ESGL Holdings (ESGL) AI Stock Analysis

• Market Cap: $158.48M
• Dividend Yield: N/A
• Average Volume (3M): 21.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 79
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.06
• Shares Outstanding: 41,816,240
• 10 Day Avg. Volume: 15,698
• 30 Day Avg. Volume: 21,506
• PEG Ratio: 0.14
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 1.41
• P/FCF Ratio: -1.68
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 69.72
• Enterprise Value/Gross Profit: 95.48
• Enterprise Value/Ebitda: -353.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $4.00 ▲(0.00% Upside)

The overall stock score of 52 reflects significant financial challenges, including negative profitability and cash flow issues, despite some improvements in gross profit margins and leverage. Technical analysis shows positive momentum, but valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Strategic Partnerships

The partnership to explore a carbon-neutral race circuit highlights ESGL's commitment to sustainability and innovation, potentially expanding its market reach and reinforcing its position in the renewable energy sector.

Leverage Management

Improved leverage management indicates better financial health and risk management, enhancing ESGL's ability to invest in growth opportunities and withstand economic fluctuations.

Gross Profit Margin Improvement

Significant improvement in gross profit margin suggests enhanced operational efficiency and cost management, which can support long-term profitability and competitive positioning.

Negative Factors

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, limiting ESGL's ability to fund operations and invest in growth without external financing, which could impact financial stability.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects challenges in maintaining market demand and competitive pressures, potentially affecting ESGL's long-term growth prospects and market share.

COO Resignation

The resignation of the COO could lead to strategic and operational disruptions, affecting leadership stability and execution of business strategies until a permanent replacement is found.

ESGL Holdings Business Overview & Revenue Model

Company Description

ESGL Holdings Limited offers waste solutions. The company regenerates industrial waste into circular products using technologies and renewable energy. It also offers sludge and solid industrial waste; acid and waste; and wood waste treatment to semiconductor, pharmaceuticals, petrochemical, electroplating, and wastewater treatment industries. ESGL Holdings Limited was founded in 1999 and is headquartered in Singapore.

How the Company Makes Money

ESGL generates revenue through multiple streams: primarily, it earns income from its technology solutions by providing software development and consulting services to businesses seeking to enhance operational efficiency. Additionally, the investment management division contributes significantly by managing a diverse portfolio of assets, generating management fees and performance-based incentives. Revenue also comes from renewable energy projects, including power purchase agreements and government incentives for sustainable energy production. Strategic partnerships with technology firms and renewable energy providers further bolster ESGL's financial performance, allowing for collaborative projects that expand their market reach and enhance profitability.

ESGL Holdings Financial Statement Overview

Summary

ESGL Holdings shows a mixed financial performance with improvements in gross profit margins and leverage management. However, persistent net losses, negative cash flows, and inconsistent revenue growth highlight ongoing financial challenges. The company needs to address operational inefficiencies and improve cash flow management to enhance financial stability.

Income Statement

The company has shown a significant improvement in gross profit margin, reaching 92.95% in 2024 from 69.13% in 2023. However, the net profit margin remains negative, indicating ongoing profitability challenges. Revenue growth has been inconsistent, with a decline in 2024 compared to 2023. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has improved, dropping to 0.44 in 2024 from 0.99 in 2023, indicating better leverage management. However, the return on equity remains negative due to persistent net losses. The equity ratio is stable, suggesting a balanced asset financing structure, but overall financial health is impacted by high liabilities.

Cash Flow

The company experienced a significant decline in operating cash flow in 2024, turning negative from a positive position in 2023. Free cash flow also deteriorated, indicating cash management issues. The operating cash flow to net income ratio is unfavorable, highlighting cash flow challenges despite financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.02M	6.10M	6.16M	4.99M	3.96M	2.65M
Gross Profit	1.47M	5.67M	4.26M	3.21M	2.64M	1.26M
EBITDA	-398.53K	2.31M	-92.10M	162.80K	1.48M	-43.00K
Net Income	-1.93M	-633.00K	-94.98M	-2.39M	-669.00K	-1.58M
Balance Sheet
Total Assets	26.66M	25.86M	25.63M	25.63M	16.99M	16.27M
Cash, Cash Equivalents and Short-Term Investments	1.16M	634.88K	366.76K	252.40K	137.01K	232.77K
Total Debt	8.63M	6.47M	7.95M	8.06M	8.50M	8.94M
Total Liabilities	13.41M	11.14M	17.61M	12.50M	11.14M	10.61M
Stockholders Equity	13.25M	14.71M	8.02M	13.12M	5.85M	5.67M
Cash Flow
Free Cash Flow	-1.30M	-5.13M	2.87M	456.04K	857.47K	-2.15M
Operating Cash Flow	-240.50K	-3.11M	4.91M	1.97M	2.49M	357.36K
Investing Cash Flow	30.89M	-2.02M	-2.04M	-1.48M	-1.64M	-2.51M
Financing Cash Flow	-31.22M	5.40M	-2.76M	-370.25K	-953.30K	2.31M

