Spirit Technology Solutions Ltd. (ST1) AI Stock Analysis

• Market Cap: AU$88.43M
• Dividend Yield: N/A
• Average Volume (3M): 40.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 2.00%
• EPS Growth: 52.47%
• Country: AU
• Employees: 36
• Sector: Communication Services
• Sector Strength: 93
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 190,176,330
• 10 Day Avg. Volume: 34,390
• 30 Day Avg. Volume: 40,516
• PEG Ratio: 0.38
• Price to Book (P/B): 6.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -77.08
• 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: 49 Neutral
• Price Target: AU$0.50 ▲(8.70%Upside)

The overall score reflects significant financial performance challenges, characterized by negative profitability and cash flow management issues. Technical analysis indicates a lack of strong momentum, while valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events leaves the stock reliant on financial and technical analysis for assessment.

Spirit Technology Solutions Ltd. Business Overview & Revenue Model

Company Description

Spirit Technology Solutions Ltd. provides collaboration and communication, cyber security, and managed IT services in Australia. It offers collaboration and communication services, including integrated collaboration, voice, and video solutions with data and office technology for small businesses. The company also provides cyber security services, such as cyber managed services and solutions to corporate and enterprise customers through a 24/7 Security Operations Centre and professional service teams. In addition, it offers a range of managed IT and professional services, including end-user, public cloud, infrastructure and networking, data, and voice solutions to SMB and midmarket customers. The company was formerly known as Spirit Telecom Limited and changed its name to Spirit Technology Solutions Ltd. in October 2020. Spirit Technology Solutions Ltd. is based in Melbourne, Australia.

How the Company Makes Money

Spirit Technology Solutions Ltd. generates revenue through a diversified business model that includes subscription-based services, hardware sales, and professional services. The company's key revenue streams involve providing internet connectivity, cloud services, and managed IT solutions to its clients. By offering subscription-based telecommunications and IT services, Spirit Technology Solutions ensures a steady flow of recurring income. Additionally, the company benefits from hardware sales and installation services, which complement its core offerings. Significant partnerships with technology vendors and strategic acquisitions also contribute to enhancing the company's service portfolio and expanding its market reach, thereby driving revenue growth.

Spirit Technology Solutions Ltd. Financial Statement Overview

Summary

Spirit Technology Solutions Ltd. is experiencing financial difficulties, characterized by shrinking revenue, increasing leverage, and negative profitability metrics. Operational inefficiencies and cash flow challenges pose significant risks, requiring strategic action to enhance financial health and operational performance.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	119.15M	125.85M	127.11M	135.34M	102.79M	34.43M
Gross Profit	16.11M	11.61M	12.60M	12.24M	13.35M	17.87M
EBITDA	1.70M	-6.23M	-8.22M	-46.22M	8.62M	2.18M
Net Income	-7.00M	-10.55M	-11.39M	-53.17M	1.16M	-1.51M
Balance Sheet
Total Assets	177.31M	171.42M	119.18M	123.51M	177.31M	55.05M
Cash, Cash Equivalents and Short-Term Investments	11.88M	8.87M	7.02M	11.73M	8.49M	6.40M
Total Debt	29.39M	38.82M	29.44M	16.03M	14.02M	4.89M
Total Liabilities	79.69M	98.37M	66.05M	64.09M	67.64M	16.99M
Stockholders Equity	97.62M	73.05M	53.13M	59.42M	109.68M	38.06M
Cash Flow
Free Cash Flow	1.53M	-4.39M	-4.43M	-767.00K	-18.00K	-3.22M
Operating Cash Flow	1.77M	-4.13M	-3.73M	3.61M	5.04M	3.71M
Investing Cash Flow	-26.60M	-16.14M	-11.03M	-1.36M	-52.90M	-13.58M
Financing Cash Flow	30.03M	22.11M	10.05M	993.00K	49.95M	12.90M

Spirit Technology Solutions Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.46 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.41, and below the 200-day MA of 0.52, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 76.97 is Neutral, 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
Sector *	61 Neutral	$41.22B	-1.26	-14.49%	3.95%	2.29%	-73.14%
ST1	49 Neutral	AU$88.43M	―	-9.56%	―	2.00%	52.47%
RW8		€7.39B	89.66	37.44%	0.56%	―	―
9SL		€850.25M	―	-1.05%	―	―	―
MAQ		AU$1.71B	46.23	8.93%	―	―	―

Spirit Technology Solutions Ltd. Corporate Events

Spirit Technology Solutions Updates on Director’s Share Acquisition

Spirit Technology Solutions announced a change in director’s interest notice related to Mr. Julian Challingsworth’s on-market acquisition of shares under the Spirit Loan Funded Share Plan. The transaction, which was part of a previously approved plan, was not notified within the required timeframe due to an administrative oversight. The company reassured stakeholders that this oversight does not affect its compliance with ASX Listing Rules and that current arrangements are adequate to ensure ongoing compliance.

Spirit Technology Solutions Announces Director’s Share Acquisition Plan

Spirit Technology Solutions announced a change in director’s interest, specifically regarding Mr. Julian Challingsworth’s acquisition of shares under the Spirit Loan Funded Share Plan. This move, approved by shareholders, allows Mr. Challingsworth to obtain a loan from the company to purchase shares worth up to $760,000 over two fiscal years, reflecting the company’s commitment to aligning leadership interests with shareholder value.

Spirit Technology Solutions Announces Director’s Share Acquisition Plan

Spirit Technology Solutions announced a change in director’s interest, specifically regarding Mr. Julian Challingsworth’s acquisition of shares under the Spirit Loan Funded Share Plan. This plan, approved by shareholders, allows Mr. Challingsworth to obtain a loan from the company to purchase shares worth up to $760,000 over two fiscal years. This move reflects the company’s strategic focus on aligning leadership interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.