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Vection Technologies Ltd. (AU:VR1)
ASX:VR1
Australian Market

Vection Technologies Ltd. (VR1) AI Stock Analysis

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AU

Vection Technologies Ltd.

(Sydney:VR1)

Rating:50Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Vection Technologies Ltd. shows strong revenue growth but continues to struggle with profitability, reflected in its financial performance score. The technical analysis indicates slight bullish momentum but warns of potential overbought conditions. Valuation metrics are weak due to negative earnings and no dividend yield. The absence of earnings call data and corporate events means these components do not influence the score. The overall stock score reflects a company with growth potential but significant challenges in achieving profitability and delivering returns.

Vection Technologies Ltd. (VR1) vs. iShares MSCI Australia ETF (EWA)

Vection Technologies Ltd. Business Overview & Revenue Model

Company DescriptionVection Technologies Ltd. (VR1) is an innovative technology company specializing in the integration of virtual reality (VR), augmented reality (AR), and other immersive technologies into business processes. It serves various sectors including manufacturing, architecture, and healthcare by offering solutions that enhance business productivity and efficiency. Vection Technologies provides a suite of digital transformation tools designed to optimize workflows and improve collaboration through immersive experiences.
How the Company Makes MoneyVection Technologies Ltd. generates revenue primarily through the sale of its software solutions and services that incorporate virtual and augmented reality technologies. The company offers a subscription-based model for its software products, enabling businesses to integrate VR and AR into their operations. Key revenue streams include licensing fees from their proprietary software platforms, custom development projects for clients, and ongoing support and maintenance services. Additionally, Vection Technologies may engage in strategic partnerships with other tech firms and industries to expand its reach and product offerings, thereby contributing to its earnings.

Vection Technologies Ltd. Financial Statement Overview

Summary
Vection Technologies Ltd. demonstrates impressive revenue growth, but persistent losses and negative profitability metrics highlight ongoing operational challenges. The balance sheet shows moderate leverage and a stable equity base, yet declining equity is concerning. Cash flow improvements are notable, but sustainability remains crucial. Overall, while growth prospects are strong, achieving profitability and improving margins are key areas for improvement.
Income Statement
45
Neutral
The company has shown significant revenue growth from $2.54M in 2020 to $33.71M in 2024, indicating a strong upward trajectory. However, profitability remains a concern with consistent negative net income, as reflected in a net loss of $9.86M for 2024. The gross profit margin improved to 8.01% in 2024, up from negative margins in previous years, but EBIT and EBITDA margins remain negative, highlighting operational inefficiencies.
Balance Sheet
50
Neutral
The balance sheet shows a relatively stable equity base with stockholders' equity at $10.40M in 2024. The debt-to-equity ratio stands at 0.87, indicating moderate leverage, although a decline from previous years' higher ratios. The equity ratio of 22.51% suggests a balanced capital structure, but the reduction in equity over the years poses a potential risk.
Cash Flow
55
Neutral
The cash flow position has improved with a positive operating cash flow of $1.29M in 2024, compared to negative cash flows in prior years. Free cash flow turned positive in 2024 to $1.16M, indicating better cash management. The operating cash flow to net income ratio is positive, despite being driven by non-operating income, suggesting better cash conversion.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
35.17M32.83M25.33M17.22M3.08M2.55M
Gross Profit
5.57M8.54M-2.85M-1.93M180.14K425.75K
EBIT
2.50M-7.01M-8.40M-6.53M-2.48M-1.54M
EBITDA
-2.07M-6.36M-9.51M-5.88M-1.56M-591.48K
Net Income Common Stockholders
-4.56M-9.86M-10.82M-6.68M-2.41M-1.17M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.19M7.60M11.36M14.87M7.08M1.58M
Total Assets
40.08M46.21M42.10M40.20M31.34M16.23M
Total Debt
9.99M9.04M10.68M4.09M4.92M1.43M
Net Debt
4.80M1.43M-675.59K-10.77M-2.16M-152.88K
Total Liabilities
29.13M36.65M22.91M12.23M15.91M10.17M
Stockholders Equity
11.74M10.40M19.19M27.98M15.43M6.06M
Cash FlowFree Cash Flow
1.10M1.16M-10.56M-3.25M-3.72M-1.14M
Operating Cash Flow
678.00K1.29M-7.48M-1.25M-2.32M-312.53K
Investing Cash Flow
-4.69M-3.31M-3.09M-2.02M908.47K273.36K
Financing Cash Flow
1.69M-1.90M6.69M11.44M7.20M776.10K

Vection Technologies Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.02
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.02
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.82
Neutral
STOCH
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VR1, the sentiment is Neutral. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:VR1.

