Spirit Technology Solutions Ltd. (ST1) AI Stock Analysis

• Market Cap: AU$109.35M
• Dividend Yield: N/A
• Average Volume (3M): 25.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 2.00%
• EPS Growth: 52.47%
• Country: AU
• Employees: 36
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 190,176,330
• 10 Day Avg. Volume: 44,027
• 30 Day Avg. Volume: 25,679
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: AU$0.50
• Price Target Upside: -12.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: AU$0.50 ▼(-12.28% Downside)

The overall stock score is primarily driven by financial difficulties, with negative profitability and cash flow challenges posing significant risks. Technical indicators provide some positive signals with a recent upward trend, but overbought conditions could limit further gains. Valuation remains unattractive due to negative earnings and no dividend yield.

Spirit Technology Solutions Ltd. Business Overview & Revenue Model

Company Description

Spirit Technology Solutions Ltd. (ST1) is a leading provider of technology solutions, specializing in delivering comprehensive IT, cloud, and telecommunications services. The company operates across various sectors, offering businesses innovative and scalable solutions to enhance their technological infrastructure. Core products and services include managed IT services, cloud hosting, cybersecurity solutions, and unified communications, all tailored to meet the evolving needs of its diverse client base.

How the Company Makes Money

Spirit Technology Solutions Ltd. makes money through a diversified revenue model that includes subscription-based services, one-time project fees, and ongoing support contracts. Key revenue streams are derived from managed IT services, where businesses pay recurring fees for IT support and management, and cloud services, which involve subscription-based pricing for hosting and data management. The company also earns through telecommunications services, providing clients with solutions like VoIP and unified communications. Significant partnerships with leading technology providers enhance its offerings, allowing Spirit Technology Solutions to deliver cutting-edge solutions and maintain a competitive edge in the industry.

Spirit Technology Solutions Ltd. Financial Statement Overview

Summary

Spirit Technology Solutions Ltd. is experiencing financial difficulties with declining revenue, increasing leverage, and negative profitability metrics. Operational inefficiencies and cash flow challenges pose significant risks.

Income Statement

Spirit Technology Solutions Ltd. has faced declining revenue with a decrease from 2023 to 2024 by approximately 1%. The gross profit margin is shrinking, and the company has consistently posted net losses over the past years, indicating challenges in achieving profitability. Negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased over time, indicating a rising leverage risk. However, the equity ratio remains reasonable, suggesting that the company still maintains a balanced asset-to-equity structure. The return on equity is negative due to net losses, pointing to poor shareholder returns.

Cash Flow

Operating cash flow has been negative for the past two years, reflecting cash management challenges. Free cash flow has also been negative, which could affect future growth investments. The cash flow to net income ratios are not favorable, given the consistent net losses.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	125.85M	127.11M	135.34M	102.79M	34.43M
Gross Profit	11.61M	12.60M	12.24M	13.35M	17.87M
EBITDA	-6.23M	-8.22M	-46.22M	8.62M	2.18M
Net Income	-10.55M	-11.39M	-53.17M	1.16M	-1.51M
Balance Sheet
Total Assets	171.42M	119.18M	123.51M	177.31M	55.05M
Cash, Cash Equivalents and Short-Term Investments	8.87M	7.02M	11.73M	8.49M	6.40M
Total Debt	38.82M	29.44M	16.03M	14.02M	4.89M
Total Liabilities	98.37M	66.05M	64.09M	67.64M	16.99M
Stockholders Equity	73.05M	53.13M	59.42M	109.68M	38.06M
Cash Flow
Free Cash Flow	-4.39M	-4.43M	-767.00K	-18.00K	-3.22M
Operating Cash Flow	-4.13M	-3.73M	3.61M	5.04M	3.71M
Investing Cash Flow	-16.14M	-11.03M	-1.36M	-52.90M	-13.58M
Financing Cash Flow	22.11M	10.05M	993.00K	49.95M	12.90M

Spirit Technology Solutions Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ST1, the sentiment is Positive. The current price of 0.57 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.46, and above the 200-day MA of 0.50, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 85.12 is Negative, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ST1.

Spirit Technology Solutions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWP	56 Neutral	€24.67M	―	-13.80%	―	-0.93%	80.57%
Sector *	56 Neutral	HK$63.40B	-0.92	-4.21%	5.34%	-2.16%	-18.87%
ST1	55 Neutral	AU$109.35M	―	-9.56%	―	2.00%	52.47%
FSG	52 Neutral	AU$17.02M	―	-7.44%	―	―	―
VN8	49 Neutral	AU$26.72M	―		―	-4.31%	73.91%
HFY	43 Neutral	AU$4.09M	―	-34.98%	―	-23.34%	-470.00%
5GN	41 Neutral	$38.72M	―	-11.39%	―	-23.80%	92.86%

Spirit Technology Solutions Ltd. Corporate Events

Spirit Technology Solutions Returns to Profitability in FY25

Spirit Technology Solutions Ltd reported a significant return to profitability in FY25, achieving an unaudited underlying EBITDA of $11 million and revenue of $102.4 million. This marks the company’s first profit since its restructuring began in FY23. The Managed Services segment returned to profitability, supported by new security-enabled offerings, while the Cyber Security segment achieved strong earnings. Despite challenges in the Communication and Collaboration segment, Spirit maintained a disciplined cost base and is poised for sustainable growth in FY26, with plans to explore acquisition opportunities and expand recurring revenue streams.

Spirit Technology Solutions Announces Change of Business Address

Spirit Technology Solutions Ltd, a leader in secure digital transformation, has announced a change in its registered office and principal place of business to a new location in Melbourne, effective 1 July 2025. This move reflects the company’s ongoing commitment to enhancing its operational capabilities and maintaining its position as a key player in the digital security and managed services industry.