Energy Action Limited (EAX) AI Stock Analysis

• Market Cap: AU$14.42M
• Dividend Yield: N/A
• Average Volume (3M): 2.63K
• Price to Earnings (P/E): 13.0
• Beta (1Y): -0.47
• Revenue Growth: -7.06%
• EPS Growth: 60.11%
• Country: AU
• Employees: 64
• Sector: Industrials
• Sector Strength: 86
• Industry: Specialty Business Services
• EPS (TTM): 0.03
• Shares Outstanding: 38,981,440
• 10 Day Avg. Volume: 1,997
• 30 Day Avg. Volume: 2,631
• PEG Ratio: -1.79
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.49
• 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

• Rating: 51 Neutral
• Price Target: AU$0.50 ▲(35.14%Upside)

Energy Action Limited's overall score reflects a mix of challenges and modest strengths. The declining revenue and high leverage are significant concerns impacting financial stability, though operational efficiencies and cash flow improvements are positive. Technical indicators suggest stability but lack strong momentum. Valuation is reasonable, though the absence of a dividend yield may deter income investors.

Energy Action Limited Business Overview & Revenue Model

Company Description

Energy Action Limited (EAX) is an Australian-based company operating in the energy sector, primarily providing energy procurement, contract management, and energy advisory services. The company specializes in helping businesses optimize their energy usage and costs through innovative solutions and strategic advice. Energy Action Limited focuses on delivering tailored energy management strategies that align with the evolving needs of its clients.

How the Company Makes Money

Energy Action Limited makes money through a variety of revenue streams centered around its core services. The company earns revenue from energy procurement services, where it assists clients in securing competitive energy contracts. Additionally, EAX generates income through contract management services, which involve overseeing and optimizing clients' energy contracts to ensure cost efficiency. Advisory services provide another significant revenue stream, as the company offers expert guidance on energy strategy, sustainability, and efficiency improvements. Key partnerships with energy providers and industry stakeholders enhance EAX's ability to deliver value-added services, thereby contributing to its earnings growth.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.40M	10.78M	11.14M	10.38M	14.34M	18.90M
Gross Profit	4.49M	3.83M	10.72M	9.59M	13.73M	17.32M
EBITDA	1.39M	1.77M	556.85K	-1.49M	-505.44K	-1.49M
Net Income	1.08M	584.41K	-298.48K	-2.84M	-1.00M	-2.49M
Balance Sheet
Total Assets	10.05M	10.45M	9.42M	8.60M	13.21M	14.29M
Cash, Cash Equivalents and Short-Term Investments	1.48M	1.45M	1.40M	1.86M	2.42M	3.20M
Total Debt	3.97M	4.88M	7.37M	8.15M	7.54M	6.85M
Total Liabilities	6.79M	8.11M	9.44M	8.96M	10.73M	11.12M
Stockholders Equity	3.26M	2.33M	-24.11K	-365.74K	2.48M	3.17M
Cash Flow
Free Cash Flow	2.07M	1.06M	54.93K	-544.89K	-1.40M	1.48M
Operating Cash Flow	2.56M	1.88M	768.09K	439.81K	-569.34K	3.38M
Investing Cash Flow	-853.76K	-825.54K	-663.16K	-984.70K	-826.43K	-1.90M
Financing Cash Flow	-1.29M	-1.01M	-567.41K	-18.47K	622.88K	476.28K

Energy Action Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EAX, the sentiment is Neutral. The current price of 0.37 is above the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.38, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 20.13 is Positive, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	62 Neutral	AU$9.70M	11.43	9.53%	―	11.60%	―
Sector *	59 Neutral	AU$1.63B	9.50	11.29%	3.71%	6.59%	5.93%
STG	55 Neutral	AU$25.09M	―	-34.93%	―	-8.96%	-18.83%
EAX	51 Neutral	AU$14.42M	12.98	59.05%	―	-7.06%	60.11%
CI1	46 Neutral	AU$9.68M	―	0.62%	―	-42.55%	64.40%

Energy Action Limited Corporate Events

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.

Energy Action Limited Announces Leadership Changes in Board

Energy Action Limited has announced a change in its Board Chair, with Mr. Murray Bleach retiring from the role after over a decade, but continuing as a non-executive director. Ms. Caroline Wykamp, an experienced executive in energy markets, will serve as interim Board Chair while the company searches for an additional director. This transition reflects the company’s focus on succession planning and aligning its board’s composition with its strategic goals. Additionally, changes in committee leadership have been made, with Mr. Bleach and Mr. Paul Meehan taking on new chair roles in the Audit and Risk Management Committee and the Remuneration and Nomination Committee, respectively.

Energy Action Limited Announces Cessation of Securities

Energy Action Limited announced the cessation of 10,000 securities due to the lapse of conditional rights, as the conditions were not met by the deadline of March 31, 2025. This cessation may impact the company’s capital structure and could have implications for its financial strategies moving forward.

Energy Action Announces Change of Share Registry Address

Energy Action Limited has announced a change in the location of its share registry office, effective April 14, 2025. The new address will be at MUFG Corporate Markets (AU) Limited, Liberty Place, Level 41, 161 Castlereagh Street, Sydney NSW 2000. This move is part of the company’s operational updates, and while the telephone numbers and postal address remain unchanged, it reflects ongoing adjustments in their administrative processes.

Energy Action Limited Director Increases Shareholding

Energy Action Limited announced a change in the director’s interest, with Bruce Macfarlane acquiring an additional 4,500 fully paid ordinary shares through an on-market purchase. This acquisition reflects a minor adjustment in the director’s holdings, potentially indicating confidence in the company’s future performance and stability, which may reassure stakeholders about the company’s strategic direction.