tiprankstipranks
Trending News
More News >
KNeoMedia Limited (AU:KNM)
ASX:KNM

KNeoMedia Limited (KNM) AI Stock Analysis

Compare
2 Followers

Top Page

AU

KNeoMedia Limited

(Sydney:KNM)

Rating:40Underperform
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 (KNM) vs. iShares MSCI Australia ETF (EWA)

KNeoMedia Limited Business Overview & Revenue Model

Company DescriptionKNeoMedia Limited (KNM) is an Australian-based education technology company that specializes in delivering digital learning content and platforms. The company focuses on providing engaging and interactive educational programs primarily for schools, targeting both mainstream and special education sectors. KNeoMedia's core product, KNeoWorld, is a digital learning platform that offers a range of interactive games and activities designed to enhance learning outcomes for students.
How the Company Makes MoneyKNeoMedia 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
40
Negative
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
35
Negative
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
45
Neutral
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.69M1.78M1.18M344.35K234.01K162.31K
Gross Profit
819.29K804.35K225.20K-547.26K-784.41K-870.62K
EBIT
-1.13M-1.84M-2.45M-3.33M-3.20M-3.43M
EBITDA
-609.26K-735.02K-1.45M-3.10M-2.47M-2.92M
Net Income Common Stockholders
-1.60M-1.85M-2.28M-3.17M-2.80M-3.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
278.43K33.18K54.47K553.00K6.58K1.11M
Total Assets
1.69M1.53M1.74M1.46M952.23K2.19M
Total Debt
0.001.86M1.41M780.00K0.000.00
Net Debt
-278.43K1.83M1.36M227.00K-6.58K-1.11M
Total Liabilities
1.01M4.40M3.00M2.01M1.30M859.16K
Stockholders Equity
2.91M1.41M2.68M2.92M2.44M3.77M
Cash FlowFree Cash Flow
-100.29K209.23K-2.89M-3.40M-2.11M-3.50M
Operating Cash Flow
-820.90K212.36K-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
2.37M1.18M2.45M3.98M1.00M3.51M

KNeoMedia Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
AUICE
52
Neutral
AU$7.01M-228.61%-36.24%-2.67%
AUPFM
42
Neutral
AU$4.75M-25.95%26.33%31.67%
AUOLL
41
Neutral
AU$8.21M
-0.45%47.27%
AUKNM
40
Underperform
$3.07M-64.68%-6.62%46.15%
AUSIS
39
Underperform
AU$2.63M
-8.86%38.46%
AU1TT
31
Underperform
AU$2.03M
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KNM
KNeoMedia Limited
0.01
0.00
0.00%
AU:1TT
Wooboard Technologies Limited
AU:PFM
Cape Range Ltd.
0.02
-0.12
-85.71%
AU:SIS
Simble Solutions Ltd.
AU:OLL
OpenLearning Ltd.
0.02
0.00
0.00%
AU:ICE
iCetana Ltd.
0.02
0.00
0.00%

KNeoMedia Limited Corporate Events

KNeoMedia Addresses Administrative Oversight with Director’s Interest Notice
May 15, 2025

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
Apr 30, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.