Prophecy International Holdings Ltd (PRO) AI Stock Analysis

• Market Cap: AU$34.66M
• Dividend Yield: N/A
• Average Volume (3M): 21.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: 4.10%
• EPS Growth: -115.05%
• Country: AU
• Employees: 24
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): -0.06
• Shares Outstanding: 73,748,930
• 10 Day Avg. Volume: 36,156
• 30 Day Avg. Volume: 21,135
• PEG Ratio: 1.67
• Price to Book (P/B): 4.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.47
• 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: 53 Neutral
• Price Target: AU$0.50 ▲( 6.38% Upside)

Prophecy International Holdings Ltd faces significant challenges, primarily due to financial instability marked by recurring losses, fluctuating cash flows, and declining equity. These factors heavily impact the overall score. Although technical indicators show some potential for short-term price movements, the valuation remains unattractive with a negative P/E ratio and no dividend yield. The company must address its operational inefficiencies and stabilize its financial performance to improve its stock score.

Prophecy International Holdings Ltd Business Overview & Revenue Model

Company Description

Prophecy International Holdings Ltd (PRO) is an Australian technology company that specializes in software development, focusing on software solutions for businesses across various sectors. The company is known for its proprietary platforms in the areas of cybersecurity, enterprise analytics, and customer experience. Prophecy International Holdings Ltd serves a global market with a commitment to innovation and delivering value-driven software solutions.

How the Company Makes Money

Prophecy International Holdings Ltd generates revenue primarily through the sale and licensing of its software products. The company's key revenue streams include licensing fees from its cybersecurity solutions, enterprise analytics software, and customer experience platforms. Additionally, the company offers support and maintenance services, which provide a steady stream of recurring revenue. Prophecy International Holdings Ltd also engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach, contributing to its overall earnings.

Prophecy International Holdings Ltd Financial Statement Overview

Summary

Prophecy International Holdings Ltd exhibits signs of financial instability with recurring operational losses and fluctuating cash flows. The balance sheet shows low leverage, presenting a cautious approach to debt. However, declining equity and inconsistent revenue growth indicate challenges in achieving financial robustness. The company needs to focus on improving operational efficiency and stabilizing cash flows to enhance financial health.

Income Statement

The company has shown a consistent decline in profitability with negative EBIT and EBITDA margins over the past years, indicating operational inefficiencies. Revenue growth is present but not substantial enough to offset the losses, with a recent decline in gross profit margin, reflecting unstable cost management.

Balance Sheet

The balance sheet presents a moderate financial structure with a low debt-to-equity ratio, indicating low financial leverage. However, the declining equity and assets suggest weakening financial stability. The equity ratio remains positive, showing some resilience in the company's capital structure.

Cash Flow

Cash flow analysis reveals volatility, with an unstable operating cash flow and inconsistent free cash flow. There was a recent improvement in free cash flow, but overall cash management appears weak, as reflected in the fluctuating cash flow metrics.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
23.28M	22.87M	19.61M	16.43M	12.84M	13.59M
	Gross Profit
-3.78M	-176.40K	-2.11M	-1.34M	13.32M	13.75M
	EBIT
7.53M	-4.31M	-3.98M	-2.31M	-2.29M	-1.38M
	EBITDA
-3.23M	-3.15M	-1.25M	-173.83K	-796.10K	-4.03M
	Net Income Common Stockholders
-4.42M	-4.24M	-2.49M	-1.71M	-1.97M	-5.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.08M	11.71M	11.74M	12.99M	3.13M	4.40M
	Total Assets
20.99M	24.83M	28.77M	27.97M	18.29M	19.95M
	Total Debt
691.46K	884.25K	1.31M	614.68K	1.07M	1.39M
	Net Debt
-8.39M	-10.83M	-10.42M	-12.37M	-2.05M	-2.79M
	Total Liabilities
15.02M	16.73M	16.66M	13.21M	8.92M	9.90M
	Stockholders Equity
6.14M	8.28M	12.29M	14.95M	9.62M	10.37M
Cash Flow		Free Cash Flow
-1.00M	185.34K	-1.36M	2.84M	-409.18K	876.73K
	Operating Cash Flow
-953.69K	229.40K	-1.20M	2.94M	-376.47K	1.16M
	Investing Cash Flow
-203.34K	-39.57K	-167.30K	-96.45K	-32.71K	-281.89K
	Financing Cash Flow
-243.84K	-260.39K	-398.06K	6.75M	-539.52K	-805.69K

Prophecy International Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PRO, the sentiment is Positive. The current price of 0.47 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.45, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PRO.

Prophecy International Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTC	78 Outperform	$33.07B	131.20	14.13%	0.20%	-1.78%	12.79%
TNE	70 Outperform	€10.81B	81.05	37.44%	0.73%	17.97%	14.29%
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
PRO	53 Neutral	AU$34.66M	―	-52.29%	―	4.10%	-115.05%
BRN	40 Underperform	$440.89M	―	-133.28%	―	72.47%	20.08%
DUB	40 Underperform	AU$99.69M	―	-131.93%	―	15.31%	61.52%

Prophecy International Holdings Ltd Corporate Events

Prophecy International Issues New Shares Following Performance Rights Exercise

Prophecy International Holdings Ltd has issued 20,000 fully paid ordinary shares following the exercise of unquoted performance rights. This move, conducted without disclosure under specific provisions of the Corporations Act, indicates the company’s compliance with regulatory requirements and reflects its ongoing operational activities.

Prophecy International Announces Quotation of New Securities on ASX

Prophecy International Holdings Ltd has announced the application for the quotation of 20,000 ordinary fully paid securities on the Australian Securities Exchange (ASX). These securities are issued under an employee incentive scheme and are not subject to transfer restrictions. This move is likely to enhance the company’s market presence and provide additional liquidity, potentially benefiting both the company and its stakeholders.

Prophecy International Expands Share Capital with New Issuance

Prophecy International Holdings Ltd has announced the issuance of 20,000 fully paid ordinary shares following the exercise of unquoted performance rights. This move, executed without disclosure under the Corporations Act, reflects the company’s compliance with relevant legal provisions and indicates a strategic step in its financial operations. The issuance is expected to have implications for the company’s market positioning and stakeholder interests, as it enhances the company’s share capital.

Prophecy International Expands Market Presence with New Securities Quotation

Prophecy International Holdings Ltd has announced the issuance of 20,000 ordinary fully paid securities, which will be quoted on the ASX. This move, part of an employee incentive scheme, is expected to enhance the company’s market presence and potentially improve stakeholder confidence by aligning employee interests with company performance.

Prophecy International Reports Increased Revenue but Higher Losses for Half-Year 2024

Prophecy International Holdings Ltd reported a slight increase in revenue by 1% to $11.60 million for the half-year ended 31 December 2024, compared to the previous year. Despite this, the company experienced a 10% increase in losses after tax, amounting to $1.85 million. The company did not declare any dividends for the period, and its cash balance decreased slightly to $9.1 million. The net tangible assets per security also saw a significant decline, reflecting the company’s reliance on intangible assets.

Salter Brothers Acquires Substantial Stake in Prophecy International

Salter Brothers Emerging Companies Limited has become a substantial shareholder of Prophecy International Holdings Ltd, acquiring 3.7 million fully paid ordinary shares, which represents a 5.02% voting power in the company. This significant investment may influence Prophecy International’s market dynamics and can be seen as an endorsement of its growth potential, potentially impacting stakeholder interests positively.