Xref Ltd (XF1) AI Stock Analysis

• Market Cap: AU$37.42M
• Dividend Yield: N/A
• Average Volume (3M): 130.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: 7.32%
• EPS Growth: 67.11%
• Country: AU
• Employees: 99
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 220,089,770
• 10 Day Avg. Volume: 99,244
• 30 Day Avg. Volume: 130,143
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1

• Rating: 50 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

The overall stock score of 50 reflects significant financial challenges with negative earnings and weak cash flows, balanced by some technical strength with bullish momentum. However, the overbought technical indicators and negative valuation metrics limit the attractiveness of the stock.

Xref Ltd Business Overview & Revenue Model

Company Description

Xref Limited engages in the development of human resources technology that automates the candidate reference process for employers in Australia, Canada, the United Kingdom, New Zealand, and the United States. It operates in two segments, Candidate Referencing and ID Verification. The company offers Xref, an automated reference checking tool for reference check templates, talent sourcing, background checking and identity verification, analytics and insights, and security and compliance solutions. It serves not-for-profit, health and aged care, hospitality, construction, and retail industries, as well as government and public sectors. The company is headquartered in Sydney, Australia.

How the Company Makes Money

Xref Ltd generates revenue primarily through subscription-based models and pay-per-use services. Companies subscribe to Xref's platform to access its suite of reference checking tools, either on a recurring subscription basis or through purchasing credits that can be used as needed. This flexible pricing structure caters to businesses of various sizes and industries, providing a scalable solution for reference management. Xref also partners with other HR technology providers to integrate its services within broader recruitment platforms, further expanding its market reach and creating additional revenue streams.

Xref Ltd Financial Statement Overview

Summary

Xref Ltd faces significant financial challenges, including persistent losses, declining revenues, negative equity, and cash flow difficulties. Stability and profitability improvements are crucial for better financial performance.

Income Statement

The company has struggled with profitability, as evidenced by negative EBIT and net income margins over the past few years. Revenue has decreased by approximately 2.6% from the previous year, indicating challenges in maintaining revenue growth. The gross profit margin remains strong at around 87.3%, but the negative EBITDA margin highlights operational inefficiencies.

Balance Sheet

Xref Ltd exhibits a weak balance sheet with negative stockholders' equity, indicating insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, and the company's equity ratio is also negative. These factors suggest significant financial instability and leverage issues.

Cash Flow

The company has negative free cash flow, indicating a lack of cash generation from operations. Operating cash flow has declined sharply, and the free cash flow to net income ratio is negative, highlighting the company's inability to generate cash profits. There is a concerning decline in free cash flow over the periods studied.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.86M	20.40M	18.59M	14.45M	8.03M
Gross Profit	17.33M	17.15M	14.92M	3.02M	-4.58M
EBITDA	-1.76M	-1.36M	1.57M	3.68K	-9.89M
Net Income	-5.68M	-3.36M	153.08K	78.08K	-10.06M
Balance Sheet
Total Assets	20.36M	22.90M	20.17M	15.00M	8.47M
Cash, Cash Equivalents and Short-Term Investments	4.59M	6.84M	11.67M	8.13M	2.87M
Total Debt	8.35M	5.33M	4.96M	4.69M	475.51K
Total Liabilities	26.21M	23.10M	18.70M	16.01M	10.88M
Stockholders Equity	-5.85M	-202.52K	1.47M	-1.01M	-2.40M
Cash Flow
Free Cash Flow	-3.80M	-2.17M	-833.27K	1.19M	-7.45M
Operating Cash Flow	-678.80K	454.40K	627.48K	2.32M	-7.38M
Investing Cash Flow	-3.12M	-4.34M	-1.46M	-1.13M	-648.62K
Financing Cash Flow	1.56M	-952.81K	380.71K	4.07M	2.86M

Xref Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:XF1, the sentiment is Negative. The current price of 0.17 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.18, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:XF1.

Xref Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XF1	50 Neutral	AU$37.42M	―		―	7.32%	67.11%
FLX	49 Neutral	51.10M	-9.48	111.05%	―	21.82%	6.83%
PRO	46 Neutral	16.96M	-2.61	0.00%	―	-4.90%	-52.78%
AMX	45 Neutral	19.00M	-2.89	0.00%	―	-3.43%	-40.65%
8CO	41 Neutral	8.74M	-11.14	0.00%	―	-10.32%	69.30%
DUB	38 Underperform	52.50M	-1.18	0.00%	―	9.14%	65.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Xref Ltd Corporate Events

Xref Ltd Announces Cessation of Securities

Xref Ltd announced the cessation of several securities, including options with varying expiration dates and exercise prices, due to either expiry without exercise or other reasons. This cessation reflects a routine adjustment in the company’s capital structure, potentially impacting its financial strategy and stakeholder interests.