Swoop Holdings Limited (SWP) AI Stock Analysis

• Market Cap: €24.67M
• Dividend Yield: N/A
• Average Volume (3M): 212.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -0.93%
• EPS Growth: 80.57%
• Country: AU
• Employees: 31
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): -0.02
• Shares Outstanding: 214,478,620
• 10 Day Avg. Volume: 111,327
• 30 Day Avg. Volume: 212,731
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.72
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Swoop Holdings Limited is on a strong growth trajectory with positive revenue and operational trends. However, challenges with profitability and valuation, due to negative net income and a lack of dividends, temper the overall outlook. Technical indicators show positive momentum, adding a favorable short-term view.

Swoop Holdings Limited Business Overview & Revenue Model

Company Description

Swoop Holdings Limited offers fixed wireless and fibre services to wholesale, business, and residential customers in Australia. It provides internet and telecommunication, and fixed wireless broadband services; and services over the NBN fixed line and fixed wireless networks. The company was incorporated in 1987 and is based in Sydney, Australia.

How the Company Makes Money

Swoop Holdings Limited makes money through a combination of investment income, revenue generated from its portfolio companies, and strategic partnerships. The company invests in high-potential businesses and technologies, earning a return on investment through dividends, capital gains, and interest income. Additionally, SWP generates revenue by providing management and consulting services to its portfolio companies, enhancing their operational efficiency and profitability. Strategic partnerships with other firms and institutions also contribute to its revenue streams, enabling Swoop to leverage synergies and expand its market reach.

Swoop Holdings Limited Financial Statement Overview

Summary

Swoop Holdings Limited shows strong revenue growth and improved operational efficiency with rising EBIT margins. However, it struggles with net profitability and has a moderate level of leverage. Positive operating cash flow is a strength, but high capital expenditures pressure free cash flow.

Income Statement

Swoop Holdings Limited has shown a consistent revenue growth over the years, with revenue increasing from $9.2M in 2020 to $81.2M in 2024. The gross profit margin improved significantly from negative in 2020 to approximately 27.4% in 2024. However, the company still faces challenges with net profitability, as indicated by a negative net profit margin of -4.7% in 2024. The EBIT margin improved to 17.1% in 2024, indicating better operational efficiency compared to prior years.

Balance Sheet

The debt-to-equity ratio increased to 0.54 in 2024, suggesting a moderate level of leverage. The equity ratio decreased to 47.3%, indicating a lesser portion of assets financed by equity. Although the return on equity is negative due to net losses, the company has managed to maintain a stable asset base over the years.

Cash Flow

Operating cash flow remains positive at $9.1M in 2024, demonstrating the company's ability to generate cash from operations. Free cash flow is negative due to high capital expenditures, but the operating cash flow to net income ratio shows a strong cash generation capability relative to accounting profits. The free cash flow to net income ratio is not favorable due to ongoing net losses.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	81.14M	74.96M	51.67M	22.42M	9.22M
Gross Profit	22.19M	-556.07K	28.30M	8.92M	-207.36K
EBITDA	9.26M	-12.43M	7.08M	-7.99M	-1.54M
Net Income	-3.79M	-37.51M	-4.88M	-14.93M	-264.13K
Balance Sheet
Total Assets	125.87M	124.25M	132.64M	79.59M	1.74M
Cash, Cash Equivalents and Short-Term Investments	10.90M	19.04M	32.06M	17.50M	1.01M
Total Debt	32.07M	27.50M	10.04M	7.53M	114.43K
Total Liabilities	66.39M	61.94M	36.06M	30.06M	506.30K
Stockholders Equity	59.47M	62.30M	96.58M	49.54M	1.23M
Cash Flow
Free Cash Flow	-7.27M	-4.14M	-9.50M	-8.11M	1.24M
Operating Cash Flow	9.13M	13.75M	8.86M	-1.14M	1.24M
Investing Cash Flow	-20.83M	-41.26M	-37.64M	-7.58M	-15.36K
Financing Cash Flow	4.50M	14.52M	43.23M	21.93M	2.29M

Swoop Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 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:SWP, the sentiment is Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 36.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SWP.

Swoop Holdings Limited 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%
MLBEF	―	$27.13M	―	-11.39%	―	―	―
FSG	52 Neutral	AU$17.02M	―	-7.44%	―	―	―
5GG	49 Neutral	AU$15.59M	―	-26.35%	―	5.54%	-3.85%
VN8	49 Neutral	AU$26.34M	―		―	-4.31%	73.91%
HFY	43 Neutral	AU$4.60M	―	-34.98%	―	-23.34%	-470.00%

Swoop Holdings Limited Corporate Events

Swoop Supports Vonex-Maxotel Acquisition, Plans Strategic Capital Redeployment

Swoop Holdings Limited has announced its support for the Scheme Implementation Deed between Vonex Limited and Maxo Telecommunications Pty Ltd, where MaxoTel will acquire all remaining shares in Vonex. As the second-largest shareholder in Vonex, Swoop plans to vote in favor of the scheme, which will result in approximately $6.17 million in cash proceeds for Swoop. This transaction allows Swoop to exit its investment in Vonex, enabling the company to focus on its core growth priorities and redeploy capital into other strategic initiatives or acquisitions.

Swoop Holdings Limited Announces Quotation of New Securities on ASX

Swoop Holdings Limited has announced the quotation of 1,534,638 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code SWP. This move is part of previously announced transactions and is expected to enhance the company’s market presence and liquidity, potentially impacting stakeholders positively by increasing the availability of shares for trading.