that expired without exercise or conversion. The cessation involves 2,000,000 options expiring on August 2, 2025, and 500,000 options expiring on August 3, 2025. This announcement may impact the company’s capital structure and investor perceptions.

De.mem Achieves Record Cash Receipts and Positive Cash Flow in June Quarter 2025
Jul 28, 2025

De.mem Limited reported record cash receipts for the June Quarter 2025, with approximately $7.8 million, marking the second highest in its history. The company achieved a 16% increase in cash receipts over the first half of 2025 compared to the previous year, significantly outperforming the industry average growth rate. De.mem maintained positive operating cash flows for the fourth consecutive quarter, generating $533,000, and continued to invest in its Singapore subsidiary for membrane technology development. The company’s strong financial performance and strategic investments position it well for continued growth and industry leadership.

De.mem Expands with Acquisition of Auswater Systems
Jul 8, 2025

De.mem Limited has issued 400,000 fully paid ordinary shares as part of its acquisition of Auswater Systems Pty Ltd, which was announced in June 2024. This move is part of De.mem’s strategic expansion and strengthens its position in the water treatment industry by integrating Auswater’s capabilities.

De.mem Ltd. Announces Quotation of New Securities
Jul 8, 2025

De.mem Ltd., a company listed on the Australian Securities Exchange under the code DEM, has announced the application for the quotation of 400,000 fully paid ordinary securities. This move is part of previously announced transactions and reflects the company’s ongoing efforts to manage its capital structure and enhance liquidity for its stakeholders.

De.mem Ltd. Announces Director’s Change in Interest
Jun 23, 2025

De.mem Ltd. announced a change in the interest of its director, Daniel Gerard Conlon, with the expiration of 500,000 unlisted options exercisable at $0.2237. This change reflects the company’s ongoing compliance with regulatory requirements and may impact the director’s financial interests in the company.

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: Sep 24, 2025