Vonex Limited (VN8) AI Stock Analysis

• Market Cap: AU$26.34M
• Dividend Yield: N/A
• Average Volume (3M): 308.21K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.67
• Revenue Growth: -4.31%
• EPS Growth: 73.91%
• Country: AU
• Employees: N/A
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): >-0.01
• Shares Outstanding: 752,603,500
• 10 Day Avg. Volume: 591,536
• 30 Day Avg. Volume: 308,211
• PEG Ratio: -0.39
• Price to Book (P/B): -3.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.57
• 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: 49 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall score is primarily impacted by financial instability with negative equity and high leverage. Technical analysis indicates potential downside with overbought signals. Valuation is weak due to a negative P/E ratio and lack of dividends, further influencing the score.

Vonex Limited Business Overview & Revenue Model

Company Description

Vonex Limited (VN8) is an Australian telecommunications company that specializes in providing innovative communication solutions. The company operates across several sectors, including business telephony, cloud-hosted phone systems, and broadband services. Vonex offers a range of products and services designed to enhance connectivity and communication efficiency for small to medium enterprises (SMEs) and residential customers.

How the Company Makes Money

Vonex Limited generates revenue primarily through its telecommunications services, which include voice, data, and internet solutions. The company earns money by offering business phone systems and related communication services to SMEs, charging subscription fees for their cloud-hosted PBX systems, and providing broadband internet services. Additionally, Vonex has strategic partnerships with other telecom operators and technology providers, which help expand its service offerings and customer base, thereby contributing to its revenue streams. The company also benefits from reseller agreements, allowing third parties to offer Vonex's services to their clients, thus broadening its market reach and enhancing its earnings potential.

Vonex Limited Financial Statement Overview

Summary

Vonex Limited shows strong revenue growth but negative profitability and financial instability due to high leverage and negative equity. Positive cash flow is a strength, but sustainability is a concern.

Income Statement

Vonex Limited has demonstrated a strong revenue growth trend, with a notable increase in total revenue over the past years. However, profitability remains a challenge, as indicated by the negative net income and fluctuating EBIT and EBITDA margins. The gross profit margin is healthy, but the net profit margin is negative, reflecting operational inefficiencies or high costs.

Balance Sheet

The company's balance sheet shows high leverage with a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is high, and the negative equity ratio suggests that liabilities exceed assets. This poses significant risks to financial health and sustainability.

Cash Flow

Vonex Limited has shown improvement in free cash flow, with positive growth over recent years. The operating cash flow to net income ratio is favorable, indicating effective cash management despite the negative net income. However, the heavy reliance on financing activities in prior periods raises concerns about the sustainability of cash flows.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	48.19M	45.45M	33.62M	18.26M	12.77M
Gross Profit	21.36M	6.97M	8.58M	-185.76K	513.90K
EBITDA	4.98M	-17.92M	2.92M	-3.24M	-751.96K
Net Income	-1.34M	-22.82M	251.69K	-3.98M	-705.96K
Balance Sheet
Total Assets	35.32M	36.43M	48.45M	11.81M	12.23M
Cash, Cash Equivalents and Short-Term Investments	2.93M	1.79M	3.20M	3.66M	4.81M
Total Debt	25.71M	23.33M	15.61M	995.33K	950.55K
Total Liabilities	39.00M	39.36M	29.24M	6.23M	5.42M
Stockholders Equity	-3.68M	-2.93M	19.21M	5.58M	6.81M
Cash Flow
Free Cash Flow	4.70M	2.24M	5.18M	-503.42K	-802.41K
Operating Cash Flow	4.79M	2.56M	5.33M	-342.39K	-729.24K
Investing Cash Flow	-98.11K	-8.52M	-31.36M	-636.47K	1.23M
Financing Cash Flow	-3.55M	4.56M	25.57M	-173.64K	1.13M

Vonex Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 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:VN8, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 86.90 is Negative, neither overbought nor oversold. The STOCH value of 374.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VN8.

Vonex Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWP	61 Neutral	€24.67M	―	-13.80%	―	-0.93%	80.57%
Sector *	55 Neutral	AU$3.59B	16.78	-1.37%	3.07%	4.07%	-17.03%
FSG	52 Neutral	AU$17.02M	―	-7.44%	―	―	―
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	$41.70M	―	-11.39%	―	-23.80%	92.86%

Vonex Limited Corporate Events

Vonex Limited Enhances Operations and Expands Leadership Amid Strategic Acquisition Plans

Vonex Limited has made significant strides in enhancing its operational efficiency and customer experience, as evidenced by its continued recognition for having the lowest number of complaints in the industry. The company is expanding its network infrastructure with new Points of Presence in Perth and Adelaide, improving service reliability and latency. Additionally, Vonex has strengthened its leadership team with the appointment of two new executives to drive product innovation and ensure compliance. The company is also progressing with a Scheme Implementation Deed to acquire remaining shares from MaxoTel, indicating a strategic move to consolidate its ownership structure.

Swoop Supports Vonex-Maxotel Acquisition Scheme

Vonex Limited has entered into a Scheme Implementation Deed with Maxo Telecommunications Pty Ltd, where MaxoTel will acquire all remaining shares in Vonex for 3.60 cents per share. Swoop Holdings Limited, a significant shareholder in Vonex, supports the Scheme and plans to vote in favor, resulting in approximately $6.17 million in cash proceeds for Swoop. This transaction will enable Swoop to exit its investment in Vonex, allowing the company to concentrate on its core growth priorities and redeploy capital into strategic initiatives or acquisitions.

Vonex Limited Agrees to Acquisition by MaxoTel

Vonex Limited has entered into a Scheme Implementation Deed with MaxoTel, which will acquire all remaining shares of Vonex it does not already own for 3.60 cents per share, representing an 80% premium over the last closing price. The Vonex Board recommends shareholders vote in favor of the scheme, which is expected to be implemented by October 2025, as it provides a significant premium and certainty of value for shareholders.

Vonex Limited Announces Cessation of Performance Rights

Vonex Limited announced the cessation of 8,000,000 performance rights due to the lapse of conditional rights which were not satisfied. This development may impact the company’s capital structure and could have implications for stakeholders regarding the company’s ability to meet certain performance conditions.

Vonex Limited Strengthens Financial Position and Leadership

Vonex Limited has announced several key developments for the quarter ending March 2025, including the appointment of Michael Blake as CEO and the successful completion of an entitlement offer and debt refinancing. The company raised approximately $13.89 million through a non-renounceable entitlement offer, which was used to repay existing debt, significantly improving its capital structure and financial flexibility. Additionally, Vonex refinanced the remaining debt with a new facility from Westpac Banking Corporation, providing longer-term financial stability. The company also received recognition from the Australian Communications and Media Authority for having the lowest number of complaints per 10,000 services for the second consecutive quarter, highlighting its commitment to operational excellence and customer satisfaction.