Phoslock Environmental Technologies Limited (PET) AI Stock Analysis

• Market Cap: AU$8.74M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.22
• 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: 41 Neutral
• Price Target: AU$0.01 ▲(20.00% Upside)

Phoslock Environmental Technologies faces substantial financial and operational challenges, as reflected in its poor financial performance and technical indicators. The negative P/E ratio and lack of dividend yield further highlight valuation concerns. The absence of positive earnings call insights or corporate events leaves the stock with a low overall score, indicating significant risks for investors.

Positive Factors

Business Model Strength

The company's focus on water quality management with a patented product positions it well in the growing environmental sector, offering durable revenue potential.

Competitive Advantages

The patented nature of Phoslock provides a competitive edge in the water treatment market, potentially leading to sustained market leadership and pricing power.

Market Position

A broad client base across various sectors enhances market resilience and provides multiple revenue streams, supporting long-term business stability.

Negative Factors

Revenue Growth Trends

Significant negative revenue growth indicates declining sales, which could undermine long-term financial health and market competitiveness.

Margin Sustainability

Sustained negative margins suggest cost structure issues, impacting profitability and limiting the ability to reinvest in growth opportunities.

Cash Generation Ability

Inability to generate positive cash flow from operations indicates financial strain, potentially affecting the company's capacity to fund operations and growth.

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

Phoslock Environmental Technologies is facing significant financial challenges. The income statement shows continuous losses and declining revenues, while the balance sheet, although stable, indicates pressure from declining equity. Cash flow issues are evident with negative operating and free cash flows, highlighting the need for strategic improvements.

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$89.42M	18.95	10.86%	―	13.51%	5.08%
DEM	53 Neutral	AU$32.32M	-14.29	-16.00%	―	11.53%	46.15%
PET	41 Neutral	AU$8.74M	-3.18	-26.47%	―	-45.80%	-210.00%
AEI	41 Neutral	AU$13.07M	-3.15	―	―	-0.52%	-38.84%
ECT	27 Underperform	AU$37.26M	-6.43	-164.39%	―	―	15.66%

Phoslock Environmental Technologies Limited Corporate Events

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.

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.