Energy Action Limited (EAX) AI Stock Analysis

• Market Cap: AU$17.31M
• Dividend Yield: N/A
• Average Volume (3M): 2.61K
• Price to Earnings (P/E): 8.3
• Beta (1Y): -0.58
• Revenue Growth: 12.87%
• EPS Growth: 173.68%
• Country: AU
• Employees: 64
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.02
• Shares Outstanding: 40,264,790
• 10 Day Avg. Volume: 4,981
• 30 Day Avg. Volume: 2,609
• PEG Ratio: 0.04
• Price to Book (P/B): 3.26
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 8.90
• 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: 63 Neutral
• Price Target: AU$0.46 ▼(-3.33% Downside)
• Action: Reiterated Date: 10/03/25
• Date: Action: Reiterated 10/03/25

Energy Action Limited's overall score is driven by strong financial performance and reasonable valuation. However, technical analysis indicates the stock may be overbought, posing a risk of a pullback. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

High revenue growth

Consistent double-digit revenue growth (23% last year) indicates sustained market demand and effective commercial execution. Over a 2–6 month horizon this supports recurring sales, scale economies, and continued investment in capabilities, improving long-term top-line resilience.

Improved profitability margins

High gross (48.5%) and rising net margins (15.8%) reflect pricing power and operational efficiency. Durable margins provide a buffer against cost inflation, enable reinvestment in product and sales capability, and underpin sustainable cash generation for strategic initiatives.

Strong ROE and reduced leverage

A robust ROE (45%) combined with lower reported leverage (D/E 0.64) signals efficient capital use and improved financial flexibility. This durable position reduces interest burdens and supports capacity for strategic investment or weathering cyclical headwinds without overreliance on external financing.

Negative Factors

Declining free cash flow growth

A ~20.6% drop in free cash flow growth weakens the company’s internal funding ability despite profit gains. If persistent, reduced FCF growth constrains capex, acquisitions or debt reduction, increasing reliance on external funding and raising medium-term financial vulnerability.

Moderate cash conversion

Operating cash covers only about half of reported net income, suggesting earnings are not fully backed by cash. Persistent weak conversion undermines earnings quality and can limit the company’s ability to fund operations or growth from internally generated cash over several quarters.

Low equity ratio and historical volatility

A relatively low equity ratio combined with historical volatility in revenue and profitability increases sensitivity to asset shocks and cyclical downturns. This structural weakness can complicate capital raising and heighten risk of balance-sheet stress during adverse periods.

Energy Action Limited Business Overview & Revenue Model

Company Description

Energy Action Limited, an independent power producer, provides electricity and gas services in Australia. The company offers energy procurement for electricity and gas procurement service through reverse auction platform for business customers. It also provides energy reporting services that offers bill validation, usage and spend monitoring, environmental reporting, network tariff and annual review services. In addition, the company offers net zero services that provides cost-effective energy solutions. The company serves commercial and industrial companies. Energy Action Limited was founded in 2000 and is headquartered in Parramatta, Australia.

How the Company Makes Money

Energy Action Limited generates revenue through a combination of consulting fees, commission-based earnings from energy procurement services, and subscription fees for its energy management platform. The company charges clients for in-depth energy audits and efficiency consulting services, which help businesses identify opportunities for cost savings. Additionally, EAX earns commissions from negotiating energy contracts on behalf of clients, allowing them to benefit from competitive pricing. The company also has strategic partnerships with energy suppliers and technology providers, which enhance its service offerings and create additional revenue opportunities.

Energy Action Limited Financial Statement Overview

Summary

Energy Action Limited shows strong revenue growth and improved profitability margins. However, historical volatility in financial metrics and cash flow fluctuations pose potential risks. The balance sheet indicates reduced leverage but a low equity ratio, suggesting potential risks if asset values fluctuate.

Income Statement

Energy Action Limited has shown a strong improvement in its income statement metrics. The company achieved a significant revenue growth rate of 23.04% in the most recent year, indicating a positive trajectory. Gross profit margin improved to 48.54%, and net profit margin increased to 15.84%, reflecting enhanced profitability. The EBIT and EBITDA margins also saw improvements, suggesting better operational efficiency. However, historical volatility in revenue and profitability remains a concern.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio improved significantly to 0.64, indicating reduced leverage and a stronger equity position. Return on equity is robust at 45.23%, showcasing effective use of equity to generate profits. However, the equity ratio remains relatively low, suggesting potential risks if asset values fluctuate.

Cash Flow

Cash flow metrics present a cautious outlook. The free cash flow growth rate declined by 20.61%, and the operating cash flow to net income ratio is moderate at 0.51, indicating a need for improved cash generation relative to earnings. The free cash flow to net income ratio is strong at 0.98, suggesting efficient conversion of earnings to cash. Historical fluctuations in cash flow growth highlight potential risks.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	13.86M	12.79M	10.78M	11.14M	10.38M	14.34M
Gross Profit	9.84M	6.21M	3.75M	10.72M	907.42K	13.73M
EBITDA	2.65M	2.44M	1.77M	556.85K	-1.49M	-505.44K
Net Income	2.04M	2.03M	584.41K	-298.48K	-2.84M	-1.00M
Balance Sheet
Total Assets	12.63M	9.76M	10.45M	9.42M	8.60M	13.21M
Cash, Cash Equivalents and Short-Term Investments	903.03K	341.70K	1.45M	1.40M	1.86M	2.42M
Total Debt	5.63M	2.85M	4.88M	7.37M	7.67M	7.54M
Total Liabilities	7.43M	5.28M	8.11M	9.44M	8.96M	10.73M
Stockholders Equity	5.20M	4.48M	2.33M	-24.11K	-365.74K	2.48M
Cash Flow
Free Cash Flow	135.60K	1.64M	1.06M	54.93K	-544.89K	-1.40M
Operating Cash Flow	168.81K	1.67M	1.88M	768.09K	439.81K	-569.34K
Investing Cash Flow	-743.40K	-744.38K	-825.54K	-663.16K	-984.70K	-826.43K
Financing Cash Flow	-2.66K	-2.03M	-1.01M	-567.41K	-18.47K	622.88K

