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SPACETALK Limited (AU:SPA)
ASX:SPA

SPACETALK Limited (SPA) AI Stock Analysis

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AU

SPACETALK Limited

(Sydney:SPA)

Rating:38Underperform
Price Target:
AU$0.00
▼(-100.00%Downside)
SPACETALK Limited's overall stock score is primarily impacted by significant financial difficulties, including declining revenues, persistent losses, negative equity, and negative cash flows. The technical analysis corroborates these challenges with bearish indicators. The valuation is further undermined by a negative P/E ratio, indicating potential risks for investors.

SPACETALK Limited (SPA) vs. iShares MSCI Australia ETF (EWA)

SPACETALK Limited Business Overview & Revenue Model

Company DescriptionSPACETALK Limited (SPA) is a technology company operating in the wearable technology sector, focusing on providing innovative communication solutions. The company is renowned for its development of smart wearables, primarily designed for children and seniors, which integrate safety, communication, and wellness features. SPACETALK's core products include wearable devices that combine GPS, phone, and fitness tracking capabilities, ensuring connectivity and peace of mind for families.
How the Company Makes MoneySPACETALK Limited generates revenue primarily through the sale of its wearable devices, which are marketed to consumers directly through its e-commerce platform and retail partnerships. The company also earns money by offering subscription services for enhanced features of its products, such as GPS tracking and communication services. These subscriptions provide recurring revenue and are a significant component of SPACETALK's business model. Additionally, strategic partnerships with telecommunications providers and retail distributors expand the company's market presence and contribute to its earnings by facilitating broader product availability and customer access.

SPACETALK Limited Financial Statement Overview

Summary
SPACETALK Limited is encountering severe financial difficulties with declining revenues and persistent losses. The balance sheet is weak with negative equity, and cash flows are negative, raising significant concerns about sustainability. Strategic changes are necessary to improve financial health.
Income Statement
45
Neutral
The income statement shows declining revenues and profitability. Revenue has decreased from $20.7M in 2022 to $17.5M in 2024, with TTM revenue at $23.4M. Gross profit margin has declined significantly from 60% in 2022 to 34% in the latest TTM period. The company has consistently reported negative EBIT and net income, indicating operational challenges.
Balance Sheet
30
Negative
The balance sheet reveals a weak financial position with negative stockholders' equity of -$2M in the latest TTM period. The debt-to-equity ratio is not meaningful due to negative equity, indicating high financial risk. Total assets have decreased significantly, and the company is highly leveraged.
Cash Flow
40
Negative
Cash flow analysis shows negative operating and free cash flows, indicating cash burn issues. The operating cash flow to net income ratio is negative, reflecting operational inefficiencies. Despite negative cash flow, the company has increased financing activities to support operations.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
23.38M17.50M13.35M20.70M15.11M10.49M
Gross Profit
8.00M8.64M-757.26K12.42M9.35M7.44M
EBIT
-3.91M-5.36M-6.19M-6.02M-2.26M-5.14M
EBITDA
-4.01M-4.21M-8.42M-925.01K730.40K-2.69M
Net Income Common Stockholders
-3.25M-6.24M-14.68M-6.30M-1.78M-4.27M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.42M1.77M3.03M5.58M4.19M3.17M
Total Assets
11.77M7.86M10.97M22.19M16.01M10.74M
Total Debt
5.14M5.21M5.33M3.19M1.83M135.64K
Net Debt
2.73M3.44M2.30M-2.39M-2.35M-3.03M
Total Liabilities
13.82M11.72M12.08M9.70M6.66M2.43M
Stockholders Equity
-2.06M-3.86M-1.11M12.49M9.35M8.31M
Cash FlowFree Cash Flow
-2.31M-2.90M-5.12M-8.91M-4.23M-2.21M
Operating Cash Flow
-2.30M-2.87M-3.46M-5.57M-1.18M937.33K
Investing Cash Flow
-1.35M-1.43M-1.67M-3.35M-3.05M-3.14M
Financing Cash Flow
2.91M3.05M2.50M10.58M5.26M3.74M

SPACETALK Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.16
Price Trends
50DMA
0.18
Negative
100DMA
0.19
Negative
200DMA
0.20
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
41.32
Neutral
STOCH
14.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SPA, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SPA.

