International Equities Corp. Ltd. (IEQ) AI Stock Analysis

• Market Cap: AU$1.54M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -0.16%
• EPS Growth: -369.44%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Travel Lodging
• EPS (TTM): >-0.01
• Shares Outstanding: 128,223,570
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.01
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 2.06
• P/FCF Ratio: -3.78
• 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: 39 Underperform
• Price Target: AU$0.01 ▼(-72.50% Downside)
• Action: Downgraded Date: 01/23/26
• Date: Action: Downgraded 01/23/26

The score is driven primarily by weak financial performance (loss-making year with sharp margin deterioration and persistently negative operating/free cash flow) and very bearish technicals (price well below key moving averages with negative MACD and extremely low RSI). Deleveraging on the balance sheet is a relative positive, but valuation is constrained by negative earnings and no dividend support.

Positive Factors

Deleveraging

Material reduction in leverage to under ~1x D/E meaningfully improves financial flexibility versus prior years. Lower structural debt burden reduces fixed financing costs and refinancing pressure, giving the company a stronger platform to absorb cyclical travel swings and pursue operational recovery.

2025 Revenue Rebound

A near-doubling of revenue in 2025 demonstrates a substantive rebound in demand and top-line resilience. Sustained revenue growth provides a base to restore operating leverage, improve margin recoveries, and rebuild cash generation over the medium term if management controls costs and rebalances mix.

Prior Period Cash/Profitability

Historical episodes of positive free cash flow (2020) and modest operating cash flow (2021–2022), plus profitability in 2024, indicate the business can generate cash and earnings in stronger cycles. This track record supports the case that operational fixes and demand normalization could restore financial health.

Negative Factors

Persistent Negative Cash Flow

Three consecutive years of negative operating and free cash flow, with large outflows in 2024 and 2025, create structural liquidity risk. Persistent cash deficits increase dependence on external financing, restrict reinvestment, and raise the probability of covenant or funding strain if adverse conditions persist.

Severe Margin Deterioration

A dramatic switch from ~18% net margin in 2024 to ~-51% in 2025, and gross margin collapsing from ~64% to ~37%, signals structural pricing, mix or cost issues. Such deep margin erosion undermines sustainable earnings power and makes medium-term profitability recovery more challenging.

Residual Leverage & Negative ROE

Despite deleveraging, sizable absolute debt and negative ROE in 2025 leave little buffer for setbacks. Residual leverage constrains strategic flexibility, amplifies interest and refinancing risks, and limits the company's ability to invest in growth or absorb further demand and margin volatility over the medium term.

International Equities Corp. Ltd. Business Overview & Revenue Model

Company Description

International Equities Corporation Limited owns and operates hotels under the Seasons brand. It also engages in the property development and management; leasing and operating of hotel cum serviced apartment; and operation of real estate agency. The company was incorporated in 1984 and is based in Melbourne, Australia.

How the Company Makes Money

International Equities Corp. Ltd. (IEQ) generates revenue through a diversified model that includes property sales, rental income, and property management fees. The company earns money by developing and selling residential and commercial properties, collecting rental income from leased properties, and providing property management services to third-party owners. Additionally, IEQ may engage in joint ventures and partnerships for large-scale development projects, further enhancing its revenue potential. Key factors contributing to its earnings include strategic location selection, effective property management, and the ability to capitalize on market trends in the real estate sector.

International Equities Corp. Ltd. Financial Statement Overview

Summary

Weak overall fundamentals: despite a sharp revenue rebound in 2025, profitability reversed into deep losses with major margin compression, and operating/free cash flow has been negative for 2023–2025. The balance sheet shows meaningful deleveraging (debt-to-equity under ~1x vs much higher historically), but earnings and cash generation remain too unstable to support a higher score.

Income Statement

The income statement shows high volatility and a recent profitability reversal. Revenue nearly doubled in 2025 (annual) versus 2024, but margins deteriorated sharply: net margin fell to about -51% with negative EBIT and EBITDA, following a profitable 2024 (about 18% net margin). Gross margin also compressed meaningfully (roughly 37% in 2025 vs ~64% in 2024), suggesting weaker pricing, mix, or cost pressure. Overall, the business has not demonstrated consistent earnings power across cycles.

Balance Sheet

Leverage has improved versus earlier years, but the capital structure still carries risk. Debt-to-equity declined materially from very high levels in 2020–2022 (above ~3x–4x) to under ~1x in 2024–2025, indicating meaningful deleveraging. However, profitability weakness is pressuring returns on equity (negative in 2025), and total debt remains sizable relative to the company’s current earnings profile, leaving less room for operational setbacks.

Cash Flow

Cash generation is a key weakness. Operating cash flow and free cash flow were negative in 2023–2025, including a large cash outflow in 2024 and another sizable outflow in 2025, which raises funding and liquidity risk if sustained. While free cash flow was positive in 2020 and slightly positive on operating cash flow in 2021–2022, the recent trend indicates the business is not consistently converting reported results into cash and may require external financing to support operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.43M	2.43M	2.60M	2.70M	5.64M	6.59M
Gross Profit	906.00K	906.00K	1.68M	1.54M	2.39M	4.63M
EBITDA	-528.00K	-528.00K	315.00K	442.00K	761.00K	1.82M
Net Income	-1.25M	-1.25M	467.00K	-491.00K	-1.40M	-636.00K
Balance Sheet
Total Assets	11.35M	11.35M	14.18M	35.23M	36.60M	37.49M
Cash, Cash Equivalents and Short-Term Investments	1.28M	1.28M	2.97M	1.54M	1.10M	637.00K
Total Debt	4.77M	4.77M	5.55M	8.67M	25.07M	25.25M
Total Liabilities	6.27M	6.27M	7.85M	29.36M	30.09M	29.58M
Stockholders Equity	5.08M	5.08M	6.33M	5.86M	6.51M	7.91M
Cash Flow
Free Cash Flow	-1.32M	-1.32M	-3.35M	-413.00K	-10.00K	-73.00K
Operating Cash Flow	-1.32M	-1.32M	-3.35M	-397.00K	51.00K	36.00K
Investing Cash Flow	0.00	0.00	21.38M	1.11M	322.00K	-109.00K
Financing Cash Flow	-372.00K	-372.00K	-16.59M	-272.00K	86.00K	-587.00K

International Equities Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IEQ, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 8.07 is Positive, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IEQ.

International Equities Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCO	70 Outperform	AU$38.81M	8.31	11.53%	4.31%	8.92%	70.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PPG	44 Neutral	AU$3.27M	-0.04	-49.58%	―	-11.30%	-609.09%
JAY	42 Neutral	AU$8.69M	-0.19	62.83%	―	-55.08%	65.45%
IEQ	39 Underperform	AU$1.54M	-4.00	-22.72%	―	-0.16%	-369.44%

International Equities Corp. Ltd. Corporate Events

International Equities Corp Posts Lower Revenue, Wider Loss and NTA Decline in December Quarter

International Equities Corporation Ltd reported a sharp downturn in performance for the quarter ended 31 December 2025, with revenue from ordinary activities falling 40.54% year-on-year to A$893,000 from A$1.255 million. The company’s loss after tax attributable to members widened to A$453,000, a 7.51% increase in losses compared with the prior corresponding period, and no interim dividend was declared. Net tangible asset backing per ordinary share also declined, slipping to $0.0361 at December 2025 from $0.0465 a year earlier, indicating erosion in underlying asset value and highlighting continued financial pressure on the business and its shareholders.

The most recent analyst rating on (AU:IEQ) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on International Equities Corp. Ltd. stock, see the AU:IEQ Stock Forecast page.