Energy Action Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.48 is above the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.48, and above the 200-day MA of 0.44, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 30.95 is Neutral, neither overbought nor oversold. The STOCH value of 44.42 is Neutral, 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
EAX	63 Neutral	AU$17.31M	8.30	59.48%	―	12.87%	173.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SSH	57 Neutral	AU$22.34M	10.51	6.19%	―	-6.52%	-20.79%
STG	49 Neutral	AU$22.20M	-4.01	-23.42%	―	-13.52%	7.82%

Energy Action Limited Corporate Events

Energy Action Director Jason Conroy Steps Down With No Equity Interests

Energy Action Limited has announced that Jason Conroy has ceased to be a director of the company as of 21 February 2026. Regulatory filings indicate that Conroy held no relevant interests in the company’s securities or related contracts at the time of his departure, suggesting the board change is administrative in nature rather than driven by ownership or transactional issues.

The notice, lodged with the ASX under listing rule requirements, formalises the end of Conroy’s directorship and confirms there are no associated equity or contractual interests to disclose. While the company has not provided further commentary on the reasons for the change, the clean separation with no shareholdings or contracts implies limited immediate impact for shareholders and corporate governance structures beyond routine board succession processes.

The most recent analyst rating on (AU:EAX) stock is a Buy with a A$0.51 price target. To see the full list of analyst forecasts on Energy Action Limited stock, see the AU:EAX Stock Forecast page.

Energy Action Director Jason Conroy Resigns Amid Growing Board Commitments

Energy Action Limited has announced the resignation of non-executive director Jason Conroy, effective 21 February 2026, citing the growing demands of his other board commitments in the energy sector. The change marks a board-level adjustment that may influence Energy Action’s governance dynamics, as the company continues to navigate an evolving energy landscape and balance director workloads across multiple sector roles.

The most recent analyst rating on (AU:EAX) stock is a Buy with a A$0.51 price target. To see the full list of analyst forecasts on Energy Action Limited stock, see the AU:EAX Stock Forecast page.

Energy Action Posts Modest Cash Inflow as CBA Defers Loan Repayments and Board is Refreshed

Energy Action Limited reported positive operating cash flow of $0.18 million for the quarter ended 31 December 2025, though this was down sharply on the prior year due to the absence of an R&D grant rebate. The company continued to invest $0.18 million in its AI-enhanced Utilibox platform and drew $0.6 million from its CBA revolving facility to support operations, ending the period with $0.9 million in cash. In a move that eases near-term balance sheet pressure, principal lender CBA agreed to defer two scheduled term-loan repayments to the loan’s final maturity in November 2026. Governance was strengthened with the appointments of Caroline Wykamp as Non-Executive Chair and Jason Conroy as Non-Executive Director, signalling a refreshed board oversight as the company focuses on technology development and cash management.

The most recent analyst rating on (AU:EAX) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Energy Action Limited stock, see the AU:EAX Stock Forecast page.

Energy Action Options Lapse, Simplifying Capital Structure

Energy Action Limited, listed on the ASX under the code EAX, has reported a change to its issued capital structure. The company announced that 530,000 options (ASX code EAXAA) expiring on 30 November 2025 have lapsed without being exercised, resulting in the cessation of these securities and a modest simplification of its capital base for existing shareholders.

The most recent analyst rating on (AU:EAX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Energy Action Limited stock, see the AU:EAX Stock Forecast page.

Energy Action Appoints Joint Company Secretary

Energy Action Limited has announced the appointment of Eryl Baron as its Joint Company Secretary, effective immediately. This strategic decision emphasizes its commitment to maintaining robust corporate governance and enhances its operational focus, likely benefiting stakeholders by strengthening the company’s alignment with ASX communication requirements.

The most recent analyst rating on (AU:EAX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Energy Action Limited stock, see the AU:EAX Stock Forecast page.

Energy Action Defers Loan Repayments to 2026

Energy Action Limited has announced a deferral of two principal repayments under its Fixed Term Loan with the Commonwealth Bank of Australia, totaling $483,334. These payments, originally due in November 2025 and February 2026, will now be due in November 2026, aligning with the loan’s final repayment date. The deferral does not affect the facility’s limit, interest rate, financial covenants, or total repayment amount. This adjustment reflects the company’s ongoing compliance with its financial obligations and its proactive engagement with the lender, potentially easing short-term financial pressures while maintaining long-term commitments.

The most recent analyst rating on (AU:EAX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Energy Action Limited stock, see the AU:EAX Stock Forecast page.