Energy One Limited (EOL) AI Stock Analysis

• Market Cap: €447.40M
• Dividend Yield: N/A
• Average Volume (3M): 52.02K
• Price to Earnings (P/E): 99.2
• Beta (1Y): 0.02
• Revenue Growth: 13.18%
• EPS Growth: 258.38%
• Country: AU
• Employees: 128
• Sector: Energy
• Sector Strength: 54
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 31,330,383
• 10 Day Avg. Volume: 41,590
• 30 Day Avg. Volume: 52,023
• PEG Ratio: -1.26
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.04
• 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: €11.28
• Price Target Upside: -19.51% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: AU$17.00 ▲(21.34%Upside)

The overall score of 74 reflects strong technical momentum and robust financial performance, particularly in revenue growth and cash flow. However, high valuation metrics and potential overbought technical conditions temper the score.

Positive Factors

Market demand

The shift towards 15-minute blocks in the European market increases the complexity for market participants, benefiting EOL's software demand.

Top-line growth

EOL is poised to reach the upper end of its 15–20% top-line growth target if current favourable conditions persist.

Valuation

Compared to software peers in the All Ords, EOL is attractively valued.

Negative Factors

Risks and challenges

Risks include but are not limited to: Customer retention, competition, slowdown in energy transition, slowdown of EU markets opening, adverse regulatory changes, cyber-attack, continued availability of qualified personnel, and wage inflation.

Energy One Limited Business Overview & Revenue Model

Company Description

Energy One Limited provides various software products and services to wholesale energy, environmental, and carbon trading markets in the Australasia, the United Kingdom, and Europe. The company offers EnergyFlow, a platform for automating and managing business processes, and for integrating systems; EnergyOffer, a bidding, offering, dispatch, and logistics solution; EOT that offers front, middle, and backoffice solutions; NemSight, a real time presentation and historical analysis tool, which offers screens displaying live prices, demand, constraints, generation, bidstacks, and temperatures; and pypIT, a gas pipeline contracts management and scheduling platform. It also provides SimEnergy, an energy trading and risk management (ETRM) solution that offers deal capture, settlements, and risk capability for traders, large customers, retailers, and generators; enTrader, an ETRM solution for energy trading; envoy, a communications framework for passing power and gas industry data to and from market and system operators; eZ-Ops, a web trading solution; and enPrice, egssPort Gas, egssPort Power, and Cosmos solutions. The company was incorporated in 1996 and is based in North Sydney, Australia.

How the Company Makes Money

Energy One Limited generates revenue primarily through the sale and licensing of its software solutions, which are designed for energy trading and risk management. The company offers its software as a service (SaaS), allowing clients to subscribe for ongoing access and updates, which creates a steady stream of recurring revenue. Additionally, EOL provides consulting, implementation, and support services that complement its software offerings, further enhancing its revenue. The company may also engage in partnerships with energy companies and other stakeholders in the energy market, leveraging these collaborations to expand its market reach and increase sales opportunities.

Energy One Limited Financial Statement Overview

Summary

Energy One Limited is performing well in terms of revenue growth and cash flow generation. Despite pressures on profitability margins and cost management challenges, the company maintains a solid balance sheet with moderate leverage and increasing equity.

Income Statement

Energy One Limited shows a strong revenue growth trajectory with a significant increase from $32.15M in 2022 to $52.18M in 2024, representing a two-year growth of 62.16%. However, gross profit declined from $14.46M to $14.37M between 2023 and 2024, indicating potential cost management issues. EBIT margin is stable, but net profit margin dropped from 6.60% in 2023 to 2.76% in 2024, suggesting increased expenses or cost pressures impacting net income.

Balance Sheet

The company's financial stability is sound, with a debt-to-equity ratio of 0.36 in 2024, reflecting moderate leverage. Stockholders’ equity increased from $47.06M in 2023 to $53.12M in 2024, indicating strong capitalization. However, the equity ratio slightly decreased from 51.64% in 2023 to 57.45% in 2024, showing a solid but slightly declining asset coverage.

Cash Flow

Energy One Limited demonstrates robust cash flow management, with operating cash flow increasing to $7M in 2024. Free cash flow increased to $1.91M, showing a positive trend despite capital expenditures. The operating cash flow to net income ratio improved significantly, indicating efficient cash generation relative to profit levels.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	55.81M	52.18M	44.73M	32.15M	27.64M	20.30M
Gross Profit	23.56M	14.37M	14.46M	10.71M	9.15M	6.17M
EBITDA	11.41M	9.79M	10.84M	8.32M	7.86M	4.66M
Net Income	4.41M	1.44M	2.95M	3.58M	3.71M	1.65M
Balance Sheet
Total Assets	94.91M	92.46M	91.06M	87.17M	39.28M	32.60M
Cash, Cash Equivalents and Short-Term Investments	2.52M	1.97M	951.00K	3.35M	5.57M	3.68M
Total Debt	18.55M	19.38M	24.12M	30.65M	2.85M	2.11M
Total Liabilities	37.74M	39.34M	44.01M	52.93M	16.09M	13.91M
Stockholders Equity	57.17M	53.12M	47.06M	34.24M	23.19M	18.69M
Cash Flow
Free Cash Flow	9.72M	1.91M	1.24M	1.99M	4.53M	2.22M
Operating Cash Flow	10.03M	7.00M	6.67M	6.62M	8.11M	5.06M
Investing Cash Flow	-5.44M	-5.06M	-10.53M	-35.64M	-5.22M	-4.01M
Financing Cash Flow	-3.68M	-893.00K	1.46M	26.95M	-1.01M	267.00K

Energy One Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EOL, the sentiment is Neutral. The current price of 14.01 is below the 20-day moving average (MA) of 14.62, below the 50-day MA of 14.02, and above the 200-day MA of 8.99, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 43.27 is Neutral, neither overbought nor oversold. The STOCH value of 31.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:EOL.

Energy One Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOL	74 Outperform	€447.40M	99.22	8.54%	―	13.18%	258.38%
RUL	68 Neutral	AU$629.08M	110.17	11.59%	―	9.76%	-28.92%
Sector *	57 Neutral	HK$84.34B	3.62	-2.08%	4.89%	-4.66%	-42.32%
H2T		€555.14M	251.43	1.03%	2.04%	―	―
NXL	52 Neutral	AU$717.69M	308.39	-0.19%	―	17.64%	96.99%
YOJ	52 Neutral	AU$156.66M	―	-212.47%	―	-54.10%	82.31%
AMX	44 Neutral	AU$21.37M	―	-24.21%	―	-11.35%	-49.13%

Energy One Limited Corporate Events

Wilson Asset Management Group Becomes Substantial Holder in Energy One Limited

Energy One Limited has announced that Wilson Asset Management Group has become a substantial holder in the company, with a 6.51% voting power through ordinary shares. This development indicates a significant investment in Energy One Limited, potentially impacting its market positioning and stakeholder interests.