SPACETALK Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUWTC
78
Outperform
$35.43B115.5613.73%0.19%19.03%37.24%
AUTNE
65
Neutral
€13.54B101.5237.44%0.60%17.52%20.78%
61
Neutral
$14.35B5.84-4.31%3.69%2.75%-35.67%
AUEML
54
Neutral
AU$441.33M38.567.22%-27.00%
AUBRN
40
Underperform
AU$440.89M-133.28%72.47%20.08%
AUSPA
38
Underperform
€11.30M
42.58%79.00%
AULNU
30
Underperform
$6.15M-9751.23%131.03%42.86%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SPA
SPACETALK Limited
0.16
-0.02
-13.04%
AU:TNE
Technology One Limited
42.39
24.38
135.42%
AU:BRN
BrainChip Holdings
0.23
0.01
4.55%
AU:EML
EML Payments
1.18
0.26
28.26%
AU:WTC
Wisetech Global
106.55
6.53
6.53%
AU:LNU
Linius Technologies

SPACETALK Limited Corporate Events

Spacetalk Ltd Announces Director’s Interest Change
May 27, 2025

Spacetalk Ltd has announced a change in the director’s interest, specifically concerning Martin Pretty, who has acquired 100,606 ordinary shares and disposed of 88,245 performance rights. This transaction, which involved no cash consideration, reflects a strategic adjustment in the director’s holdings, potentially impacting investor perceptions and the company’s market positioning.

SPACETALK Limited Announces Quotation of New Securities on ASX
May 26, 2025

SPACETALK Limited has announced the quotation of 100,606 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of May 26, 2025. This move involves the issuance, transfer, or reclassification of securities resulting from options being exercised or other convertible securities being converted, potentially impacting the company’s market presence and shareholder value.

Spacetalk Ltd Releases 3QFY25 Financial Highlights and Strategic Update
May 20, 2025

Spacetalk Ltd, a company listed on the ASX under the ticker SPA, has released its financial performance highlights for the third quarter of the fiscal year 2025. The company has provided an update on its strategy and key growth milestones, which are crucial for stakeholders to understand the company’s future direction and potential impact on its market position.

Spacetalk Ltd Announces Director’s Shareholding Adjustment
Apr 30, 2025

Spacetalk Ltd has announced a change in the director’s interest, specifically involving Georg Johann Chmiel. The change involves an off-market transfer of 368,333 ordinary shares from Mr. Chmiel to Chmiel Super Pty Ltd ATF Chmiel Super Fund, where Mr. Chmiel is the sole beneficiary. This adjustment reflects the company’s recent capital consolidation, which was completed on a one-for-ten basis, impacting the overall securities held by Mr. Chmiel. This move may have implications for the company’s stock structure and could influence investor perception of the company’s financial strategies.

SPACETALK Director Increases Shareholding Amid Capital Consolidation
Apr 30, 2025

SPACETALK Limited has announced a change in the director’s interest notice, specifically regarding Simon Crowther, a director of the company. Mr. Crowther acquired 74,807 ordinary shares through an on-market purchase, increasing his holdings in the company. This change reflects a consolidation of the company’s issued capital, which was completed on November 27, 2024, on a one-for-ten basis. The acquisition of shares by a director may indicate confidence in the company’s future performance, potentially impacting investor sentiment and market perception.

SPACETALK Limited Issues Unquoted Equity Securities
Apr 16, 2025

SPACETALK Limited has announced the issuance of unquoted equity securities, specifically warrants, as part of transactions previously disclosed to the market. These securities are not intended to be quoted on the ASX, indicating strategic financial maneuvers that may impact the company’s capital structure and investor relations.

Spacetalk Ltd’s EGM Results: Warrant Issuance Approved
Apr 15, 2025

Spacetalk Ltd announced the results of its Extraordinary General Meeting, where a resolution to issue a warrant was carried with significant support. This decision reflects strong shareholder backing and may enhance the company’s financial flexibility, potentially impacting its market positioning positively.

