KNeoMedia Limited (KNM) AI Stock Analysis

• Market Cap: $3.07M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -1.46
• Revenue Growth: -6.62%
• EPS Growth: 46.15%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 82
• 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: 0.06
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.95
• 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: 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 a subscription-based model, where educational institutions, primarily schools, subscribe to its digital learning platform, KNeoWorld. Revenue is primarily derived from the sale of licenses to schools and educational districts, allowing them access to the platform's suite of educational games and activities. This model ensures a recurring revenue stream as schools typically renew their subscriptions annually. Additionally, the company may engage in partnerships with educational organizations and governmental bodies to expand its reach and enhance its offerings, contributing to its overall earnings.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.69M	1.78M	1.18M	344.35K	234.01K	162.31K
	Gross Profit
819.29K	804.35K	225.20K	-547.00K	-784.00K	-871.00K
	EBIT
-1.13M	-1.84M	-2.44M	-3.45M	-3.20M	-3.60M
	EBITDA
-610.00K	-735.00K	-1.45M	-3.10M	-2.47M	-2.92M
	Net Income Common Stockholders
-1.60M	-1.81M	-2.28M	-3.17M	-2.80M	-3.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
615.35K	33.18K	54.47K	553.00K	6.58K	1.11M
	Total Assets
2.96M	1.53M	1.74M	1.46M	952.23K	2.19M
	Total Debt
1.89M	1.86M	1.41M	780.00K	0.00	0.00
	Net Debt
1.27M	1.83M	1.36M	227.00K	-6.58K	-1.11M
	Total Liabilities
4.38M	4.40M	3.00M	2.01M	1.30M	859.16K
	Stockholders Equity
3.04M	1.41M	2.68M	2.92M	2.44M	3.77M
Cash Flow		Free Cash Flow
-100.29K	209.23K	-2.89M	-3.40M	-2.11M	-3.50M
	Operating Cash Flow
-820.90K	212.36K	-1.94M	-2.47M	-1.41M	-2.79M
	Investing Cash Flow
-1.41M	-1.46M	-964.11K	-934.60K	-701.47K	-730.90K
	Financing Cash Flow
2.37M	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	63 Neutral	AU$13.14M	―	-228.61%	―	-36.24%	-2.67%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
OLL	40 Neutral	AU$7.72M	―		―	-0.45%	47.27%
KNM	40 Underperform	$3.07M	―	-64.68%	―	-6.62%	46.15%
SIS	39 Underperform	AU$2.63M	―		―	-8.86%	38.46%
PFM	38 Underperform	AU$10.91M	―	-25.95%	―	26.33%	31.67%
1TT	31 Underperform	AU$2.03M	―		―	―	―

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.

KNeoMedia Advances Towards ASX Reinstatement and Expands EdTech Reach

KNeoMedia Limited has made significant progress towards the reinstatement of its shares on the ASX, following a suspension in March 2024. The company has secured necessary funding through a $1.25 million placement and a $1.657 million entitlement offer, and is nearing a sustainable working capital position. Key developments include the deployment of its KneoScience platform to additional districts within the New York City Department of Education, surpassing initial agreements and expanding its reach to high schools. This expansion is expected to significantly boost revenue and enhance the company’s market position.