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iCollege Ltd. (AU:NXD)
ASX:NXD
Australian Market

iCollege Ltd. (NXD) AI Stock Analysis

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AU

iCollege Ltd.

(Sydney:NXD)

Rating:46Neutral
Price Target:
iCollege Ltd. faces significant challenges despite revenue growth. High leverage, declining profitability, and negative cash flow are key risks. The negative P/E and weak technical indicators further pressure the stock, resulting in a low overall score.

iCollege Ltd. (NXD) vs. iShares MSCI Australia ETF (EWA)

iCollege Ltd. Business Overview & Revenue Model

Company DescriptioniCollege Ltd. (NXD) specializes in providing online education and training solutions. Operating primarily in the edtech sector, the company offers a wide range of courses and educational resources tailored for both individuals and businesses. iCollege Ltd. focuses on delivering career-oriented programs designed to enhance skills and improve employability in various industries.
How the Company Makes MoneyiCollege Ltd. generates revenue through a multi-faceted business model. The primary revenue stream comes from course subscriptions and one-time purchases offered to individual learners. Additionally, the company partners with corporations and educational institutions to provide customized training solutions, which generates substantial income through enterprise sales. The company also capitalizes on partnerships with industry experts and organizations to co-develop and market niche courses, increasing its course portfolio and attracting a wider audience. iCollege's revenue is further bolstered by certification fees for courses that provide accreditation, appealing to learners seeking to validate their skills formally. A portion of revenue is derived from advertising and sponsorships on its platform, leveraging its user base to attract educational content sponsors.

iCollege Ltd. Financial Statement Overview

Summary
iCollege Ltd. has shown revenue growth but struggles with profitability and cash flow management. The high debt-to-equity ratio and declining stockholders' equity present financial risks. Improving operational efficiencies and cash flow management is essential.
Income Statement
65
Positive
iCollege Ltd. has shown impressive revenue growth, increasing from approximately AUD 82 million in 2019 to AUD 111 million in 2024. However, profitability remains a concern with declining net and EBIT margins, evident from a shift from a positive EBIT in 2023 to a negative EBIT in 2024. The company needs to address operational efficiency to convert revenue growth into sustainable profits.
Balance Sheet
55
Neutral
The company's balance sheet reveals a relatively high debt-to-equity ratio, reflecting significant leverage. Stockholders' equity has decreased over the years, which could pose financial risks. The equity ratio remains moderate, but the declining trend in equity is a concern that requires strategic attention.
Cash Flow
50
Neutral
Cash flow analysis shows a negative trend in free cash flow, with a significant drop from a positive AUD 19 million in 2023 to negative AUD 9.7 million in 2024. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The company needs to enhance cash flow management to stabilize its financial health.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
99.14M111.37M102.22M46.82M16.29M10.81M
Gross Profit
51.81M57.28M20.31M28.73M8.47M6.98M
EBIT
15.02M-129.00K4.65M-8.21M584.09K-2.43M
EBITDA
8.47M-13.12M17.51M-1.28M2.02M-1.04M
Net Income Common Stockholders
-39.32M-31.23M3.61M-8.70M308.10K-2.64M
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.74M19.34M30.26M27.16M5.03M1.00M
Total Assets
120.63M134.28M172.07M134.69M12.56M6.27M
Total Debt
44.24M47.87M43.84M21.39M4.71M2.98M
Net Debt
30.50M28.53M31.63M-5.78M159.39K2.14M
Total Liabilities
94.32M99.66M106.63M73.12M10.57M9.92M
Stockholders Equity
26.30M34.62M65.44M61.57M1.99M-3.65M
Cash FlowFree Cash Flow
1.61M-9.70M19.03M8.27M-404.64K175.22K
Operating Cash Flow
4.56M1.71M25.18M11.20M-24.15K191.98K
Investing Cash Flow
-4.02M-11.41M-6.15M18.42M-741.65K-66.76K
Financing Cash Flow
-3.64M-1.22M-15.93M-7.00M4.47M584.68K

iCollege Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.12
Price Trends
50DMA
0.15
Negative
100DMA
0.14
Negative
200DMA
0.14
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
11.98
Positive
STOCH
27.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NXD, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.15, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 11.98 is Positive, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NXD.

