Epsilon Healthcare Limited (AU:EPN)
ASX:EPN
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Epsilon Healthcare Limited
(Sydney:EPN)
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Rating:47Neutral
Price Target:
AU$0.02
▲(15.00% Upside)
Action:Reiterated
Date:05/23/26
The score is held back primarily by weak financial performance: persistent losses, consistently negative operating/free cash flow, and a sharp increase in leverage that raises balance-sheet risk. Technicals are moderately supportive in the short term (price above 20D/50D with a positive MACD), and valuation appears low on P/E, but these positives are secondary given the current profitability and cash-burn profile.
Positive Factors
Strong revenue rebound
A ~53% revenue rebound in 2025 indicates improving market traction and demand for Epsilon's products. Sustained top-line growth provides a pathway to absorb fixed costs, improve operating leverage and support incremental investment in manufacturing and distribution over the next several quarters.
Negative Factors
Persistent negative cash flow
Operating and free cash flow have been negative each year, reflecting ongoing cash burn. This structural cash deficit forces dependence on external financing, constrains reinvestment in growth and increases vulnerability to funding market conditions while margins remain negative.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue rebound
A ~53% revenue rebound in 2025 indicates improving market traction and demand for Epsilon's products. Sustained top-line growth provides a pathway to absorb fixed costs, improve operating leverage and support incremental investment in manufacturing and distribution over the next several quarters.
Read all positive factors
Epsilon Healthcare Limited (EPN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$8.95M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)-0.30
Revenue Growth67.74%
EPS Growth78.79%
CountryAU
Employees14
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding389,104,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)4.19
Price to Sales (P/S)1.33
P/FCF Ratio-3.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Epsilon Healthcare Limited Business Overview & Revenue Model
Company Description
Epsilon Healthcare Limited operates as a healthcare and pharmaceuticals company primarily in Australia and Canada. It engages in the manufacture and distribution of hydroponics equipment, materials, and nutrients; and development and delivery of m...
How the Company Makes Money
Epsilon Healthcare Limited generates revenue primarily through the manufacture and sale of medicinal cannabis products. The company operates cGMP-compliant extraction and manufacturing facilities, enabling it to produce cannabis oils, tinctures, a...
Epsilon Healthcare Limited Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
24
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Jun 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.39M | 5.60M | 6.65M | 7.11M | 5.50M |
| Gross Profit | 2.25M | 4.17M | 4.81M | -3.09M | 2.06M |
| EBITDA | -1.86M | -2.13M | -1.31M | -10.86M | -8.09M |
| Net Income | -2.05M | -3.25M | -1.09M | -13.29M | -8.91M |
Balance Sheet | |||||
| Total Assets | 17.87M | 22.26M | 14.41M | 20.50M | 30.55M |
| Cash, Cash Equivalents and Short-Term Investments | 242.86K | 1.57M | 343.01K | 861.99K | 2.34M |
| Total Debt | 14.16M | 7.88M | 3.45M | 3.20M | 4.33M |
| Total Liabilities | 14.88M | 11.57M | 6.87M | 11.23M | 10.98M |
| Stockholders Equity | 2.99M | 10.70M | 7.54M | 9.27M | 19.57M |
Cash Flow | |||||
| Free Cash Flow | -3.30M | -3.50M | -803.47K | -3.10M | -6.18M |
| Operating Cash Flow | -3.13M | -3.41M | -703.37K | -2.57M | -5.43M |
| Investing Cash Flow | 6.29M | -97.73K | -99.12K | -529.40K | -737.59K |
| Financing Cash Flow | -4.48M | 4.73M | 335.91K | 1.61M | 1.47M |
Epsilon Healthcare Limited Technical Analysis
Positive
0.02
Price Trends
0.02
Positive
0.03
Negative
0.02
Negative
Market Momentum
<0.01
Negative
61.60
Neutral
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EPN, the sentiment is Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EPN.
