Hydrocarbon Dynamics (HCD) AI Stock Analysis

• Market Cap: AU$4.31M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.00
• Shares Outstanding: 1,437,479,600
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.02
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 10.28
• P/FCF Ratio: -1.89
• 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: 45 Neutral
• Price Target: $0.01 ▲(400.00% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is primarily constrained by weak financial performance—persistent deep losses, negative margins, and ongoing cash burn, compounded by a sharp 2024 revenue decline. The low-debt balance sheet is a partial stabilizer, but missing technical and valuation inputs limit upside in the overall assessment.

Positive Factors

Low Debt Levels

Having effectively zero debt reduces financial risk and provides flexibility, allowing the company to focus on operational improvements without creditor pressure.

Global Expansion

Expanding into new markets like the USA, Canada, and Dubai can drive revenue growth and diversify risk, enhancing long-term business prospects.

Cost Optimization

Optimizing costs by appointing a new auditor can improve financial efficiency, potentially enhancing profitability and shareholder value over time.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in maintaining market share and sales, which could hinder long-term growth and profitability.

Negative Cash Flow

Persistent negative cash flow suggests ongoing cash burn, limiting the company's ability to self-fund operations and invest in growth initiatives.

Unprofitability

Continued unprofitability and negative margins reflect a weak cost structure, challenging the company's ability to achieve sustainable financial health.

Hydrocarbon Dynamics Business Overview & Revenue Model

Company Description

Hydrocarbon Dynamics (HCD) is an innovative company operating within the energy sector, focusing primarily on the development and commercialization of advanced chemical solutions aimed at enhancing oil and gas recovery. The company specializes in providing products that improve the efficiency and environmental sustainability of hydrocarbon extraction and processing, offering solutions that optimize production and reduce operational costs for its clients.

How the Company Makes Money

Hydrocarbon Dynamics makes money through the sale of its proprietary chemical products and solutions to oil and gas companies. Its revenue streams are primarily derived from product sales to upstream, midstream, and downstream sectors, where its solutions are applied to enhance oil recovery, improve pipeline flow efficiency, and refine processing operations. The company also engages in strategic partnerships with major industry players to expand its market reach and enhance its service offerings. Additionally, HCD may generate income from licensing its technology and conducting joint ventures that leverage its expertise in hydrocarbon dynamics to optimize client operations and deliver measurable results in production efficiency and cost savings.

Hydrocarbon Dynamics Financial Statement Overview

Summary

Overall fundamentals are weak: the company is persistently unprofitable with negative gross profit, very large multi-year operating/net losses, and a steep 2024 revenue decline (~70% YoY) alongside extremely negative net margins. Cash flow remains a major concern with ongoing negative operating and free cash flow (continued cash burn), despite some improvement in 2024. The main offsetting positive is a low-debt balance sheet (debt effectively zero), but equity has declined and losses continue to erode shareholder value.

Income Statement

The company remains deeply unprofitable, with negative gross profit and very large operating and net losses across the entire 2019–2024 period. While revenue improved sharply in 2022–2023, 2024 saw a steep revenue decline (down ~70% year-over-year), and margins stayed heavily negative (2024 net margin roughly -626%), indicating limited operating leverage and weak cost structure. Losses narrowed versus 2023, but overall profitability and consistency remain key weaknesses.

Balance Sheet

Leverage is a clear strength: total debt is effectively zero in recent years and debt-to-equity is 0.0, limiting financial risk from creditors. However, equity has declined materially from 2020 to 2024, and returns on equity are strongly negative, reflecting ongoing losses and erosion of shareholder value. The balance sheet provides some cushion due to low debt, but continued losses could further pressure equity over time.

Cash Flow

Cash generation is weak, with operating cash flow and free cash flow negative every year presented. 2024 free cash flow improved versus 2023, but still remained meaningfully negative, and the multi-year pattern suggests ongoing cash burn rather than self-funding operations. Cash flow tracks net losses closely (free cash flow roughly in line with net income), which is a modest quality signal, but the lack of positive cash flow is the dominant concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	159.50K	159.28K	574.15K	346.47K	64.19K	181.59K
Gross Profit	-120.89K	-84.34K	-684.12K	-676.51K	-511.47K	-1.16M
EBITDA	-901.81K	-991.01K	-3.55M	-1.68M	-3.80M	-2.05M
Net Income	-921.80K	-996.38K	-3.55M	-1.69M	-3.36M	-2.05M
Balance Sheet
Total Assets	1.02M	1.09M	1.44M	3.74M	3.85M	7.51M
Cash, Cash Equivalents and Short-Term Investments	607.04K	770.16K	974.08K	1.38M	1.39M	2.44M
Total Debt	36.84K	0.00	0.00	0.00	0.00	10.40K
Total Liabilities	436.69K	157.35K	225.39K	174.21K	179.95K	239.00K
Stockholders Equity	581.59K	929.78K	1.21M	3.56M	3.67M	7.27M
Cash Flow
Free Cash Flow	-591.75K	-867.98K	-1.66M	-1.59M	-1.61M	-1.72M
Operating Cash Flow	-589.86K	-867.98K	-1.66M	-1.58M	-1.53M	-1.70M
Investing Cash Flow	-101.88K	0.00	0.00	-9.87K	593.72K	-28.77K
Financing Cash Flow	728.65K	662.27K	1.26M	1.56M	-126.67K	2.57M

Hydrocarbon Dynamics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CG1	55 Neutral	AU$38.57M	-4.92	-67.76%	―	7.08%	33.70%
SPN	54 Neutral	AU$21.86M	-8.44	-63.81%	―	―	52.66%
CXL	46 Neutral	AU$222.04M	-4.70	-22.28%	―	16.47%	29.53%
HCD	45 Neutral	AU$4.31M	―	―	―	―	―
SDV	43 Neutral	AU$65.58M	-15.16	-1.75%	―	-5.37%	-140.00%
DTZ	41 Neutral	AU$23.57M	-1.41	-869.14%	―	340.27%	19.44%

Hydrocarbon Dynamics Corporate Events

Hydrocarbon Dynamics Requests ASX Voluntary Suspension Ahead of Proposed Transaction

Hydrocarbon Dynamics Limited has requested and been granted a voluntary suspension of trading in its securities on the ASX, pending the announcement of a proposed transaction that falls under the exchange’s significant change provisions. The suspension will remain in place until the company completes required ASX procedures for the planned deal, with the move signalling that a potentially material corporate transaction is underway that may affect the company’s structure or operations and is therefore being tightly managed to ensure an informed market.

Hydrocarbon Dynamics Appoints New Auditor to Optimize Costs

Hydrocarbon Dynamics Limited has appointed Nexia Australia Audit Pty Ltd as its new auditor, replacing Pitcher Partners, effective November 21, 2025. This change aims to leverage Nexia’s expertise and reduce audit-related costs, with the appointment set to be ratified at the next annual general meeting.

Hydrocarbon Dynamics Expands Global Operations with New Trials and Ventures

Hydrocarbon Dynamics has reported significant progress in its September 2025 quarterly activities, highlighting the resumption of trials in the North Sea and new joint ventures in Canada. The company is expanding its market presence with ongoing trials and sales in the USA, Canada, and Dubai, while exploring new opportunities in Indonesia and Pakistan. These developments, including a completed rights issue, position the company to enhance its operational footprint and stakeholder value in the broader energy sector.