Energy Action Limited (EAX) AI Stock Analysis

• Market Cap: AU$13.44M
• Dividend Yield: N/A
• Average Volume (3M): 4.47K
• Price to Earnings (P/E): 11.9
• Beta (1Y): -0.57
• Revenue Growth: -7.06%
• EPS Growth: 60.11%
• Country: AU
• Employees: 64
• Sector: Industrials
• Sector Strength: 94
• Industry: Specialty Business Services
• EPS (TTM): 0.03
• Shares Outstanding: 39,526,440
• 10 Day Avg. Volume: 7,561
• 30 Day Avg. Volume: 4,468
• PEG Ratio: -1.89
• Price to Book (P/B): 4.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.79
• 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: AU$0.50
• Price Target Upside: 47.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: AU$0.50 ▲(47.06%Upside)

Energy Action Limited's stock score is primarily influenced by its financial performance challenges, including declining revenues and high leverage. While some operational efficiencies and cash flow improvements are noted, the technical analysis suggests bearish momentum, though the stock is nearing oversold conditions. The valuation is reasonable, but the absence of a dividend yield may deter income-focused investors.

Energy Action Limited Business Overview & Revenue Model

Company Description

Energy Action Limited (EAX) is an Australian company specializing in energy procurement, management, and advisory services. The company offers comprehensive solutions designed to help businesses manage their energy consumption more efficiently, reduce costs, and achieve sustainability goals. EAX operates primarily in the Australian energy market, serving a diverse client base across various industries.

How the Company Makes Money

Energy Action Limited generates revenue through multiple streams, primarily focusing on energy procurement, energy management, and advisory services. The company earns fees by negotiating energy contracts on behalf of clients, helping them secure competitive energy rates. Additionally, EAX provides ongoing energy management services, which include monitoring energy usage, optimizing energy efficiency, and reporting compliance. Advisory services also contribute to the company's income, as they offer strategic guidance on energy consumption, sustainability initiatives, and regulatory compliance. Key partnerships with energy suppliers and technology providers enhance their service offerings and support their revenue generation.

Energy Action Limited Financial Statement Overview

Summary

Energy Action Limited faces challenges with declining revenues and significant leverage, impacting its financial stability. Margins and cash flow have shown improvements, indicating some operational efficiencies and better cash management. However, the high Debt-to-Equity Ratio and fluctuating cash flows present potential risks that need to be managed carefully to ensure sustainable growth.

Income Statement

Energy Action Limited has experienced declining revenue over the past years, with a notable decrease from 2019 to 2024. The Gross Profit Margin in the latest year is relatively low at 35.51%, and the Net Profit Margin has improved but remains modest at 5.42%. The EBIT and EBITDA margins have shown improvement, indicating operational efficiency gains. However, the overall revenue trend indicates significant challenges in maintaining growth.

Balance Sheet

The company has a high Debt-to-Equity Ratio, reflecting significant leverage and potential financial risk. The Stockholders' Equity has improved but remains low. The Equity Ratio is 22.34%, suggesting a lower reliance on equity financing. The Return on Equity shows improvement, but this is partly due to the low equity base, which could be concerning for long-term stability.

Cash Flow

Energy Action Limited has shown positive cash flow improvements, with Free Cash Flow growth indicating better cash management. The Operating Cash Flow to Net Income Ratio is strong at 3.22, suggesting effective cash generation relative to net income. However, the company has experienced fluctuations in cash flows over the years, pointing to potential volatility in its cash management practices.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.78M	11.14M	10.38M	14.34M	18.90M
Gross Profit	3.83M	10.72M	9.59M	13.73M	17.32M
EBITDA	1.77M	556.85K	-1.49M	-505.44K	-1.49M
Net Income	584.41K	-298.48K	-2.84M	-1.00M	-2.49M
Balance Sheet
Total Assets	10.45M	9.42M	8.60M	13.21M	14.29M
Cash, Cash Equivalents and Short-Term Investments	1.45M	1.40M	1.86M	2.42M	3.20M
Total Debt	4.88M	7.37M	8.15M	7.54M	6.85M
Total Liabilities	8.11M	9.44M	8.96M	10.73M	11.12M
Stockholders Equity	2.33M	-24.11K	-365.74K	2.48M	3.17M
Cash Flow
Free Cash Flow	1.06M	54.93K	-544.89K	-1.40M	1.48M
Operating Cash Flow	1.88M	768.09K	439.81K	-569.34K	3.38M
Investing Cash Flow	-825.54K	-663.16K	-984.70K	-826.43K	-1.90M
Financing Cash Flow	-1.01M	-567.41K	-18.47K	622.88K	476.28K

Energy Action Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EAX, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.37, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.01 is Neutral, neither overbought nor oversold. The STOCH value of 15.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EAX.

Energy Action Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSH	67 Neutral	AU$11.73M	13.81	9.53%	―	11.60%	―
Sector *	59 Neutral	AU$1.65B	10.34	11.24%	3.42%	6.75%	3.18%
EAX	52 Neutral	AU$13.44M	11.93	59.05%	―	-7.06%	60.11%
CI1	46 Neutral	AU$9.68M	―	0.62%	―	-42.55%	64.40%
STG	45 Neutral	AU$26.38M	―	-34.93%	―	-11.90%	-374.59%

Energy Action Limited Corporate Events

Energy Action Limited Announces Quotation of New Securities on ASX

Energy Action Limited has announced the quotation of 545,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code EAX. This move is part of the company’s strategy to enhance its market presence and provide additional value to its stakeholders by increasing the liquidity of its shares.

Energy Action Limited Relocates Office to Sydney CBD

Energy Action Limited has announced a change in its registered office and principal place of business, now located at Level 3, 120 Sussex Street, Sydney, NSW, 2000, Australia. This relocation is part of the company’s operational adjustments, although contact details and other information remain unchanged, indicating a seamless transition for stakeholders.

Energy Action Limited Secures New CBA Facility to Enhance Financial Flexibility

Energy Action Limited has signed a new Facility Agreement with the Commonwealth Bank of Australia, allowing the company to repay subordinated loans from directors and enhance its financial flexibility. The agreement supports Energy Action’s strategy to simplify its capital structure, reduce funding costs, and align its balance sheet with long-term growth plans, ultimately enabling the company to invest in sales and technology.

Energy Action Limited Reports Strong Q3 FY25 Growth and Advances AI Integration

Energy Action Limited reported a 22.7% increase in revenue for Q3 FY25, reaching $2.7 million. The company achieved a positive operating cash flow and continued investing in its AI-driven platform, Utilibox, to enhance energy and emissions management services. The cash position improved, and financing facilities were adjusted with a drawdown from the Commonwealth Bank of Australia. The company is advancing its AI capabilities to improve customer interactions and energy market participation, with developments in utilities accounts payable and carbon reporting modules.

Energy Action Limited Reports Stable Cash Flow Amid Investment Challenges

Energy Action Limited has released its quarterly cash flow report for the period ending March 31, 2025. The report indicates a net cash inflow from operating activities of $59,000 for the current quarter, highlighting a positive cash position despite challenges in other areas such as investing activities, which saw a net cash outflow of $174,000. The company also reported a net cash inflow from financing activities of $245,000, driven by proceeds from borrowings. This financial performance suggests a stable operational footing, although the company continues to navigate financial pressures in its investing activities.