Spirit Technology Solutions Ltd. (ST1) AI Stock Analysis

• Market Cap: AU$86.53M
• Dividend Yield: N/A
• Average Volume (3M): 24.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 2.00%
• EPS Growth: 52.47%
• Country: AU
• Employees: 36
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 190,176,330
• 10 Day Avg. Volume: 8,636
• 30 Day Avg. Volume: 24,451
• PEG Ratio: 0.45
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.27
• 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: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: AU$0.50 ▲(8.70%Upside)

The stock score reflects significant financial performance challenges, notably negative profitability and cash flow issues, which are the most impactful factors. While technical analysis provides some short-term optimism, poor valuation metrics further dampen the stock's attractiveness.

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. 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: 0.46
• 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 0.45, above the 50-day MA of 0.43, and below the 200-day MA of 0.51, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.65 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 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 *	62 Neutral	$41.14B	-1.94	-12.05%	3.98%	2.10%	-69.66%
SWP	61 Neutral	€24.67M	―	-13.80%	―	-0.93%	80.57%
FSG	52 Neutral	AU$17.02M	―	-7.44%	―	―	―
ST1	51 Neutral	AU$86.53M	―	-9.56%	―	2.00%	52.47%
VN8	49 Neutral	AU$26.34M	―		―	-4.31%	73.91%
HFY	43 Neutral	AU$4.60M	―	-34.98%	―	-23.34%	-470.00%
5GN	41 Neutral	AU$41.70M	―	-11.39%	―	-23.80%	92.86%

Spirit Technology Solutions Ltd. Corporate Events

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.

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.