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X2M Connect Limited (AU:X2M)
:X2M
Australian Market

X2M Connect Limited (X2M) AI Stock Analysis

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AU

X2M Connect Limited

(Sydney:X2M)

Rating:41Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
X2M Connect Limited's overall stock score is significantly impacted by its poor financial performance, characterized by declining revenues and high leverage. Technical analysis further supports a bearish outlook, with negative momentum indicators and the stock trading below key moving averages. The negative P/E ratio and lack of dividend yield highlight valuation concerns, reinforcing a cautious stance on the stock.

X2M Connect Limited (X2M) vs. iShares MSCI Australia ETF (EWA)

X2M Connect Limited Business Overview & Revenue Model

Company DescriptionX2M Connect Limited (X2M) is a technology company operating in the Internet of Things (IoT) sector. The company specializes in providing smart metering solutions and connectivity services that enable utilities and municipalities to manage and optimize the use of resources such as water, gas, and electricity. X2M's core products and services include advanced data analytics, real-time monitoring, and automated control systems that facilitate efficient resource management and sustainability.
How the Company Makes MoneyX2M 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
45
Neutral
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
40
Negative
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
50
Neutral
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue9.50M13.38M16.21M10.39M5.70M2.25M
Gross Profit-1.35M296.08K3.80M2.31M-6.31M-890.43K
EBITDA-3.97M-4.45M-5.26M-9.54M-8.01M-1.90M
Net Income-6.41M-6.51M-6.51M-10.24M-8.26M-2.38M
Balance Sheet
Total Assets12.80M13.52M14.18M8.17M6.94M5.49M
Cash, Cash Equivalents and Short-Term Investments1.26M1.94M1.79M1.02M1.95M302.09K
Total Debt4.99M3.49M2.49M1.14M2.65M4.66M
Total Liabilities13.03M12.98M13.77M6.62M6.75M6.86M
Stockholders Equity-233.96K544.90K405.25K1.56M185.22K-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 Flow4.78M5.89M5.97M7.21M5.54M7.36M

X2M Connect Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
49.73
Neutral
STOCH
17.79
Positive
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 below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 17.79 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
50
Neutral
AU$1.49B1.70-28.24%3.29%16.24%-7.89%
AUHYD
45
Neutral
AU$4.64M-637.73%-13.05%-184.09%
AUOLL
42
Neutral
AU$8.21M
-0.45%47.27%
AUX2M
41
Neutral
AU$7.18M-1370.92%-36.98%41.46%
AURLG
41
Neutral
AU$6.37M-70.87%-61.54%11.54%
AUZMM
40
Neutral
AU$3.42M-174.80%-50.78%45.67%
AUATV
38
Underperform
AU$6.18M-44.65%-42.73%-6050.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:X2M
X2M Connect Limited
0.02
-0.02
-50.00%
AU:ATV
Activeport Group Limited
0.01
-0.04
-80.00%
AU:RLG
RooLife Group Ltd.
AU:HYD
Hydrix Limited
0.02
0.01
100.00%
AU:OLL
OpenLearning Ltd.
0.02
0.00
0.00%
AU:ZMM
ZIMI Ltd
0.01
0.00
0.00%

X2M Connect Limited Corporate Events

X2M Connect Limited Announces Virtual General Meeting for Shareholders
Jul 2, 2025

X2M Connect Limited has announced its upcoming General Meeting, scheduled for 31 July 2025, which will be conducted via a live video conference. Shareholders are encouraged to participate by watching, listening, and voting online, with the option to submit questions in advance. Voting will be facilitated through the Automic Investor Portal, and shareholders are advised to lodge proxy forms at least 48 hours before the meeting.

X2M Connect to Hold General Meeting for Securities Issuance Approval
Jul 2, 2025

X2M Connect Limited has announced a General Meeting to be held via video conference on July 31, 2025, where shareholders will vote on the ratification and approval of the issuance of securities. The resolutions aim to reset the company’s placement capacity under ASX Listing Rules 7.1 and 7.1A and seek shareholder approval for issuing securities beyond these capacities. This move is significant for the company’s operational flexibility and may impact its market strategy and stakeholder interests.

