Electro Optic Systems Holdings Limited (EOS) AI Stock Analysis

• Market Cap: $522.90M
• Dividend Yield: N/A
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: -19.47%
• EPS Growth: 52.11%
• Country: AU
• Employees: 496
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): -0.10
• Shares Outstanding: 192,952,100
• 10 Day Avg. Volume: 2,472,298
• 30 Day Avg. Volume: 2,259,797
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.95
• 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: $2.27
• Price Target Upside: -16.39% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: AU$2.50 ▼(-7.75%Downside)

The most significant factor influencing the score is the financial performance, which reflects operational challenges and cash flow difficulties. While technical analysis shows bullish momentum, the negative P/E ratio and absence of a dividend yield negatively impact valuation, leading to a moderate overall stock score.

Electro Optic Systems Holdings Limited Business Overview & Revenue Model

Company Description

Electro Optic Systems Holdings Limited engages in the development, manufacture, and sale of telescopes and dome enclosures, laser satellite tracking systems, electro-optic fire control systems, and microwave satellite dishes and receivers. It operates through three segments: Defense, Space, and Communication. The Defense segment develops, manufactures, and markets fire control, surveillance, and weapon systems to military customers, as well as sensors and fire control software products. The Space segment designs, manufactures, delivers, and operates sensors and systems for space domain awareness and space control. Its products include space debris management systems, defense missiles, optical communications systems, and space products consisting of observatories, telescopes, and laser products and electronics. The Communication segment offers optical, microwave, and on-the-move radio and satellite systems. It operates in Australasia, the Middle East, the United Arab Emirates, North America, Europe, and others. The company was founded in 1983 and is based in Symonston, Australia.

How the Company Makes Money

EOS primarily generates revenue through the sale of its advanced technology systems and solutions to defense and aerospace customers. The company's key revenue streams include contracts for remote weapon systems, which are used by military forces for enhanced targeting and protection, and satellite communication systems that provide communication solutions for both commercial and military applications. Additionally, EOS earns income from its space domain awareness services, which involve monitoring and tracking objects in space to ensure safe and efficient operations for satellites and other space assets. Significant partnerships with defense agencies, governments, and commercial entities further bolster its revenue, allowing EOS to tap into global markets and expand its customer base.

Electro Optic Systems Holdings Limited Financial Statement Overview

Summary

Electro Optic Systems Holdings Limited faces challenges in achieving profitability, with negative net profit margins and declining revenue. While the balance sheet shows manageable leverage, negative net income and declines in free cash flow highlight financial instability.

Income Statement

Electro Optic Systems Holdings Limited has experienced significant volatility in its financial performance. The gross profit margin shows improvement in 2024 compared to previous years, indicating cost management efforts. However, the net profit margin remains negative, reflecting continued losses. Revenue growth was negative from 2023 to 2024, indicating a decline in sales. EBIT and EBITDA margins are also negative, suggesting operational challenges.

Balance Sheet

The balance sheet displays a relatively stable debt-to-equity ratio, indicating manageable leverage levels. However, equity has decreased over the years, and the return on equity is negative due to net losses. The equity ratio remains healthy, suggesting that a significant portion of the company's assets is financed by equity.

Cash Flow

The cash flow statement reveals fluctuations in free cash flow, with a significant decline in recent years. The operating cash flow to net income ratio is less meaningful due to negative net income. The company has seen periods of positive free cash flow, but recent performance indicates cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.56M	219.25M	137.91M	212.33M	180.18M
Gross Profit	84.64M	95.58M	-27.55M	31.65M	1.43M
EBITDA	-16.27M	6.38M	-37.57M	29.92M	-18.91M
Net Income	-18.73M	-33.27M	-114.54M	-13.01M	-24.40M
Balance Sheet
Total Assets	401.01M	393.23M	419.50M	462.57M	437.38M
Cash, Cash Equivalents and Short-Term Investments	41.08M	71.00M	21.68M	59.26M	65.93M
Total Debt	65.93M	88.74M	97.18M	64.47M	21.11M
Total Liabilities	181.50M	194.16M	186.40M	133.41M	97.79M
Stockholders Equity	224.50M	203.11M	236.29M	331.34M	340.94M
Cash Flow
Free Cash Flow	-47.77M	110.19M	-74.93M	-29.60M	-138.88M
Operating Cash Flow	-30.36M	113.12M	-55.68M	-591.00K	-109.16M
Investing Cash Flow	3.68M	-34.73M	-28.31M	-37.71M	-36.98M
Financing Cash Flow	9.21M	-29.05M	49.45M	31.40M	135.93M

Electro Optic Systems Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.71
• 50DMA: Positive
• 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:EOS, the sentiment is Positive. The current price of 2.71 is above the 20-day moving average (MA) of 2.43, above the 50-day MA of 1.77, and above the 200-day MA of 1.40, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 69.04 is Neutral, neither overbought nor oversold. The STOCH value of 49.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EOS.

