Phoslock Environmental Technologies Limited (PET) AI Stock Analysis

• Market Cap: AU$11.24M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.43
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: AU$0.02 ▲(100.00% Upside)

Overall score is held back primarily by weak financial performance, driven by declining revenue, persistent losses, and negative operating/free cash flow. Technicals are a relative positive with price above key moving averages and neutral momentum readings, but valuation remains constrained by the negative P/E and lack of dividend data.

Positive Factors

Balance sheet strength / low leverage

A strong equity base and low financial leverage provide durable resilience: supports underwriting multi‑phase remediation projects, absorbs cyclical revenue shortfalls, and preserves capacity to raise capital or enter partnerships without immediate solvency stress.

Proprietary Phoslock technology

Owning a recognized, application‑specific technology creates a structural competitive advantage for specialized water remediation work. This supports pricing power on project supply and recurring implementation services, and differentiates PET in municipal and utility procurement.

Structural demand from public-sector clients

Reliance on public and regulated clients ties revenue to long‑term drivers like regulatory compliance and water quality mandates, offering persistent addressable demand versus consumer cycles and supporting multi‑year contract opportunities and repeat service work.

Negative Factors

Steep revenue decline

A near‑term steep revenue contraction undermines scale economics and sales coverage. Persistently shrinking top line erodes project pipeline conversion, reduces operating leverage, and weakens ability to invest in commercialization or expand service capabilities long term.

Ongoing losses and margin deterioration

Sustained negative margins indicate structural cost or pricing pressures. Continued losses constrain reinvestment, force reliance on external funding, and can impair talent retention and project delivery quality, limiting the firm's capacity to scale and defend market share.

Negative operating and free cash flow

Chronic cash burn weakens working capital for project execution and raises financing risk. Poor cash conversion reduces flexibility to bid larger municipal projects, fund monitoring or R&D, and increases likelihood of dilution or constrained growth without durable external funding.

Phoslock Environmental Technologies Limited Business Overview & Revenue Model

Company Description

Phoslock Environmental Technologies Limited engages in the design, engineering, and project implementation solutions for water related projects and water treatment products. It offers Phoslock, a formulation of bentonite lanthanum that removes excess phosphate from the water; and Zeolite that is applied to heavily polluted water to bind nitrogen. The company's products are used to clean up lakes, rivers, canals, wetlands, and drinking water reservoirs. It operates in Australia and New Zealand; Europe and the United Kingdom; the United States, Canada, and Brazil; and China. The company was formerly known as Phoslock Water Solutions Limited and changed its name to Phoslock Environmental Technologies Limited in August 2018. Phoslock Water Solutions Limited was incorporated in 2002 and is headquartered in South Yarra, Australia.

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

Income statement is weak with declining revenue, negative margins, and ongoing losses (income statement score 30). Cash flow is also pressured with negative operating and free cash flow (cash flow score 40). Balance sheet is comparatively steadier with low leverage and a solid equity position, though equity is declining and liabilities are rising (balance sheet score 60).

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	-3.73M	-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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EGL	54 Neutral	AU$95.12M	20.16	10.86%	―	13.51%	5.08%
PET	50 Neutral	AU$11.24M	-4.09	-26.47%	―	-45.80%	-210.00%
DEM	50 Neutral	AU$34.29M	-15.00	-16.00%	―	11.53%	46.15%
ECT	49 Neutral	AU$60.33M	-6.90	-164.39%	―	―	15.66%
AEI	41 Neutral	AU$13.07M	-3.15	―	―	-0.52%	-38.84%

Phoslock Environmental Technologies Limited Corporate Events

Phoslock Corrects Cash Reporting, Posts Stronger Quarter as Sales and Production Rebound

Phoslock Environmental Technologies has corrected an error in its December 2025 quarterly Appendix 4C, revising the previously reported 40 quarters of funding availability to N/A due to a positive cash inflow, and has formally redacted a prior outlook statement on expected 2026 sales, stating it is not currently in a position to justify those projections. The company reported a December-quarter operating cashflow surplus of about $128,000 versus large prior deficits, supported by its strongest sales receipts since late 2023 and sharply reduced legal-related outflows, bringing 2025 operating cash outflows down to $2.4 million from $3.3 million in 2024 amid rising sales volumes and resumed factory operations in China, while it continues to address a shareholder class action and pursue R&D on an improved lanthanum-based product.

The most recent analyst rating on (AU:PET) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Phoslock Environmental Technologies Limited stock, see the AU:PET Stock Forecast page.

Phoslock Swings to Operating Cash Surplus as Sales Volumes Surge in 2025

Phoslock Environmental Technologies reported a solid improvement in its financial performance for the December 2025 quarter, with a cash position of $5.2 million and a cashflow surplus from operating activities of about $128,000, reversing prior quarterly deficits and reducing full-year operating cash outflows to $2.4 million from $3.3 million in 2024. Quarterly sales receipts rose to $1.095 million, the highest since late 2023, driven mainly by the USA, Brazil and Europe, while full-year sales volumes surged to 1,200 tonnes from 227 tonnes a year earlier, supported by strong contributions from Brazil and resumed production at its Chinese factory, which is ramping up toward 12 tonnes per day. The company continues to manage legacy legal issues, including an ongoing shareholder class action, and is advancing R&D on a new lanthanum-based product, although some technical issues must be resolved before field trials; management expects sales volumes to increase significantly in 2026, particularly on the back of anticipated large European lake treatment projects later in the year.

The most recent analyst rating on (AU:PET) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Phoslock Environmental Technologies Limited stock, see the AU:PET Stock Forecast page.

Phoslock Environmental Technologies Resumes Production in China

Phoslock Environmental Technologies Limited has announced the recommencement of Phoslock production at its Changxing, China factory, following a halt in 2021 due to a business collapse in China. The decision comes after a reduction in inventory levels through continued sales and increased deliveries to key markets. The plant, refurbished over the past six months, is set to resume operations in January 2026 with an initial single shift production capacity of 3,000 tons annually, with potential for expansion to two shifts if needed. This move is expected to replenish inventory and support the company’s market presence.

The most recent analyst rating on (AU:PET) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Phoslock Environmental Technologies Limited stock, see the AU:PET Stock Forecast page.

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.