Orbital Corporation Limited (OEC) AI Stock Analysis

• Market Cap: $18.13M
• Dividend Yield: N/A
• Average Volume (3M): 307.32K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.45
• Revenue Growth: -29.34%
• EPS Growth: -55.74%
• Country: AU
• Employees: 87
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): <0.01
• Shares Outstanding: 164,779,720
• 10 Day Avg. Volume: 478,557
• 30 Day Avg. Volume: 307,322
• PEG Ratio: N/A
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.74
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall stock score reflects significant financial challenges faced by Orbital Corporation Limited, particularly in cash flow and leverage. Technical indicators present a moderately positive outlook, but valuation constraints limit the stock's attractiveness. The absence of dividend yield limits appeal for income investors.

Orbital Corporation Limited Business Overview & Revenue Model

Company Description

Orbital Corporation Limited provides integrated propulsion systems and flight critical components for tactical uncrewed aerial vehicles in Australia and the United States. It also provides modular propulsion solution, design and development, machining and prototyping, product integration, testing and validation, manufacturing and production, and servicing and support services. The company was formerly known as Orbital Engine Corporation Limited and changed its name to Orbital Corporation Limited in October 2004. Orbital Corporation Limited was incorporated in 1988 and is headquartered in Balcatta, Australia.

How the Company Makes Money

Orbital Corporation Limited generates revenue primarily through the sale of UAV propulsion systems and engines. The company's key revenue streams include direct sales to defense and commercial UAV manufacturers, as well as ongoing service and maintenance contracts for its propulsion systems. Orbital has established significant partnerships with major defense contractors and UAV manufacturers, which contribute to a steady stream of income. Additionally, the company may engage in research and development projects funded by government grants or private contracts, further enhancing its revenue base.

Orbital Corporation Limited Financial Statement Overview

Summary

Orbital Corporation Limited faces substantial challenges with declining revenues, negative operating cash flow, and high leverage. Despite some improvements in equity and gross profit margin, financial stability and profitability remain weak, requiring operational and cash flow management improvements.

Income Statement

Orbital Corporation Limited has experienced declining revenue over the past few years, with a recent drop from AUD 16.78 million in 2023 to AUD 12.57 million in 2024. The gross profit margin improved slightly in 2024 compared to 2023, but the net profit margin remains low at 0.53%, indicating challenges in managing costs and generating net income. The company struggles with negative EBIT, highlighting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is relatively high, indicating significant leverage which could pose financial risks. However, the company has shown improvement in stockholders' equity, rising to AUD 10.83 million in 2024. The equity ratio has increased, signifying a better balance of financing with equity. Despite these positives, the high leverage and associated risks remain a concern.

Cash Flow

Orbital Corporation Limited's operating cash flow remains negative, indicating ongoing challenges in generating cash from core operations. Free cash flow is also negative, yet there's a significant improvement in 2024 compared to 2023. The operating cash flow to net income ratio is negative, reflecting difficulties in converting earnings to cash flow.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	12.57M	16.78M	15.72M	31.20M	33.78M
Gross Profit	6.64M	7.98M	5.32M	14.82M	18.67M
EBITDA	1.65M	1.56M	-5.13M	-7.67M	4.48M
Net Income	67.00K	20.00K	-11.13M	-11.45M	1.86M
Balance Sheet
Total Assets	22.23M	19.94M	22.61M	29.79M	37.84M
Cash, Cash Equivalents and Short-Term Investments	5.53M	2.29M	2.36M	3.12M	8.75M
Total Debt	6.07M	5.63M	9.25M	11.81M	11.64M
Total Liabilities	11.40M	13.00M	20.41M	22.44M	19.74M
Stockholders Equity	10.83M	6.94M	2.20M	7.34M	18.10M
Cash Flow
Free Cash Flow	-1.19M	-3.78M	-4.60M	-2.42M	3.19M
Operating Cash Flow	-34.00K	-3.49M	-4.09M	-1.69M	3.73M
Investing Cash Flow	-790.00K	-372.00K	-2.20M	-2.12M	-561.00K
Financing Cash Flow	3.30M	3.89M	5.39M	-1.07M	-1.32M

Orbital Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OEC, the sentiment is Positive. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.10, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:OEC.

Orbital Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥254.15B	13.65	8.48%	3.02%	6.34%	13.16%
SSH	67 Neutral	AU$11.73M	13.81	9.53%	―	11.60%	―
VEE	66 Neutral	AU$122.38M	30.12	8.82%	0.51%	9.97%	-22.07%
EMB	66 Neutral	AU$17.97M	13.18	6.82%	3.60%	-20.98%	18.62%
OEC	54 Neutral	$18.13M	19.44	7.02%	―	-29.34%	-55.74%
EOPSF	―	$464.34M	―	-16.26%	―	―	―
AEI	41 Neutral	AU$9.10M	―	-203.38%	―	20.00%	17.22%

Orbital Corporation Limited Corporate Events

Orbital Corporation Appoints New CEO to Drive UAV Market Expansion

Orbital Corporation Limited has appointed Mr. Stephen Pearce as the new Chief Executive Officer, marking a significant step in the company’s strategic transition from engine development to the commercial deployment of propulsion and flight management systems for tier 1 defense UAV customers. Mr. Pearce’s extensive experience in the defense sector and UAV market is expected to drive Orbital’s growth and strengthen its position in the highly competitive UAV defense industry, which is dominated by major global defense contractors. This appointment is part of a broader management strengthening initiative, as Orbital aims to enhance its manufacturing capabilities and capitalize on its proven technology, which has already achieved over one million operational flight hours.

Orbital Corporation Reports Positive Cash Flow and Advances Engine Development

Orbital Corporation Ltd reported a positive operating cash flow of $0.7 million for the quarter ending March 2025, with cash, trade receivables, and undrawn loan facilities totaling $5.1 million. The company is advancing its development of a new larger capacity engine, which has reached the prototype stage, and maintains a current order book of 67 engines, indicating a strong market demand and potential growth in the UAV sector.