iCollege Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AURUL
68
Neutral
AU$642.75M98.3111.59%9.76%-28.92%
60
Neutral
$11.56B10.24-7.04%2.94%7.46%-10.54%
AUJAN
47
Neutral
€37.68M
6.10%51.94%
AUNXD
46
Neutral
AU$26.53M-85.37%-15.88%-1426.12%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NXD
iCollege Ltd.
0.12
-0.12
-50.00%
AU:JAN
Janison Education Group Ltd.
0.15
-0.14
-48.21%
AU:RUL
RPMGlobal Holdings Ltd
2.90
0.46
18.85%

iCollege Ltd. Corporate Events

NextEd Group Appoints Interim CFO Amid Leadership Transition
May 1, 2025

NextEd Group Limited has appointed Andrew Nye as Interim Chief Financial Officer following the retirement of Michael Fahey. Nye brings extensive experience from his previous roles, including his tenure as CFO of ARN Media Limited. The company is conducting an executive search for a permanent CFO. This leadership change is part of NextEd’s ongoing efforts to maintain strong financial management as it continues to expand its educational offerings across Australia and globally.

NextEd Group Revises Securities Trading Policy
Apr 15, 2025

NextEd Group Limited, a company listed on the ASX under the ticker NXD, has announced a revision to its Securities Trading Policy. The key change allows directors, executives, and employees to trade in the company’s securities at any time outside of defined Blackout Periods, provided they do not possess price-sensitive information. This move is expected to provide greater flexibility for NextEd personnel while maintaining compliance with regulatory standards.

NEXTED Group Limited Issues Unquoted Equity Securities
Apr 11, 2025

NEXTED GROUP LIMITED has announced the issuance of unquoted equity securities, including 1,000,000 performance rights and 1,200,000 options, as part of its strategic financial maneuvers. This move is likely aimed at enhancing the company’s capital structure and could impact its market positioning by potentially increasing investor interest and stakeholder engagement.

NextEd Group Announces Relocation of Share Registry Office
Apr 10, 2025

NextEd Group Limited has announced a change in the location of its share registry office in Sydney, which will move to Liberty Place, Level 41, 161 Castlereagh Street, effective from April 14, 2025. This change is part of the company’s ongoing operational adjustments and does not affect the contact details of the registry, indicating a seamless transition for stakeholders.

Cass O’Connor Steps Down from NextEd Group Board
Mar 3, 2025

NextEd Group Limited has announced the cessation of Cass O’Connor as a director, effective March 3, 2025. The notice highlights that O’Connor holds interests in 170,000 ordinary shares and 71,428 options through Cassocom Pty Ltd and COFT BOSS Pty Ltd, reflecting her continued investment in the company despite her departure from the board.

NextEd Group Director’s Interest Update
Mar 3, 2025

NextEd Group Limited announced a change in the director’s interest, specifically concerning Catherine (Cass) O’Connor. The change involved the lapse of 35,715 unvested NED options due to the inability to meet a service vesting condition following her resignation. This adjustment leaves Ms. O’Connor with 71,428 options to acquire ordinary shares held indirectly by COFT BOSS Pty Ltd.

NEXTED Group Announces Cessation of Securities
Mar 3, 2025

NEXTED GROUP LIMITED has announced the cessation of certain securities, specifically 35,715 options expiring on December 15, 2030, due to the lapse of conditional rights as the conditions were not met. This announcement may impact the company’s market operations and stakeholders as it reflects changes in the company’s issued capital.

NextEd Group Reports H1 FY25 Results Amidst Industry Challenges
Feb 25, 2025

NextEd Group Limited, a company listed on the ASX, has announced its financial results for the first half of the fiscal year 2025, ending December 31, 2024. The company is navigating a challenging regulatory environment with a focus on financial discipline and operational efficiency. The results show a 21% year-over-year decline in revenue to $47 million, primarily due to government restrictions on international student enrollments. Despite a net loss after tax of $8.3 million, NextEd has implemented cost-saving measures and operational improvements, including a 74% growth in vocational course revenue for international students in healthcare and hospitality. The integration of International House has led to the re-enrollment of over 1,900 students, expected to generate more than $13 million in future revenue. The company is also exiting under-utilized sites to enhance efficiency and is conducting a strategic review with findings expected in Q4 FY25.

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.