Spacetalk Limited Announces Change in Substantial Holder Interests
Apr 14, 2025

Spacetalk Limited has announced a change in the interests of a substantial holder, TIGA Trading Pty Ltd, as per a Form 604 Notice. The notice indicates a shift in voting power from 27.36% to 29.61% due to a share consolidation and a recent placement, which could impact the company’s shareholder dynamics and market positioning.

Spacetalk Announces Change in Substantial Holder Interests
Apr 14, 2025

Spacetalk Limited, listed on the ASX under the ticker SPA, has announced a change in the interests of a substantial holder, Thorney Technologies Ltd. This change involves a share consolidation and a placement that has resulted in Thorney Technologies Ltd increasing its voting power from 27.36% to 29.61%. This adjustment in shareholding could potentially impact Spacetalk’s market dynamics and influence its strategic decisions, given Thorney’s increased stake in the company.

Spacetalk Ltd Expands Share Base to Bolster Growth
Apr 14, 2025

Spacetalk Ltd has issued 9,035,715 fully paid ordinary shares to institutional and wholesale investors without a disclosure document, in compliance with the Corporations Act. This strategic move aims to strengthen the company’s financial position and support its growth initiatives, potentially impacting its market presence and stakeholder interests positively.

Spacetalk Appoints New CFO Amidst Strong Financial Growth
Apr 13, 2025

Spacetalk Limited has announced the appointment of Innocent Ndoda as its new Chief Financial Officer, succeeding Gerhard Beukes. Ndoda, who brings extensive financial leadership experience from his previous roles, joins a leadership team with a proven track record of success. The company has recently reported significant financial growth, including a 12% increase in total revenue and a 96% rise in EBITDA for the half-year ending December 2024, indicating a strong strategic direction and a focus on sustainable profitability. This leadership change is expected to further strengthen Spacetalk’s financial position and support its growth trajectory.

Spacetalk Ltd Reports Strong Subscriber Growth and International Expansion
Apr 10, 2025

Spacetalk Ltd reported significant growth in its quarterly activities, with a 47% increase in paid mobile subscribers and a 21% rise in annual recurring revenue, reflecting the company’s shift towards sustainable revenue streams. The company is expanding internationally with a capital-light strategy, enhancing its market presence in Europe, the UK, Singapore, the USA, Canada, and New Zealand, and preparing to launch new products including an AI-driven wearable for seniors.

SPACETALK Limited Announces Proposed Securities Issue
Apr 9, 2025

SPACETALK Limited has announced a proposed issue of 9,035,715 ordinary fully paid securities, with an issue date set for April 14, 2025. This strategic move is aimed at raising capital, potentially enhancing the company’s market position and operational capabilities, which could have significant implications for its stakeholders and future growth trajectory.

Spacetalk Ltd Secures $1.265 Million to Fuel Growth Initiatives
Apr 9, 2025

Spacetalk Ltd has successfully raised $1.265 million through a placement to institutional and wholesale investors. This funding will be used to purchase inventory, expand geographically, and develop a new app ecosystem, which is expected to enhance the company’s product capabilities and drive subscription growth. The placement was well-received, with shares issued at a discount to recent trading prices, and is managed by Unified Capital Partners Pty Limited.

Spacetalk Ltd Initiates Trading Halt for Capital Raising Announcement
Apr 8, 2025

Spacetalk Ltd has requested a trading halt for its securities on the ASX, pending an announcement regarding a proposed capital raising through a placement. The halt will last until the announcement is made or normal trading resumes on April 10, 2025, whichever comes first. This move indicates a strategic financial maneuver by Spacetalk Ltd, potentially impacting its market position and stakeholders by altering its capital structure.

Spacetalk Ltd. Calls Extraordinary General Meeting for Warrant Issuance
Mar 14, 2025

Spacetalk Ltd. has announced an Extraordinary General Meeting to be held virtually on April 15, 2025, where shareholders will vote on the issuance of a warrant to Pure Asset Management Pty Ltd. This move is part of the company’s strategic financial decisions, potentially impacting its capital structure and investor relations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.