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Wellnex Life Ltd (AU:WNX)
:WNX
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Wellnex Life Ltd (WNX) AI Stock Analysis

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AU:WNX

Wellnex Life Ltd

(Frankfurt:WNX)

Rating:39Underperform
Price Target:
AU$0.50
▲(66.67%Upside)
Wellnex Life Ltd is facing substantial financial difficulties with declining revenue, negative margins, and reliance on debt. The weak technical indicators and negative P/E ratio further weigh down the stock's attractiveness. These factors collectively result in a low overall stock score, indicating significant risks and challenges.

Wellnex Life Ltd (WNX) vs. iShares MSCI Australia ETF (EWA)

Wellnex Life Ltd Business Overview & Revenue Model

Company DescriptionWellnex Life Limited develops health and wellness solutions in Australia. The company provides organic baby skincare products under the Little Innoscents; nutritional support products under the Performance Inspired; iron gummies under The Iron Company; organic milk under the Uganic; natural energy products under the Wakey Wakey; smooth textured capsules under the Liquigesic; and garlic products under the SupaGarlic brands. It also offers bin cleanser solutions under the Bin Buddy; medical products under the Bird Healthcare; gel plasters for treating blisters, corns, cracked heels, and cold sores under the Compeed; oral emergency contraception pills under the EllaOne; skincare solutions under the Koéna; canned meats under the Plumrose; snacks under the Simply7; skincare products under the edited; natural herbal skincare products under the naked klay; and natural essential oil blends under the Planet Remedy brands. In addition, the company provides contract manufacturing services. Wellnex Life Limited has a collaboration with Onelife Botanicals for the manufacture, distribution, and sales of cannabis and hemp-based products. The company was formerly known as Wattle Health Australia Limited and changed its name to Wellnex Life Limited in June 2021. Wellnex Life Limited was incorporated in 2011 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyWellnex Life Ltd generates revenue primarily through the sale of its health and wellness products. The company employs a multi-channel distribution strategy, selling products directly to consumers through its online platforms and partnering with major retailers to reach a broader audience. Additionally, Wellnex Life collaborates with other companies in the health sector to co-develop and co-market new products, which can enhance its product offerings and increase market reach. Strategic partnerships and a focus on innovation in product development are significant factors contributing to Wellnex Life's earnings, enabling the company to capitalize on the growing demand for wellness products.

Wellnex Life Ltd Financial Statement Overview

Summary
Wellnex Life Ltd's financial performance is weak, with declining revenue, negative margins, and reliance on debt. The income statement shows a 39% revenue drop and negative net profit margin of -81%. The balance sheet reflects a significant reliance on debt, and cash flow analysis indicates persistent negative free cash flow, highlighting liquidity and capital management challenges.
Income Statement
35
Negative
The income statement reveals significant challenges for Wellnex Life Ltd with declining revenue, evident from a 39% drop from 2023 to 2024. Additionally, the company has consistently reported negative margins, with a net profit margin of -81% in 2024. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Despite some past revenue growth, these financial metrics highlight sustained profitability issues.
Balance Sheet
40
Negative
The balance sheet reflects moderate stability with a debt-to-equity ratio of approximately 1.76 in 2024, which suggests a significant reliance on debt financing. The company's equity has improved compared to prior years, but the overall equity ratio remains low at 19.6%, indicating limited asset backing. The return on equity is negative, driven by ongoing net losses, which further constrains financial flexibility.
Cash Flow
45
Neutral
Cash flow analysis shows persistent negative free cash flow, although operating cash flow improved from -$8.61M in 2022 to -$6.82M in 2024. The company's ability to cover net income with operating cash flow is weak, suggesting cash flow challenges despite financing efforts. The lack of positive free cash flow growth raises concerns about liquidity and capital management.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue16.93M27.89M18.61M1.20M934.00K
Gross Profit4.11M4.75M4.50M-165.00K447.00K
EBITDA-10.57M-6.82M-6.35M-18.41M-9.45M
Net Income-13.74M-13.85M-7.45M-24.69M-46.27M
Balance Sheet
Total Assets30.92M15.04M19.61M10.42M19.23M
Cash, Cash Equivalents and Short-Term Investments903.00K322.00K3.18M7.78M1.14M
Total Debt10.67M6.95M7.86M9.31M5.80M
Total Liabilities24.86M14.45M15.25M10.67M16.41M
Stockholders Equity6.06M594.00K4.36M-249.00K18.63M
Cash Flow
Free Cash Flow-6.82M-6.19M-8.65M-5.17M-31.34M
Operating Cash Flow-6.82M-6.19M-8.61M-4.38M-7.57M
Investing Cash Flow-13.42M-2.20M-3.65M9.45M-16.92M
Financing Cash Flow20.82M5.53M7.66M1.65M7.28M