Vection Technologies Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
AURHT
61
Neutral
AU$18.38M140.00-3.11%89.13%69.57%
AUVR1
50
Neutral
AU$37.11M-44.01%21.55%64.76%
AUAR9
47
Neutral
AU$19.29M-45.31%-28.80%32.87%
AUBRN
45
Neutral
$450.91M-133.28%72.47%20.08%
AU3DP
39
Underperform
$40.25M
83.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VR1
Vection Technologies Ltd.
0.02
0.00
0.00%
AU:3DP
Pointerra
0.05
0.02
42.86%
AU:BRN
BrainChip Holdings
0.23
<0.01
2.27%
AU:RHT
Resonance Health Ltd
0.04
-0.02
-33.33%
AU:AR9
archTIS Ltd.
0.07
-0.02
-22.22%

Vection Technologies Ltd. Corporate Events

Vection Technologies Reports Strong Revenue Growth and Strategic Initiatives
Jun 10, 2025

Vection Technologies Ltd has announced significant growth with a 60% increase in revenues, driven by its proprietary software platform, INTEGRATEDXR, which integrates multiple applications into client operations. The company is focused on earnings-additive acquisitions and has implemented internal cost efficiency and debt reduction initiatives, positioning itself as a leader in the growing market of Spatial Computing and AI.

Vection Technologies Announces Investor Webinar to Address Digital Business Challenges
Jun 3, 2025

Vection Technologies Ltd has announced an investor webinar scheduled for June 10, where Managing Director and CEO Gianmarco Biagi will discuss the company’s strategies for addressing real-world business challenges in the digital realm. This event offers shareholders and potential investors an opportunity to engage with the company through a moderated Q&A session, reflecting Vection Technologies’ commitment to transparency and stakeholder engagement.

Vection Technologies Secures $1 Million Defense Sector Contract
Jun 1, 2025

Vection Technologies Ltd has secured a $1 million order from a client in the defense sector, highlighting a growing collaboration. The contract involves a secure ICT solution to enhance cyber and data protection for national security intelligence, with deployment starting immediately. This deal strengthens Vection’s position in the defense, space, military, and law enforcement segments, paving the way for future scalable projects.

Vection Technologies Secures $0.5M AI Partnership with Area 12 Consulting
May 11, 2025

Vection Technologies Ltd has announced a strategic partnership with Area 12 Consulting, securing a $0.5 million annual commitment for its Algho AI software licenses and related services. This partnership not only guarantees a consistent revenue stream but also expands Vection’s presence in the generative AI market by offering advanced conversational and process automation tools to enterprises. The collaboration is a significant step in Vection’s mission to integrate AI into business practices, enhancing its position as a key player in the generative AI field.

Vection Technologies Completes Significant Share and Options Issuance
May 5, 2025

Vection Technologies Ltd has completed the issuance of 236,666,668 fully paid ordinary shares and 128,983,334 VR1O listed options as part of a placement announced on April 29, 2025. This issuance was conducted under the company’s available capacity according to Listing Rule 7.1 and 7.1A, allowing the shares and options to be sold without disclosure under specific sections of the Corporations Act. This move is expected to enhance the company’s financial flexibility and market positioning.

Vection Technologies Announces New Securities Quotation on ASX
May 5, 2025

Vection Technologies Ltd has announced the application for quotation of new securities on the ASX, including 236,666,668 ordinary fully paid shares and 128,983,334 options expiring in November 2027. This move is part of previously announced transactions and may enhance the company’s market presence and liquidity, potentially impacting its stakeholders positively.

