Orbital Corporation Limited (OEC) AI Stock Analysis

• Market Cap: $17.30M
• Dividend Yield: N/A
• Average Volume (3M): 60.32K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.70
• Revenue Growth: -29.34%
• EPS Growth: -55.74%
• Country: AU
• Employees: 87
• Sector: Industrials
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): <0.01
• Shares Outstanding: 164,779,720
• 10 Day Avg. Volume: 111,980
• 30 Day Avg. Volume: 60,316
• PEG Ratio: N/A
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.97
• 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: 55 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall stock score is driven primarily by the positive technical analysis indicators, despite financial challenges and moderate valuation. The company's financial health is weak, with negative cash flows and high leverage, which are key risks. The lack of earnings call data and corporate events means the score heavily relies on available financial performance and technical analysis.

Orbital Corporation Limited Business Overview & Revenue Model

Company Description

Orbital Corporation Limited (OEC) is an Australian-based company specializing in the design, development, and manufacture of propulsion systems and flight componentry for unmanned aerial vehicles (UAVs). The company operates primarily within the aerospace and defense sectors, providing innovative solutions to enhance UAV performance and reliability. Orbital is recognized for its advanced engine technology and systems integration capabilities, catering to both domestic and international markets.

How the Company Makes Money

Orbital Corporation Limited generates revenue primarily through the sale of its patented propulsion systems and components for UAVs. The company's revenue model is centered around manufacturing and supplying these high-performance engines to defense and commercial UAV manufacturers globally. Additionally, Orbital engages in long-term service agreements for maintenance and support of its products, which provides a recurring revenue stream. Strategic partnerships with major aerospace and defense companies also play a significant role in enhancing Orbital's market reach and securing large contracts, thus contributing significantly to its earnings.

Orbital Corporation Limited Financial Statement Overview

Summary

Orbital Corporation Limited faces substantial challenges with declining revenues, negative operating cash flow, and high leverage. While there are some improvements in equity and gross profit margin, the financial stability and profitability remain weak. The company needs to address operational inefficiencies and improve cash flow management to enhance financial health.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
8.88M	12.57M	16.78M	15.72M	31.20M	33.78M
	Gross Profit
4.09M	6.64M	7.98M	5.32M	14.82M	18.67M
	EBIT
-7.01M	-2.63M	-5.33M	-9.50M	-4.17M	-1.70M
	EBITDA
-7.72M	1.65M	1.56M	-5.13M	-7.67M	4.48M
	Net Income Common Stockholders
806.00K	67.00K	20.00K	-11.13M	-11.45M	1.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.60M	5.53M	2.29M	2.36M	3.12M	8.75M
	Total Assets
21.35M	22.23M	19.94M	22.61M	29.79M	37.84M
	Total Debt
3.42M	6.07M	5.63M	9.25M	11.81M	11.64M
	Net Debt
822.00K	1.29M	3.34M	6.89M	8.70M	2.89M
	Total Liabilities
8.27M	11.40M	13.00M	20.41M	22.44M	19.74M
	Stockholders Equity
13.09M	10.83M	6.94M	2.20M	7.34M	18.10M
Cash Flow		Free Cash Flow
-2.13M	-1.19M	-3.78M	-4.60M	-2.42M	3.19M
	Operating Cash Flow
-1.75M	-34.00K	-3.49M	-4.09M	-1.69M	3.73M
	Investing Cash Flow
-1.38M	-790.00K	-372.00K	-2.20M	-2.12M	-561.00K
	Financing Cash Flow
1.57M	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: Negative
• 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 above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.28 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
SSH	70 Outperform	AU$8.90M	12.86	9.53%	―	11.60%	―
EMB	66 Neutral	AU$17.97M	13.18	6.82%	3.60%	-20.98%	18.62%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
VEE	62 Neutral	AU$112.18M	24.85	8.82%	0.56%	9.97%	-22.07%
EOS	56 Neutral	$472.73M	―	-16.26%	―	-19.47%	52.11%
OEC	55 Neutral	$17.30M	18.52	7.02%	―	-29.34%	-55.74%
AEI	38 Underperform	AU$9.59M	―	-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.

Orbital Corporation Limited Announces New Securities Quotation

Orbital Corporation Limited has announced the issuance of 463,906 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) under the code OEC. This move is part of an employee incentive scheme, indicating the company’s efforts to align employee interests with corporate growth and enhance its market positioning.