Wellnex Life Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.27
Positive
100DMA
0.34
Negative
200DMA
0.49
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
57.64
Neutral
STOCH
58.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WNX, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.27, and below the 200-day MA of 0.49, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 58.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WNX.

Wellnex Life Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
48
Neutral
AU$23.79M
-5.86%98.26%
46
Neutral
C$204.55M-3.23-23.14%1.87%20.75%-0.36%
44
Neutral
AU$22.00M-47.74%43.14%51.35%
39
Underperform
AU$19.99M-240.42%14.41%76.26%
34
Underperform
AU$8.86M-105.17%-3.82%51.47%
31
Underperform
AU$4.23M
-16.29%58.77%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WNX
Wellnex Life Ltd
0.30
-0.88
-74.96%
AU:EVE
EVE Health Group Limited
0.04
0.01
33.33%
AU:NUC
Nuchev Pty Ltd
0.15
-0.03
-16.67%
AU:HCT
Holista Colltech Limited
0.07
0.06
600.00%
AU:NGS
Nutritional Growth Solutions Ltd.
0.02
>-0.01
-33.33%

Wellnex Life Ltd Corporate Events

Wellnex Life Ltd Updates on Director’s Interest
Jul 25, 2025

Wellnex Life Ltd announced a change in the director’s interest, specifically regarding Eric Jiang’s indirect interest through Acee Group Pty Ltd. The change involved the expiry of 1,191 options, leaving the number of securities held unchanged. This update reflects routine adjustments in the company’s governance and does not indicate any immediate strategic shifts or impacts on stakeholders.

Wellnex Life Ltd Announces Change in Director’s Securities Interests
Jul 25, 2025

Wellnex Life Ltd announced a change in the director’s interest notice, specifically regarding Jeffrey Yeh’s indirect interests in securities through entities like Kirby Superannuation Pty Ltd, JYSF Management Pty Ltd, and Homart Group Pty Ltd. The change involved the expiry of options, resulting in no options held after the change, which may impact the company’s financial positioning and stakeholder interests.

Wellnex Life Announces Director’s Change in Securities Holdings
Jul 25, 2025

Wellnex Life Limited announced a change in the director’s interest, specifically regarding George Karafotias, who disposed of 15,239 options. This change reflects an adjustment in the director’s holdings, leaving him with 149,825 fully paid ordinary shares. The expiration of these options may impact the company’s stock dynamics and investor perception, although no immediate financial implications were detailed.

Wellnex Life Limited Announces Director’s Interest Change
Jul 25, 2025

Wellnex Life Limited has announced a change in the director’s interest, specifically involving Zlatko (Zack) Bozinovski. The change involves the expiry of options held by ZLJ Pty Ltd and Bozinovski, resulting in a reduction of options but no change in the number of shares held. This update reflects internal adjustments in the company’s management structure and may impact stakeholders’ perception of the company’s governance.

Wellnex Life Ltd Announces Cessation of Securities
Jul 21, 2025

Wellnex Life Ltd announced the cessation of 550,000 securities due to the expiry of options without exercise or conversion as of July 20, 2025. This cessation may impact the company’s capital structure but is a routine financial adjustment, reflecting the company’s ongoing management of its securities and market positioning.

