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Fitell Corporation (FTEL)
:FTEL
US Market

Fitell Corporation (FTEL) AI Stock Analysis

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Fitell Corporation

(NASDAQ:FTEL)

Rating:42Neutral
Price Target:
Fitell Corporation's stock is currently rated low due to significant financial performance challenges, including declining revenues and profitability, negative returns, and cash flow issues. Technical analysis indicates a strong bearish trend with oversold conditions, while valuation metrics show a negative P/E ratio, suggesting poor earnings potential. These factors contribute to an overall unfavorable investment outlook.

Fitell Corporation (FTEL) vs. SPDR S&P 500 ETF (SPY)

Fitell Corporation Business Overview & Revenue Model

Company DescriptionFitell Corporation, through its subsidiary GD Wellness Pty Ltd, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company sells fitness equipment, such as home gym and commercial strength-training equipment; and cardio equipment, including rowing machines, exercise bikes, and treadmills under the Muscle Motion, Rapid Motion, and FleetX brand names. It also engages in the boutique fitness clubs licensing business. The company sells its products through department stores and e-commerce companies. Fitell Corporation was founded in 2007 and is headquartered in Taren Point, Australia. Fitell Corporation operates as a subsidiary of SKMA Capital and Investment Ltd.
How the Company Makes MoneyFitell Corporation generates revenue through the sale of its diverse range of fitness equipment and accessories. The company's key revenue streams include direct sales to consumers via its e-commerce platform and partnerships with retail chains for broader market distribution. Additionally, Fitell collaborates with commercial gyms and fitness centers to supply professional-grade equipment, offering leasing options and maintenance services which provide recurring revenue. Strategic partnerships with wellness-focused organizations and brand collaborations further enhance Fitell's market presence and contribute to its earnings.

Fitell Corporation Financial Statement Overview

Summary
Fitell Corporation is facing financial difficulties, with declining revenues and profitability, significant operational losses, and cash flow challenges. While the company's balance sheet shows a healthy equity ratio, the overall financial health is undermined by negative returns and cash flow inefficiencies.
Income Statement
40
Negative
Fitell Corporation has experienced significant revenue decrease from 2023 to 2024. The gross profit margin has declined to 35.5% in 2024, down from 45.3% in 2023, indicating decreased efficiency in cost management. The net profit margin is negative, at -208.5% in 2024, which is a deterioration from -33.2% in 2023, due to a significant net loss. EBIT and EBITDA margins are also negative, reflecting challenges in controlling operational costs.
Balance Sheet
55
Neutral
The debt-to-equity ratio improved to 0.06 from 0.11, indicating lower financial leverage. However, the return on equity (ROE) is negative at -103.4%, showing inefficiency in generating returns on shareholders' investments. The equity ratio stands at a strong 78.5%, suggesting a solid equity base relative to total assets.
Cash Flow
30
Negative
Fitell Corporation's cash flow statements show severe issues, with a negative free cash flow growth rate. Operating cash flow to net income ratio is negative, highlighting inefficiencies in converting earnings to cash. The company is relying heavily on financing activities to sustain operations.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue4.99M4.47M4.80M8.16M6.95M5.98M
Gross Profit964.91K1.59M2.17M3.64M2.75M1.68M
EBITDA-8.28M-7.98M-1.61M474.10K1.16M849.22K
Net Income-8.33M-9.31M-1.59M12.60K849.21K590.57K
Balance Sheet
Total Assets9.91M11.48M9.04M5.43M6.31M6.20M
Cash, Cash Equivalents and Short-Term Investments935.23K1.06M731.10K1.74M1.29M1.28M
Total Debt924.83K580.35K685.08K922.93K1.21M1.27M
Total Liabilities2.51M2.47M2.62M2.99M3.82M3.80M
Stockholders Equity7.40M9.01M6.42M2.44M2.49M2.40M
Cash Flow
Free Cash Flow-5.89M-12.25M-373.10K-183.52K1.55M1.44M
Operating Cash Flow-5.89M-12.25M-373.10K-131.78K1.55M1.44M
Investing Cash Flow0.00-2.50M0.00-465.30K-775.79K-300.08K
Financing Cash Flow2.32M15.47M-79.06K93.92K-737.04K-395.25K

Fitell Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.46
Price Trends
50DMA
0.52
Negative
100DMA
0.86
Negative
200DMA
10.28
Negative
Market Momentum
MACD
-0.02
Negative
RSI
50.81
Neutral
STOCH
59.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTEL, the sentiment is Neutral. The current price of 0.46 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.52, and below the 200-day MA of 10.28, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 59.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTEL.

Fitell Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DKDKS
78
Outperform
$16.24B14.4940.22%2.48%3.33%15.47%
77
Outperform
$17.70B48.6476.24%7.64%369.79%
ASASO
70
Neutral
$3.09B8.5720.14%1.14%-3.57%-17.43%
66
Neutral
£1.85B11.506.20%3.01%0.63%-17.57%
54
Neutral
$135.26M-15.67%-4.92%-13.73%
46
Neutral
$27.20M-39.57%4.20%-8.85%-397.36%
42
Neutral
-95.95%-6.93%-297.63%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTEL
Fitell Corporation
0.51
-30.09
-98.33%
BGFV
Big 5 Sporting Goods
1.19
-1.60
-57.35%
DKS
Dick's Sporting Goods
202.82
4.94
2.50%
SPWH
Sportsman's Warehouse
3.53
1.30
58.30%
CHWY
Chewy
42.83
17.39
68.36%
ASO
Academy Sports and Outdoors
46.51
-3.68
-7.33%
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: Feb 20, 2025