X2M Connect Limited (X2M) AI Stock Analysis

• Market Cap: AU$7.76M
• Dividend Yield: N/A
• Average Volume (3M): 32.23K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.01
• Revenue Growth: -36.98%
• EPS Growth: 41.46%
• Country: AU
• Employees: 54
• Sector: Technology
• Sector Strength: 82
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 388,181,850
• 10 Day Avg. Volume: 11,290
• 30 Day Avg. Volume: 32,228
• PEG Ratio: 0.04
• Price to Book (P/B): 26.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.12
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ―

X2M Connect Limited's stock score is primarily impacted by its weak financial performance marked by declining revenues and high leverage. Technical indicators suggest continued bearish momentum, while valuation metrics highlight unprofitability with no dividend yield. These factors together reflect significant challenges facing the company.

X2M Connect Limited Business Overview & Revenue Model

Company Description

X2M Connect Limited, a technology company, provides Internet of Things business technology for the utility sector in the Asia-Pacific. It offers a technology that connects various devices over the internet, such as water meters and gas pressure sensors, and enables data exchange and control of devices. X2M Connect Limited was incorporated in 2019 and is headquartered in Mount Waverley, Australia.

How the Company Makes Money

X2M Connect Limited generates revenue primarily through the sale of its IoT hardware devices and software solutions to utilities and municipalities. The company's key revenue streams include the upfront sale or lease of smart metering devices, subscription fees for access to its data analytics platforms, and ongoing maintenance contracts. Additionally, X2M may engage in strategic partnerships with utility companies or technology providers to expand its market reach and enhance its service offerings, thereby contributing to its earnings.

X2M Connect Limited Financial Statement Overview

Summary

X2M Connect Limited is facing significant financial challenges, with declining revenues, negative margins, and high leverage. The cash flow situation, while slightly improved, still indicates ongoing operational cash shortages. The company's financial stability is at risk due to weak profitability and high debt levels.

Income Statement

X2M Connect Limited has shown a downward trend in revenue growth, with a significant decline from the previous year. The gross profit margin is positive but very low, and the net profit margin remains negative, indicating ongoing profitability challenges. Both EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating potential financial risk. Stockholders' equity is low compared to total liabilities, leading to a low equity ratio. The negative return on equity suggests that the company is not generating profit from shareholders' investments.

Cash Flow

Operating cash flow remains negative, highlighting cash management issues. However, there is a slight improvement in free cash flow compared to the previous year. The free cash flow to net income ratio is negative, indicating the company is still struggling to generate sufficient cash from its operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
9.50M	13.38M	16.21M	10.39M	5.70M	2.25M
	Gross Profit
-1.35M	296.08K	3.80M	2.31M	-6.31M	-890.43K
	EBIT
-4.05M	-5.91M	-6.30M	-10.15M	-9.26M	-2.52M
	EBITDA
-3.97M	-4.45M	-5.26M	-9.54M	-8.01M	-1.90M
	Net Income Common Stockholders
-6.41M	-6.51M	-6.51M	-10.24M	-8.26M	-2.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.26M	1.94M	1.79M	1.02M	1.95M	302.09K
	Total Assets
12.80M	13.52M	14.18M	8.17M	6.94M	5.49M
	Total Debt
4.99M	3.49M	2.49M	1.14M	2.65M	4.66M
	Net Debt
4.25M	1.55M	701.15K	121.91K	697.87K	4.36M
	Total Liabilities
13.03M	12.98M	13.77M	6.62M	6.75M	6.86M
	Stockholders Equity
-233.96K	544.90K	405.25K	1.56M	185.22K	-1.36M
Cash Flow		Free Cash Flow
-3.72M	-2.42M	-5.03M	-7.91M	-4.02M	-1.55M
	Operating Cash Flow
-3.72M	-2.38M	-2.33M	-6.21M	-3.24M	-1.55M
	Investing Cash Flow
-5.09M	-3.33M	-2.91M	-1.81M	-648.64K	-5.29M
	Financing Cash Flow
4.78M	5.89M	5.97M	7.21M	5.54M	7.36M

X2M Connect Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:X2M, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 20.93 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:X2M.

X2M Connect Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
BTH	55 Neutral	$176.66M	―	-33.75%	―	-11.19%	-174.51%
X2M	42 Neutral	AU$7.76M	―	-1370.92%	―	-36.98%	41.46%
SERKF		$215.92M	―	-20.46%	―	―	―

X2M Connect Limited Corporate Events

X2M Connect’s Substantial Holder Increases Stake

X2M Connect Limited has announced a significant change in the interests of its substantial holder, Andrew C Greig. As of April 29, 2025, Greig’s voting power in the company has increased from 8.34% to 11.27%, following several transactions including rights issues and placements over the past few years. This increase in voting power could potentially impact the company’s governance and strategic decisions, reflecting Greig’s growing influence within the company.

X2M Connect Limited Issues New Securities to Bolster Market Position

X2M Connect Limited announced the issuance of fully paid ordinary shares and/or options without disclosure to investors under specific parts of the Corporations Act. The company has complied with relevant provisions of the Corporations Act and confirmed no excluded information exists as of the announcement date. This move is part of X2M’s ongoing strategy to enhance its market presence and operational capabilities in the utilities sector, potentially impacting its stakeholders by reinforcing its financial position and supporting its expansion plans.

X2M Connect Limited Announces Issuance of New Securities

X2M Connect Limited has announced the issuance of 9,840,587 ordinary fully paid securities as part of a payment for services and placement, with the issue date set for April 29, 2025. This move is expected to enhance the company’s financial flexibility and potentially strengthen its market position by leveraging the newly issued securities.

X2M Connect Expands Global Reach Amid Challenging Market Conditions

X2M Connect Limited reported a challenging third quarter with a 64% drop in revenue due to a soft market in South Korea and a strategic exit from low-margin hardware sales. Despite this, the company improved its gross margin to 47% and reduced operating costs by 9%. X2M secured significant new contracts in South Korea and the Middle East, including a 10-year deal in the UAE, and launched ‘Hive.AI by X2M,’ an AI-driven platform for renewable energy management. These developments are expected to enhance X2M’s recurring revenue streams and strengthen its market position.

X2M Connect Expands South Korean Market with New Contracts

X2M Connect Limited has secured four new contracts in South Korea, valued at approximately A$1.7 million, for water digitization across 13,625 households in Ulsan, Busan, Incheon, and Gyeongju. These contracts increase X2M’s total enterprise and government customers to 82 and expand its addressable market in South Korea to a potential A$580 million in upfront revenues. The deployments are expected to be completed by December 2025, with revenues recognized over the same period. This expansion reflects X2M’s strategic focus on the utility sector and its growth in the Asia-Pacific region.