X2M Connect’s Partner Dicode Secures Major UAE Smart Metering Contract
Jul 1, 2025

X2M Connect Limited’s strategic partner, Dicode Smart Connect Electronics, has secured a significant contract in the UAE to install smart meters in 10,000 apartments, marking its second major contract in the region this year. X2M is investing in Dicode, taking a 7% equity stake, and Dicode will exclusively use X2M’s technology for a decade, positioning X2M as a key player in the Middle East’s smart infrastructure sector.

X2M Connect Expands Market Reach with New Share Issuance
Jun 26, 2025

X2M Connect Limited has issued fully paid ordinary shares and options without disclosure to investors, in compliance with the Corporations Act. This move is part of their strategy to enhance their market presence and operational capabilities in the utilities sector, particularly in the Asia-Pacific region, while also expanding into the Middle East.

X2M Connect Limited Announces Quotation of New Securities
Jun 26, 2025

X2M Connect Limited has announced the quotation of 46,875,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of June 26, 2025. This move is part of previously announced transactions and is expected to impact the company’s market presence and stakeholder interests positively.

X2M Connect Expands South Korean Market with New Contracts
Jun 25, 2025

X2M Connect Limited has secured new contracts in South Korea valued at approximately $1 million for remote water metering, adding to a total of over $5.5 million in contracts for the fourth quarter of FY25. This marks a significant improvement in the Korean market, with municipalities resuming digitization of water systems. The new contracts expand X2M’s customer base to 84, increasing their addressable market by 113,000 households. The company’s CEO highlighted the strong momentum and growth potential as X2M enters FY26 with a solid foundation.

X2M Connect Secures $3 Million Seoul Smart City Safety Contract
Jun 23, 2025

X2M Connect Limited has secured a $3 million contract with the City of Seoul to supply 100,000 IoT-connected personal safety devices as part of Seoul’s 2025 Smart City public safety initiative. This project, which integrates with Seoul’s existing smart city infrastructure, aims to enhance urban safety, particularly for women and vulnerable citizens, and is backed by a new South Korean security mandate. The initiative has the potential to expand to 1 million devices, providing significant growth opportunities for X2M in municipal and national government markets. The project not only strengthens X2M’s position in South Korea but also opens avenues for similar solutions in the Australian market and beyond, aligning with urban environments’ digital transformation agendas.

X2M Connect Limited Announces Proposed Securities Issuance
Jun 18, 2025

X2M Connect Limited has announced a proposed issue of securities, including 131,675,000 call options at $0.016 and 131,675,000 piggyback options expiring on 31 July 2027, along with 75,456,000 ordinary fully paid shares. The issuance is set for 8 August 2025 and is part of a placement or other type of issue, with the company seeking quotation on the ASX. This move could potentially enhance X2M Connect Limited’s financial flexibility and market presence.

X2M Connect Bolsters Financial Position with $1.95 Million Capital Raise
Jun 18, 2025

X2M Connect Limited has announced a capital raise of $1.95 million through a share placement, with $0.9 million in new equity funding primarily from Singapore and Hong Kong investors. This move, along with the conversion of $1.05 million of debt to equity by existing note holders, aims to strengthen the company’s balance sheet. The funds will support business expansion, product enhancements, and working capital, as X2M accelerates its expansion into AI and data aggregation. The capital raise reflects investor confidence in X2M’s long-term vision and strategic positioning in the growing IoT and utilities market.

X2M Connect Limited Initiates Trading Halt Ahead of Capital Raising Announcement
Jun 15, 2025

X2M Connect Limited has requested a trading halt on its securities pending an announcement regarding a capital raising. This move is part of the company’s strategic efforts to strengthen its financial position and support its ongoing operations in the utilities sector. The trading halt is expected to end with the announcement or the resumption of normal trading on 18 June 2025. This development could have significant implications for X2M’s market positioning and stakeholder interests, as it seeks to capitalize on growing demand in the IoT and utility markets.

X2M Connect’s Substantial Holder Increases Stake
May 2, 2025

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
Apr 30, 2025

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
Apr 30, 2025

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
Apr 30, 2025

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.

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 04, 2025