KNeoMedia Limited (KNM) AI Stock Analysis

• Market Cap: AU$3.07M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• Revenue Growth: -12.61%
• EPS Growth: 60.00%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 3,511,270,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 40 Underperform
• Price Target: ―

KNeoMedia Limited's overall stock score reflects strong revenue growth but is significantly hindered by negative profitability and high leverage. The technical indicators show stability without clear momentum, and the company's valuation is negatively impacted by its lack of profitability and dividend yield. These factors collectively suggest a cautious outlook, emphasizing the need for improved financial health and profitability.

KNeoMedia Limited Business Overview & Revenue Model

Company Description

KNeoMedia Limited, a SaaS education publishing company, offers education assessment and story-based learning products to educational markets in Australia and internationally. It provides digital learning programs and assessment tools. The company operates KNeoWorld portal, a story-based, education games, and analytical learning that offers various ways for students to practice key concepts and skills. It publishes and markets games on a license basis through the KneoWorld.com, education departments, and distribution agreements. The company was formerly known as Entellect Limited and changed its name to KNeoMedia Limited in May 2015. KNeoMedia Limited was incorporated in 1987 and is based in Melbourne, Australia.

How the Company Makes Money

KNeoMedia Limited generates revenue through the sale of its digital educational content and platforms. The company primarily earns money by licensing its educational games and interactive learning modules to schools and other educational institutions. Additionally, KNeoMedia may offer subscription-based models for parents and educational bodies to access their content. The company also seeks partnerships with educational organizations and government bodies to expand its reach and enhance its offerings. Key revenue streams include subscription fees, licensing agreements, and partnerships with educational entities.

KNeoMedia Limited Financial Statement Overview

Summary

KNeoMedia Limited is experiencing strong revenue growth, which is a positive sign for future prospects. However, the company is still struggling with negative profitability and high leverage. The financial health is hindered by high costs and expenses outpacing revenue, resulting in negative margins and returns. The reliance on debt could pose risk if revenue growth does not translate into improved cash flows and profitability. Overall, while there are signs of improvement in cash flows, significant challenges remain in achieving a sustainable financial footing.

Income Statement

KNeoMedia Limited has shown a strong revenue growth of 50.9% from the previous year, which is a positive indicator of demand for its products. However, the company still faces significant challenges with negative net profit margins of -103.8% and negative EBIT and EBITDA margins, indicating ongoing operational inefficiencies and high costs relative to its revenue.

Balance Sheet

The company has a high debt-to-equity ratio of 1.32, suggesting heavy reliance on debt financing, which could pose risks if cash flows do not improve. Additionally, the return on equity is negative at -131.0%, reflecting poor profitability. The equity ratio is 92.2%, indicating a substantial portion of assets funded by equity despite the high leverage.

Cash Flow

There is a significant improvement in free cash flow, which has turned positive, although it remains low. The operating cash flow to net income ratio is -0.11, indicating that while operational cash flow has improved, it is still insufficient to cover the negative net income. The free cash flow to net income ratio is also negative, at 0.11, suggesting challenges in converting sales into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.78M	1.18M	344.35K	234.01K	162.31K
Gross Profit	804.35K	225.20K	-547.00K	-784.00K	-871.00K
EBITDA	-735.00K	-1.45M	-3.10M	-2.47M	-2.92M
Net Income	-1.81M	-2.28M	-3.17M	-2.80M	-3.20M
Balance Sheet
Total Assets	1.53M	1.74M	1.46M	952.23K	2.19M
Cash, Cash Equivalents and Short-Term Investments	33.18K	54.47K	553.00K	6.58K	1.11M
Total Debt	1.86M	1.41M	780.00K	0.00	0.00
Total Liabilities	4.40M	3.00M	2.01M	1.30M	859.16K
Stockholders Equity	1.41M	2.68M	2.92M	2.44M	3.77M
Cash Flow
Free Cash Flow	209.23K	-2.89M	-3.40M	-2.11M	-3.50M
Operating Cash Flow	212.36K	-1.94M	-2.47M	-1.41M	-2.79M
Investing Cash Flow	-1.46M	-964.11K	-934.60K	-701.47K	-730.90K
Financing Cash Flow	1.18M	2.45M	3.98M	1.00M	3.51M

KNeoMedia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	65 Neutral	AU$40.42M	―	-135.50%	―	-48.98%	-12.82%
Sector *	61 Neutral	$35.83B	9.00	-10.42%	1.87%	8.46%	-7.85%
PFM	44 Neutral	AU$10.06M	―	-29.77%	―	36.72%	20.00%
KNM	40 Underperform	AU$3.07M	―	-56.16%	―	-12.61%	60.00%
SIS	39 Underperform	AU$6.43M	―		―	-26.58%	―
OLL	37 Underperform	AU$6.76M	―		―	12.77%	53.47%
1TT	31 Underperform	AU$866.26K	―		―	―	―

KNeoMedia Limited Corporate Events

KNeoMedia Addresses Administrative Oversight with Director’s Interest Notice

KNeoMedia Limited has issued an Appendix 3Y for directors James Kellett and Jeff Bennett, following an administrative oversight regarding the lapse of options held by them. The company has acknowledged its disclosure obligations under ASX Listing Rules and has reviewed its reporting practices to ensure compliance. This announcement highlights the company’s commitment to maintaining transparency and adherence to regulatory requirements, which is crucial for its stakeholders and market positioning.