Vection Technologies Secures $1.2M Grant for Digital-Twin Project in Food & Beverage Sector
May 5, 2025

Vection Technologies Ltd has been awarded a $1.2 million grant to lead Project ADDICTA, a digital-twin initiative in the food and beverage industry funded by Italy’s National Recovery and Resilience Plan. The project aims to enhance factory digitalization by using sophisticated sensors and Vection’s INTEGRATEDXR stack to provide real-time product intelligence, reducing waste and increasing efficiency. The project will be completed over eight months, with the platform eventually offered as a subscription service to small and mid-sized manufacturers, potentially expanding Vection’s market influence and creating new intellectual property without financial outlay.

Vection Technologies Announces Proposed Securities Issue
Apr 29, 2025

Vection Technologies Ltd announced a proposed issue of securities, including 128,983,333 options expiring in 2027 and 236,666,667 fully paid ordinary shares, with the issue date set for May 6, 2025. This move is likely aimed at raising capital to support the company’s growth and expansion efforts, potentially enhancing its market position and providing value to stakeholders.

Vection Technologies Surpasses Capital Raise Target Following Strong Q3 Performance
Apr 29, 2025

Vection Technologies announced a successful $3.55 million capital raise, exceeding its initial target of $2 million, following strong Q3 results. This funding highlights investor confidence in Vection’s AI-driven recurring-revenue strategy and will be used to accelerate AI-driven spatial computing efforts and market expansion in defense, industrial, and telecom sectors. The company reported a significant increase in cash receipts and recurring revenue, showcasing the scalability of its business model.

Vection Technologies Reports Strong Q3 FY25 Performance and Strategic Growth
Apr 28, 2025

Vection Technologies Ltd reported strong financial performance in Q3 FY25, with significant revenue growth and positive operating cash flow. The company achieved a 92% increase in cash receipts and improved its recurring revenue to 40% of total revenue. Notable achievements include QuestIT being recognized by Gartner, securing defense contracts, and expanding global distribution. The company also strengthened its board and continues to explore growth opportunities, positioning itself well for future expansion.

Vection Technologies Initiates Trading Halt for Capital Raising
Apr 28, 2025

Vection Technologies Ltd has requested a trading halt on its securities pending an announcement regarding a capital raising initiative. This move is aimed at supporting the expansion of its AI business and developing new markets, which could significantly impact its operations and market positioning.

Vection Technologies Boosts Recurring Revenue with New AI Contracts
Apr 8, 2025

Vection Technologies Ltd has announced that its recently acquired generative AI specialist, The Digital Box S.p.A. (TDB), has secured an additional $0.6 million in annual recurring contracts, bringing TDB’s total recurring revenue to $1.3 million. This achievement underscores the market’s confidence in Vection’s generative AI products and highlights the company’s successful strategy of integrating advanced AI with extended reality to meet digital transformation needs across various industries. The new contracts involve 14 clients, including notable agreements with NexyLab and Sella GenAI, and demonstrate the adaptability of Vection’s integrated solutions.

Vection Technologies Issues New Shares to Optimize Financial Operations
Mar 31, 2025

Vection Technologies Ltd has announced the issuance of 8,165,096 fully paid ordinary shares, with a significant portion allocated to an employee under the Employee Securities Incentive Plan and to a consultant for services rendered. This strategic move, conducted under the Corporations Act, is aimed at optimizing the company’s financial operations and enhancing its market positioning without the need for cash transactions.

Vection Technologies Issues Over 8 Million Shares on ASX
Mar 31, 2025

Vection Technologies Ltd has announced the issuance of 8,165,096 fully paid ordinary shares on the ASX. This issuance includes shares allocated to employees as part of an incentive plan and to a consultant as payment for services. This move reflects the company’s strategy to leverage equity-based compensation, potentially enhancing its cash flow management and aligning stakeholder interests.

Vection Technologies Secures $2 Million VAT Credit to Boost Financial Health
Mar 30, 2025

Vection Technologies Ltd has secured a one-off Value Added Tax (VAT) credit of approximately $2 million, which will be used to offset employee withholding tax and other financial obligations, boosting cash flow and enhancing financial health. This move underscores the company’s commitment to effective financial management and resource optimization, protecting shareholder value, and supporting the strategic advancement of its AI and XR solutions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.