Ecofibre (EOF) AI Stock Analysis

• Market Cap: $7.29M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -3.82%
• EPS Growth: 79.24%
• Country: AU
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 378,873,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.48
• 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: 44 Neutral
• Price Target: ―

Ecofibre Ltd. struggles with financial instability, marked by declining revenues and significant losses. Technical indicators suggest a weak stock price momentum, while the negative P/E ratio highlights valuation concerns. Despite some improvements in cost management, persistent operational and liquidity challenges weigh heavily on the stock's overall attractiveness.

Ecofibre Business Overview & Revenue Model

Company Description

Ecofibre Limited, together with its subsidiaries, engages in the breeding, growing, manufacturing, marketing, and selling of hemp products in the United States and Australia. The company operates through Ananda Health, Ananda Food, and Hemp Black segments. It offers CBD products for human and pet consumption, as well as topical health and beauty products; hemp related food products; and textile and hemp products. Ecofibre Limited was incorporated in 2009 and is based in Sydney, Australia.

How the Company Makes Money

Ecofibre generates revenue through the sale of its hemp-derived products across various segments. The Ananda Health brand focuses on the nutraceutical sector, providing hemp-derived CBD products such as tinctures, soft gels, and topicals, which are distributed through healthcare channels in the United States. Ananda Food, another revenue stream, produces hemp food products, including seeds, oil, and protein powders, catering to the health-conscious consumer market. Additionally, Hemp Black contributes to the company's earnings by developing and selling advanced functional textiles and industrial products made from hemp, which are used in a wide range of applications, including fashion, automotive, and building materials. Ecofibre's strategic partnerships with research institutions and its focus on innovation and sustainability further support its revenue growth by enhancing product offerings and expanding market reach.

Ecofibre Financial Statement Overview

Summary

Ecofibre Ltd. is facing financial difficulties, with declining revenues and persistent losses affecting profitability. The rising leverage and negative cash flows further stress the company's financial health. Although there have been improvements in gross profitability, operational inefficiencies and liquidity issues remain significant challenges.

Income Statement

The company has experienced a decline in revenue over the past two years, with a total revenue drop from $32.51M in 2023 to $27.98M in 2024. Gross profit has improved from negative to positive, indicating better cost management, but net loss remains significant at $44.34M. Margins are negative, with EBIT and EBITDA margins further deteriorating, reflecting ongoing operational challenges.

Balance Sheet

The debt-to-equity ratio has increased, indicating rising leverage, which could pose a financial risk. However, the equity ratio remains fairly stable, suggesting some balance in financial structure. Stockholders’ equity has decreased significantly over recent years, reflecting accumulated losses.

Cash Flow

Operating cash flow remains negative, with free cash flow also deteriorating, signaling challenges in generating cash from operations. The free cash flow growth rate is negative, and the company's ability to convert net income to operating cash flow is weak, indicating liquidity issues.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	27.98M	32.51M	30.22M	28.79M	50.72M
Gross Profit	-1.08M	-10.04M	-6.14M	-1.11M	24.41M
EBITDA	-38.34M	-20.91M	-15.29M	-4.55M	19.44M
Net Income	-44.34M	-39.91M	-14.67M	-6.99M	13.16M
Balance Sheet
Total Assets	71.25M	118.73M	149.55M	141.75M	84.30M
Cash, Cash Equivalents and Short-Term Investments	6.74M	7.29M	7.25M	8.62M	18.25M
Total Debt	25.49M	27.03M	19.71M	11.03M	11.08M
Total Liabilities	30.28M	44.09M	39.61M	29.95M	21.29M
Stockholders Equity	39.96M	74.63M	109.94M	111.80M	63.00M
Cash Flow
Free Cash Flow	-17.23M	-8.62M	-13.39M	-14.46M	-16.80M
Operating Cash Flow	-14.02M	-6.91M	-10.60M	-8.36M	5.81M
Investing Cash Flow	4.22M	-1.58M	-3.00M	-28.74M	-22.53M
Financing Cash Flow	9.21M	7.64M	12.46M	28.57M	9.40M

Ecofibre Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EOF, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EOF.

Ecofibre Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$7.35B	-0.07	-63.71%	2.81%	16.17%	0.03%
EOF	44 Neutral	$7.29M	―	-55.38%	―	-3.82%	79.24%
ELLXF	―	$2.26M	―	-21.29%	―	―	―
CNGGF	―	$6.36M	―	-164.01%	―	―	―
HDRPF	―	$4.72M	―		―	―	―
LGP	―	AU$35.06M	10.45	4.10%	―	―	―
AGH	53 Neutral	AU$24.68M	―	-218.38%	―	-14.30%	29.69%

Ecofibre Corporate Events

Ecofibre Limited Declares Shares Worthless Amidst Administration Proceedings

Ecofibre Limited, currently under administration, held a second meeting of creditors where it was resolved to execute a Deed of Company Arrangement (DOCA). The administrators have declared the shares worthless, indicating no expected returns for shareholders, and advised them to seek independent tax and legal advice.

Ecofibre Defers Financial Reporting and AGM Amid Administration

Ecofibre Limited, currently under administration, has announced a deferral of its financial reporting obligations in accordance with ASIC Corporations Instrument 2015/251. This deferral, which could last up to 24 months, means the company will not be able to lodge its full-year accounts for the period ending 30 June 2025 by the original deadline. The company has also deferred its Annual General Meeting until at least two months after the financial reporting relief ends. The administrators have sought waivers from ASX Listing Rules to align with these changes and have assured stakeholders that there is no risk of uninformed trading due to the suspension of the company’s securities.

Ecofibre Securities Suspended Due to Financial Concerns

Ecofibre Limited, listed on the ASX under the ticker EOF, has had its securities suspended from quotation due to financial inadequacies. The ASX has determined that Ecofibre’s financial condition does not meet the necessary requirements, leading to a breach of Listing Rule 12.2. The suspension will remain in effect until the company complies with the listing rules and demonstrates financial stability.