Epsilon Healthcare Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | AU$138.83M | 6.43 | 19.15% | 4.33% | 17.31% | 17.99% | |
55 Neutral | AU$46.19M | -69.17 | -0.79% | ― | 6.80% | 98.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | AU$29.06M | -21.01 | 10.83% | ― | 15.21% | -141.82% | |
47 Neutral | AU$8.95M | -6.11 | 404.65% | ― | 67.74% | 78.79% | |
43 Neutral | AU$18.57M | -2.87 | 4388.00% | ― | -53.90% | 57.52% | |
40 Underperform | AU$13.98M | -4.15 | -29.05% | ― | 6.14% | -20.00% |
* Healthcare Sector Average
AU:EPN
Epsilon Healthcare Limited
0.02
>-0.01
-4.17%
AU:VLS
Vita Life Sciences Limited
2.56
0.86
50.41%
AU:LGP
Little Green Pharma Ltd.
0.10
>-0.01
-5.00%
AU:MVP
Medical Developments International Limited
0.40
-0.20
-33.33%
AU:PKP
Althea Group Holdings Ltd.
0.02
>-0.01
-33.33%
AU:IDT
IDT Australia Limited
0.04
-0.06
-62.24%
Epsilon Healthcare Limited Corporate Events
Epsilon Healthcare Director Increases Equity Stake Through On‑Market Share Purchases
May 11, 2026
Epsilon Healthcare has disclosed a change in director Alan Preston Beasley’s holdings, after he conducted multiple on-market purchases of the company’s shares between 5 May 2026 and 11 May 2026. Following these transactions, Beasley in...
Epsilon Healthcare launches small holding share sale facility at fixed A$0.02
May 8, 2026
Epsilon Healthcare has launched a small holding share sale facility, setting a fixed price of A$0.02 per ordinary share for off-market sales of parcels valued at under A$500 as at 6 May 2026. Shareholders holding fewer than 25,000 shares on that d...
Epsilon Healthcare posts record quarter as manufacturing arm powers growth
Apr 30, 2026
Epsilon Healthcare reported record quarterly customer receipts of $3.14 million for the March 2026 quarter, a 154% year-on-year increase, with group revenue reaching $3.29 million and a revenue run-rate of about $1.1 million per month. Management ...
Epsilon Healthcare Sets 2026 AGM to Vote on Director Options, Placement Capacity and New Auditor
Apr 29, 2026
Epsilon Healthcare Limited has called its 2026 annual general meeting for 29 May in Brisbane, where shareholders will receive the 2025 financial statements and vote on the remuneration report and the re-election of director Zoe Hutchings. The agen...
Epsilon Healthcare Settles Legal Dispute With Former Chairman, Eyes Rebuild
Apr 14, 2026
Epsilon Healthcare Limited has moved to close a contentious chapter in its governance history by settling Supreme Court of New South Wales proceedings against former director and chairman Josh (Xiao) Cui and Watercrest Capital Pty Ltd on a confide...
Epsilon Healthcare Publishes 2025 Annual Report
Mar 31, 2026
Epsilon Healthcare Limited has released its 2025 Annual Report, which includes the chairman’s note, CEO report, directors’ report, remuneration details, and full audited financial statements. The document also covers shareholder inform...
Epsilon Healthcare Files Corporate Governance Statement and Appendix 4G
Mar 31, 2026
Epsilon Healthcare Limited has lodged its corporate governance statement for the financial year ended 31 December 2025, making it available on its website in line with ASX Listing Rule 4.10.3. The statement, current and board-approved as at 31 Mar...
Epsilon Healthcare Swings to Stronger Profit on 68% Revenue Surge
Feb 27, 2026
Epsilon Healthcare Limited reported a 68% increase in revenue from ordinary activities to $9.39 million for the year ended 31 December 2025, reflecting strong top-line growth in its healthcare operations. The company did not declare any interim or...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.