Electro Optic Systems Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$2.49B	13.26	7.40%	4.58%	-0.87%	8.24%
EOS	55 Neutral	$522.90M	―	-16.26%	―	-19.47%	52.11%
AUTLF		$1.67B	77.30	2.82%	―	―	―
OBTEF		$10.66M	11.11	7.02%	―	―	―
DUR	74 Outperform	AU$363.44M	16.18	37.07%	2.46%	-1.02%	-7.39%
VEE	65 Neutral	AU$122.38M	27.11	8.82%	0.52%	9.97%	-22.07%
AVA	45 Neutral	AU$29.05M	―	-10.45%	―	13.25%	13.71%

Electro Optic Systems Holdings Limited Corporate Events

EOS Addresses ASX Compliance Query on Director Interests Disclosure

Electro Optic Systems Holdings Limited recently addressed a compliance query from the ASX regarding the late submission of an Appendix 3Y form related to a change in director interests. The delay was due to an administrative oversight following the allotment of deferred shares to CEO Dr. Andreas Schwer, which was approved at the company’s AGM. EOS has assured that its current compliance procedures are adequate and that the incident was isolated, emphasizing its commitment to maintaining transparency and fulfilling disclosure obligations.

The most recent analyst rating on (AU:EOS) stock is a Buy with a A$1.85 price target. To see the full list of analyst forecasts on Electro Optic Systems Holdings Limited stock, see the AU:EOS Stock Forecast page.

Electro Optic Systems Director Increases Stake

Electro Optic Systems Holdings Limited announced a change in the director’s interest as Dr. Andreas Schwer acquired 70,354 ordinary shares following shareholder approval at the recent AGM. This acquisition reflects a significant increase in Dr. Schwer’s stake in the company, potentially signaling confidence in the company’s future prospects and aligning the director’s interests with those of the shareholders.

The most recent analyst rating on (AU:EOS) stock is a Buy with a A$1.85 price target. To see the full list of analyst forecasts on Electro Optic Systems Holdings Limited stock, see the AU:EOS Stock Forecast page.

Electro Optic Systems Issues New Unquoted Equity Securities

Electro Optic Systems Holdings Limited announced the issuance of new unquoted equity securities, including 493,943 share rights and 3,002,291 options set to expire on December 31, 2030. This issuance, part of an employee incentive scheme, is not intended for quotation on the ASX, indicating a strategic move to enhance employee engagement and retention, which could strengthen the company’s operational capabilities and market position.

The most recent analyst rating on (AU:EOS) stock is a Buy with a A$1.85 price target. To see the full list of analyst forecasts on Electro Optic Systems Holdings Limited stock, see the AU:EOS Stock Forecast page.

Electro Optic Systems Announces AGM Results, Approves Key Resolutions

Electro Optic Systems Holdings Limited announced the results of its 2025 Annual General Meeting, where all resolutions were carried. Key resolutions included the re-election of Mr. Geoffrey Brown AO, the grant of share rights and options to CEO Dr. Andreas Schwer, and the approval of equity incentive and employee tax-exempt share plans. These decisions reflect EOS’s strategic focus on enhancing leadership stability and incentivizing its workforce, which could strengthen its market position in the defence and space sectors.

The most recent analyst rating on (AU:EOS) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on Electro Optic Systems Holdings Limited stock, see the AU:EOS Stock Forecast page.

Electro Optic Systems Highlights Strategic Initiatives at 2025 AGM

Electro Optic Systems Holdings Limited presented at their 2025 Annual General Meeting, highlighting their focus on advancing technologies in both defence and space sectors. The CEO’s presentation underscored the company’s strategic initiatives aimed at enhancing their market position and operational capabilities, signaling potential growth and innovation opportunities for stakeholders.

The most recent analyst rating on (AU:EOS) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on Electro Optic Systems Holdings Limited stock, see the AU:EOS Stock Forecast page.

Electro Optic Systems Achieves Record Revenue and Strategic Divestment

Electro Optic Systems Holdings Limited reported a record revenue of $259 million and an underlying EBITDA of $13 million for 2024, driven by the implementation of a new strategy and a focus on new markets. The company decided to sell its non-core EM Solutions division, realizing $158 million in cash proceeds, which allowed for the full repayment of outstanding loans, thereby strengthening its financial position.

The most recent analyst rating on (AU:EOS) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on Electro Optic Systems Holdings Limited stock, see the AU:EOS Stock Forecast page.

EOS Investor Day Highlights Leadership’s Role in Turnaround

Electro Optic Systems Holdings Limited recently held an Investor Day presentation featuring key leaders who are instrumental in the company’s turnaround efforts. The leadership team, with extensive experience in global defense, manufacturing, and space industries, is expected to enhance the company’s operations and market positioning, potentially impacting stakeholders positively.

EOS Secures Major Orders and Expands Global Defense Market Presence

Electro Optic Systems Holdings Limited reported significant activities for the quarter ending March 31, 2025, including securing orders for its counter-drone and remote weapon systems from international customers, notably in the US and Europe. The company is advancing its manufacturing capabilities, particularly with the setup of a new production line in Alabama, and is actively engaged in negotiations for substantial contracts in North America and Australia. EOS is also expanding its market presence through strategic collaborations and participation in key defense exhibitions, which could enhance its industry positioning and stakeholder value.

Electro Optic Systems Announces 2025 AGM Details

Electro Optic Systems Holdings Limited has announced its 2025 Annual General Meeting, scheduled for May 20, 2025, in Melbourne. This meeting is a significant event for stakeholders as it provides a platform for discussing the company’s strategic direction and operational updates, potentially impacting its industry positioning and investor relations.

Electro Optic Systems Announces Cessation of Securities

Electro Optic Systems Holdings Limited announced the cessation of several securities due to the lapse of conditional rights, as the conditions for these securities were not met by the deadline of March 31, 2025. This announcement may impact the company’s financial structuring and stakeholder interests, as it reflects a change in the company’s capital management strategy.