ESGL Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESGL, the sentiment is Positive. The current price of 4 is above the 20-day moving average (MA) of 3.77, above the 50-day MA of 3.85, and above the 200-day MA of 2.79, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.78 is Neutral, neither overbought nor oversold. The STOCH value of 99.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESGL.

ESGL Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
QRHC	53 Neutral	$39.24M	―	-44.35%	―	-9.25%	-189.37%
ESGL	52 Neutral	$158.48M	-58.67	-23.18%	―	―	―
PESI	47 Neutral	$237.71M	―	-23.26%	―	-9.64%	40.01%
LNZA	37 Underperform	$44.78M	-0.29	-696.09%	―	-31.28%	42.94%

ESGL Holdings Corporate Events

ESGL Holdings Explores Carbon-Neutral Luxury Race Circuit in Bintan

On November 26, 2025, ESGL Holdings Limited announced a non-binding Memorandum of Understanding with De Tomaso Automobili Holdings Limited and PT Buana Megawisatama to explore the development of a carbon-neutral luxury race circuit in Bintan, Indonesia. This initiative aims to integrate ESGL’s low-carbon technologies, De Tomaso’s luxury automotive design, and PBM’s strategic land development expertise, potentially positioning Bintan as a hub for sustainable mobility and luxury automotive experiences. The collaboration underscores ESGL’s mission to expand circular economy solutions into new sectors, including experiential mobility and low-carbon infrastructure, and highlights the strategic importance of sustainability in regional infrastructure development.

ESGL Holdings Completes Private Placement Raising $1.5 Million

ESGL Holdings Limited, a company involved in strategic mergers and acquisitions, has completed a series of private placements as part of a Share Purchase Agreement initiated on January 17, 2025. The company issued a total of 1,875,000 ordinary shares, raising gross proceeds of $1,500,000, with plans to allocate approximately 80% of the net proceeds towards strategic mergers and acquisitions and 20% for working capital.

ESGL Holdings Extends Share Purchase Agreement with De Tomaso

On October 31, 2025, ESGL Holdings Limited, a company involved in a share purchase agreement with De Tomaso Automobili Holdings Limited, agreed to extend the agreement’s term. The extension moves the long stop date from October 31, 2025, to December 31, 2025, allowing more time for the conditions of the agreement to be fulfilled. This extension reflects ongoing negotiations and adjustments in the acquisition process, which may impact stakeholders by providing additional time for due diligence and other necessary preparations.

ESGL Holdings Announces COO Resignation and Interim Appointment

On September 1, 2025, ESGL Holdings Limited announced the resignation of its Chief Operating Officer, Mr. Lee Meng Seng, effective October 31, 2025, citing personal reasons unrelated to any company disagreements. In the interim, Ms. Lim Kwee Mei, with over a decade of experience in the industry, will assume the COO responsibilities, ensuring a smooth transition with the CEO, Mr. Quek Leng Chuang. The board is actively reviewing candidates for the permanent COO position.

ESGL Holdings Reports Decline in Mid-2025 Financials

ESGL Holdings Limited has released its unaudited consolidated financial statements for the six-month period ending June 30, 2025. The report highlights a decrease in revenue from $3,487,879 in 2024 to $2,716,369 in 2025, alongside increased expenses in logistics, depreciation, and employee benefits. The company’s net assets declined from $14,713,113 at the end of 2024 to $13,534,139 by mid-2025, indicating financial challenges that may impact its market positioning and stakeholder interests.

ESGL Holdings Extends Merger Agreement with De Tomaso

On August 31, 2025, ESGL Holdings Limited and De Tomaso Automobili agreed to extend their merger agreement deadline to October 31, 2025, reaffirming their commitment to the business combination. The merger, which is in the final stages of Nasdaq review, is expected to create a strong, value-driven public company, enhancing growth opportunities for both parties.