Wellnex Life Ltd Announces Cessation of Convertible Securities
Jul 15, 2025

Wellnex Life Ltd has announced the cessation of certain securities, specifically convertible notes, which were repaid or redeemed without conversion as of March 24, 2025. This move could impact the company’s financial structure and may reflect strategic financial management decisions, potentially affecting stakeholders’ interests.

Wellnex Life Ltd Announces Cessation of Securities
Jul 14, 2025

Wellnex Life Ltd announced the cessation of 5,055,123 securities due to the expiry of options or other convertible securities without exercise or conversion as of June 30, 2025. This development may impact the company’s capital structure and could influence its market positioning, as it reflects on the company’s strategic financial management and potential future capital-raising activities.

Wellnex Life Divests The Iron Company to Focus on Core Brands
Jul 2, 2025

Wellnex Life Limited has divested the assets of The Iron Company brand to CW Retail Holdings Pty Ltd, part of the Chemist Warehouse group, as part of its strategy to focus on key brands like Pain Away, Wakey Wakey, and Nighty Night. This move follows an internal review post its AIM listing and aims to enhance trade activity within the Chemist Warehouse group, aligning with Wellnex’s renewed strategic focus.

Wellnex Life Securities Reinstated on ASX
May 29, 2025

Wellnex Life Limited (ASX: WNX) has announced the reinstatement of its securities to trading on the ASX following a suspension. This comes after the company addressed queries from the ASX regarding a previous announcement made on May 26, 2025. The lifting of the suspension is expected to positively impact the company’s market operations and reassure stakeholders about its compliance and transparency.

Wellnex Life Retracts Announcement Over Financial Report Concerns
May 29, 2025

Wellnex Life Limited has retracted its previous announcement from May 26, 2025, due to concerns over the accuracy and reliability of prospective financial information in a research report by SP Angel, its UK broker. The company clarified that while it provided financial data to SP Angel, it does not endorse the report’s prospective financial information, leading to the retraction to maintain compliance with regulatory standards.

Wellnex Life Ltd Retracts Financial Forecasts in SP Angel Report
May 29, 2025

Wellnex Life Ltd has retracted financial forecasts previously shared in a research report produced by SP Angel, one of its UK-based brokers. The company had initially provided SP Angel with both public and internal financial targets for FY25 and FY26, which were used to generate independent forecasts. However, the company has since withdrawn these projections, which were based on assumptions of continued revenue growth, increased product distribution, and realization of sales targets.

Wellnex Life Ltd Securities Suspended from Quotation
May 27, 2025

The securities of Wellnex Life Ltd have been suspended from quotation by the ASX to prevent a disorderly or uninformed market. This suspension is pending the company’s response to queries from the ASX regarding a recent announcement titled ‘Letter to Shareholders’, which may impact the company’s market positioning and stakeholder relations.

Wellnex Life Limited Reports Strong Growth and Strategic Advancements
May 25, 2025

Wellnex Life Limited has announced significant growth and strategic advancements, including a 46% increase in revenue and a 55% rise in gross profit for the period of January to April 2025 compared to the previous year. The company has also eliminated $13 million in liabilities, reducing financial risks and interest costs, and is focusing on profitable, sustainable growth by streamlining its offerings and concentrating on high-potential brands. This marks a pivotal point for Wellnex, as it aims to maximize shareholder value and achieve sustainable cash flow.

Wellnex Life Announces Director Departure
May 6, 2025

Wellnex Life Limited announced the cessation of George Tambassis as a director, effective from May 6, 2025. The notice indicates that Tambassis held no relevant interests in securities as a registered holder or through other entities, suggesting minimal immediate impact on the company’s operations or market positioning.

Wellnex Life Announces Leadership Changes Following Successful AIM Listing
May 6, 2025

Wellnex Life Limited has announced changes to its board and management following a successful dual listing on the AIM Market of the London Stock Exchange. Non-Executive Chairman George Tambassis has resigned due to external commitments, and Andrew Vidler, an independent Non-Executive Director, will serve as interim Chairman. The company has also appointed Zack Bozinovski as joint CEO to focus on business growth and shareholder value. These changes aim to ensure a seamless transition and continued expansion in the healthcare market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 25, 2025