Phoslock Environmental Technologies Limited (PET) AI Stock Analysis

• Market Cap: AU$5.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: -45.80%
• EPS Growth: -210.00%
• Country: AU
• Employees: 40
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): >-0.01
• Shares Outstanding: 624,390,500
• 10 Day Avg. Volume: 3,777,521
• 30 Day Avg. Volume: 1,259,173
• PEG Ratio: -0.21
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 20.56
• P/FCF Ratio: -5.40
• 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: AU$0.00 ▼(-100.00% Downside)

Phoslock Environmental Technologies faces significant financial and valuation challenges, with continuous losses and negative cash flows. The lack of technical analysis data adds uncertainty, and the absence of earnings call and corporate events data limits insights into potential future improvements. Overall, the stock is positioned unfavorably, reflecting a need for strategic changes to improve financial health and investor confidence.

Phoslock Environmental Technologies Limited Business Overview & Revenue Model

Company Description

Phoslock Environmental Technologies Limited (PET) is an Australian-based company that specializes in environmental solutions for water quality management. The company primarily operates in the water treatment sector, focusing on technology that reduces nutrient pollution, particularly phosphorus, in freshwater systems. PET's core product, Phoslock, is a patented clay material that binds phosphorus and prevents its release into the water, thereby improving water quality in lakes, rivers, and reservoirs. The company serves a diverse range of clients, including government agencies, municipalities, and industrial organizations worldwide.

How the Company Makes Money

Phoslock Environmental Technologies generates revenue through the sale of its proprietary Phoslock product and related water treatment services. The company’s primary revenue streams include direct sales to customers for application projects, licensing agreements for its technology, and ongoing maintenance and consulting services for water quality management. Additionally, PET often engages in partnerships with local governments and environmental organizations to implement large-scale water remediation projects, which can lead to significant contract revenues. The company may also benefit from grants or funding aimed at environmental protection initiatives, contributing further to its financial performance.

Phoslock Environmental Technologies Limited Financial Statement Overview

Summary

Phoslock Environmental Technologies is facing significant financial headwinds. The income statement reflects a challenging operating environment with continuous losses and declining revenues. The balance sheet is relatively stable but shows signs of pressure with declining equity. Cash flow difficulties further compound the company's challenges, with negative operating and free cash flows. Overall, the financial health of the company is concerning, with a need for strategic improvements to stabilize revenue and enhance cash flow.

Income Statement

Phoslock Environmental Technologies has seen a significant decline in revenue with a negative revenue growth rate in recent years. The company is struggling with high losses, as evidenced by negative net profit margins and EBIT margins. The gross profit margin is declining which indicates cost structure issues. Overall, the income statement reflects a challenging financial position with continuous losses.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio is robust, reflecting a solid asset base. However, the company's declining equity over the years and increasing liabilities are a concern. The financial leverage is low, which is a positive sign for financial health.

Cash Flow

The cash flow statement reveals negative operating cash flow and free cash flow, indicating operational challenges. The operating cash flow to net income ratio is negative, underscoring the company's difficulty in converting profits into cash. The Free Cash Flow growth rate is negative, reflecting cash management issues. Overall, the company faces substantial cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61M	757.00K	3.39M	3.02M	6.30M	6.88M
Gross Profit	955.00K	51.00K	1.82M	696.00K	3.59M	4.10M
EBITDA	-3.19M	-2.53M	-2.27M	-10.69M	-7.17M	-25.15M
Net Income	-2.75M	-2.28M	-2.06M	-11.21M	-3.94M	-25.73M
Balance Sheet
Total Assets	9.33M	10.76M	14.44M	18.12M	30.41M	38.02M
Cash, Cash Equivalents and Short-Term Investments	6.18M	7.96M	10.72M	14.58M	23.12M	30.47M
Total Debt	31.00K	367.00K	342.00K	955.00K	1.29M	3.84M
Total Liabilities	348.00K	1.15M	2.21M	3.48M	4.60M	8.55M
Stockholders Equity	8.99M	9.61M	12.24M	14.64M	25.82M	29.47M
Cash Flow
Free Cash Flow	-1.98M	-2.88M	-3.16M	-7.70M	-7.07M	-12.61M
Operating Cash Flow	-1.96M	-2.85M	-2.62M	-7.07M	-6.93M	-12.55M
Investing Cash Flow	1.95M	-49.00K	-533.00K	-628.00K	-141.00K	-52.00K
Financing Cash Flow	-396.00K	-355.00K	-561.00K	-687.00K	-480.00K	27.96M

Phoslock Environmental Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EGL	―	AU$89.42M	18.95	10.86%	―	13.51%	5.08%
DEM	―	AU$37.17M	-16.43	-16.00%	―	11.53%	46.15%
AEI	―	AU$14.30M	-3.45	―	―	-0.52%	-38.84%
PET	―	AU$5.00M	―	-26.47%	―	-45.80%	-210.00%
ECT	―	AU$33.12M	-5.71	-164.39%	―	―	15.66%

Phoslock Environmental Technologies Limited Corporate Events

Phoslock Environmental Technologies Reports Q3 Financials and Operational Updates

Phoslock Environmental Technologies Limited reported a cash position of $5.2 million as of September 30, 2025, with a cashflow deficit from operating activities reaching $952,000 for the quarter. Sales were primarily driven by Brazil and the USA, with a total of 251 tons sold in the quarter. The company is addressing legacy legal matters, including a potential class action, and has resumed trading on the ASX. R&D efforts in China are ongoing, with promising experimental products in development. The company anticipates further sales improvements in the December quarter.

Phoslock Environmental Technologies Sees Revenue Surge but Faces Increased Losses

Phoslock Environmental Technologies Limited reported a significant increase in revenue by 147.8% to $1,425,000 for the half-year ended June 30, 2025, compared to the previous period. Despite this revenue growth, the company experienced a 79.8% increase in losses after tax, amounting to $1,057,000, highlighting ongoing financial challenges. The report also notes a decline in underlying EBIT by 17%, reflecting the company’s struggle to achieve profitability amidst rising costs and foreign exchange losses. No dividends were declared, and the financial statements indicate a material uncertainty related to the company’s ability to continue as a going concern.

Phoslock Environmental Technologies Reinstated to ASX Quotation

Phoslock Environmental Technologies Limited has announced that the suspension of trading in its securities will be lifted following the satisfaction of ASX’s conditions for reinstatement. This reinstatement is expected to positively impact the company’s operations, potentially enhancing its market positioning and providing reassurance to stakeholders.

Phoslock Environmental Technologies Updates Operations Amid ASX Reinstatement

Phoslock Environmental Technologies Limited announced updates on its operations and business model as it prepares for reinstatement on the ASX. The company reported a cash position of $6.2 million as of June 30, 2025, despite a cash flow deficit in the quarter. Sales have increased significantly compared to the previous year, with a focus on expanding into new markets such as wastewater treatment. The refurbishment of its Changxing factory is nearing completion, with commercial production expected to resume later in 2025 or early 2026. The company is also involved in ongoing legal proceedings, including a group proceeding in the Federal Court of Australia and a cross claim from KPMG. Early mediation is scheduled for September to address these legal matters.